Ultralife Corporation Reports $47.4 Million Revenue and Net Loss of $451,000 in Q1 2026

Ultralife Corporation reported a consolidated revenue of $47.4 million for the first quarter of 2026, reflecting a decrease of 6.5% from $50.7 million in the same period of 2025. The decline was attributed to a 5.5% drop in commercial sales and an 8.2% decrease in government and defense sales. The company's gross profit also fell to $10.1 million, or 21.3% of revenue, down from $12.7 million, or 25.1% of revenue, in the prior year. This decline in gross margin was primarily due to unfavorable sales product mix, increased utility costs, and production delays.

Operating expenses increased to $10.3 million in the first quarter of 2026, compared to $9.3 million in the same quarter of 2025. This rise was driven by a 23.2% increase in research and development costs as the company continued to invest in new product offerings, alongside one-time expenses totaling $847,000 related to consulting and litigation. As a result, Ultralife reported an operating loss of $215,000 for the quarter, a significant decline from the operating income of $3.4 million reported in the previous year.

The net loss attributable to Ultralife Corporation was $451,000, or $0.03 per share, for the first quarter of 2026, compared to a net income of $1.9 million, or $0.11 per share, in the same period last year. The company’s adjusted EBITDA also decreased to $3.2 million, or 6.8% of revenues, down from $5.4 million, or 10.7% of revenues, in the prior year. The decline in profitability was attributed to reduced revenues, lower gross margins, and increased operating expenses.

In terms of operational developments, Ultralife continues to focus on improving manufacturing efficiencies, particularly at its Newark, NY facility, as it ramps up production of new products. The company is also committed to restoring profitability and generating cash flow to reduce debt and support strategic capital expenditures. As of March 31, 2026, Ultralife had $8.9 million in cash and $48.2 million in outstanding debt, with no amounts drawn on its revolving credit facility.

Looking ahead, Ultralife anticipates positive operating cash flow and believes that the availability of borrowings under its revolving credit facility will be sufficient to meet its funding requirements. The company remains focused on enhancing its product offerings and expanding its market presence, particularly in the government and defense sectors, while navigating the challenges posed by market conditions and operational efficiencies.