Enovix Corporation Reports Q1 2025 Financial Results with $5.1M Revenue and $23.5M Net Loss

Enovix Corporation reported its financial results for the fiscal quarter ending March 30, 2025, revealing a revenue of $5.1 million, a slight decrease of 3% from $5.3 million in the same period last year. The company achieved a gross profit of $261,000, a significant improvement from a gross loss of $1.8 million in the prior year, primarily due to a 32% reduction in the cost of revenue, which fell to $4.8 million from $7.1 million. The decrease in costs was attributed to the absence of a non-recurring inventory step-up amortization charge that had impacted the previous year’s figures.

Operating expenses also saw a notable decline, totaling $42.8 million compared to $68.3 million in the prior year, driven by a 47% reduction in research and development expenses, which amounted to $25.9 million. This reduction was largely due to a one-time accelerated depreciation charge recorded in the first quarter of 2024. Selling, general, and administrative expenses decreased by 14% to $16.9 million, reflecting cost-cutting measures implemented in response to the company's restructuring plan initiated in 2023. The net loss for the quarter was $23.5 million, a 49% improvement from the $46.5 million loss reported in the same quarter last year.

In terms of strategic developments, Enovix announced the acquisition of battery cell manufacturing assets from SolarEdge for $10 million, which is expected to enhance its manufacturing capabilities and support growing demand in the defense sector. The company also reported progress in its manufacturing readiness, with its high-volume production facility in Malaysia completing an ISO 9001:2015 audit and passing initial customer audits. Enovix is actively developing new battery products, including smartphone battery cells, and has begun delivering samples for customer testing.

Operationally, Enovix has focused on expanding its customer base, particularly in the defense and consumer electronics sectors, with approximately 47% of its revenue for the quarter derived from South Korean customers. The company reported a total of 192 million shares outstanding as of April 28, 2025, and continues to monitor macroeconomic conditions that could impact its operations, including inflation and global trade dynamics. Looking ahead, Enovix anticipates ongoing operating losses as it ramps up production and invests in its manufacturing capabilities, but it remains optimistic about achieving profitability as it scales its operations and meets customer demand.