Enovix (ENVX) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenue of $7.6 million, up 49% year-over-year, driven by defense and industrial shipments, with smart eyewear battery production underway and smartphone qualification progressing with lead OEMs.

• Commercial production and initial shipments of smart eyewear batteries began, targeting 50,000 units in 2026 and broader deployment in 2027.

• Launched MX-1 drone battery platform, securing new design wins in drone, defense, and industrial markets, with a Korea pipeline exceeding $130 million.

• Manufacturing execution improved at Fab2, with yields in most zones nearing or exceeding 90%, and hybrid dicing strategies implemented to boost throughput.

• Appointed Steve Bakos as SVP of Worldwide Sales to support commercial growth.

Financial highlights

• Q1 2026 revenue was $7.6 million, up 49% year-over-year and above guidance.

• Non-GAAP gross margin reached 26.3%, marking the sixth consecutive quarter of positive gross profit.

• Non-GAAP operating expenses were $30.8 million; non-GAAP loss from operations was $28.8 million, better than guidance.

• Net loss attributable to shareholders was $38.3 million (GAAP) or $29.5 million (non-GAAP); net loss per share was $0.18 (GAAP) and $0.14 (non-GAAP).

• Ended the quarter with $582.7 million in cash equivalents, restricted cash, and marketable securities.

Outlook and guidance

• Q2 2026 revenue expected between $8 million and $9 million, driven by defense, industrial, and initial smart eyewear shipments.

• Non-GAAP loss from operations projected at $29 million–$32 million; non-GAAP net loss per share between $0.13 and $0.17.

• Capital expenditures for Q2 expected at $9 million–$13 million, including deferred and new capacity expansion payments.

• Smart eyewear shipments expected to reach 50,000 units in 2026, scaling to millions in 2027.

• Smartphone field testing with Honor in H2 2026, with commercial ramp targeted for 2027.