Ensurge Micropower (ENSU) Q3 2026 earnings summary

Executive summary

• Signed a first paid, multi-phase, multi-year development agreement with a Tier 1 global wearables technology partner; the program targets a customized solid-state microbattery and potential high-volume production.

• Corning Ribbon Ceramic is the prioritized platform to meet customer energy-density requirements; development integrates a ceramic cathode with LiPON electrolyte.

• Q3 multi-layer development achieved >90% capacity retention after ~100 cycles, with work continuing on process controls, cathode qualification and integration.

• Relocation from Junction Avenue to a smaller Baytech facility is underway, intended to support customer-specific R&D and pilot manufacturing while reducing annual operating costs by ~$3.5 million.

Financial highlights

• Q3 operating expenditures were $4.0 million; cash and restricted cash totaled $1.773 million at September 30, 2026.

• 9M 2026 revenue and other income was $5.094 million, including a $4.937 million non-recurring lease-termination gain; sales revenue was $152,000.

• 9M operating costs were $12.520 million and operating loss was $7.922 million; net loss was $8.796 million versus $5.501 million in 9M 2025.

• Cash declined by $6.140 million in 9M; operating cash outflow was $11.485 million and financing inflow was $5.392 million.

Outlook and guidance

• First major customer-program deliverable is targeted for late Q1 to early Q2 2027; milestone payments are expected to be recognized in Q4 2026, subject to program terms.

• Baytech operations are targeted to begin in Q1 2027, subject to permits and work authorizations; relocation may affect technology development through Q1.

• Monthly burn is targeted to decline to ~$1.2 million in 2027 after move-related costs; partial facility cost benefits are expected in Q1, with full operating impacts through 2027.

• Q4 measurable results are expected across cathode qualification, LiPON improvement and cathode-LiPON integration; commercial priorities include meeting paid-program milestones and converting the broader pipeline.