Shares of Fluence Energy, Inc. (NASDAQ: FLNC), a global leader in energy storage solutions and software, plummeted 38.03% in Monday's trading session amid disappointing first-quarter earnings results and a significant downward revision to its full-year guidance.

The Arlington-based company reported revenue of $186.8 million for the quarter ended December 31, 2024, missing analyst estimates of $380.3 million by a wide margin. The revenue figure represented a 49% year-over-year decline. Fluence Energy also posted a net loss of $0.32 per share, missing expectations of a $0.17 loss per share.

In addition to the quarterly miss, Fluence Energy slashed its fiscal 2025 revenue guidance to a range of $3.1 billion to $3.7 billion, down from its previous guidance of $3.6 billion to $4.4 billion. The company cited delays in signing certain contracts, primarily in Australia, as the primary reason for the reduced outlook. Fluence Energy also lowered its fiscal 2025 adjusted EBITDA guidance range to $70 million to $100 million, down from $160 million to $200 million previously.

According to CEO Julian Nebreda, the company experienced "customer-driven delays in signing certain contracts that, coupled with competitive pressures, result in the need to lower our fiscal year 2025 outlook." However, Nebreda noted that Fluence Energy continues to see strong demand for its energy storage solutions, evidenced by a record $5.1 billion backlog.

Despite the weak quarterly performance and guidance cut, Fluence Energy bolstered its financial position by issuing $400 million in convertible senior notes, increasing its total cash to approximately $654.4 million. The company plans to leverage this capital to accelerate its domestic content strategy, which it views as a competitive advantage.

Analysts and investors will closely monitor Fluence Energy's progress in securing new contracts and executing on its operational improvements in the coming quarters. The stock's sharp sell-off reflects the market's disappointment with the company's near-term outlook, but its strong backlog and cash position could support a potential recovery if it can successfully navigate the current challenges.