Enovix (ENVX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $5.1 million, exceeding guidance midpoint and supported by new defense bookings and ongoing smartphone and XR product development.

• Significant operational progress at Fab 2 in Malaysia, including ISO 9001 certification, customer audit completion, and yield improvements; manufacturing expansion via a $10 million South Korea acquisition.

• Custom smartphone cell development advanced, with qualification samples for a lead customer expected in Q2 to support a 2026 ramp; strong engagement with a second OEM.

• No material near-term impact from global trade/tariff developments; most sales remain concentrated in Asia.

• Leadership team strengthened with new CFO and CBO appointments; ended Q1 with $248 million in cash and equivalents.

Financial highlights

• Q1 2025 revenue: $5.1 million, flat year-over-year and above guidance midpoint; 47% of product revenue from South Korea.

• GAAP net loss attributable to Enovix was $23.5 million, improved from $46.4 million year-over-year; adjusted EBITDA loss was $22.2 million.

• Gross profit was $0.3 million, with a positive gross margin for the second consecutive quarter.

• Operating expenses decreased 37% year-over-year to $42.8 million; non-GAAP operating expenses were $29.7 million.

• Ended Q1 with $248 million in cash, equivalents, and marketable securities; $16.9 million used in operations and $6.3 million in capex.

Outlook and guidance

• Q2 2025 revenue forecast: $4.5–$6.5 million; non-GAAP operating loss expected: $31–$37 million; adjusted EBITDA loss: $23–$29 million.

• Non-GAAP net loss per share guidance: $0.15–$0.21.

• No longer providing GAAP EPS guidance due to estimation challenges.

• Management expects cash to be sufficient for at least the next twelve months, with plans to meet longer-term needs through a mix of cash, debt, equity, and strategic arrangements.