We use cookies to improve your experience, analyze site usage, and show relevant ads. Go to our Privacy Policy for details.
The call highlights meaningful commercialization and technical milestones (commercial production of A1, AI2 samples with >20% energy density gains, MX1 drone cell, alignment with smartphone OEMs on qualification framework), strong YoY revenue growth (+49%), improving manufacturing yields and a robust cash position (~$582.7M). Key challenges remain: operating losses and negative EBITDA, Q1 free cash outflow, a current zone dicing throughput bottleneck (yield ~80%) pending mechanical dicer implementation, and potentially longer smartphone qualification timelines due to slower but more realistic 0.1–0.2C testing. Overall, the progress on product readiness, customer engagement and manufacturing improvements, together with a solid liquidity position, outweighs the near-term financial and operational headwinds, supporting a constructive outlook.
Management's Q2 2026 guidance and Q1 results were summarized with numerous metrics: Q1 revenue was $7.6 million (up 49% YoY and above the high end of guidance), non‑GAAP gross margin 26.3%, non‑GAAP operating expenses $30.8 million, non‑GAAP loss from operations $28.8 million (better than the prior $29–$32M guidance), non‑GAAP net loss per share $0.14, adjusted EBITDA negative $20.3M, cash and equivalents approximately $582.7M, free cash flow outflow $36.3M, and Q1 CapEx payments of $3.2M; they also noted this was the sixth consecutive quarter of positive gross profit on both a GAAP and non‑GAAP basis. For Q2 2026 management guided revenue of $8.0–$9.0 million, non‑GAAP loss from operations of $29–$32 million, non‑GAAP net loss per share of $0.13–$0.17, and CapEx payments of $9–$13 million.
Commenced commercial production of A1 silicon-anode battery for lead customer's reference platform; initial shipments underway with production expected to ramp through H2 2026; smart eyewear sampling for AI2 planned this quarter; company expects ~50,000 smart eyewear units in 2026 and projects the market could exceed $1B by 2030.
Aligned with Honor on an updated silicon-anode specific qualification framework (prioritizing ~0.2C tests vs legacy 0.7C); second smartphone OEM adopting a similar approach; cycle life testing under the new protocols is progressing and results are approaching required thresholds.
Reported Q1 revenue of $7.6 million, above the high end of guidance and up 49% year-over-year; non-GAAP gross margin was 26.3%; sixth consecutive quarter of positive gross profit on both GAAP and non-GAAP bases.
Ended Q1 with approximately $582.7 million in cash, cash equivalents, restricted cash and marketable securities, providing substantial liquidity to fund commercialization, capacity expansion and strategic opportunities.
Yields in most production zones nearing or exceeding 90%; Zone 1 dicing step-level yields approximately 80% with continued improvement; mechanical dicing progress (hybrid laser + mechanical approach) demonstrated to materially increase throughput and reduce cost prospects.
Produced first engineering samples of AI2 for smart eyewear delivering greater than 20% higher volumetric energy density versus AI1 through reduced inactive material and increased cathode voltage; AI1 smartphone battery independently validated at 935 Wh/L.
Launched MX1-B01 drone cell delivering 360 Wh/kg and ~300 cycles, NDAA-compliant and manufactured in Korea; global Korea pipeline now exceeds $130 million (majority driven by drone demand) and company targets MX2 at 400 Wh/kg in 2027.
Appointed Steve Bakos as SVP Worldwide Sales to accelerate commercial conversion; vertical integration and owned manufacturing footprint (Korea and Malaysia) positioned to meet defense/industrial supply chain requirements; Q2 2026 revenue guidance $8M–$9M and continued targeted CapEx for capacity expansion.
Thank you for standing by, and welcome to the Enovix Corporation First Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's program will be recorded. And now I'd like to introduce your host for today's program, Robert Lahey, Head of Investor Relations. Please go ahead, sir.
Thank you. Hello, everyone. Welcome to Enovix Corporation's First Quarter 2026 Financial Results Conference Call. With me today are President and Chief Executive Officer, Dr. Raj Talluri; and Chief Financial Officer, Ryan Benton. Raj and Ryan will provide remarks followed by Q&A. Before we begin, please note that today's conference call contains forward-looking statements that are subject to risks and uncertainties. These statements are based on current expectations and may differ materially from actual future results due to various factors.
For a discussion of these risks, please refer to the disclosures in today's press release and our filings with the Securities and Exchange Commission. You can also find these materials on our website at ir.enovix.com. All statements made on this call are as of today, May 13, 2026, and we undertake no obligation to update them, except as required by law. Additionally, during the call, we may reference non-GAAP financial measures. You can find a reconciliation of these to the most directly comparable GAAP measures in the materials posted on our Investor Relations website. With that, I'll turn the call over to Raj.
Good afternoon, everyone, and thank you for joining us. This quarter marked another meaningful step in Enovix's transition to...