0001828318-25-000275
SEC filingRevenue nearly doubled to $7.5M driven by defense sales, while operating loss narrowed 51% on lower restructuring and SG&A costs.
For the fiscal quarter ended June 29, 2025, Enovix reported revenue of $7.5 million, nearly double the $3.8 million in the same quarter last year. The 98% increase was primarily driven by strong customer demand for defense products, with one South Korean defense contractor contributing $4.8 million of the total revenue (up from $1.2 million in Q2 2024). Cost of revenue rose 25% to $5.5 million, reflecting higher production costs from the product mix sold. As a result, gross profit turned positive at $1.9 million compared to a ($0.7) million loss in the prior year, yielding a gross margin of 26.0% versus (17.4)% in Q2 2024.
Operating expenses decreased significantly, totaling $45.7 million versus $88.1 million in the prior year. Research and development expenses declined 3% to $28.1 million, driven by lower headcount in the U.S. from the 2024 Restructuring Plan, partially offset by higher depreciation. Selling, general and administrative expenses fell 16% to $17.5 million, also reflecting lower headcount costs. The most notable change was the absence of restructuring costs—$38.1 million in Q2 2024 versus $0 in Q2 2025. Loss from operations improved 51% to ($43.7) million.
Other income and expense included a $4.8 million gain on bargain purchase from the SolarEdge asset acquisition, partially offset by a ($5.9) million change in fair value of common stock warrants (compared to ($33.7) million in Q2 2024). Net loss narrowed 62% to ($44.3) million.
Enovix operates as a single reportable segment, with revenue derived from product sales of lithium-ion batteries and battery packs. The revenue growth was almost entirely attributable to increased shipments to South Korea defense contractors, reflecting strong momentum in the defense market. The company also highlighted progress in its AI-1 smartphone battery platform, with samples delivered to a lead OEM customer and a second top-tier smartphone OEM in July 2025. Management noted that the AI-1 platform achieved energy density exceeding 900 Wh/L and cycle life over 1,000, positioning the company for broader adoption across smartphone, IoT, computing, defense, and EV markets.
Management expects cost of revenue and operating expenses to continue increasing as the company ramps commercial manufacturing. Capital expenditures are anticipated to rise to support the build-out of Fab2 in Malaysia and the newly acquired South Korea facility. The company declared a warrant dividend in July 2025, which could generate up to $248.5 million in proceeds if fully exercised, intended to fund Fab2 scale-up and general corporate purposes. Additionally, the board authorized a $60.0 million share repurchase plan through December 2026, though no repurchases had been made as of the filing date. Management believes current cash, cash equivalents, restricted cash, and short-term investments of $205.5 million, along with expected warrant proceeds and potential future financings, will be sufficient to meet funding requirements for at least the next twelve months.
As of June 29, 2025, Enovix held $136.0 million in cash and cash equivalents and $67.4 million in short-term investments, totaling $203.4 million in liquid assets. Working capital stood at $176.1 million. Total debt was $179.8 million, consisting of $10.4 million short-term and $169.4 million long-term, primarily the $172.5 million 3.0% convertible senior notes due 2028. The company had an accumulated deficit of $889.1 million and expects to fund operations for at least the next twelve months.
Purchase commitments totaled $5.6 million as of June 29, 2025, down from $17.4 million at year-end 2024, reflecting open purchase orders and capital expenditure obligations. Additionally, the company had $8.4 million in performance obligations (deferred revenue and customer deposits), with 96% expected to be recognized within twelve months. Operating lease liabilities had a present value of $15.0 million, with maturities through 2030.
On June 30, 2025, the board authorized a $60.0 million share repurchase program, effective immediately and expiring December 31, 2026. No dividends were declared. Capital expenditures for H1 2025 were $14.2 million (from cash flow, not in notes), and the company repaid $0.8 million in debt. No new debt was issued during the period.
Enovix operates as a single segment. For the six months ended June 29, 2025, product revenue was $12.6 million, with 60% from South Korea-based customers. Service revenue was nil. The company's CEO uses consolidated revenue and net loss to allocate resources.