ENVX · Enovix Corporation

Enovix reported Q1 2026 revenue of $7.6 million, surpassing the high end of guidance and rising 49% year-over-year, driven by strength in defense and industrial shipments from its South Korea operations, including aerial drones, subsea systems, and munitions. This reflects growing traction in markets supporting scale, with cells deployed in defense applications informing manufacturing improvements for future silicon-anode production. GAAP gross profit reached $1.6 million (20.4% margin) and non-GAAP $2.0 million (26.3% margin), marking the sixth consecutive quarter of positive gross profit due to higher volumes and execution gains, progressing toward scalable production. Operating losses widened slightly on GAAP basis to $43.9 million amid $45.4 million expenses, while non-GAAP loss was $28.8 million. CEO Dr. Raj Talluri highlighted smartphone priority, with alignment on silicon-specific qualification frameworks for the lead customer and discussions for a second OEM, addressing barriers for 100% silicon anode batteries. Cycle-life testing under enhanced protocols shows encouraging trends, though extended duration delays final qualification. Smart eyewear commercialization began with initial shipments, ramping in Q3 for ~50,000 units in 2026, validating scale manufacturing. New MX-1 drone product launched with 360 Wh/kg density, targeting defense and industrial growth; global Korea pipeline exceeds $130 million. Manufacturing advanced with Fab2 Zone 1 dicing yield ~80%, adopting hybrid dicing for throughput. Steve Bakos appointed SVP Worldwide Sales to drive expansion. Cash position of $582.7 million supports qualification and scale-up, with Q1 operating cash outflow $33.1 million and free cash flow $36.3 million, reflecting capex timing and notes interest. Q2 guidance projects revenue $8-9 million, non-GAAP op loss $29-32 million, signaling continued momentum amid commercialization push.