Shares of Enovix Corporation (NASDAQ:ENVX) are trading lower Friday after the company reported its second-quarter 2025 financial results on Thursday.
What To Know: While the lithium-ion battery maker topped Wall Street estimates for both revenue and earnings, the stock is under pressure as investors react to broader concerns around execution, cash burn and the path to mass commercialization.
Enovix reported revenue of $7.47 million for the second quarter, beating analyst expectations of $5.57 million. Adjusted earnings showed a loss of 13 cents per share, which was narrower than the projected 17-cent loss. Year-over-year, revenue nearly doubled, climbing 98% on the back of what the company called "strong demand" for its advanced battery technology.
In a letter to shareholders, the company highlighted the launch of its AI-1 battery platform, which features advanced materials and a fully automated manufacturing process. Enovix said it had finalized the platform, shipped production samples for qualification and delivered its third consecutive quarter of positive gross margins. The company also stated that it is entering the commercialization phase with mass production ramping up and new customers beginning qualification processes.
Despite these milestones, the stock sold off heavily in both after-hours and regular trading sessions. Investor concern appears centered on the company’s long-term execution risks and the steep losses still anticipated. For the third quarter, Enovix expects revenue between $7.5 million and $8.5 million, slightly ahead of the $7.3 million estimate, but it also guided for a loss of 14 to 18 cents per share, matching or just slightly better than current expectations.
Enovix ended the quarter with $203.4 million in cash, cash equivalents, and short-term investments, which gives it a cushion for continued development, but investors appear to be looking for clearer signs of scaled commercial deployment and sustained profitability.
The sharp drop in share price reflects a disconnect between solid quarterly metrics and lingering doubts about the company’s ability to execute its long-term growth plan in a competitive battery market.
ENVX Price Action: Enovix shares were down 16.5% at $11.19 at the time of writing, according to Benzinga Pro.
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