Enovix (ENVX) Reports Q4
Enovix (ENVX) reported yesterday after the close, and once again the financial results are way down the list in terms of what matters most, for now. It’s all about executing the ramp-up to full-scale production, securing customer orders, and continuing to develop batteries that major electronics manufacturers will qualify for their devices and then order in mass quantities.
First, the “not important” financials. Fourth-quarter revenue was $9.7 million (+125% over Q3 2024 and +32% over Q4 2023) while adjusted EBITDA loss was -$11.7 million, roughly 50% better than both the previous quarter and the comparable quarter last year.
Guidance for Q1 2025 revenue was $3.5 to $5.5 million, lower than consensus estimates for about $6.0 million. This is not a big deal.
More important is continued operational and customer engagement success.
Enovix completed Fab-2 site acceptance testing (SAT) and sampling of EX-2M cells (the second-generation version). Enovix is still in the early stages of commercialization, with revenues expected to ramp significantly exiting this year and into 2026.
Management talked about temptations to order long lead time items for Line 2, which is expected to be more cost-efficient than Line 1 (which is designed to make multiple form factors). Line 2 will be increasingly important if/as capacity gets full in 2026.
On the customer front, Enovix has received specific battery cell dimensions from a smartphone customer (i.e., so that it’ll fit in the finished product) with a purchase order now expected in 3Q, provided the battery does what the customer needs. This timing would allow for a late-2025 product launch. Fingers crossed.
Management also discussed an emerging opportunity in the defense & drone market where manufacturers are looking for suppliers outside of China. And more use cases in the smart eyewear market are emerging.
There was no single item from the conference call that should be expected to send ENVX stock surging in the coming days. But I continue to think those potential catalysts are coming, most likely in early Q3 and beyond. Keeping at buy and not too concerned about the short-term gyrations in the stock. BUY
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