Fluence Energy FY2025 Annual Results: Revenue Down 16% to $2.3B as Battery Prices Decline, Net Loss Returns

Key takeaways

• Total revenue declined 16.1 % to $2.26 billion, driven by lower per-GWh pricing on Gridstack Pro solutions as lithium-ion battery costs continued to fall — even as the volume of solutions projects fulfilled remained consistent year over year.
• Fluence swung to a net loss of $68.0 million from net income of $30.4 million in FY2024, as higher R&D and sales expenses outpaced the impact of improved gross margins.
• Gross margin improved to 13.1 % (from 12.6 %), reflecting operational efficiencies on legacy Gridstack projects and lower lithium-ion battery costs.
• Cumulative deployed capacity reached 6.8 GW (17.8 GWh), up 36 % from 5.0 GW in FY2024, across 33 markets in 25 countries.
• The company launched Smartstack, a new split-architecture product, and began domestic battery module production at its Utah contract manufacturing facility in September 2024, with a second facility in Arizona commissioned in 2025.

1. Headline numbers

Fluence Energy reported total revenue of $2.26 billion for the fiscal year ended September 30, 2025, down 16.1 % from $2.70 billion in FY2024. The decline was driven by a $475.7 million decrease in energy storage products revenue as lower average price per GWh offset consistent fulfillment volumes. Services revenue partially offset this, increasing $39.1 million as more systems transitioned to the operations and maintenance phase.

Metric	FY2025	FY2024	Change
Total revenue	$2,262.8 M	$2,698.6 M	-16.1 %
Cost of goods and services	$1,967.0 M	$2,357.5 M	-16.6 %
Gross profit	$295.8 M	$341.1 M	-13.3 %
Gross margin	13.1 %	12.6 %	+0.5 pp
R&D expenses	$86.2 M	$66.2 M	+30.2 %
Net income (loss)	($68.0 M)	$30.4 M	NM
Adjusted EBITDA	$19.5 M	$78.1 M	-75.1 %
Adjusted gross profit margin	13.7 %	12.9 %	+0.8 pp
Free cash flow	($160.4 M)	$71.6 M	NM

The return to a net loss was driven by multiple factors: gross profit declined $45.3 million, R&D spending increased $20.0 million (for Smartstack and Gridstack Pro product lines), and sales and marketing expenses rose $15.6 million as the company expanded its sales force. Interest expense also increased $9.8 million due to the $400 million convertible senior notes issued in December 2024.

2. Revenue by type and geography

Fluence operates as a single reportable segment but breaks out revenue by type and geography.

Revenue by type

Revenue type	FY2025	FY2024	Change
Energy storage products and solutions	$2,172.4 M	$2,648.0 M	-18.0 %
Services	$84.4 M	$45.4 M	+86.2 %
Digital applications	$6.0 M	$5.2 M	+16.1 %
Total	$2,262.8 M	$2,698.6 M	-16.1 %

Energy storage products remain 96 % of revenue. Services revenue growth reflects the expanding installed base transitioning from deployment to long-term O&M contracts.

Revenue by geography

Region	FY2025	FY2024	Change
Americas	$1,305.9 M (57.7 %)	$1,593.0 M (59.0 %)	-18.0 %
EMEA	$608.3 M (26.9 %)	$526.3 M (19.5 %)	+15.6 %
APAC	$348.6 M (15.4 %)	$579.3 M (21.5 %)	-39.8 %
Total	$2,262.8 M	$2,698.6 M	-16.1 %

EMEA was the only region to grow, increasing 15.6 % to $608.3 million. U.S. revenue specifically was $877.3 million, down from $1,442.0 million in FY2024, reflecting tariff-related contracting delays and the ramp-up challenges at the Arizona production facility. APAC declined 39.8 %, partly due to delays in signing large contracts in Australia.

3. Deployments and backlog

Fluence tracks its business through deployed capacity, contracted backlog, assets under management, and pipeline — reported in GW and GWh.

Energy storage products

Metric	FY2025	FY2024	Change
Deployed (cumulative, GW)	6.8	5.0	+36.0 %
Deployed (cumulative, GWh)	17.8	12.8	+39.1 %
Contracted backlog (GW)	9.1	7.5	+21.3 %
Pipeline (GW)	35.7	25.8	+38.4 %
Pipeline (GWh)	122.0	80.5	+51.6 %

Services and digital

Metric	FY2025	FY2024	Change
Service assets under management (GW)	5.6	4.3	+30.2 %
Service contracted backlog (GW)	7.0	4.1	+70.7 %
Digital assets under management (GW)	22.0	18.3	+20.2 %
Digital contracted backlog (GW)	12.1	10.6	+14.2 %

The remaining performance obligations (dollar backlog) stood at $5.3 billion as of September 30, 2025, with 55–60 % expected to convert to revenue within the next 12 months.

Order intake

New order intake declined in storage products but grew in services:

Segment	FY2025 (GW)	FY2024 (GW)	Change
Energy storage products	3.4	5.2	-34.6 %
Services	4.5	3.0	+50.0 %
Digital	6.6	8.6	-23.3 %

The decline in storage product order intake was driven by uncertain timing of customer negotiations arising from U.S. trade policy and OBBBA-related uncertainty. Fluence noted that order variability has increased as customers navigate the tariff environment.

4. Products and manufacturing

Product portfolio

Fluence’s FY2025 product lineup includes:

• Gridstack Pro — large-scale front-of-the-meter system for IPPs, developers, and utilities; 2- and 4-hour configurations; the Gridstack Pro 2000 series uses Fluence-designed Battery Packs with a technology-agnostic battery management system that supports cells from multiple OEMs
• Gridstack — front-of-the-meter system for peaking capacity, frequency regulation, and renewable integration
• Ultrastack — designed for distribution and transmission networks; supports synthetic inertia and power oscillation damping
• Smartstack — announced in FY2025; a split-architecture design that separates control systems from battery packs, offering higher energy density compared to traditional AC-coupled systems

Digital offerings include Fluence Mosaic (bid optimization and forecasting for wholesale electricity markets, active in Australia, California, Texas, and Japan) and Fluence Nispera (AI-driven asset performance management for storage, solar, and wind assets).

U.S. domestic manufacturing

Fluence is building a domestic supply chain to qualify for ITC domestic content bonus credits under the IRA and OBBBA:

• Salt Lake City, Utah — contract manufacturer; domestic battery module production began September 2024 using Fluence-designed Battery Packs
• Goodyear, Arizona — second contract manufacturer; facility commissioned in 2025, producing enclosures and BMS hardware (experienced scaling delays due to labor availability and long lead times)
• Houston, Texas — thermal management systems facility operational since August 2025
• Tennessee and South Carolina — domestic cell and component sourcing

The company currently relies on a single U.S. battery cell supplier for its domestic content offerings. Two of its three contract manufacturers are in the U.S., with the third in South East Asia serving global customers.

5. Cash flow and balance sheet

Metric	FY2025	FY2024
Cash and cash equivalents	$690.8 M	$448.7 M
Operating cash flow	($145.5 M)	$79.7 M
Capital expenditures	$14.9 M	$8.1 M
Free cash flow	($160.4 M)	$71.6 M

The $225 million swing in operating cash flow was driven by a $134.6 million decrease in working capital and the return to net loss. Inventory increased $278.7 million as the company built stock ahead of anticipated tariff impacts. Financing activities provided $356.9 million, primarily from the $400 million convertible notes issuance (net proceeds $389.4 million after $10.6 million issuance costs).

The 2024 Credit Agreement provides a $500 million revolving credit facility (the “2024 Revolver”) with Citibank as administrative agent. As of September 30, 2025, there were no cash borrowings, with $194.4 million in letters of credit outstanding and $305.6 million remaining availability.

6. Tariffs and trade environment

The tariff landscape has become a central risk factor for Fluence:

• Section 301 tariffs on lithium-ion non-EV batteries from China increased from 7.5 % to 25 %, effective January 1, 2026
• April 2025 — the Trump administration enacted additional tariffs on nearly all imports, including high tariffs on Chinese imports
• May 2025 — the U.S. and China agreed to reduce reciprocal tariff rates, with the U.S. dropping the reciprocal rate to 10 % while maintaining a 20 % fentanyl tariff
• As of filing, covered imports face the 10 % China-specific reciprocal tariff, plus the 10 % fentanyl-related tariff, plus the 3.4 % base tariff on all countries, plus the applicable Section 301 tariff
• An anti-dumping/countervailing (AD/CV) investigation on graphite active anode material (AAM) is underway, with a preliminary AD tariff of 93.5–102.72 % assigned in July 2025

The company noted that tariff uncertainty has affected customer contracting activity in the U.S. and contributed to the decline in order intake.

7. Customer concentration and AES relationship

The two largest customers accounted for approximately 41 % of FY2025 annual revenue. AES and its affiliates specifically accounted for approximately 24 % of revenue. AES Grid Stability holds an amended storage core frame purchase agreement with Fluence that continues until the earlier of October 27, 2028 or when AES holds less than 10 % of voting power. If AES holds at least 20 % of voting power, it must purchase certain energy storage offerings exclusively from Fluence.

8. What to watch

Revenue-volume disconnect. Revenue fell 16 % while deployed GW grew 36 %. This reflects falling per-GWh pricing as lithium-ion battery costs decline. Fluence is growing in capacity terms but shrinking in dollar terms — the key question is whether margin improvement and services revenue can offset this compression.

Tariff exposure is material. Fluence imports battery cells and components from China. The stacking of Section 301 tariffs, reciprocal tariffs, and potential AD/CV duties on graphite AAM creates cost and contracting uncertainty. The domestic manufacturing ramp in Utah, Arizona, and Houston is the mitigation strategy, but the Arizona facility has already encountered scaling delays.

Cash burn acceleration. Free cash flow swung from positive $71.6 million to negative $160.4 million. The $690.8 million cash position (bolstered by the convertible notes) provides runway, but sustained negative cash flow at this rate would pressure liquidity within 3–4 years.

SEC investigation ongoing. Following a short seller report in February 2024, the SEC is conducting a formal investigation into revenue recognition practices, internal controls, and certain service contracts with related parties. The company’s Audit Committee completed an internal investigation and concluded the allegations were without merit, and the prior material weakness in revenue recognition was remediated as of December 31, 2024.

9. Sources

All data in this article is sourced from Fluence Energy’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the SEC on November 25, 2025.

• Fluence Energy FY2025 Annual Report (10-K) — Filed on SEC EDGAR
• Fluence Manufacturer Profile — BESS Manufacturers directory page