What Happened?

Shares of electricity storage and software provider Fluence (NASDAQ:FLNC) fell 48.4% in the morning session after the company reported underwhelming fourth-quarter results. Revenue missed by more than 50%, due to "the pronounced backend nature of expected revenue for the full year 2025 compared to the revenue distribution seen in the full-year 2024." In addition, full-year revenue guidance was lowered and missed significantly, and EBITDA guidance didn't fare much better when compared to Wall Street's estimates. Overall, this was a challenging quarter.

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What The Market Is Telling Us

Fluence Energy’s shares are extremely volatile and have had 59 moves greater than 5% over the last year. But moves this big are rare even for Fluence Energy and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 6 months ago when the stock gained 19% on the news that the company reported strong second-quarter earnings results, with revenue and EPS exceeding Wall Street's estimates. However, the quarter was negatively impacted by the timing of product deliveries. As a result, sales guidance was narrowed for the full year as some of its signed contracts were pushed out to fiscal 2025. But the market seems to be looking past this, and the stock is up after the results.

Fluence Energy is down 59% since the beginning of the year, and at $6.93 per share, it is trading 73% below its 52-week high of $25.65 from May 2024. Investors who bought $1,000 worth of Fluence Energy’s shares at the IPO in October 2021 would now be looking at an investment worth $198.00.

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