Enovix Corporation reported third‑quarter 2025 results that included a 85% year‑over‑year revenue increase to $8.0 million, a non‑GAAP net loss per share of $0.14 versus an analyst consensus estimate of a $0.16 loss, and a GAAP gross margin of 18% that rose from 16% in the prior quarter. The company’s cash, equivalents, and marketable securities totaled $648 million as of September 28, 2025, up from $201 million a year earlier, giving the firm a robust liquidity buffer as it scales its Fab2 manufacturing capacity.
The earnings beat was driven by disciplined cost management and a favorable product mix. Enovix’s non‑GAAP loss narrowed from a $0.16 loss to $0.14, a $0.02 improvement that reflects lower operating expenses relative to revenue growth and the continued ramp‑up of its high‑energy‑density AI‑1 battery platform. The company’s revenue of $8.0 million was slightly above the consensus estimate of $8.08 million, largely due to increased sales to defense customers and strategic partners, which accounted for a larger share of the top line than in the prior quarter.
Margin expansion was a key highlight. GAAP gross margin climbed to 18% from 16% in Q2 2025, while non‑GAAP gross margin rose to 21% from 16%–31% in earlier quarters. The improvement stems from a higher mix of higher‑margin AI‑1 cell sales, reduced raw‑material costs, and manufacturing efficiencies achieved at the new Fab2 facility. These gains offset the impact of higher operating expenses associated with scaling production.
Looking ahead, Enovix guided for Q4 2025 revenue of $9.5 million to $10.5 million, below the consensus estimate of $12.05 million, and a non‑GAAP net loss per share of $0.16 to $0.20 versus the expected $0.14 loss. Management cited a more conservative outlook for demand and the need to invest in production ramp‑up as reasons for the lower guidance, signaling caution about near‑term growth while maintaining confidence in the long‑term commercial potential of the AI‑1 platform.
CEO Dr. Raj Talluri emphasized that the quarter represented “meaningful progress with our lead smartphone customer” and that the AI‑1 battery has been independently validated as the highest‑energy‑density cell for smartphones. He added that the company remains focused on disciplined operating costs while investing in the capital required for mass‑production ramp‑up. Market reaction to the results was mixed: the initial positive response to the earnings beat was tempered by the weaker‑than‑expected Q4 guidance, underscoring investors’ focus on forward‑looking revenue projections and the company’s ability to meet growth expectations.
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