Core Points - Enovix Corporation's common stock has traded above $10.50 for nine consecutive trading days since the distribution of warrants, with the current closing price at $10.71 per share and the warrants being $1.96 in-the-money based on an exercise price of $8.75 [1][2][3] Summary by Sections Warrants Information - The earliest expiration date for the warrants is August 19, 2025, contingent upon the common stock trading above $10.50 for 20 out of 30 trading days as per the Warrant Agreement [2] - The company has completed nine out of the required twenty trading days for early expiration, with potentially only eleven trading days remaining before the warrants become non-tradable and non-exercisable [3] Company Overview - Enovix is a leader in advanced lithium-ion battery technology, focusing on silicon-anode batteries designed for various applications, including wearable electronics, mobile communications, and electric vehicles [5] - The company's technology aims to provide higher energy density, improved safety, longer battery life, and faster charging, addressing the increasing global demand for high-performance energy storage [5] - Enovix holds a significant portfolio of issued and pending patents related to its core battery design and manufacturing processes [5] Company Operations - Enovix is headquartered in Silicon Valley and has facilities in India, South Korea, and Malaysia [6]

Enovix Corporation (ENVX) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to a loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.33%. A quarter ago, it was expected that this company would post a loss of $0.18 per share when it actually produced a loss of $0.15, delivering a surprise of +16.67%. Over the last four quarters, the company has ...

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $7.5 million, exceeding guidance and reflecting a 98% year-over-year increase, driven by strong product demand [3][29] - Non-GAAP gross margin reached 31%, attributed to a favorable product mix, particularly in the defense sector [3][30] - Operating expenses were $28.8 million, down 5% year-over-year, indicating disciplined spending while executing growth initiatives [30] - The net loss per share improved to $0.03, better than the guidance range of $0.15 to $0.21 [31] Business Line Data and Key Metrics Changes - The A1 product platform was launched, featuring a battery with 900 watt hours per liter and a 3C charge rate, now in commercial qualification with customers [4][3] - The company has begun sampling the A1 battery to major smartphone OEMs and AR eyewear customers, indicating a shift towards commercialization [2][8] - Progress in the defense sector was noted, with increased customer interest and sampling efforts underway [14][21] Market Data and Key Metrics Changes - The company is experiencing strong demand in the smartphone and AR markets, with expectations for increased orders following successful testing [8][10] - The defense market is also expanding, with the company leveraging its Korean asset to meet demand from U.S. defense companies [14][21] Company Strategy and Development Direction - The company aims to establish itself as the battery of choice within the AR ecosystem, collaborating with various technology partners to enhance product offerings [12][10] - A focus on vertical integration in battery manufacturing is emphasized, with recent acquisitions aiding in cost reduction and performance improvements [22][24] - The company is preparing for a significant ramp-up in production capacity, with plans to build out additional manufacturing lines [38][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet customer specifications and the growing demand for high-energy-density batteries, particularly in smartphones and AR devices [66][72] - The management highlighted the importance of energy density in the context of increasing battery requirements across various consumer electronics [24][66] - Future growth is anticipated as the company continues to secure orders and expand its market presence [93][66] Other Important Information - The company issued a warrant dividend to reward shareholders and fund future growth initiatives [2][21] - The factory in Malaysia is operational, with significant progress in customer qualification efforts and production capabilities [14][21] Q&A Session Summary Question: When will Enovix batteries appear in products? - The company is currently sampling the A1 battery to multiple customers, particularly in the smartphone sector, with expectations for product launches following successful testing [34][35] Question: Can you explain the need for the warrants and their intended use? - Proceeds from the warrants will be used to complete the build-out of Fab 2, which is designed to support four full production lines [36][38] Question: Can you discuss customer engagement and product specifications? - The company is finalizing specifications with its first customer and has begun sampling to a second smartphone OEM, with expectations for production next year [41][43] Question: How prepared are capital equipment suppliers for expansion? - The company is working with suppliers experienced in complex semiconductor equipment, ensuring readiness for manufacturing ramp-up [51][52] Question: How important is the airline safety certification? - The certification is crucial for shipping batteries by air and provides confidence in the safety of the new battery design [96][97]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201%2E%20Financial%20Statements%20%28unaudited%29) This section presents Enovix Corporation's unaudited condensed consolidated financial statements for the quarter ended June 29, 2025, including balance sheets, statements of operations, comprehensive income, changes in stockholders' equity, and cash flows, along with detailed notes on accounting policies and specific financial items [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Metric | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $135,978 | $272,869 | | Total current assets | $228,340 | $295,006 | | Total assets | $469,112 | $527,169 | | Total current liabilities | $52,275 | $53,701 | | Long-term debt, net | $169,441 | $169,820 | | Total liabilities | $262,460 | $277,766 | | Total equity | $206,652 | $249,403 | - The company's cash and cash equivalents significantly decreased from **$272.9 million** at the end of 2024 to **$136.0 million** as of June 29, 2025, reflecting cash used in operations and investing activities[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $7,468 | $3,768 | | Gross profit (loss) | $1,942 | $(655) | | Loss from operations | $(43,733) | $(88,750) | | Net loss attributable to Enovix | $(44,528) | $(115,872) | | Net loss per share (basic and diluted) | $(0.22) | $(0.63) | - Revenue nearly doubled year-over-year, leading to a gross profit of **$1.9 million** in Q2 2025, a significant improvement from a gross loss of **$(0.7) million** in Q2 2024, with the operating loss narrowing due to the absence of a large restructuring cost present in the prior year's quarter[14](index=14&type=chunk) - A gain on bargain purchase of assets of **$4.8 million** was recognized in Q2 2025, contributing to other income[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary - Year-to-Date (in thousands) | Metric | YTD Ended June 29, 2025 | YTD Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(42,766) | $(61,993) | | Net cash provided by (used in) investing activities | $(91,089) | $19,512 | | Net cash provided by (used in) financing activities | $(2,685) | $45,081 | | Change in cash, cash equivalents, and restricted cash | $(136,642) | $1,852 | - Cash used in investing activities was **$91.1 million** for YTD 2025, primarily due to **$14.2 million** in property and equipment purchases, a **$10.0 million** payment for a business acquisition, and **$85.5 million** in investment purchases[27](index=27&type=chunk) - Financing activities provided significant cash in YTD 2024 (**$45.1 million**), mainly from stock issuance, compared to a small cash usage in YTD 2025[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - On April 1, 2025, the company acquired battery cell manufacturing assets from SolarEdge in South Korea for **$10.0 million** in cash, resulting in a recognized gain on bargain purchase of **$4.8 million** as the fair value of assets acquired exceeded the purchase price[50](index=50&type=chunk)[56](index=56&type=chunk) - In May 2024, the company initiated a restructuring plan, recording pre-tax charges of **$38.1 million** in Q2 2024, which included a **$35.1 million** non-cash loss on the disposal of Fab1 long-lived assets, with no restructuring costs recorded in Q2 2025[127](index=127&type=chunk)[128](index=128&type=chunk) - Subsequent to the quarter's end, on June 30, 2025, the board authorized a share repurchase plan for up to **$60.0 million** of common stock, and on July 7, 2025, the company declared a warrant distribution to stockholders[132](index=132&type=chunk)[134](index=134&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the second quarter of 2025, highlighting strong revenue growth driven by defense products, progress in manufacturing readiness, and key product development milestones like the launch of the AI-1 platform, covering results of operations, liquidity, capital resources, and critical accounting policies, while also noting macroeconomic trends and the company's strategic focus on markets like smartphones, IoT, and defense [Business Overview and Q2 2025 Highlights](index=29&type=section&id=Business%20Overview%20and%20Q2%202025%20Highlights) - Revenue for Q2 2025 was **$7.5 million**, nearly doubling from the prior year's quarter, primarily driven by strong demand for defense products[143](index=143&type=chunk) - Launched the AI-1 product platform and produced the first smartphone battery achieving over **900 Wh/L** energy density, which is now undergoing formal qualification with a lead OEM customer[143](index=143&type=chunk)[142](index=142&type=chunk) - Acquired battery cell manufacturing assets from SolarEdge in South Korea for **$10.0 million**, which is expected to expand manufacturing footprint and support demand from the defense industry[151](index=151&type=chunk) - In July, declared and issued a warrant dividend to shareholders, which could provide up to approximately **$248.5 million** in proceeds if all warrants are exercised, intended to support the scale-up of the Fab2 facility in Malaysia[151](index=151&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Comparison of Fiscal Quarter Ended June 29, 2025 to June 30, 2024 (in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $7,468 | $3,768 | $3,700 | 98% | | Gross profit (loss) | $1,942 | $(655) | $2,597 | N/M | | Research and development | $28,148 | $29,065 | $(917) | (3)% | | Selling, general and administrative | $17,527 | $20,884 | $(3,357) | (16)% | | Restructuring cost | $0 | $38,146 | $(38,146) | N/M | | Loss from operations | $(43,733) | $(88,750) | $45,017 | (51)% | - The **$3.7 million** increase in quarterly revenue was primarily driven by increased sales to South Korea defense contractors, with sales to one specific South Korean defense contractor accounting for **$4.8 million** in Q2 2025, up from **$1.2 million** in Q2 2024[168](index=168&type=chunk) - Operating expenses decreased significantly year-over-year, mainly because Q2 2024 included a **$38.1 million** restructuring charge related to the relocation of Fab1 manufacturing operations, which was not present in Q2 2025[174](index=174&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 29, 2025, the company had cash, cash equivalents, restricted cash, and short-term investments of **$205.5 million**, with working capital of **$176.1 million** and an accumulated deficit of **$889.1 million**[189](index=189&type=chunk) - Management expects that current cash will be sufficient to meet funding requirements for the next twelve months[194](index=194&type=chunk) - A warrant dividend was issued in July 2025, with potential proceeds of approximately **$248.5 million** if fully exercised, intended to support the Fab2 scale-up[192](index=192&type=chunk) - On June 30, 2025, the board authorized a stock repurchase plan for up to **$60.0 million**, expiring December 31, 2026[193](index=193&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risks](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risks) This section outlines the company's exposure to market risks, primarily interest rate and foreign currency risk, with management believing that interest rate risk is not material due to the fixed-rate nature of most of its debt, and foreign currency risk is not considered material to historical operating results, though the company will continue to monitor its exposure as international operations grow - The company does not believe it is exposed to material interest rate risk, as its **$172.5 million** of Convertible Senior Notes have a fixed **3.0%** annual interest rate, accounting for approximately **94%** of its total debt[215](index=215&type=chunk) - Foreign currency risk is not considered material, as a hypothetical **10%** adverse change in exchange rates would not have a material effect on the company's financial condition or results of operations as of June 29, 2025[217](index=217&type=chunk)[218](index=218&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the company's internal controls, with management, including the CEO and CFO, concluding that disclosure controls and procedures were effective as of June 29, 2025, and no material changes to internal control over financial reporting occurred during the quarter - Management, including the CEO and CFO, concluded that as of June 29, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[221](index=221&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[222](index=222&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) This section provides an update on legal matters, referring to Note 9 of the financial statements, with the primary ongoing matter being a securities class action complaint filed in January 2023, for which the company has not recorded a liability as the potential loss cannot be reasonably estimated - The company is defending against a securities class action complaint filed in January 2023 alleging material misstatements related to manufacturing scale-ups, for which a motion to dismiss the second amended complaint was granted in part and denied in part in July 2024[99](index=99&type=chunk)[100](index=100&type=chunk) - A hearing on a subsequent motion to dismiss is scheduled for September 5, 2025, and the company has not recorded a liability for this matter as of June 29, 2025[101](index=101&type=chunk)[102](index=102&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section details the significant risks and uncertainties that could materially affect the company's business, financial condition, and operating results, highlighting challenges in scaling its complex manufacturing process, reliance on international operations and supply chains, customer concentration in the defense sector, competition in the evolving battery market, and the need to raise additional capital to fund growth - **Manufacturing & Scale-Up Risk:** The company relies on a new, complex manufacturing process and faces significant risks in scaling to volume production, improving yields, and controlling costs at its Fab2 facility in Malaysia[231](index=231&type=chunk)[237](index=237&type=chunk) - **International & Supply Chain Risk:** Operations in Malaysia, South Korea, and India expose the company to geopolitical tensions, trade policy changes, and potential disruptions in sourcing necessary raw materials and components[244](index=244&type=chunk)[252](index=252&type=chunk) - **Customer & Market Risk:** The company has a high concentration of revenue from a limited number of customers, particularly a single defense subcontractor in South Korea, making it vulnerable to changes in their purchasing behavior[266](index=266&type=chunk) - **Financial Risk:** The company has a history of financial losses, expects to incur significant future expenses, and may need to raise additional capital to fund its operating needs and growth, which may not be available on acceptable terms[278](index=278&type=chunk)[314](index=314&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20from%20Registered%20Securities) This section reports on the company's purchases of its own equity securities, noting that no shares were repurchased during the quarter ended June 29, 2025, but a new repurchase program was authorized by the board of directors on June 30, 2025 - No shares were repurchased by the company during the quarter ended June 29, 2025[413](index=413&type=chunk) - On June 30, 2025, the board of directors authorized a new plan to repurchase up to **$60.0 million** of the company's common stock[413](index=413&type=chunk) [Item 5. Other Information](index=73&type=section&id=Item%205.%20Other%20Information) This section discloses information on insider trading arrangements, specifically that the Chief Operating Officer adopted a Rule 10b5-1 trading plan during the quarter for the potential sale of vested restricted stock units - On May 9, 2025, Ajay Marathe, Chief Operating Officer, adopted a Rule 10b5-1 trading arrangement for the potential sale of up to **268,338 shares** of common stock from vested RSUs, with the plan effective until January 31, 2026[416](index=416&type=chunk) [Item 6. Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed with or incorporated by reference into the Quarterly Report on Form 10-Q, including corporate governance documents, debt agreements, and officer certifications

Core Viewpoint - Enovix Corporation announced its second quarter 2025 results and will host a live webcast to discuss these results and provide business updates [1] Company Overview - Enovix is a leader in lithium-ion battery technology, focusing on proprietary cell architecture that enhances energy density and safety [2] - The company specializes in silicon-anode batteries, which are designed for various applications including wearable electronics, mobile communications, industrial, and electric vehicles [2] - Enovix's technology supports longer battery life and faster charging, addressing the increasing global demand for high-performance energy storage [2] - The company holds a significant portfolio of issued and pending patents related to its core battery design and manufacturing processes [2] Company Locations - Enovix is headquartered in Silicon Valley and has facilities in India, South Korea, and Malaysia [3]

Group 1 - Enovix Corporation (ENVX) is currently outperforming its peers in the Computer and Technology sector with a year-to-date return of approximately 38.6%, compared to the sector average of 11.3% [4] - The Zacks Consensus Estimate for ENVX's full-year earnings has increased by 3.5% over the past quarter, indicating improved analyst sentiment and earnings outlook [4] - Enovix Corporation holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] Group 2 - Enovix Corporation is part of the Electronics - Miscellaneous Products industry, which ranks 55 in the Zacks Industry Rank, with an average year-to-date gain of 14.8% [6] - Another notable stock in the Computer and Technology sector is Genius Sports Limited (GENI), which has returned 19.3% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - The Internet - Content industry, to which Genius Sports Limited belongs, is currently ranked 175, with a year-to-date gain of 10.9% [6]

Core Insights - Enovix Corporation has announced a warrant dividend distribution to its shareholders, as communicated in a letter from Chairman TJ Rodgers [1]. Company Overview - Enovix Corporation is a leader in advanced lithium-ion battery technology, focusing on proprietary cell architecture that enhances energy density and safety [3]. - The company specializes in silicon-anode batteries, which are designed for a variety of applications, including wearable electronics, mobile communications, industrial uses, and electric vehicles [3]. - Enovix's technology aims to meet the increasing global demand for high-performance energy storage by providing longer battery life and faster charging capabilities [3]. - The company holds a significant portfolio of patents related to its battery design, manufacturing processes, and system integration innovations [3].

Core Points - Enovix Corporation's common stock price has surpassed $10.50 for five consecutive trading days, with a current closing price of $15.06 per share, making the Warrants in-the-money at an exercise price of $8.75 per share [1][2][4] - The earliest expiration date for the Warrants is set for August 19, 2025, contingent upon the stock price remaining above $10.50 for an additional 15 trading days [2][4] - Enovix reserves the right to establish an Alternate Expiration Date for the Warrants, as defined in the Warrant Agreement [3][4] Company Overview - Enovix is a leader in advanced lithium-ion battery technology, focusing on proprietary cell architecture that enhances energy density and safety [6] - The company's silicon-anode batteries are designed for a variety of applications, including wearable electronics, mobile communications, industrial, and electric vehicles, addressing the demand for high-performance energy storage [6] - Enovix holds a significant portfolio of patents related to its battery design, manufacturing processes, and system integration innovations [6]

Core Viewpoint - Enovix Corporation (ENVX) has shown a downtrend recently, with a 5.5% loss over the past week, but a hammer chart pattern suggests a potential trend reversal due to increased buying interest [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottom formation, suggesting that selling pressure may be exhausting [2][5]. - This pattern typically forms when a stock opens lower, makes a new low, but then finds support and closes near its opening price, indicating a shift in control from bears to bulls [4][5]. - Hammer candles can appear on various timeframes and are relevant for both short-term and long-term investors [5]. Fundamental Analysis - Recent upward revisions in earnings estimates for ENVX serve as a bullish indicator, correlating strongly with near-term stock price movements [7]. - The consensus EPS estimate for the current year has increased by 0.2% over the last 30 days, reflecting analysts' optimism about the company's earnings potential [8]. - ENVX holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Core Viewpoint - Enovix Corporation (ENVX) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Financial Expectations - The consensus estimate predicts a quarterly loss of $0.17 per share, reflecting a year-over-year change of -21.4%. Revenues are expected to reach $6.24 million, which is a 65.5% increase from the same quarter last year [3]. - The Most Accurate Estimate for Enovix Corporation is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +10.45%, indicating a bullish outlook from analysts [12]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analysts' assessments [4]. - Timken (TKR), another player in the Zacks Electronics - Miscellaneous Products industry, is expected to post earnings of $1.34 per share, indicating a year-over-year decline of -17.8%, with revenues projected at $1.15 billion, down 2.4% from the previous year [18][19]. Earnings Surprise History - Enovix Corporation has a history of beating consensus EPS estimates, having surpassed expectations in the last four quarters [14]. - In the last reported quarter, the company was expected to post a loss of $0.18 per share but actually reported a loss of -$0.15, resulting in a positive surprise of +16.67% [13]. Market Sentiment - The upcoming earnings report on July 31 will be pivotal, as management's discussion of business conditions will influence future earnings expectations and stock price sustainability [2]. - Despite the potential for an earnings beat, other factors may also affect stock performance, indicating that an earnings surprise alone may not dictate stock movement [15][17].