Ultralife (ULBI) Q3 2025 earnings summary

Executive summary

• Q3 revenue rose 21.5% YoY to $43.4 million, driven by the Electrochem acquisition; organic growth was 2.5%.

• Gross margin fell to 22.2% from 24.3%, reflecting incoming-component quality issues, unfavorable mix, and lower factory throughput.

• Operating loss was $0.95 million; GAAP net loss attributable to shareholders was $1.22 million, or $0.07 per share.

• Priorities include margin recovery, operating efficiency, diversification, and converting product development and customer opportunities into sustained revenue.

Financial highlights

• Q3 revenue was $43.4 million; YTD revenue was $142.7 million, up 18.3% YoY.

• Gross profit was $9.6 million, compared with $8.7 million in Q3 2024; YTD gross profit was $33.97 million.

• Operating expenses were $10.6 million, up 29.4% YoY, including $1.3 million from Electrochem and $1.1 million in one-time costs.

• Adjusted EBITDA was $2.05 million, or 4.7% of revenue, versus $1.92 million, or 5.4%; TTM Adjusted EBITDA was $15.5 million, or 8.3% of sales.

• YTD net income was $1.52 million, down from $6.12 million; quarter-end cash was $9.26 million, up from $6.85 million at 2024 year-end.

Outlook and guidance

• Calgary closure is expected to generate ~$0.8 million in annual savings; production is moving to Houston, with closure expected to be completed in Q1 2026.

• Oil and gas customers are qualifying packs using Electrochem cells, with benefits expected in 2026; the transition to unified systems is complete.

• Amplifier orders and production shipments, and initial Crescent server production, are expected to start in 2026.

• Q4 priorities include Newark lean and process improvements, pricing, material-cost deflation, and productivity initiatives.