Enovix Corp (ENVX)

CIK: 0001828318. SIC: 3690 Miscellaneous Electrical Machinery, Equipment & Supplies. Latest 10-K as of: 2026-02-25.

SIC breadcrumb: Manufacturing > Electronic And Other Electrical Equipment And Components, Except Computer Equipment > SIC 3690 Miscellaneous Electrical Machinery, Equipment & Supplies

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1828318. Latest filing source: 0001828318-26-000006.

Selected Fundamentals

Metric	Value	Unit	FY	Filed
Revenue	31,821,000	USD	2025	2026-02-25
Net income	-156,741,000	USD	2025	2026-02-25
Assets	878,975,000	USD	2025	2026-02-25

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001828318.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

Metric	2019	2020	2022	2023	2024	2025
Revenue				7,644,000	23,074,000	31,821,000
Net income		-39,650,000	-125,874,000	-214,071,000	-222,241,000	-156,741,000
Operating income		-23,530,000	-69,522,000	-230,255,000	-242,669,000	-177,254,000
Gross profit		-3,375,000	-1,967,000	-55,417,000	-2,045,000	6,105,000
Diluted EPS		-0.49	-1.07	-1.30	-1.19	-0.75
Operating cash flow		-20,050,000	-51,306,000	-104,636,000	-108,633,000	-95,291,000
Capital expenditures		26,953,000	43,584,000	61,795,000	76,188,000	18,223,000
Share buybacks		0.00	27,000	0.00	0.00	58,385,000
Assets		64,964,000	482,565,000	564,304,000	527,169,000	878,975,000
Liabilities		28,748,000	156,448,000	303,201,000	277,766,000	604,964,000
Stockholders' equity	2,978,000	36,216,000	326,117,000	258,147,000	246,741,000	271,214,000
Cash and cash equivalents		29,143,000	385,293,000	233,121,000	272,869,000	106,014,000
Free cash flow		-47,003,000	-94,890,000	-166,431,000	-184,821,000	-113,514,000

Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

Metric	2020	2022	2023	2024	2025
Return on equity	-109.48%	-38.60%	-82.93%	-90.07%	-57.79%
Return on assets	-61.03%	-26.08%	-37.94%	-42.16%	-17.83%
Liabilities / equity	0.79	0.48	1.17	1.13	2.23
Current ratio	3.04	19.29	5.30	5.49	8.34

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001828318.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarter	End Date	Revenue	Net Income	Diluted EPS	Method
2022-Q1	2022-04-03			-0.16	reported discrete quarter
2022-Q2	2022-07-03			-0.18	reported discrete quarter
2022-Q3	2022-10-02			-0.53	reported discrete quarter
2023-Q1	2023-04-02	21,000	-73,603,000	-0.47	reported discrete quarter
2023-Q2	2023-04-02		-73,603,000		reported discrete quarter
2023-Q2	2023-07-02	42,000		-0.41	reported discrete quarter
2023-Q3	2023-07-02		-64,306,000		reported discrete quarter
2023-Q3	2023-10-01	200,000		-0.29	reported discrete quarter
2023-Q4	2023-12-31	7,381,000	-59,977,000		derived Q4 = FY annual - nine-month YTD
2024-Q1	2024-03-31	5,272,000	-46,368,000	-0.28	reported discrete quarter
2024-Q2	2024-06-30	3,768,000	-115,872,000	-0.67	reported discrete quarter
2024-Q3	2024-09-29	4,317,000	-22,536,000	-0.30	reported discrete quarter
2024-Q4	2024-12-29	9,717,000	-37,465,000		derived Q4 = FY annual - nine-month YTD
2025-Q1	2025-03-30	5,098,000	-23,510,000	-0.12	reported discrete quarter
2025-Q2	2025-06-29	7,468,000	-44,528,000	-0.22	reported discrete quarter
2025-Q3	2025-09-28	7,990,000	-53,713,000	-0.27	reported discrete quarter
2025-Q4	2025-12-28	11,265,000	-34,990,000		derived Q4 = FY annual - nine-month YTD

Quarterly Charts

Macro Cross-References

CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
UNRATE - Unemployment Rate
FEDFUNDS - Federal Funds Effective Rate
CES0500000003 - Average Hourly Earnings of All Employees, Total Private
DFEDTARU - Federal Funds Target Range - Upper Limit
DFEDTARL - Federal Funds Target Range - Lower Limit
DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
PCEPI - Personal Consumption Expenditures: Chain-type Price Index
PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
PPIACO - Producer Price Index by Commodity: All Commodities
T10YIE - 10-Year Breakeven Inflation Rate
U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
PAYEMS - All Employees, Total Nonfarm
CIVPART - Labor Force Participation Rate
EMRATIO - Employment-Population Ratio
UNEMPLOY - Unemployed
CE16OV - Employment Level
ICSA - Initial Claims
JTSJOL - Job Openings: Total Nonfarm
JTSQUR - Quits: Total Nonfarm
GDPC1 - Real Gross Domestic Product
A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
INDPRO - Industrial Production: Total Index
TCU - Capacity Utilization: Total Index
HOUST - New Privately-Owned Housing Units Started: Total Units
PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
RSAFS - Advance Retail Sales: Retail Trade
PCE - Personal Consumption Expenditures
DSPIC96 - Real Disposable Personal Income
PSAVERT - Personal Saving Rate
M2SL - M2
BOPGSTB - U.S. International Trade in Goods and Services: Balance
MSPUS - Median Sales Price of Houses Sold for the United States
HSN1F - New One Family Houses Sold: United States
RHORUSQ156N - Homeownership Rate in the United States
TTLCONS - Total Construction Spending: Total Construction in the United States
RRVRUSQ156N - Rental Vacancy Rate in the United States
TOTALSL - Total Consumer Credit Owned and Securitized
REVOLSL - Revolving Consumer Credit Owned and Securitized
DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
GDP - Gross Domestic Product
GPDI - Gross Private Domestic Investment
GCE - Government Consumption Expenditures and Gross Investment
PCEC - Personal Consumption Expenditures
NETEXP - Net Exports of Goods and Services
GFDEBTN - Federal Debt: Total Public Debt
GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
FYFSD - Federal Surplus or Deficit
FGRECPT - Federal Government Current Receipts
FGEXPND - Federal Government: Current Expenditures
MANEMP - All Employees, Manufacturing
USCONS - All Employees, Construction
USTRADE - All Employees, Retail Trade
USFIRE - All Employees, Financial Activities
USGOVT - All Employees, Government
AWHAETP - Average Weekly Hours of All Employees, Total Private
DGORDER - Manufacturers' New Orders: Durable Goods
NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
BUSINV - Total Business Inventories
EXPGS - Exports of Goods and Services
IMPGS - Imports of Goods and Services
IR - Import Price Index (End Use): All Commodities
PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001828318-26-000029.

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high. Filing date: 2026-05-14. Report date: 2026-04-05.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of financial condition and results of operations should be read together with the condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis contains forward-looking statements based upon our current expectations, estimates and projections that involve risks and uncertainties. Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q.

Business Overview

We design, develop and manufacture advanced lithium-ion batteries, including our proprietary silicon-anode architecture that enables higher energy density and performance relative to conventional battery cells, particularly in space-constrained devices such as smartphones, smart eyewear and next generation AI-enabled devices. We have expanded our suite of battery offerings through acquisitions and now also manufacture conventional lithium-ion batteries, primarily serving customers in the defense and industrial sectors.

To date, we have concentrated our operational efforts on researching, developing and commercializing the next generation technology behind our silicon-anode lithium-ion battery cell architecture. Most recently, we launched the AI-1TM product platform, our Artificial Intelligence ClassTM batteries for the next generation of mobile smartphones, smart eyewear and other AI-enabled devices that require significantly higher total energy storage and power to perform AI functions locally. We also serve customers in defense and industrial markets through our conventional and silicon-doped graphite battery products across a range of battery sizes and configurations optimized for high discharge rate applications, such as drones, subsea systems, and munitions defense systems.

Drones represent another priority area of focus, as we believe our products provide a strong competitive advantage for serving customers that are increasingly prioritizing higher energy density, extended flight time, and supply-chain diversification. In addition to the smartphone, smart eyewear and defense and industrial markets, we are pursuing deployment of our technology across other edge-AI applications, as well as computing and EVs, among others.

We currently lease several facilities, including our headquarters in Fremont, California, and our manufacturing facility in Malaysia. Our manufacturing operations are conducted in Malaysia and South Korea, supporting both our next-generation silicon-anode platform and our conventional lithium-ion battery products. We have transitioned our prior U.S. pilot manufacturing activities to Malaysia and continue to focus on manufacturing execution, operational efficiency, and capacity planning to support commercialization efforts. Our research and development activities are conducted primarily in California, India, and South Korea and are focused on cell architecture, materials integration, and manufacturing process optimization. We also recently opened a sales office in Shenzhen, China.

Key Trends, Opportunities and Uncertainties

We generate revenue from the sale of batteries and battery pack products (“Product Revenue”). Our performance and future success depend on several factors that present significant opportunities, but also pose risks and challenges as described in the section titled “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q.

Advanced smartphone qualification and commercialization efforts. Advanced smartphone qualification is progressing with our lead smartphone Original Equipment Manufacturer (“OEM”) customer, Honor, and a second smartphone OEM. We have aligned with our lead customer on utilizing a silicon-specific evaluation framework for cycle-life testing that we believe better reflects real-world usage conditions for silicon-anode batteries than legacy testing methods. A second smartphone OEM customer has also aligned with the removal of select legacy requirements for silicon-anode batteries and we are in discussions on a replacement qualification framework expected to be consistent with the foregoing silicon-specific evaluation framework. These updated protocols increase testing rigor and duration rather than reduce qualification requirements. However, the ultimate timing on such qualification is outside of our control, and there can be no assurance as to when qualification will be completed.

Expanded customer engagement and commercial traction across end markets. Our engagement with customers continues to expand across AI-powered applications requiring high energy density in compact form factors. We have commenced early production and initial shipments of our smart eyewear platform, representing our first scaled commercial proof point for our 100% silicon-anode architecture.

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We have also secured additional design wins in defense, drone, and industrial applications, with deployments expected to begin in 2027. Our global pipeline for products manufactured in South Korea has grown to more than $130 million as of the end of the first quarter of 2026, driven primarily by increased demand in drone applications, where demand for high-performance, non-China supply continues to outpace available Western supply. Our revenue remains concentrated in a small number of South Korean defense customers, and therefore the loss of any such customer would have a material impact on our revenues in the near term. Furthermore, this concentration also exposes us to risks specific to defense procurement, including Korean government budget cycles, procurement decisions, program cancellations or deferrals, and geopolitical factors affecting the Korean Peninsula and broader Northeast Asia region. Changes in South Korean defense priorities or reductions in procurement budgets for unmanned systems, drone platforms, subsea applications, or other programs utilizing our batteries could materially reduce demand from our primary customer base.

Advanced technology development roadmap. We produced our initial AI-2 engineering samples for smart eyewear applications incorporating EX-3M technology innovations, which are expected to deliver more than 20% improved volumetric energy density relative to our AI-1 product. Customer sampling is planned for the second quarter of 2026, with initial commitments from several leading technology companies. We anticipate that these EX-3M innovations will support performance gains for future smartphone batteries. To further support defense, drone, and industrial customers, we are also launching our “Mission Execution” platform (MX-1), a silicon-enhanced battery product line designed for high-performance applications, including aerial drones. We are targeting an MX-2 version of this line in 2027, with a goal of continuing to increase energy density.

Improved manufacturing readiness and execution. We are continuing to advance execution at Fab2 in Malaysia, achieving step-level yields of approximately 80% in Zone 1 dicing operations, with yields in most other production zones nearing or exceeding 90%. We have implemented a hybrid dicing configuration strategy combining laser and mechanical processes to improve throughput and support increasing production volumes as commercialization progresses. Fab2 has not yet produced smartphones at commercial volume, and the transition to high-volume manufacturing involves execution risks that remain unresolved. Capital expenditure payments are expected to increase materially in the future quarters primarily attributable to the settlement of previously deferred Fab2 equipment invoices and initial funding commitments associated with the South Korea capacity expansion initiative.

Delivered strong revenue growth and continued gross margin improvement. First quarter 2026 revenue of $7.6 million increased 49% year-over-year, driven primarily by defense and industrial shipments. Gross margin improved to 20.4% in the first quarter of 2026, up from 5.1% in the first quarter of 2025, representing our sixth consecutive quarter of positive gross profit. Gross margins are subject to fluctuation from period to period based on product mix, as shipments across defense, industrial, and consumer applications carry different margin profiles.

Maintained solid liquidity while investing in growth. Net cash used in operating activities was $33.1 million for the first quarter of 2026, compared to $16.9 million in the first quarter of 2025, reflecting investments in manufacturing scale-up, inventory build in South Korea, the timing of the semi-annual convertible note interest payment, and working capital movements. We ended the quarter with approximately $582.7 million in cash, cash equivalents, and investments to support ongoing qualification and commercialization activities.

Access to Capital. Assuming we do not experience any significant delays in the research and development and manufacturing of our products or any deterioration in our capital efficiency, we believe we will meet our longer-term expected future cash requirements and obligations. We believe we will be able to do this through a combination of available cash, cash equivalents, investments and future debt financings, projected revenues and access to other public or private equity offerings and potential strategic arrangements.

Global Risks. Our manufacturing operations in Malaysia and South Korea, and our supply chain for raw materials and components, are subject to evolving trade policies, tariffs, export restrictions, and geopolitical tensions. We face risks related to significant changes in United States trade policy, including tariffs on products imported from China and other countries and potential retaliatory actions by those countries. Escalating geopolitical tensions, changes in tariff regimes affecting components sourced from or processed in China, or disruptions to our Malaysia-based manufacturing operations could increase our cost of production and adversely affect our margins and competitive position. Although we do not currently anticipate a material change in risk to our near-term outlook from the existing trade environment, the extent and future outcome of these global risks are highly unpredictable and uncertain and may adversely affect our future financial condition, results of operations, and cash flows.

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Components of Results of Operations

Revenue

In June 2022, we began to generate revenue from our Fab1 in Fremont, California. In October 2023, we acquired Routejade, a manufacturer of electrode coating and battery packs for customers worldwide. We recognize revenue within the scope of Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers.

Our revenue consists of product revenue, resulting from the sale of lithium-ion batteries and battery pack products (“Product Revenue”) to customers. Product Revenue is recognized once we have satisfied the performance obligations as defined in the sales agreement, which is generally satisfied upon transfer of control of goods. Control is transferred upon delivery of the product. For certain customized products with customer acceptance criteria specified in the sales agreement, the performance obligations are generally satisfied upon our customer’s acceptance. Payment terms can vary depending on the contract and it is generally required within 90 days or less from the delivery date or the acceptance date of our product. The amount of revenue recognized reflects the consideration for the product sold.

Cost of Revenue

Cost of revenue includes materials, labor, depreciation and amortization expense, freight cos

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Latest 10-K MD&A

Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high. Filing date: 2026-02-25. Report date: 2025-12-28.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Annual Report on Form 10-K. The following MD&A describes the principal factors affecting our results of operations, financial resources, liquidity, contractual obligations and commitments, and critical accounting estimates during the fiscal year 2025, compared with the fiscal year 2024. A detailed discussion of the fiscal year 2024 compared with the fiscal year 2023 is not included herein and can be found in the MD&A section in our 2024 Annual Report on Form 10-K, filed with the SEC on February 25, 2025, which is incorporated herein by reference. This discussion and analysis contain forward-looking statements based upon our current expectations, estimates and projections that involve risks and uncertainties. Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Risk Factors” and elsewhere in this Annual Report on Form 10-K.

Business Overview

Fiscal Year

Our fiscal year is the 52 or 53-week period ending on the Sunday closest to December 31 depending on the calendar year. Accordingly, we will have a 53-week fiscal year every five or six years and our fiscal year 2026 will consist of 53 weeks. Our fiscal years 2025, 2024, and 2023 consisted of 52 weeks, which ended on December 28, 2025, December 29, 2024, and December 31, 2023, respectively. All period references are to these fiscal periods unless otherwise indicated.

Key Trends, Opportunities and Uncertainties

We generate revenue from the sale of batteries and battery pack products (“Product Revenue”). Our performance and future success depend on several factors that present significant opportunities, but also pose risks and challenges as described in Part I, Item 1A of this Annual Report on Form 10-K.

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Fiscal Year 2025 Highlights:

During fiscal year 2025, we made significant progress across revenue growth, product development, manufacturing scale-up, and strategic financing initiatives and achieved our highest annual revenue and gross margins to date.

•Revenue increased throughout the year to $31.8 million, representing 38% year-over-year growth, with defense shipments remaining our largest contributor and batteries for naval munitions being our top product in the fourth quarter of 2025.

•We advanced manufacturing readiness and capacity expansion across our global footprint. Fab2, our high-volume manufacturing facility in Penang, Malaysia, passed an ISO 9001 audit and successfully concluded initial audits with various customers. We also continued to see consistent gains in yield and throughput. These operational improvements reflect our increasing focus on manufacturing execution as production programs move toward scaled commercialization. In South Korea, we completed the integration of acquired manufacturing assets, expanded floor space and coating capacity, and are in the process of planning for capacity expansion.

•We made meaningful progress in product development and launched the AI-1™ product platform, a core battery architecture adaptable across multiple customers and end markets. An independent testing laboratory confirmed in December 2025 that the AI-1TM smartphone battery delivered a volumetric energy density of 935Wh/L, exceeding the performance of a leading silicon-doped commercially available smartphone battery tested by 12%. We delivered AI-1™ battery samples to leading smartphone OEM customers to support formal product qualification and expanded sampling to additional OEMs. In the near term, we continue to focus on our engagement with two smartphone OEM market leaders and are continuing in their formal product qualification process, which commenced in the third quarter of 2025.

•We also increased customer engagement in smart eyewear, delivering over 1,000 AI-1™ battery packs to our lead customer and samples to nine additional OEMs and ODMs, some of which are expected to launch products in 2026 as market adoption of AI-enabled smart eyewear grows. We believe this market represents compelling near-term expansion opportunities for the AI-1™ platform, where our high energy density architecture is well aligned with product requirements as AI workloads migrate onto compact, always-on devices.

•In defense and industrial markets, we continued to support growing customer demand through expanded production capabilities and increased shipments from our South Korea operations. In April 2025, we acquired battery cell manufacturing assets located in close proximity to our existing facilities in South Korea for $10.0 million, recording a $4.8 million gain on bargain purchase.

•We also strengthened our balance sheet and liquidity position. In July 2025, we completed a warrant dividend, generating $224.2 million in net proceeds to support manufacturing scale-up and general corporate purposes. In September 2025, we issued $360.0 million of Convertible Senior Notes due 2030, with net proceeds of $348.8 million, which we intend to use for general corporate purposes, including potential acquisitions. During the third quarter of 2025, we also repurchased $58.4 million of our common stock under the Repurchase Plan approved by our Board in June 2025. In February 2026, our Board authorized an additional share repurchase program of up to $75 million, providing flexibility to deploy capital opportunistically while maintaining focus on commercialization execution and manufacturing scale-up.

Access to Capital

Assuming we do not experience any significant delays in the research and development and manufacturing of our products or any deterioration in our capital efficiency, we believe we will meet our longer-term expected future cash requirements and obligations. We believe we will be able to do this through a combination of available cash, cash equivalents, investments and future debt financings, projected revenues and access to other public or private equity offerings and potential strategic arrangements.

Components of Results of Operations

Revenue

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as defined in the sales agreement, which is generally satisfied upon transfer of control of goods. Control is transferred upon delivery of the product. For certain customized products with customer acceptance criteria specified in the sales agreement, the performance obligations are generally satisfied upon our customer’s acceptance. Payment terms can vary depending on the contract and it is generally required within 90 days or less from the delivery date or the acceptance date of our product. The amount of revenue recognized reflects the consideration for the product sold.

Cost of Revenue

Cost of revenue includes materials, labor, depreciation and amortization expense, freight costs and other direct costs related to manufacturing our products and service contracts. Labor consists of personnel-related expenses such as salaries, benefits, and stock-based compensation. We anticipate that cost of revenue will continue to increase as we optimize and expand our production line.

Our inventory is stated at the lower of cost or net realizable value (“NRV”) on a first-in and first-out basis. Determining net realizable value of finished goods and work in process inventories involves projecting average selling prices. When the estimated net realizable values are below the manufacturing costs, a charge to cost of revenue is recorded.

Capitalization of certain costs are recognized as an asset if they relate directly to a customer contract, generate or enhance resources of the entity that will be used in satisfying future performance obligations, and are expected to be recovered. If these three criteria are not met, the costs are expensed in the period incurred. Deferred costs are recognized as cost of revenue in the period when the related revenue is recognized.

Operating Expenses

Research and Development Expenses

Research and development expenses consist of engineering services, allocated facilities costs, depreciation, development expenses, materials, labor and stock-based compensation related primarily to our (i) technology development, and (ii) design, construction, and testing of preproduction prototypes and models. Research and development costs are expensed as incurred.

To date, research and development expenses have consisted primarily of personnel-related expenses for scientists, experienced engineers and technicians as well as costs associated with the expansion and ramp up of our engineering and manufacturing facility, materials and supplies to support the product development and process engineering efforts. As we ramp up our engineering operations to complete the development of batteries and required process engineering to meet customer specifications, we anticipate that research and development expenses will continue to increase as we expand hiring of scientists, engineers and technicians and continue to invest in additional plant and equipment for product development, building prototypes and testing of batteries. We established a research and development center in India to focus on developing machine learning algorithms, battery modeling, material screening and electrolyte optimization. We also established a research and development team in Malaysia.

Selling, General, and Administrative Expenses

Selling, general and administrative expenses consist of personnel-related expenses, marketing expenses, allocated facilities expenses, depreciation expenses, travel expenses, acquisition costs, and professional services expenses, including legal, human resources, audit, accounting and tax-related services. Personnel-related costs consist of salaries, benefits and stock-based compensation. Facilities costs consist of rent and maintenance of facilities.

Impairment of Equipment and Restructuring Cost

Impairment of equipment was a result of our disposal of machinery and equipment that were identified to have no future or alternative use.

Restructuring cost was the result of our restructuring plans in 2023 and 2024, which included workforce reductions, relocation of our Fab1 manufacturing operations from California to Malaysia and disposals of our long-lived assets

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located in Fremont that have no future or alternative use. Please refer to Note 15 “Restructuring Costs” of our Consolidated Financial Statements in this Annual Report for further details.

Other Income (Expense)

Other income and expense primarily consists of dividend income, interest income, interest expense, foreign currency transaction gain or loss and fair value adjustments for outstanding common stock warrants.

Income Tax

Our income tax provision consists of an estimate for U.S. federal, state and foreign income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities, and changes in the tax law. We maintain a valuation allowance against the full value of our U.S. and state net deferred tax assets because we believe the recoverability of the tax assets is not more likely than not. Since our acquisition of Routejade and our establishment of operations in Malaysia and India in the fiscal year 2023, we became subject to taxation based on the foreign statutory rates in the countries.

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Results of Operations

Comparison of Fiscal Year 2025 to Prior Fiscal Year 2024

The following table sets forth our consolidated operating results for the periods presented below (in thousands, except percentages).

Fiscal Years Ended

December 28, 2025

December 29, 2024

Change ($)

% Change

Revenue

31,821

23,074

8,747

Cost of revenue

25,716

25,119

597

Gross profit (loss)

6,105

(2,045)

8,150

(399)

Operating expenses:

Research and development

110,331

124,506

(14,175)

(11)

Selling, general and administrative

73,028

74,311

(1,283)

(2)

Restructuring cost

—

41,807

(41,807)

(100)

Total operating expenses

183,359

240,624

(57,265)

(24)

Loss from operations

(177,254)

(242,669)

65,415

(27)

Other income (expense):

Change in fair value of common stock warrants

21,832

12,244

9,588

Gain on bargain purchase of assets

4,761

—

4,761

N/M

Interest income

12,998

12,332

666

Interest expense

(21,597)

(6,787)

(14,810)

218

Other income (expense), net

1,341

954

387

Total other income (expense), net

19,335

18,743

592

Loss before income tax benefit

(157,919)

(223,926)

66,007

(29)

Income tax benefit

(1,312)

(1,392)

(6)

Net loss

(156,607)

(222,534)

65,927

(30)

Net loss attributable to non-controlling interests

134

(293)

427

(146)

Net loss attributable to Enovix

(156,741)

(222,241)

65,500

(30)

N/M - not meaningful

Revenue

Revenue for fiscal years 2025 and 2024 were $31.8 million and $23.1 million, respectively. Revenue in both years primarily resulted from the product shipments from our facility in South Korea, which was acquired in October 2023. Revenue for fiscal year 2024 and 2025 revenue reflected product shipments to South Korea defense contractors and industrial and consumer electronics customers.

The $8.7 million, or 38%, increase in revenue compared to fiscal year 2024 was primarily attributable to higher shipment volumes to South Korean defense contractors, partially offset by changes in customer mix. Of the $8.7 million increase in revenue, $7.3 million of that increase was derived from higher shipment volumes to a South Korean defense contractor, and the remaining increase was attributable to higher shipment volumes to industrial and consumer electronics customers.

Cost of Revenue

Cost of revenue for the fiscal year 2025 was $25.7 million, compared to $25.1 million for the fiscal year 2024. The increase of $0.6 million, or 2%, was primarily attributable to higher production volumes in fiscal year 2025, including increased labor costs of $1.3 million and additional manufacturing costs associated with higher revenue. With no production in Fab1 and minimal production in Fab2 in fiscal year 2025 and 2024, a majority of the factory expenses

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associated with Fab1 and Fab2 were classified as research and development expenses instead of cost of revenues in fiscal year 2025 and 2024. The transition from Fab1 to Fab2 was a part of the 2023 and 2024 Restructuring Plans (as defined in Note 15 “Restructuring Costs” of our Consolidated Financial Statements included in this Annual Report). These restructuring plans also included U.S. workforce reductions in the fourth quarter of fiscal year 2023 and the second half of fiscal year 2024. These increases were partially offset by the absence of a $1.9 million non-recurring inventory step-up amortization recorded in fiscal year 2024 related to the Routejade acquisition.

In addition, we anticipate our factory expenses will increase as we continue to ramp up our Fab2 manufacturing operations.

Research and Development Expenses

Research and development expenses for the fiscal year 2025 were $110.3 million, compared to $124.5 million for the fiscal year 2024. The decrease of $14.2 million, or 11%, was primarily attributable to a $23.5 million decrease in depreciation expense, reflecting the absence of accelerated depreciation recorded in fiscal year 2024 in connection with the Fab1 decommissioning, as well as lower salaries, payroll taxes and benefits resulting from reduced U.S. headcount.

These decreases were partially offset by higher research and development spending in Asia, including a $29.3 million increase in research and development expenses in Malaysia, driven by a $3.2 million increase in salaries and benefits due to higher headcount, increased materials and tooling costs, higher depreciation associated with equipment placed into service, and increased information technology and facility related costs.

There were no executive departure-related charges recorded in fiscal year 2025 comparable to those incurred in prior years.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the fiscal year 2025 were $73.0 million, compared to $74.3 million for the fiscal year 2024. The decrease of $1.3 million, or 2%, was primarily attributable to a $9.4 million decrease in stock-based compensation expense, a $6.4 million decrease in salaries, payroll taxes and benefits resulting from reduced U.S. headcount, a $2.4 million decrease in professional fees, a $1.2 million decrease in facilities and equipment related costs, a $1.1 million decrease in insurance expense, and a $0.5 million decrease in depreciation expense related to the discontinuation of Fab1 operations.

These decreases were partially offset by a $7.9 million increase in legal fees, $1.4 million of warrant dividend transaction fees incurred during fiscal year 2025, $0.7 million of costs related to the SETK acquisition, a $1.2 million increase in information technology expenses related to software subscriptions and hardware, and higher selling, general and administrative expenses in Malaysia of $4.7 million, primarily driven by higher salaries and benefits due to increased headcount, higher depreciation expense from assets placed into service, and higher facility, utilities and general office expenses.

Restructuring Cost

There were no restructuring costs recorded during fiscal year 2025, compared to $41.8 million of restructuring costs recorded during fiscal year 2024. In May 2024, we initiated the 2024 Restructuring Plan (as defined in Note 15 “Restructuring Costs” of our Consolidated Financial Statements in this Annual Report) to relocate our Fab1 manufacturing operations in Fremont, California to Malaysia. The restructuring charges recorded during fiscal year 2024 consisted primarily of non-cash charges related to the disposal of Fab1 long lived assets, stock-based compensation expense, and cash charges for severance, termination benefits and other exit-related costs.

Change in Fair Value of Common Stock Warrants

For fiscal year 2025, the change in fair value of common stock warrants of $21.8 million was mainly attributable to a decrease in the fair value of the 5,500,000 Private Placement Warrants (as defined in Note 4 “Fair Value Measurement” of our Consolidated Financial Statements in this Annual Report). The decrease in fair value of Private Placement Warrants was primarily due to a decrease in our common stock price during the current year. In addition, there was a decrease in the number of warrants outstanding at the end of fiscal year 2024 as there was a warrant exercise of 500,000 shares during the fiscal year 2024.

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For fiscal year 2024, the change in fair value of common stock warrants of $12.2 million was attributable to a decrease in the fair value of the 5,500,000 Private Placement Warrants. The decrease in fair value of Private Placement Warrants was primarily due to a decrease in our common stock price during the year 2024.

Interest Income

Interest income for fiscal year 2025 was $13.0 million, compared to $12.3 million during fiscal year 2024. The decrease of $0.7 million was primarily attributable to higher yields earned on short term and long term investments, partially offset by lower average cash balances during fiscal 2025.

Interest Expense

Interest expense for fiscal year 2025 was $21.6 million, compared to $6.8 million for fiscal year 2024. The increase of $14.8 million, or 218%, was primarily attributable to a one-time charge of $9.2 million related to the issuance of warrants to holders of the 2028 Convertible Senior Notes, as well as higher interest expense resulting from the issuance of additional convertible senior notes during fiscal year 2025.

Liquidity and Capital Resources

We have incurred operating losses and negative cash flows from operations since inception through December 28, 2025 and expect to incur operating losses for the foreseeable future. As of December 28, 2025, we had cash, cash equivalents, restricted cash, and investments of $620.8 million, working capital of $477.2 million and an accumulated deficit of $977.8 million.

Material Cash Requirements

We currently use cash to fund operations, meet working capital requirements and fund our capital expenditures. In fiscal year 2026, we expect that our spending in cost of revenues and operating expenses will continue to increase as we ramp up our Fab2 operations.

During the fiscal year 2025, we purchased $18.2 million in property and equipment. We will continue to increase our property and equipment purchases in the near future to acquire our battery manufacturing equipment and support the build-out of our manufacturing facilities. Please see our discussion of contractual obligations and commitments in the section below for further information.

In July 2025, we declared and issued the Warrant Dividend to holders of record of our common stock and the holders of 2028 Convertible Senior Notes as of the close of business on July 17, 2025 (the “Record Date”). A total of 26,526,344 Warrants were exercised for proceeds of $224.2 million, net of commissions and offering expenses. We intend to use the proceeds from the Warrant exercises to support manufacturing scale-up and for general corporate purposes. Please see Note 12 “Treasury Stock, Warrant Dividend and Warrants” of our Consolidated Financial Statements in this Annual Report for further information.

In September 2025, we issued $360.0 million aggregate principal amount of the 2030 Convertible Senior Notes with an interest rate of 4.75%, which will mature on September 15, 2030. The net proceeds of the 2030 Convertible Senior Notes were approximately $348.8 million, after deducting the initial purchasers’ discounts and commissions and the estimated offering expenses payable by us. We used approximately $45.3 million of the net proceeds from the offerings to pay the cost of the capped call transactions related to the 2030 Convertible Senior Notes. We intend to use the remaining net proceeds for working capital and general corporate purposes, including potential future acquisitions. Please see Note 9 “Borrowings” of our Consolidated Financial Statements in this Annual Report for further information.

Additionally, during the third quarter of 2025, our Board of Directors authorized the Repurchase Plan. Pursuant to the Repurchase Plan, we repurchased 5,437,556 shares of our common stock for $58.4 million for the fiscal year ended December 28, 2025 and we may continue to make repurchases from time to time through open market purchases or through privately negotiated transactions. As of December 28, 2025, we had $1.6 million of remaining capacity available under the Repurchase Plan. For more details, please see Note 12 “Treasury Stock, Warrant Dividend and Warrants” of our Consolidated Financial Statements in this Annual Report for further information.

Based on the anticipated spending and timing of expenditures to support operational development and market expansion, we currently expect that our cash will be sufficient to meet our funding requirements over the next twelve months from the date of this Annual Report on Form 10-K. We believe we will meet longer-term expected future cash requirements and obligations through a combination of available cash, cash equivalents and future debt financings, and access to other public or private equity offerings as well as potential strategic arrangements. We have made our estimates

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on historical experience and various other relevant factors and we believe that they are reasonable. Actual results may differ from our estimates, and we could utilize our available capital resources sooner than we expect.

Summary of Cash Flows

The following table provides a summary of cash flow data for the periods presented below (in thousands).

Fiscal Years

2025

2024

Change ($)

Net cash used in operating activities

(95,291)

(108,633)

13,342

Net cash used in investing activities

(538,269)

(1,379)

(536,890)

Net cash provided by financing activities

467,384

150,749

316,635

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(536)

(1,169)

633

Change in cash, cash equivalents, and restricted cash

(166,712)

39,568

(206,280)

Comparison of Fiscal Year 2025 to Prior Fiscal Year 2024

Operating Activities

Our cash flows used in operating activities to date have been primarily comprised of operating expenses. We continue to ramp up our Fab2 operations. We expect our cash used in operating activities to increase significantly before we start to generate any material cash inflows from commercially manufacturing and selling our batteries.

Net cash used in operating activities was $95.3 million for the fiscal year 2025. Net cash used in operating activities consists of net loss of $156.6 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include a decrease in fair value of the Private Placement Warrants of $21.8 million, stock-based compensation expense of $49.4 million, depreciation and amortization expense of $35.1 million and non-cash interest expense of $9.2 million.

Net cash used in operating activities was $108.6 million for the fiscal year 2024. Net cash used in operating activities consists of net loss of $222.5 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of common stock warrants of $12.2 million, stock-based compensation expense of $58.8 million, depreciation and amortization expense of $45.0 million and impairment of equipment of $38.3 million.

Investing Activities

Our cash flows used in investing activities to date have been primarily comprised of purchases of property and equipment. We expect the costs to acquire property and equipment to increase in the future as we continue to build-out our Fab2, evaluate additional or alternative manufacturing capacity options and develop our battery manufacturing production lines in Malaysia.

Net cash used in investing activities, which were primarily related to equipment purchases, were $18.2 million and $76.2 million for the fiscal years 2025 and 2024, respectively.

During the fiscal years 2025 and 2024, we purchased $584.9 million and $31.8 million of investments, respectively. In addition, we had $74.9 million and $106.6 million of investments mature during the fiscal years 2025 and 2024, respectively. In April 2025, we used cash, net of cash acquired, of $10.0 million to acquire battery cell manufacturing assets located in South Korea.

Financing Activities

Net cash provided by financing activities was $467.4 million for the fiscal year 2025, which primarily consisted of $360.0 million of proceeds from the issuance of convertible senior notes, $232.1 million of proceeds from the exercise of warrants, $3.3 million of net proceeds from issuances of common stock upon exercise of stock options, and $1.3 million of proceeds from our employee stock purchase plan (“ESPP”) to purchase our common stock. These cash inflows were partially offset by $58.4 million of repurchases of our common stock, $45.3 million of payments for capped call

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transactions, $11.2 million of debt issuance costs, and $6.5 million of payroll tax payments for shares withheld upon vesting of restricted stock units.

Net cash provided by financing activities was $150.7 million for the fiscal year 2024, which primarily consisted of $107.2 million of proceeds, net of paid issuance costs, from issuance of common stock, $44.8 million of proceeds from the exercise of stock options to purchase our common stock, $4.6 million of proceeds from the borrowings of short-term loans and $1.5 million of proceeds from our employee stock purchase plan (“ESPP”) to purchase our common stock, partially offset by $7.1 million of payroll tax payments for shares withheld upon vesting of restricted stock units.

Contractual Obligations and Commitments

As of December 28, 2025, we had $172.5 million aggregate principal amount of our 2028 Convertible Senior Notes outstanding bearing interest at 3.0%, which will mature on May 1, 2028 unless earlier converted, redeemed or repurchased, and $360.0 million aggregate principal amount of our 2030 Convertible Senior Notes outstanding bearing interest at 4.75%, which will mature on September 15, 2030 unless earlier converted, redeemed or repurchased. Please see Note 9 “Borrowings” of our Consolidated Financial Statements in this Annual Report for further information.

We lease our headquarters in Fremont, California, our Fab2 in Penang, Malaysia, and offices in India and China. For the lease payment schedule, please see Note 7 “Leases,” of our Consolidated Financial Statements in this Annual Report for further information.

The lease for our Fab2 manufacturing facility is currently scheduled to expire in July 2026. While renewal discussions are underway and management believes continued occupancy is probable, there can be no assurance renewal will occur on acceptable terms or without potential operational disruption. The Company is also evaluating facility purchase and alternative manufacturing site options to support long-term operational continuity and future growth.

We expect to enter into other commitments to support our product development, the build-out of our manufacturing facilities, and our business development, which are generally cancellable upon notice. Additionally, from time to time, we enter into agreements in the normal course of business with various vendors, which are generally cancellable upon notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of service providers, up to the date of cancellation. As of December 28, 2025, our commitments included approximately $5.3 million of our open purchase orders, including equipment purchase orders, and contractual obligations that occurred in the ordinary course of business. For contractual obligations, please See Note 10 “Commitments and Contingencies” of our Consolidated Financial Statements in this Annual Report for further information.

Off-Balance Sheet Arrangements

As of December 28, 2025 and December 29, 2024, we did not have any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

Critical Accounting Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities in our consolidated financial statements and accompanying notes. We base these estimates on historical experience and other various assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates.

Our critical accounting estimates include estimates related to the valuation of the Private Placement Warrants (as defined below), the valuation of warrants issued from the warrant dividend (as defined in Note 12 “Treasury Stock, Warrant Dividend, and Warrants” of the notes to our Consolidated Financial Statements in this Annual Report), the impairment of long-lived assets, the net realizable value of inventory, stock-based compensation relating to performance-based restricted stock units (“PRSUs”) and income taxes. We believe that application of these critical accounting estimates involves our subjective judgments and assumptions, which have had, or are reasonably likely to have, a material impact on our consolidated financial statements.

A summary of our significant accounting policies is included in Note 2 “Summary of Significant Accounting Policies” of the notes to our consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.

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Valuation of Private Placement Warrants

In connection with the 2021 business combination with Rodgers Silicon Valley Acquisition Corp., we issued warrants in a private placement to the sponsor and members of Rodgers Capital LLC (the “Private Placement Warrants”).

Valuation of any financial instrument depends on the underlying characteristics of the instrument, which generally dictate the valuation model to be used. For the Private Placement Warrants, we have used the Black-Scholes-Merton (“Black-Scholes”) option pricing model using various inputs, including management’s estimates of expected share price volatility, term, risk-free rate and future dividends. We have elected the simplified method to determine the expected term of the Private Placement Warrants. The most significant assumptions impacting the fair value of the Private Placement Warrants are the fair value of our common stock as of each re-measurement date and expected price volatility of our common stock, which includes consideration of our historical observed volatility and other additional factors that were deemed relevant. Future changes to these assumptions could result in significant volatility in our other income (expense) in subsequent periods.

Valuation of Warrants Issued from the Warrant Dividend

Valuation of any financial instrument depends on the underlying characteristics of the instrument, which generally dictate the valuation model to be used. For the Warrants issued from the Warrant Dividend, we have used a Monte Carlo simulation model to determine the fair value. This methodology captures the probabilistic nature of mechanisms for our future exercise of the instrument, share price volatility, and contractual constraints, providing a reasonable estimate of the put option’s expected economic benefit over its remaining term. Monte Carlo simulation is a numerical method used to estimate the value of uncertain outcomes by repeatedly generating random variables to mimic the behavior of a stochastic (i.e., random) process. The most significant assumption impacting the fair value of the Warrants issued from the Warrant Dividend are share price volatility and contractual term as of the date of the Warrant Dividend.

Impairment of Long-Lived Assets

We evaluate the recoverability of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indicators of impairment include, among other factors, significant underutilization or idling of equipment, changes in business strategy, or decisions to cease the development or automation of certain equipment.

The recoverability assessment is based on a comparison of the carrying value of the asset to the estimated separately identifiable, undiscounted future cash flows expected to be generated by the asset. If the carrying value exceeds the undiscounted cash flows, the asset is considered impaired, and an impairment loss is recognized for the amount by which the carrying value exceeds the asset’s fair value. Fair value is generally determined using discounted cash flow models, which require management to make significant estimates and assumptions regarding future cash flows, useful lives, and discount rates. Changes in these estimates or assumptions, or changes in operating plans that result in underutilization or abandonment of equipment, could result in future impairment charges.

Stock-Based Compensation

We issue stock-based compensation to certain employees in the form of PRSUs. Stock-based compensation related to PRSUs is recognized based on the grant date fair value and the expected performance achievement percentage of meeting the performance milestones. At each reporting period, we assess and determine the expected performance achievement percentage. Changes in the expected performance achievement percentage could have a significant impact on the stock-based compensation expense until the end of each performance periods. For further information, see Note 14 “Stock-based Compensation” of our Consolidated Financial Statements in this Annual Report.

Income Taxes

Our deferred tax asset balance is currently subject to a valuation allowance that substantially offsets the deferred tax assets. In evaluating the need for a valuation allowance, management considers both positive and negative evidence, including historical operating results, forecasts of future taxable income, the reversal of existing temporary differences, tax planning strategies, and the length of carryforward periods. The weight given to each piece of evidence depends on the extent to which it can be objectively verified. The most significant factor in this assessment is management’s projection of future taxable income, which inherently involves estimates and assumptions regarding future business performance, market conditions, and other factors that may affect profitability. Should actual results differ materially

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from our estimates of future taxable income, or should there be a change in the weighting of available evidence, our conclusion regarding the need for, or amount of, a valuation allowance could change significantly in future periods.

While accounting for income taxes involves several areas of judgment, the valuation allowance represents the most significant estimate subject to material variability in future periods. Management reviews the realizability of deferred tax assets at each reporting date and adjusts the valuation allowance as appropriate based on updated information and revised forecasts.

Recent Accounting Pronouncements

See section “Recently Adopted Accounting Pronouncements” of Note 2 “Summary of Significant Accounting Policies” of our Consolidated Financial Statements included in this Annual Report.