Enovix Corporation

Q2 revenue was $9 million, up 21% year over year and 19% sequentially, and at the high end of guidance. GAAP gross profit was $1.3 million and non-GAAP gross profit was $1.8 million, with gross margins of 14.4% and 19.9%, respectively. Non-GAAP operating expenses were $30.6 million versus $28.8 million a year ago; non-GAAP loss from operations was $28.8 million, better than the guided loss of $29 million to $32 million; adjusted EBITDA was negative $18.9 million; and non-GAAP net loss per share was $0.13. Cash, cash equivalents and marketable securities ended at approximately $552.1 million, and net cash used in operating activities was $21.8 million. For Q3, management guided revenue to $9 million to $10 million, non-GAAP loss from operations to $29 million to $32 million, non-GAAP net loss per share to $0.13 to $0.17, and capex to $8 million to $12 million.

Raj Talluri framed the quarter as evidence that all three target markets are moving at once: smartphones are nearing qualification, smart eyewear has begun commercial production, and drones/defense are building a larger pipeline. He emphasized that the company’s 100% silicon anode AI platform and MX platform are mutually reinforcing, with smartphone learnings intended to carry into adjacent categories. His tone was constructive and confident, especially on the idea that Enovix is building a broader commercialization path rather than relying on a single market.

Ryan Benton highlighted another quarter of revenue growth, positive gross profit, and better-than-guidance operating loss, while stressing that Enovix ended with over $550 million of liquidity. He said Q2 gross margin pressure was mainly due to South Korea product mix, not execution, and noted first-half non-GAAP gross margin improved to 22.8% from 21.3%. He also pointed to $9.6 million of capex in Q2, expected Q3 capex of $8 million to $12 million, and said capital deployment remains focused on qualification completion, disciplined manufacturing investment, and commercial execution.

Analysts pressed on how long the new smart eyewear ramp will take to reach attractive margins; management said the balance of 2026 will likely remain negative margin for eyewear as overhead moves into gross margin, but scale should improve economics over time. On smartphones, management explained that the remaining gate is an accelerated hybrid cycle-life test to replace legacy graphite-oriented testing, with results expected by year-end and follow-on phone testing after that. On drones/defense, management said the pipeline-to-revenue conversion timing varies by customer type, with drone companies potentially moving in 6 to 9 months and defense primes closer to about 18 months, while new South Korea capacity should come online in mid-2027.