0001828318-25-000310
SEC filingRevenue rose 85% to $8.0M, driven by defense sales, but net loss widened on interest expense and lower warrant gains.
For the fiscal quarter ended September 28, 2025, Enovix reported total revenue of $8.0 million, a 85% increase from $4.3 million in the prior-year quarter. This growth was primarily attributable to increased sales to South Korea defense contractors, with one contractor alone contributing $5.4 million of revenue compared to $1.4 million in the prior year.
Gross profit improved to $1.4 million (17.5% margin) from a gross loss of $0.6 million in the prior year, as cost of revenue increased only 33% to $6.6 million, outpaced by revenue growth. Operating expenses remained relatively flat at $48.4 million versus $48.6 million, with research and development costs rising 16% to $28.2 million (driven by depreciation and equipment repair) but selling, general and administrative expenses declining 3% to $20.2 million due to lower stock-based compensation. There were no restructuring costs in the current quarter versus $3.7 million in the prior year.
Other income turned negative, with a $7.2 million loss compared to $28.8 million income last year, primarily due to a $28.0 million decrease in fair value gains on common stock warrants ($1.9 million gain vs. $29.9 million gain) and a $10.0 million increase in interest expense driven by a $9.2 million one-time charge on warrant rights and new convertible notes. Income tax benefit of $0.4 million compared to $2.2 million expense last year. Net loss widened to $53.8 million from $22.6 million.
Enovix operates a single segment focused on product and service revenue from lithium-ion batteries. Product revenue is concentrated in defense (South Korea contractors) and consumer electronics. Service revenue was nil in both periods. The revenue surge was entirely driven by defense product sales, indicating a strategic pivot toward higher-volume defense contracts, while smartphone and smart eyewear programs remain in development or initial validation stages (over 1,000 battery packs delivered to lead customer, nine other OEMs sampling).
Management expects operating expenses and capital expenditures to increase in the near term as it scales manufacturing at Fab2 in Malaysia and integrates recent acquisitions in South Korea. The company raised $224.2 million via warrant exercises and $348.6 million via 4.75% convertible notes due 2030, providing substantial liquidity ($560.8 million cash, cash equivalents, restricted cash, and short-term investments). In Q3 2025, the company also repurchased $58.4 million of common stock. Management believes current cash is sufficient to meet funding requirements for at least the next 12 months. Strategic priorities include scaling Fab2, advancing the AI-1 platform (independently validated as highest energy-density smartphone battery), and expanding into defense and smart eyewear markets.
As of September 28, 2025, Enovix held $335.5M in cash and cash equivalents, $223.3M in short-term investments, and $89.5M in long-term investments, for total liquid assets of $648.3M. Working capital was $528.1M, up from $241.3M at year-end 2024. The increase is primarily due to the $360M issuance of 2030 Convertible Senior Notes and $232M in warrant exercises, partially offset by $58.4M in stock repurchases and $45.3M for capped call transactions. The company's total debt (including current portion) rose to $528.5M, including $172.5M in 3.0% 2028 Notes and $360M in 4.75% 2030 Notes. Stockholders' equity increased to $297.1M from $249.4M. The accumulated deficit deepened to $942.8M.
As of September 28, 2025, Enovix had $6.6M in open purchase orders and contractual commitments, a decrease from $17.4M at year-end 2024. This includes capital expenditure and supply agreements. Additionally, the company has $8.0M in performance obligations (deferred revenue and customer deposits), 96% expected to be recognized within twelve months. Operating lease liabilities total $14.3M, with maturities through 2030. No material litigation liabilities were recorded.
Enovix operates as a single segment. For the fiscal YTD ended September 28, 2025, total product revenue was $20.6M, with 64% from customers in South Korea. Service revenue has not been recognized since inception. The CODM (CEO) evaluates performance using consolidated metrics such as total cash, revenue, and net loss. No segment-level operating income or margin is reported.
Net loss improved to -$121.6M from -$185.1M YoY, while cash used in operations narrowed to -$68.3M from -$92.7M, indicating a positive cash flow quality trend. Key non-cash adjustments include stock-based compensation of $38.0M ($48.6M prior), depreciation/amortization of $26.7M ($37.4M prior), and a $11.8M gain from fair value changes of warrants, a $4.8M gain on bargain purchase, and $9.2M of non-cash interest expense. Working capital was a net use of cash of $5.4M, driven by increases in inventory ($7.2M), accounts receivable ($2.4M), and decreases in accrued expenses ($2.8M), partially offset by higher accounts payable ($6.5M). Capex intensity dropped sharply to $17.2M from $59.8M, reflecting reduced spending on property and equipment. Financing activities were the main source of cash, with $360.0M in debt proceeds (net of $9.9M issuance costs) and $232.1M from warrant exercises, partly offset by $58.4M in share repurchases and $45.3M for capped call purchases. No free cash flow is explicitly stated; however, CFO and capex are provided, allowing for calculation. Overall, the company remains cash-flow negative from operations but significantly reduced its burn rate, with a strong cash infusion from financing activities strengthening the balance sheet.