Enovix Corporation — Q3 2026 Earnings Summary

Financial Performance

• Preliminary Q3 2026 revenue was $11.0 million, a 38% year-over-year increase compared to Q3 2025, beating the guidance range of $9.0 million to $10.0 million.
• This marks the sixth consecutive quarter of year-over-year revenue growth.
• GAAP loss from operations was approximately $39.3 million, compared to $46.973 million in Q3 2025.
• Non-GAAP loss from operations was approximately $29.2 million, compared to $29.825 million in Q3 2025.
• GAAP net loss per share was approximately $0.19, compared to $0.26 in Q3 2025.
• Non-GAAP net loss per share was approximately $0.14, compared to $0.14 in Q3 2025.
• Capital expenditures were approximately $3.0 million.
• Cash and cash equivalents were approximately $512 million as of October 4, 2026.
• Stock repurchases totaling $6.2 million were executed under the previously announced Stock Repurchase Plan during Q3 2026.

Guidance and Future Outlook

• The drone, defense, and industrial pipeline grew 18% to approximately $216 million.
• The drone pipeline specifically grew 48% to approximately $150 million and is expected to continue growing through 2027.
• Orders received in the first part of Q4 2026 have already exceeded the total Q3 2026 revenue.
• Management expects to report the first accomplishments of a cost reduction plan in the Q3 2026 report on November 12, 2026.
• The company is investing $19 million to double the capacity of its Korean manufacturing plant.

Business Segments and Product Lines

• Drone and defense customers accounted for approximately 70% of Q3 2026 revenue.
• Approximately 17,000 production samples were shipped year-to-date to one of 24 current and prospective smart eyewear customers.
• The company is expanding defense manufacturing capacity in its acquired Korean plant, which has a 20-year defense production history and is military qualified.
• Enovix utilizes a higher percentage of silicon in its batteries than conventional battery suppliers.
• The company is targeting multiple sub-markets including aerial (UAV), subsea (UUV), and maritime (USV) drone programs.

Market and Competitive Landscape

• U.S. and allied defense programs are driving demand for non-Chinese batteries to comply with NDAA, TAA, and FEOC provisions.
• Enovix's defense-related cells are manufactured completely in-house in Korea, offering a single, auditable chain of custody.
• New defense programs offer premium pricing due to the limited list of qualified defense suppliers.
• The company views its Korean capacity as a strategic asset to meet federal sourcing rules.

Risks and Challenges

• Preliminary results are unaudited and subject to change upon completion of quarter-end closing procedures and review by the independent registered public accounting firm.
• Risks include the potential failure to convert pipeline opportunities into design wins, purchase orders, or shipments.
• Challenges exist regarding the timing of leadership transitions and the ability to execute strategic priorities.
• Risks include delays in customer testing and qualification, potential failure to meet performance thresholds, and lengthy sales cycles in regulated markets.
• The company faces risks related to scaling manufacturing operations, achieving expected yields, and satisfying government sourcing requirements.
• Continued losses are expected, and the company must address liquidity constraints and capital availability.

Management Commentary and Tone

• Ryan Benton, Interim CEO, stated the focus is on moving the $216 million pipeline forward into design wins and shipments, noting that Q4 orders have already exceeded Q3 revenue.
• Steve Bakos, newly appointed Chief Revenue Officer, emphasized the need for high-performance batteries at scale from a qualified source and aims to monetize the pipeline at attractive margins.
• T.J. Rodgers, Executive Chairman, highlighted the alignment of the executive staff with immediate revenue growth opportunities in high-margin defense markets and the direct addressing of cost structure and profitability.
• The tone reflects confidence in the defense market demand and the strategic value of the Korean manufacturing facility.

Other Key Points

• Steve Bakos was promoted from Senior Vice President of Worldwide Sales to the newly created role of Chief Revenue Officer and General Manager.
• James Wilcox was promoted to Vice President of Corporate Strategy to lead manufacturing, technology partnerships, and government funding programs.
• Dan Wark joined full-time to lead a new Global Supply Chain organization.
• VP of R&D Jon Doan and the 147-person R&D team were placed under COO Michael Vyvoda to focus R&D on revenue-related projects.
• The company is utilizing a proprietary silicon-anode architecture for higher energy density in space-constrained devices.
• Full Q3 2026 results, including an earnings call and webcast, are expected on or about November 12, 2026.