Abstract
Enovix Corporation will report fourth-quarter 2025 results on February 25, 2026 Post Market, with investors watching revenue, margin trajectory, and EPS normalization as the company transitions production and ramps new programs.Market Forecast
Consensus and company-indicated expectations point to fourth-quarter 2025 revenue of $10.27 million (up 17.14% year over year), with EBIT estimated at a loss of $35.73 million and adjusted EPS forecast at a loss of $0.18 (implying a 2.08% year-over-year improvement). Gross margin guidance is implicitly tied to the production ramp; last quarter’s gross margin was 17.53%, and investors will look for stabilization or modest expansion, while net profitability remains negative near term. The main business is product revenue, which is expected to improve through production scale; ramp progress and customer conversions suggest a constructive demand backdrop. The most promising segment remains product revenue from core lithium-ion cell programs, where last quarter revenue reached $23.07 million; ongoing ramp support indicates a favorable trajectory, though specific YoY metrics for the segment are not available.Last Quarter Review
Enovix Corporation’s third-quarter 2025 results showed revenue of $7.99 million, a gross profit margin of 17.53%, GAAP net loss attributable to the parent company of $53.71 million, and net profit margin not disclosed by the company; adjusted EPS was a loss of $0.14, improving 17.65% year over year. A notable operational highlight was better-than-expected EBIT driven by cost controls and ramp efficiency, with actual EBIT loss of $29.83 million versus an estimated loss of $37.34 million. Main business activity centered on product revenue of $23.07 million in the reported period; YoY comparison for the segment was not disclosed.Current Quarter Outlook
Main Business: Product Revenue and Ramp Execution
Product revenue is the core of Enovix Corporation’s model, and near-term performance depends on sustained production ramp and delivery schedules to contracted customers. With fourth-quarter revenue forecast at $10.27 million, expectations imply continued normalization following the third-quarter mix and timing of shipments. The company’s last quarter gross margin of 17.53% indicates early leverage from manufacturing scale, but fourth-quarter margins will hinge on yield improvements and factory uptime. The trajectory of adjusted EPS (forecast at a loss of $0.18) and EBIT (forecast at a loss of $35.73 million) suggests investment intensity remains high as the company transitions to larger-scale operations, where achieving consistent yields across lines is the gate to margin expansion.Shipment cadence and customer qualification cycles are central to the quarter’s revenue conversion. Any slippage in qualification timelines can defer revenue recognition, while a successful progression through late-stage qualifications could bring upside to the forecast. Pricing discipline matters as Enovix focuses on premium applications where its architecture commands differentiation; however, near-term mix shifts toward ramp volumes can compress margins until yields stabilize. Inventory management and working capital will be closely watched because ramping cells require material purchasing ahead of revenue, which can pressure free cash flow in the quarter.
Most Promising Business: Core Lithium-Ion Cell Programs
The most promising growth avenue continues to be core lithium-ion cell programs, which anchor the company’s revenue base and offer visibility through multi-quarter customer engagements. Last quarter product revenue was reported at $23.07 million, reflecting the concentration of demand in core programs, though quarterly revenue recognized at $7.99 million suggests shipment timing and accounting recognition effects. In the fourth quarter, the forecast points to $10.27 million, and year-over-year growth of 17.14% demonstrates incremental traction versus the prior-year comparable despite ongoing ramp costs.Margin performance in these programs depends on yield learning, scrap reduction, and line reliability. As these metrics improve, the cost per unit declines, supporting a path to higher gross margins and better unit economics. A key sensitivity is the pace of customer adoption in target verticals such as mobile devices and wearables, where qualification standards are stringent; positive qualification outcomes enhance order visibility and backlog, while hurdles can extend timelines. Over the longer term, these programs form the foundation for scale, enabling operational leverage and diluted fixed costs across larger volumes.
Stock Price Drivers: Margins, Ramp Milestones, and EPS Trajectory
Three factors are likely to influence Enovix Corporation’s stock performance around the fourth-quarter print. First, gross margin trajectory versus the 17.53% achieved last quarter will signal whether yield improvements are sustaining; even modest expansion can be interpreted as validation of ramp progress, while contraction would raise questions on manufacturing consistency. Second, ramp milestones—including on-time customer qualifications and production throughput—will drive confidence in revenue capture; beats on shipment timing can add upside to the $10.27 million forecast, whereas delays can compress sales and expand losses.Third, adjusted EPS and EBIT trajectory will frame investor expectations for the path to breakeven. The forecast improved adjusted EPS by 2.08% year over year and points to a narrower loss compared to early ramp phases, which investors may see as evidence of scaling benefits. However, the absolute losses remain substantial, and the degree of cash burn and liquidity runway will be a topic for discussion. Communication around capital expenditure and line additions will also affect sentiment, as clear milestones and disciplined spend can reassure the market that scale-up is proceeding within plan.