UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 (State or other jurisdiction of incorporation or organization) 2000 Technology Parkway Newark, New York 14513 (Address of principal executive offices) (Zip Code) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _ ...

Core Insights - Ultralife Corporation (NASDAQ:ULBI) specializes in power solutions and communications systems across government, defense, and commercial markets, maintaining its market presence despite competition [1] Financial Performance - On March 10, 2026, ULBI reported an EPS of -$0.45, missing the expected $0.24, primarily due to a $0.57 impact from an intangible asset impairment charge [2][6] - The company's revenue for the quarter was $48.5 million, below the forecasted $57 million, although it showed an increase from $43.9 million in the same period of 2024 [2][3][6] - Gross profit for the quarter was $12.1 million, representing 24.9% of revenue, an improvement from 24.2% in the prior year [3] Operational Efficiency - ULBI recorded an operating loss of $10.6 million, attributed to a $12.2 million intangible asset impairment charge and $1.2 million in one-time costs [3] - The adjusted EBITDA improved to $5.7 million from $3.9 million in the previous year, indicating better operational efficiency [4][6] Future Outlook - The company ended 2025 with a backlog of $110.2 million, up from $90.3 million at the end of the third quarter, signaling strong future demand for its offerings [4][6] Financial Health - ULBI's financial ratios include a price-to-sales ratio of 0.54 and an enterprise value to sales ratio of 0.78, providing insights into its market valuation [5] - The company's debt-to-equity ratio stands at 0.39, and its current ratio is 2.99, reflecting a robust liquidity position and financial stability [5]

Financial Data and Key Metrics Changes - Q4 revenue reached $48.5 million, a 10.6% increase year-over-year, with an operating loss of $10.6 million resulting in a loss of $0.45 EPS [5][7] - Full year revenue for 2025 was $191.2 million, with over $30 million from new products, marking a 16.2% year-over-year growth, leading to a full year operating loss of $5.9 million and a loss of $0.35 EPS [5][6] - Consolidated gross profit was $12.1 million, up 13.7% from the previous year, with a gross margin of 24.9%, a 70 basis point improvement [9][10] Business Line Data and Key Metrics Changes - Battery and energy product segment revenues were $45.9 million, a 15.1% increase year-over-year, with organic growth driven by a 39.6% increase in medical and a 20.4% increase in industrial and other commercial sectors [7][8] - Communications Systems segment revenues declined to $2.6 million, a 35.2% decrease from the previous year, primarily due to delayed orders [8][9] Market Data and Key Metrics Changes - The sales split for the battery business was 73% commercial and 27% government defense, compared to 70% and 30% respectively in the previous year [8] - The backlog at the end of Q4 was $110.2 million, a 22.1% increase from the previous quarter, representing 58% of trailing twelve months sales [9][10] Company Strategy and Development Direction - The company aims to improve the profitability of its Communications Systems business and enhance gross margins in the battery and energy segment [16][17] - Strategic initiatives include transitioning to a unified brand, consolidating operations, and focusing on vertical integration opportunities following the acquisition of Electrochem [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2026, citing a healthy backlog and several new product launches [6][25] - The company is targeting organic growth rates of at least double GDP and aims for EBITDA margins greater than 10% in the short term [27][28] Other Important Information - The company completed its ERP transition and operational initiatives to reduce costs during 2025 [5][6] - The transition of various sub-brands to the Ultralife master brand is expected to streamline operations and reduce costs [19][25] Q&A Session Summary Question: Growth and Margin Expansion Goals - Management indicated a roadmap to achieve organic growth and aims for a minimum of 2x GDP growth, targeting over 10% EBITDA margins in the short term [27] Question: Baseline Revenue for Communications Systems - Baseline revenue for the Communications Systems business is defined as $25 million, with potential for larger orders in the future [29] Question: Medical Order Ramp-Up - A new medical order is expected to generate a six-figure revenue stream annually, with initial product launches beginning soon [30][31]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported revenue of $48.5 million, a 10.6% increase year-over-year, with an operating loss of $10.6 million due to a one-time non-cash impairment, resulting in a loss of $0.45 EPS [5][14] - Full year 2025 revenue reached $191.2 million, with over $30 million from new products less than five years old, marking a growth of 16.2% year-over-year, leading to a full year operating loss of $5.9 million, equating to a loss of $0.35 EPS [5][14] - The consolidated gross profit for Q4 was $12.1 million, up 13.7% from the previous year, with a gross margin of 24.9%, a 70 basis point improvement from the prior year [10][11] Business Line Data and Key Metrics Changes - The battery and energy product segment generated revenues of $45.9 million, a 15.1% increase from the previous year, with organic growth driven by a 39.6% increase in medical and a 20.4% increase in industrial and other commercial sectors [8][9] - The Communications Systems segment saw revenues decline to $2.6 million, a 35.2% decrease from the previous year, primarily due to delayed orders from the U.S. government [9][10] Market Data and Key Metrics Changes - The sales split between commercial and government defense for the battery business was 73/27, compared to 70/30 in the previous year, indicating a shift towards more commercial sales [9] - The backlog at the end of Q4 was $110.2 million, a 22.1% increase from the previous quarter, representing 58% of trailing twelve months sales [10] Company Strategy and Development Direction - The company aims to improve profitability in the Communications Systems business and expects new product sales to drive growth in 2026 [6][19] - Strategic initiatives include transitioning various sub-brands to the Ultralife master brand and aligning battery and energy facilities under single leadership to maximize synergies [20][21] - The focus remains on operational efficiency, vertical integration, and expanding product offerings to drive organic growth [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2026, citing a healthy backlog and the completion of the Electrochem transition as key factors for future success [27] - The company is targeting organic growth rates of at least double GDP and aims for EBITDA margins greater than 10% in the short term [29][30] Other Important Information - The company completed the ERP transition and various operational initiatives to reduce ongoing costs during 2025 [5][6] - The company has received a refundable tax credit for certain qualifying battery cells and packs, which is expected to positively impact future financials [13] Q&A Session Summary Question: Growth and Margin Expansion Opportunities - Management discussed the roadmap for organic growth, targeting a minimum of double GDP growth and a short-term EBITDA margin of over 10% [29] Question: Baseline Revenue for Communications Systems Business - Management defined baseline revenue for the Communications Systems business as $25 million, with potential for larger orders in the future [32] Question: Medical Order Ramp-Up - Management indicated that a new medical order represents a six-figure plus opportunity per year, with initial product launches expected soon [34]

Core Viewpoint - Ultralife Corporation is set to report its fourth quarter results for the period ending December 31, 2025, on March 10, 2026, before market opening [1] Company Overview - Ultralife Corporation provides a range of products and services including power solutions, communications, and electronics systems, serving government, defense, and commercial customers globally [4] - The company is headquartered in Newark, New York, and operates in North America, Europe, and Asia, with business segments that include Battery & Energy Products and Communications Systems [5]

Core Insights - Ultralife Corporation (ULBI) has faced profitability challenges despite ongoing growth, attributed to cost pressures, weak negotiating positions with customers, competition, and ineffective diversification strategies [1] Company Analysis - The company has experienced a decline in profitability over the past few years, indicating potential operational inefficiencies or market challenges [1] - Cost pressures have significantly impacted the company's financial performance, suggesting a need for better cost management strategies [1] - A weak negotiating position with at least one customer has contributed to the company's struggles, highlighting potential issues in customer relationships or market power [1] - Increased competition in the industry may be affecting Ultralife's market share and pricing power, necessitating a review of competitive strategies [1] - The company's diversification efforts have not yielded the expected results, indicating a need for a reassessment of its growth strategy [1]

Core Points - The article discusses the importance of enabling Javascript and cookies in browsers to avoid access issues [1] - It highlights that ad-blockers may prevent users from proceeding to the desired content [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper functionality [1] - The presence of ad-blockers can lead to access restrictions, necessitating their temporary disablement [1]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 totaled $43.4 million, up from $35.7 million in Q3 2024, representing a year-over-year growth [9] - The company reported an operating loss of $1 million, including a one-time adjustment of $1.1 million, resulting in a GAAP net loss of $0.07 per share compared to a net income of $0.3 million, or $0.02 per share, in the previous year [5][15] - Consolidated gross profit increased to $9.6 million, a 10.8% rise from $8.7 million in Q3 2024, but gross margin declined to 22.2% from 24.3% [11][12] Business Line Data and Key Metrics Changes - Revenues from the battery and energy product segment were $39.9 million, up from $32.5 million year-over-year, with a 19% increase in government defense sales [9][10] - Communication systems segment revenues increased by 8.2% to $3.4 million from $3.2 million in the previous year [10] - The sales split between commercial and government defense for the battery business remained stable at 70/30, while the domestic-to-international sales split shifted to 72/28 due to increased domestic shipments [10][11] Market Data and Key Metrics Changes - Total backlog at the end of Q3 was $90.1 million, a 6.5% increase from $84.5 million at the end of Q2 [11] - The commercial-to-government defense sales split on a consolidated basis was 65/35, similar to the previous year's 63/37 [11] Company Strategy and Development Direction - The company is focusing on diversification through M&A and new product development to stabilize and improve profitability [6][8] - A company-wide rebranding initiative is underway to unify the Ultralife brand and enhance market identity [7][18] - The closure of the Calgary facility is expected to yield annual savings of approximately $0.8 million throughout 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges with gross margins due to supply chain quality issues but remains optimistic about future growth opportunities [5][25] - The completion of the Electric Chem transition is expected to broaden market opportunities, particularly in oil and gas sectors [17][26] - The company is intensifying efforts to improve gross margins through pricing strategies and lean productivity projects [18][19] Other Important Information - Operating expenses increased by 29.4% year-over-year to $10.6 million, influenced by the inclusion of Electric Chem and one-time costs [12] - The company has reduced debt principal by $4.1 million in the first nine months of 2025, exceeding the required amortization [16] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with management expressing anticipation for future discussions [27][28]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 totaled $43.4 million, up from $35.7 million in Q3 2024, representing a year-over-year growth [9] - Operating loss was $1 million, including a one-time adjustment of $1.1 million, resulting in a GAAP net loss of $0.07 per share compared to a net income of $0.3 million or $0.02 per share in the previous year [5][15] - Consolidated gross profit increased to $9.6 million, a 10.8% increase from $8.7 million in Q3 2024, but gross margin declined to 22.2% from 24.3% [11][12] Business Line Data and Key Metrics Changes - Battery and energy product segment revenues were $39.9 million, up from $32.5 million year-over-year, with a gross profit of $8.8 million [9][12] - Communication systems segment revenues increased by 8.2% to $3.4 million, with gross profit rising to $0.8 million [10][12] - Government defense sales increased by 19%, while commercial sales decreased by 5.7%, primarily due to declines in oil and gas and medical battery sales [10] Market Data and Key Metrics Changes - The sales split between commercial and government defense for the battery business was 70/30, consistent with the previous year's 69/31 [10] - Domestic-to-international sales split shifted to 72/28 from 56/44, reflecting increased domestic shipments of government defense products [10] - Total backlog at the end of Q3 was $90.1 million, a 6.5% increase from $84.5 million at the end of Q2 [11] Company Strategy and Development Direction - The company is focusing on diversification through M&A and new product development to stabilize and improve profitability [6][8] - A company-wide rebranding initiative is underway to unify the Ultralife brand and enhance market identity [7][18] - The closure of the Calgary facility is expected to yield annual savings of approximately $0.8 million throughout 2026 [12][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges with gross margins due to supply chain quality issues but remains optimistic about future growth opportunities [5][25] - The completion of the Electric Chem transition is expected to enhance vertical integration and broaden market opportunities [17][26] - The company is intensifying efforts to improve gross margins through pricing strategies and lean productivity projects [18][19] Other Important Information - Operating expenses increased by 29.4% year-over-year to $10.6 million, influenced by the inclusion of Electric Chem and one-time costs [12] - The company has reduced debt principal by $4.1 million in the first nine months of 2025, exceeding the required amortization [16] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with closing remarks from management [27][28]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 totaled $43.4 million, up from $35.7 million in Q3 2024, reflecting a year-over-year growth [8] - Operating loss was $1 million, including a one-time adjustment of $1.1 million, resulting in a GAAP net loss of $0.07 per share compared to a net income of $0.3 million or $0.02 per share in the previous year [5][13] - Consolidated gross profit increased to $9.6 million, a 10.8% rise from $8.7 million in Q3 2024, but gross margin declined to 22.2% from 24.3% [10][11] Business Line Data and Key Metrics Changes - Revenues from the battery and energy product segment were $39.9 million, up from $32.5 million year-over-year, with a 1.9% increase excluding Electric Chem sales [8][9] - Government defense sales increased by 19%, while commercial sales decreased by 5.7%, primarily due to declines in oil and gas and medical battery sales [9] - Communication systems segment revenues rose to $3.4 million, an 8.2% increase from $3.2 million in the previous year [9] Market Data and Key Metrics Changes - The sales split between commercial and government defense for the battery business was 70/30, consistent with the previous year's 69/31 [9] - The domestic-to-international sales split shifted to 72/28 from 56/44, reflecting increased domestic shipments of government defense products [9] - Total backlog at the end of Q3 was $90.1 million, a 6.5% increase from $84.5 million at the end of Q2 [10] Company Strategy and Development Direction - The company is focusing on diversification through M&A and new product development to stabilize and improve profitability [6] - A company-wide rebranding initiative is underway to unify the Ultralife brand and enhance market identity [6] - The closure of the Calgary facility is expected to yield annual savings of approximately $0.8 million throughout 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the completion of the Electric Chem transition and the potential for growth in 2026 [15][23] - The company is prioritizing opportunities that can generate consistent, repeatable annual revenue while diversifying its customer base [16] - Efforts are being intensified to improve gross margins through pricing strategies and lean productivity projects [16] Other Important Information - The company has reduced its debt principal by $4.1 million in the first nine months of 2025, exceeding the required amortization for the year [14] - Adjusted EBITDA for Q3 was $2.0 million, or 4.7% of sales, compared to $1.9 million, or 5.4% for the prior year [13] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with management looking forward to the next earnings call [24][25]