Why Fluence Energy Stock Crushed the Market Today

Fluence Energy (NASDAQ: FLNC) posted its fiscal second-quarter earnings report after market hours Wednesday, and the following trading session investors rewarded it handsomely. The next-generation battery storage systems company saw its stock pop by almost 7%, on a Thursday when the S&P 500 (SNPINDEX: ^GSPC) could only muster a 0.6% gain.

Steep decreases

Fluence gauged its quarterly revenue at roughly $431.6 million, which was around a 31% decrease from the same period a year ago. This isn't as ugly as it appears, since according to the company, the discrepancy is mainly due to what it described as "the pronounced back-end nature of expected revenue for full-year 2025, compared to the revenue distribution seen in full-year 2024."

Image source: Getty Images.

Accompanying this was a far deeper non-GAAP (generally accepted accounting principles) adjusted net loss of just over $31 million, or $0.24 per share, against a shortfall of nearly $9.2 million in the year-ago quarter.

Analysts were collectively estimating an adjusted net loss of $0.19 per share, and revenue of $343.5 million.

Reduced guidance

For the second quarter in a row, Fluence reduced its revenue guidance for the entirety of 2025. It now believes it will book $2.6 billion to $2.8 billion, down from the preceding forecast of $3.1 billion to $3.7 billion (not to mention the original guidance of $3.6 billion to $4.4 billion).

The company said this latest reduction was due to what it said were mutual decisions between it and clients to pause existing U.S. contracts and defer pending ones. That should remain in force until both parties gain better clarity into the current state of trade, which is in flux due to the vagaries of the trade war.

Also getting a chop was 2025 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), to a range of breakeven to $20 million; previously this was far higher at $70 million to $100 million.

Fluence investors are clearly a hardy bunch, but I think this company is far too volatile for comfort. I'd stay away from it for now.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fluence Energy. The Motley Fool has a disclosure policy.