Enovix Corp. (NASDAQ:ENVX) shares are plummeting Friday after its third-quarter adjusted loss per share widened from a year earlier and the company said it is dropping smartphone field testing. Here’s what you should know.
- Enovix stock is testing lower boundaries. Why did ENVX hit a new low?
Enovix Stock Falls After Q3 Loss Widens
Enovix makes premium lithium-ion batteries, and its adjusted third-quarter loss widened to 15 cents a share from 14 cents a year ago. Sales of $11.0 million rose 38% from $7.99 million, and adjusted gross margin set a record 34.5%. The adjusted operating loss narrowed to $29.2 million from $29.8 million.
Fourth-quarter revenue is guided to $9.0 million up to $10.0 million, 12% to 20% below last year’s $11.3 million. Guidance for 2027 is $65 million up to $85 million, with close to half of the midpoint already booked.
Enovix Drops Smartphone Field Testing
Enovix chose to skip system-level field testing of its pre-AI-2 smartphone units. AI-1 cells passed internal cell-level tests, but that earlier process version fell short of the current energy-density goal of above 1,000 watt-hours per liter. The lead smartphone customer should finish its own qualification next week.
Enovix will steer silicon-anode development toward smart eyewear instead, where it holds a 50,000-pack backlog and has shipped about 19,000 units this year.
This could weigh on the stock because smartphones are typically a high-volume market, so skipping the next testing step may delay smartphone revenue and raises questions about execution on the energy-density target. Eyewear offers less volume but clearer near-term visibility, since orders already exist.
Enovix Cuts Costs and Retires Debt
A 220-job reduction trims annual costs by about $8.5 million. Enovix bought back $128 million of its 2030 convertible notes for around $81 million, a 36% discount, and finished third-quarter holding $512.2 million in cash, investments and restricted cash.
Holders of record on Nov. 13 receive one warrant per four shares at a $3.00 exercise price, meant to retire the 2028 notes. Drone demand helped: prospects across drones, defense and industrial markets grew 18% to about $216 million, and Enovix won a first purchase order for 100,000 batteries. Steve Bakos, chief revenue officer, said “our customers need high-performance cells from a qualified, non-Chinese source.”
ENVX Shares Are Plunging
ENVX Price Action: Enovix shares were down 21.34% at $1.98 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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