Is FLNC a good stock to buy now? We found a bullish thesis on Fluence Energy, Inc. on Danny’s Substack by Danny Green. In this article we will summarize the bulls’ thesis on FLNC. Shares of Fluence Energy, Inc. were trading at $15.54 in February. FLNC’s Forward P/E was 93.46 according to Yahoo Finance.
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Fluence Energy is a leading player in utility-scale energy storage, a specialized and rapidly growing segment critical to the global energy transition. The company offers a mix of hardware, software optimization platforms and services, which could gradually increase switching costs and differentiation, although its moat is still developing amid competition from vertically integrated players such as Tesla Energy and EOSE.
Fluence’s core business of selling and servicing storage systems to utilities and developers is conceptually simple, backed by a large order book exceeding $5.3 billion, but revenue is spotty and lead time introduces unpredictability. Fiscal 2024 saw record revenue of ~$2.7 billion and improved gross margins, although fiscal 2025 revenue declined to ~$2.26 billion due to production delays, tariffs, and timing issues, highlighting volatility in profitability despite sequential quarterly improvements.
The company is reinvesting heavily in American manufacturing, global supply chain expansion and product innovation, including its Smartstack architecture, with the goal of increasing recurring digital and software revenues, although capital intensity and convertible debt issuance (~$400 million) introduce risks to margins and investors. Returns on equity are improving but remain below ideal levels for a long-term composite, with gross margins trending upward and adjusted EBITDA showing mixed results.
Demand for energy storage is durable and supported by secular tailwinds and an order book that covers approximately 85% of fiscal 2026 forecasts; However, delays in execution and competitive pressure on prices moderate short-term predictability. Fluence benefits from a global presence, diversified products and strategic domestic content, but reliance on large projects and fierce competition pose risks.
Management is growth-oriented and strategically focused on scaling production and differentiation, but high leverage and guidance cuts require careful execution. Overall, Fluence presents compelling exposure to energy transition growth, offering strong long-term potential, although short-term volatility and capital intensity highlight execution risk for investors.
Previously, we covered a bullish thesis at Microvast Holdings, Inc. (NASDAQ:MVST) by Crazerz in January 2025, highlighting its undervaluation, strong profitability, and growth in solid-state batteries. The MVST share price has appreciated approximately 8.21% since our coverage. Danny Green shares a similar vision, but emphasizes Fluence Energy’s (FLNC) leadership in utility-scale energy storage and hardware and software integration, reflecting a different energy transition segment.