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Bear of the Day: Fluence Energy, Inc. (FLNC)

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Key Takeaways

  • Energy storage stock Fluence Energy's earnings estimates tanked after its most recent earnings report.
  • FLNC's recent negative EPS revisions land it a Zacks Rank #5 (Strong Sell).

Fluence Energy, Inc. (FLNC - Free Report)  makes large-scale battery energy storage systems and complementary software.

Even though Fluence is part of a growth-heavy area of the economy that’s being fueled by the power-hungry AI data center boom, the stock has dropped roughly 70% since its late 2021 IPO.

Fluence Energy lost money in fiscal 2025, and its earnings outlook tanked again after another disappointing quarterly release on August 5.

Why Investors Might Want to Stay Away from FLNC Stock

Fluence Energy makes large-scale battery energy storage systems and smart software that help store electricity from solar and wind farms.

Zacks Investment Research
Image Source: Zacks Investment Research

Giant rechargeable batteries make intermittent energy sources such as solar and wind more practical by smoothing out the ups and downs.

The broader battery energy storage system (BESS) market is booming as it rides converging megatrends across AI, electrification, and overall energy industry growth and evolution.

Zacks Investment Research
Image Source: Zacks Investment Research

Yet, Fluence posted a GAAP loss of -$0.42 a share in fiscal 2025 and an adjusted loss of -$0.37 per share. Most recently, FLNC reported an adjusted Q3 FY26 (period ended in June) loss of -$0.24 per share, falling well short of our estimate that called for a -$0.05 per share loss.

The company’s downbeat guidance sent its FY26 estimate down to a loss of -$0.52 a share from -$0.18 and cut its FY27 estimate roughly in half (from +$0.21 down to +$0.09). Fluence Energy’s downbeat earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now.

Zacks Investment Research
Image Source: Zacks Investment Research

Fluence Energy’s recent downward earnings trends are part of a longer-term run of negative revisions. This backdrop means investors likely want to stay away from FLNC stock for now, or at least until it proves to Wall Street that it can start making money.

Investors interested in the broader energy storage space might consider looking elsewhere at stocks such as Tesla and others.

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