Enovix (NASDAQ:ENVX) reported fourth-quarter and full-year 2025 results while outlining its progress transitioning from product qualification into early commercialization across smartphones, smart eyewear and defense applications. Management emphasized continued work to complete smartphone qualification for its AI-1 silicon-anode battery platform, while positioning smart eyewear as an earlier path to meaningful commercial shipments.
Q4 and full-year financial results
For the fourth quarter, Enovix posted record revenue of $11.3 million, up 16% year over year and above the top end of its guidance range of $10.5 million. CFO Ryan Benton said the outperformance was driven by strength in defense and industrial shipments out of Korea. Non-GAAP gross profit was $2.9 million, representing a ~26% non-GAAP gross margin, aided by higher volumes and operational improvements in Korea.
For the full year 2025, revenue rose 38% year over year to $31.8 million, which management described as a company record. Non-GAAP gross margin improved to 23%, which CEO Dr. Raj Talluri attributed to higher production volumes and a favorable mix shift toward higher-margin defense batteries following an April 2025 asset acquisition. The company ended the year with $621 million in cash, cash equivalents and marketable securities.
Smartphone qualification: cycle life testing becomes the key gating item
Talluri said Enovix remains engaged with seven of the top eight global smartphone OEMs by market share. The near-term focus is on two Asia market leaders, with Honor as its lead customer. Enovix began Honor’s formal product qualification process in the third quarter of 2025, and management said most requirements have been met, leaving cycle life testing as the primary gating item before system integration and production planning.
Management spent significant time describing smartphone cycle life testing protocols, emphasizing that results depend heavily on the test method. Talluri explained that Honor’s primary requirement is 1,000 cycles at a 0.2C rate, but that test would take about a year to complete, so OEMs typically accelerate testing by running most cycles at 0.7C (with a secondary requirement of 800 cycles at 0.7C). Enovix said customer qualification testing on December shipments began in January under customer-controlled protocols.
Based on internal testing, Enovix said the batteries shipped to its lead customer are now likely to exceed the 1,000-cycle requirement at 0.2C, which Talluri called a significant milestone. However, the company said those same batteries are not currently on track to exceed the accelerated 0.7C target. Talluri noted there has been no prior qualification of a 100% silicon anode smartphone battery and said defined testing protocols for such cells are not established.
Enovix outlined three potential pathways to complete qualification with Honor:
- Approval based on 0.2C results with acceptance of cycle life below the current 0.7C requirement.
- Adoption of a new accelerated protocol tailored for silicon anode batteries.
- Electrochemistry improvements intended to meet the 0.7C target.
Talluri said initial smartphone-related revenue in 2026 is expected to support system integration and launch preparation, with larger-scale commercialization anticipated in late 2026 or early 2027.
Smart eyewear positioned as earlier commercialization pathway
Management repeatedly described smart eyewear as an earlier commercialization opportunity for AI-1 because qualification cycles are shorter and durability thresholds are lower than smartphones. Talluri said Enovix expects to ship its first smart eyewear batteries for AI/AR devices in the second half of 2026, and he estimated the smart eyewear battery total addressable market could exceed $400 million by 2030.
In the Q&A, Talluri said Enovix has a production purchase order from its lead smart eyewear customer and that the company is manufacturing now to support that customer, though he said initial volumes will be lower as programs ramp. He added that Enovix expects the market to become more meaningful in 2027 and 2028.
Talluri also said the company does not see major technical obstacles for commercial volumes in smart eyewear later in 2026, while noting the category is still evolving and application testing may drive adjustments. He said the company has already adapted to at least one change related to rates and pulses after initial sampling.
Defense and drones: current revenue, pipeline, and energy density roadmap
Defense and industrial programs remained the company’s largest revenue contributor in 2025, with naval munitions described as the top product in Q4. Talluri said Enovix operates two defense-focused platforms: in Malaysia, it is advancing a larger-format AI-1 variation optimized for high energy density, and in Korea it runs a conventional architecture platform (graphite and silicon-doped anodes) supporting drones, subsea systems and munitions.
On drones, Talluri described an expanding pipeline and said Enovix entered 2026 with a global pipeline of approximately $100 million, including opportunities with multiple Tier 1 defense contractors. He also cited an estimated $1.5 billion battery TAM for drones this year. Enovix said internal testing on a higher-energy drone cell has achieved approximately 342 Wh/kg, and its next-generation silicon anode roadmap targets energy density above 400 Wh/kg.
Manufacturing execution, capital priorities, and Q1 outlook
Operationally, Talluri said Enovix continues working to improve yield and throughput in Fab2, with Zone 1 laser dicing described as the primary rate-limiting step. He said the company is methodically addressing the constraint through process optimization and alternative approaches, while noting that any change in dicing methods would require customer communication and some form of requalification.
Benton said Q1 2026 revenue is expected to be $6.5 million to $7.5 million due to seasonality and timing of defense shipments. The company guided to a non-GAAP loss from operations of $29 million to $32 million and capital expenditures of $9 million to $11 million, primarily for Fab2 equipment. Benton added that some Q4 cash payments were delayed due to timing of equipment and vendor payments, with most expected in the first half of 2026.
He also said Enovix deferred initiation of an NPI line in Korea to allow its new global manufacturing leader, Kihong Park, to evaluate priorities, while accelerating incremental capacity additions in Korea due to demand. The board also authorized a share repurchase program, which Benton said reflected confidence in the long-term strategy.
About Enovix (NASDAQ:ENVX)
Enovix Corporation (NASDAQ: ENVX) develops and manufactures advanced lithium-ion battery cells with a patented three-dimensional silicon-anode architecture. The company’s core focus is on delivering high energy density, improved safety, and longer cycle life compared to conventional graphite-based cells. Enovix’s technology targets a range of applications, including consumer electronics, wearable devices, electric vehicles and stationary energy storage systems.
Founded in 2011 and headquartered in Fremont, California, Enovix has built pilot production capability and is scaling up manufacturing capacity to meet growing demand.
