NEW YORK, August 6, 2026, 06:03 EDT
- Fluence set to open at $11.80, falling 17.1% in premarket trading. The shares ended Wednesday’s session down 9.2% at $14.23.
- Management reduced the fiscal 2026 revenue midpoint by 11.8%. The adjusted EBITDA midpoint declined by $60 million.
- The backlog hit an all-time high of $6.4 billion. Inventory increased by 72%, and total cash declined 49% compared to September.
Fluence Energy, Inc. NASDAQ:FLNC dropped 17.1% to a provisional $11.80 in premarket trading on Thursday. The company lowered its fiscal 2026 revenue midpoint by $400 million. Delays in production moved those project deliveries to fiscal 2027.
The figures indicate conversion rather than demand. Orders for the quarter were 2.2 times revenue, while backlog amounted to 2.1 times the adjusted annual sales midpoint.
Cash conversion saw a significant drop. Inventory increased by $328 million since September, coming close to offsetting the $350 million reduction in total cash. Gross margin dropped by 9.7 percentage points.
| Fiscal third-quarter measure | Q3 FY2026 | Q3 FY2025 | Change |
|---|---|---|---|
| Revenue | $649.8 million | $602.5 million | +7.9% |
| GAAP gross margin | 5.1% | 14.8% | -9.7 points |
| Net income or loss | $(44.3) million | $6.9 million | $51.2 million adverse |
| Adjusted EBITDA | $(29.3) million | $27.4 million | $56.7 million adverse |
| Order intake | Over $1.44 billion | $508.8 million | Approximately +183% |
Company data; adjusted EBITDA is a non-GAAP metric. Variations reflect reported figures.
Revenue increased, though its quality declined. Public consensus forecasts placed expectations between $811.1 million and $819.2 million. The disclosed result fell short of that band by about 20%.
Chief Executive Julian Nebreda stated, “Customer demand for Fluence solutions continues to strengthen.” He noted that production is expected to meet target levels early in fiscal 2027. The delivery gap persists. Fluence
| Management forecast | Earlier FY2026 | Updated FY2026 | Midpoint revision |
|---|---|---|---|
| Revenue | $3.2-$3.6 billion | $2.9-$3.1 billion | -$400 million |
| Adjusted EBITDA | $40-$60 million | $(30)-$10 million | -$60 million |
| Annual recurring revenue | About $180 million | About $180 million | No change |
Management provided these estimates as of August 5. Outcomes may vary.
The reduction in profit exceeded the decline in sales. The midpoint for revenue decreased by 11.8%, while the adjusted EBITDA midpoint was down $60 million. Guidance for annual recurring revenue was unchanged at $180 million.
Management said approximately $44 million of the EBITDA reduction was linked to postponed revenue. This represents 11% of the $400 million delivery delay. The percentage is based on a calculation and not provided as company guidance.
| Demand-versus-conversion indicator | Most recent value | Comparison value | Outcome |
|---|---|---|---|
| Q3 orders compared with revenue | $1.44 billion | $649.8 million | 2.2 times |
| Backlog compared to updated annual revenue midpoint | $6.4 billion | $3.0 billion | 2.1 times |
| Recently signed storage agreements | 2.6 GW | 0.7 GW a year ago | +271% |
Ratios are derived from figures reported by the company.
Fluence landed $850 million in data-center contracts by July, with $550 million of the total coming from a single undisclosed hyperscaler. These bookings provide visibility into demand but do not guarantee delivery.
Chief Financial Officer Ahmed Pasha stated that “the associated revenue remains in backlog and is expected to be recognized in fiscal 2027.” Fluence disclosed quarter-end liquidity at $863 million. While this buffer lessens execution risk, it does not entirely eliminate it. Fluence
| Balance-sheet indicator | September 2025 | June 2026 | Change |
|---|---|---|---|
| Total cash, including restricted funds | $714.6 million | $365.0 million | -48.9% |
| Inventory | $455.0 million | $783.0 million | +72.1% |
| Supplier prepayments | $126.8 million | $226.4 million | +78.6% |
| Receivables not yet billed | $239.6 million | $328.2 million | +37.0% |
| Revenue received in advance | $640.5 million | $956.5 million | +49.3% |
Dollar amounts and percentage figures are derived from company balance sheet information.
The rise in inventory accounted for 94% of the drop in cash. This comparison does not establish causality. Management attributed third-quarter cash outflows to inventory intended for fourth-quarter deliveries.
Operating cash use over nine months improved to $366.5 million from $411.3 million but stayed substantial. An increase in deferred revenue partially supported the working-capital buildup.
| Analyst call before results | Analysts | Proportion |
|---|---|---|
| Buy | 6 | 37.5% |
| Hold | 8 | 50.0% |
| Sell | 2 | 12.5% |
Google Finance summary reflecting input from 16 analysts over the last three months.
Prior to the announcement, 50% of analysts maintained Hold ratings. Consensus price target averaged $20.13, with estimates spanning from $9 to $28. Following Thursday’s call, those figures may be adjusted.
Risks: Backlog could be delayed, cancelled, or deliver lower margins. Risks persist around manufacturing ramp-up, reliance on suppliers, and project expenditure. Premarket quotes may fluctuate significantly due to limited liquidity.
Fluence will hold its call at 8:30 a.m. EDT. Investors look for clear timelines for production, fourth-quarter shipment requirements, and updates on working capital. These responses will gauge if the surge in demand translates into cash flow.
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