ENVX

This article first appeared on GuruFocus. Revenue: $9 million, up 21% year-over-year, marking the fifth consecutive quarter of revenue growth. Gross Profit: GAAP gross profit of $1.3 million; non-GAAP gross profit of $1.8 million. Gross Margin: GAAP gross margin of 14%; non-GAAP gross margin of 18.9%. Operating Expenses: Non-GAAP operating expenses of $30.6 million, up from $28.8 million a year ago. Operating Loss: Non-GAAP loss from operations of $28.8 million, better than the guidance range of a loss of $29 million to $32 million. Net Loss Per Share: Non-GAAP net loss per share of $0.13, at the favorable end of the guidance range of a loss of $0.13 to $0.17. Adjusted EBITDA: Negative $18.9 million, compared with negative $20.1 million in the second quarter of 2025. Cash Flow: Net cash used in operating activities of $21.8 million, down from $25.9 million in the second quarter of 2025; free cash flow outflow of $1.4 million versus $3.8 million a year ago. Capital Expenditures: $9.6 million, principally supporting Fab 2 readiness and capacity expansion. Cash Position: Ended the quarter with approximately $552.1 million in cash, cash equivalents, and marketable securities including restricted cash. Smart Eyewear Revenue: First product revenue recognized from a Tier 1 customer; shipped approximately 2,100 AI1 batteries in Q2. Smart Eyewear Deliveries: Delivery orders in hand for approximately 19,000 packs planned for Q3 delivery, a roughly nine-fold increase from Q2. Drone and Defense Pipeline: Pipeline for products manufactured in Korea increased to approximately $180 million from $30 million at the end of the first quarter; drone pipeline exceeds $100 million. Third Quarter Guidance: Revenue expected between $9 million and $10 million, up approximately 13% to 25% year-over-year; non-GAAP loss from operations between $29 million and $32 million; non-GAAP net loss per share between $0.13 and $0.17; capital expenditures between $8 million and $12 million. Warning! GuruFocus has detected 3 Warning Signs with ENVX. Is ENVX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Smartphone qualification milestone: Lead customer confirmed cells passed 1,000 cycles on the 0.2C discharge test, with final accelerated cycle life test expected to complete by end of 2026. Smart Eyewear commercial ramp: Shipped 2,100 batteries to a Tier 1 customer in Q2, with orders for ~19,000 packs in Q3 (9x increase) and a 50,000-unit order to be fulfilled by Q4. Drone/defense pipeline growth: Pipeline increased 41% QoQ to ~$180 million, with drone opportunities exceeding $100 million; over $40 million in active customer testing. Manufacturing yield improvements: Cumulative yield improved for three consecutive quarters; Zone 1 yield rose to 84% from 80%, with most process steps at 95%+ yields. Strong financial position: Ended Q2 with over $550 million in cash, enabling continued investment in qualification and capacity expansion. New COO Michael Vivoda (ex-Apple) hired to drive manufacturing, supply chain, and delivery improvements, enhancing operational execution. AI-driven cycle life prediction models in development to accelerate design iterations, potentially creating a durable competitive advantage. MX-B01 drone cell achieves ~360 Wh/kg, with UN 38.3 certification completed and customer sampling commencing in Q3. South Korea facility is TAA compliant and on track for NDAA compliance, a key advantage for defense contracts. Second smartphone OEM progressing toward qualification, with sample deliveries expected in Q4 2026. Smartphone qualification still incomplete: Final accelerated cycle life test (hybrid protocol) remains a gating item, with completion expected only by end of 2026. Smart Eyewear margins negative: Early ramp costs and low volumes will drag gross margins for the balance of 2026, with no clear breakeven point provided. Zone 1 dicing remains a bottleneck: Despite yield improvement to 84%, it is still a primary throughput constraint, with key mechanical dicing steps not online until year-end. Gross margin declined YoY in Q2: GAAP gross margin fell to 14% and non-GAAP to 18.9% due to product mix from South Korea, though first-half margins improved. Revenue growth modest: Q2 revenue of $9 million was only 21% YoY, and Q3 guidance of $9-10 million implies a sequential decline or flat growth. Dependence on a single lead customer for smartphone and Smart Eyewear ramps, creating concentration risk. Drone/defense revenue conversion timeline uncertain: While pipeline is large, revenue ramp is not expected until mid-2027, with defense primes taking up to 18 months. Operating losses persist: Non-GAAP loss from operations was $28.8 million in Q2, with Q3 guidance of $29-32 million loss, indicating continued cash burn. No share repurchases during the quarter, as capital deployment priorities shifted to qualification and manufacturing investments. Memory availability tightness (DRAM) could impact customer SKU strategies, though not yet affecting Enovix directly. Q: Can you walk us through what the last smartphone qualification test is trying to prove, given that the 1,000-cycle milestone was passed?A: Raj Talluri (President and CEO) explained that the final test is an accelerated cycle life test. Since a standard 0.2C test takes too long, they have developed a hybrid protocol with the customer that combines faster and slower discharge rates to better simulate real-world phone usage. Multiple protocol variants are currently being tested, with results expected by the fourth quarter of 2026. Ryan Benton (CFO) added that this replaces the traditional 0.7C graphite test, and they expect one or more of the variants to pass by year-end. Q: What is the timeline for converting the $100 million drone pipeline into actual revenue, and how long do customer engagements typically take?A: Raj Talluri noted that defense qualification cycles are shorter than smartphones, with revenue scaling aligning with new Korea capacity coming online in mid-2027. Ryan Benton added that drone companies are moving fast, with a 6-9 month timeline, while defense primes have a longer runway of around 18 months. The company is prioritizing samples and expects the pipeline to convert as new capacity comes online. Q: How should we think about the volume needed for the Smart Eyewear business to reach optimal margins?A: Raj Talluri highlighted strong manufacturing progress, scaling from 2,100 packs in Q2 to roughly 19,000 in Q3, on the way to fulfilling a 50,000-unit order. Ryan Benton stated that while the 50,000-unit level will absorb overhead, the business will still have negative margins for the balance of the year. He declined to give a specific breakeven point but expects healthy gross margins as the market scales and customer adoption pulls through. Q: Can you provide more color on the gross margin decline in Q2 and the expected trajectory?A: Ryan Benton cautioned against reading one quarter as a trend, noting that first-half non-GAAP gross margin was actually up year-over-year to 22.8% from 21.3%. The Q2 decline was due to product mix in the Korea-based business, which can be lumpy. Looking forward, the Smart Eyewear ramp will be a drag on margins as overhead moves into gross margins, but this is largely a geography shift from a cash flow perspective, and margins should rationalize as they scale into 2027. Q: What is the current manufacturing capacity at the South Korea facility, and what is the cost of the planned expansion?A: Ryan Benton stated they are not operating at full capacity and have headroom, though some equipment lines are at capacity. For the drone business, they have placed orders for new equipment that will provide capacity for roughly one million units, coming online in mid-2027. The expansion is capital-efficient, using existing land and buildings, and is embedded in the current CapEx forecast of $8-12 million for Q3. Q: How standardized is the smartphone qualification framework becoming, and does the second OEM have the same allocation as the lead customer?A: Raj Talluri explained that they have convinced customers that 100% silicon anodes behave differently than graphite, leading to the adoption of new test protocols like the 0.2C cycle test. The lead customer has confirmed passing 1,000 cycles, and the final accelerated test is underway. The second OEM is moving toward a similar framework, with sample deliveries expected in Q4. He expects the market to adapt to these new protocols over time, making each subsequent customer qualification faster. Q: What is driving the progress in the drone market, and which applications are you competing well in?A: Raj Talluri cited the extremely competitive cell with high watt-hours per kilogram, manufactured in their own TAA-compliant South Korea factory with a path to NDAA compliance. The main markets are public safety, interceptor drones, and ISR, where customers need a few hundred cycles and high reliability. He expects demand to outstrip supply quickly, and the company is adding capacity to meet this demand. Q: How will the new COO, Michael Vivoda, impact manufacturing improvements, and where will he focus?A: Raj Talluri stated that Michael has a full-scope mandate across manufacturing, supply chain, quality, and customer delivery for both the Malaysia and South Korea factories. His immediate priorities are increasing Smart Eyewear output, preparing manufacturing for smartphone field test builds, and driving cost and yield improvements. The company is benefiting from cross-pollination between the two factories, with Korea contributing battery manufacturing know-how and Malaysia contributing silicon expertise. Q: What is the impact of memory availability and SKU mix on your smartphone qualification efforts?A: Raj Talluri noted that memory tightness has not impacted them yet since they are in the qualification stage, not high volume. He emphasized that they are being qualified for leadership products where their technology provides the most differentiation, and the SKU mix is not currently a factor. He expects the technology to eventually waterfall down to more mainstream products over time. Q: How should we envision the revenue mix across product segments three to five years out?A: Ryan Benton declined to give specific numbers but noted that the drone and defense market has developed faster than expected and has the opportunity to be a really big business quickly. Raj Talluri added that Smart Eyewear could also take off and become huge, making it hard to call the mix. He emphasized that all three markets are attractive where their technology provides clear benefits, and "everybody wants better batteries." For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance attribution was driven by momentum across three primary markets, with revenue hitting the high end of guidance due to defense shipments and initial smart eyewear sales. The smartphone strategy focuses on the 'hardest market first' to establish energy density benchmarks that naturally flow into adjacent categories like smart eyewear. Management confirmed a major technical milestone as lead customer testing verified silicon cells passed 1,000 cycles, validating internal performance data. The South Korea operation provides a strategic advantage through established manufacturing and TAA compliance, facilitating rapid entry into the high-value drone and defense sectors. Operational improvements in Fab2 resulted in integral yield gains for three consecutive quarters, with most process steps now operating at or above 95% yield. The 'AI platform' (100% silicon) and 'MX platform' (silicon-graphite blend) are described as mutually reinforcing, allowing the company to address diverse volumetric and gravimetric energy needs. Leadership expansion, including a new COO and Sales VP, is intended to transition the company from technology development to large-scale commercial execution. Final smartphone qualification testing, utilizing a newly defined hybrid accelerated cycle protocol, is expected to conclude by the end of 2026. Smart eyewear volume is projected to grow ninefold in Q3 2026 as the company fulfills a 50,000-unit order for a Tier 1 customer. Capacity expansion in South Korea is scheduled to be operational by mid-2027 to support the growing $183 million drone and defense pipeline. A second smartphone OEM is expected to begin receiving samples in Q4 2026, following the qualification framework established with the lead customer. Internal innovation speed is expected to accelerate through the deployment of AI models that predict battery cycle life earlier than traditional physical testing. Zone 1 dicing remains the primary manufacturing throughput bottleneck, though yields improved to 84% from 80% sequentially. A transition to 'hybrid dicing' (laser and mechanical) is planned for year-end to achieve the step-change in throughput required for 2027 volumes. Gross margins are expected to be temporarily pressured in the near term due to the early-stage costs of the smart eyewear ramp before reaching scale. The drone pipeline figure of $183 million represents estimated peak annual production value, not guaranteed immediate revenue. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects negative margins for eyewear for the balance of the year as overhead costs shift from R&D to COGS during the ramp. The company aims to become the 'default battery of choice' for AI-powered wearables, expecting healthy margins once scale is achieved beyond the initial 50,000 units. Growth is driven by demand for high watt-hours per kilogram in public safety and ISR drones, where Enovix offers a TAA-compliant supply chain from South Korea. Management anticipates demand will likely outstrip supply, prompting the mid-2027 capacity expansion. Enovix is actively working to shift the industry away from legacy 0.7C graphite testing toward hybrid protocols that better reflect silicon's real-world performance. Management believes that pioneering this pathway with the lead customer will provide a 'faster, clearer path' for all subsequent smartphone OEMs. New equipment orders will bring South Korea capacity to approximately 1 million units to support the drone business. Expansion is highly capital-efficient as it utilizes existing land and buildings already owned by the company.

Second Quarter Revenue of $9.0 Million, Up 21% Year-over-Year, at High End of Guidance; First Half 2026 Revenue of $16.6 Million, Up 32% Year-over-YearLead Smartphone Customer Confirms Passing More than 1,000 Cycles under the 0.2C Discharge Cycle Test1; Final Accelerated Cycle-Life Test for Smartphone Qualification Underway, with Completion Expected in 2026 FREMONT, Calif., Aug. 12, 2026 (GLOBE NEWSWIRE) -- Enovix Corporation (Nasdaq: ENVX) (“Enovix”), a developer and manufacturer of advanced lithium-ion batteries, including proprietary silicon-anode architectures, today reported financial results for the second quarter of 2026. Second Quarter 2026 Highlights Revenue of $9.0 million, up 21% year-over-year and 19% sequentially, at the high end of guidance — fifth consecutive quarter of year-over-year revenue growth; year-to-date revenue of $16.6 million, up 32% year-over-year. Seventh consecutive quarter of positive gross profit, with GAAP gross margin of 14.4% and non-GAAP gross margin of 19.9%, down 11.6 and 10.9 percentage points, year-over-year, respectively, on a shift in battery product mix; year-to-date GAAP gross margin of 17.2% and non-GAAP gross margin of 22.8%, down 0.3 and up 1.5 percentage points year-over-year, respectively. GAAP net loss per share of $0.20 and non-GAAP net loss per share of $0.13, compared to $0.22 and $0.13, respectively, in the prior-year quarter. Lead smartphone customer confirms Enovix batteries passing more than 1,000 cycles under the 0.2C discharge cycle test1. Final accelerated cycle-life test for smartphone qualification is underway — built around a hybrid protocol defined in close collaboration with the customer and designed for silicon-anode cells. Smart eyewear ramp underway: shipped approximately 2,100 AI-1TM batteries, completed key international safety certifications, and recognized initial smart eyewear revenue; third quarter shipments expected to increase approximately 9x from the second quarter to approximately 19,000 packs against the 50,000-pack order. Drone, defense, and industrial pipeline grew to $183 million, up approximately 41% from $130 million at the end of the first quarter, driven substantially by drone opportunities, which exceeded $100 million during the second quarter. Third quarter 2026 outlook: revenue of $9.0 to $10.0 million, up approximately 13% to 25% year-over-year; full guidance detailed in the Financial Outlook section. Ended the quarter with approximately $552.1 million in cash, cash equivalents, and marketable securities, including restricted cash. 1 Standard accelerated cycle-life testing condition based on a combination of 0.2C (2%) and 0.7C (98%) cycles used by customers as proxy for 0.2C cycle life. Blended average time per cycle ≈ 2.4 hours. “The second quarter showed momentum across all three of our target markets: our lead customer confirmed passing a defining smartphone qualification milestone. We have one final accelerated cycle-life test on the path to smartphone qualification, which we expect to complete this year. We also converted our smart eyewear ramp into initial revenue and substantially expanded our drone and defense pipeline,” said Dr. Raj Talluri, President and CEO of Enovix. “With revenue up 21% year-over-year at the high end of guidance and our fifth consecutive quarter of year-over-year growth, Enovix is executing the transition from technology validation to commercial scale.” Commercialization Progress: SmartphonesCustomer testing is now underway with the final accelerated cycle-life test, aligned through an iterative customer engagement process. This hybrid approach, which replaced the traditional 0.7C test used for legacy graphite batteries, consists of multiple test protocols across a range of charge and discharge conditions, with testing durations differing by variant mix. The lead customer is currently evaluating Enovix’s cells, including an enhanced design, across these multiple variants. The Company anticipates completing this final accelerated test in the fourth quarter of 2026, with targeted system-level field testing to follow. Enovix’s second smartphone OEM customer continues to progress toward alignment on a qualification framework, following a path parallel to that of the lead customer. The Company expects to begin sample deliveries in the fourth quarter of 2026. Commercialization Progress: Smart Eyewear“Our smart eyewear business recently marked several important milestones. We completed the international safety certifications required for commercial deployment, advanced our manufacturing ramp, and generated initial product revenue this quarter. Our next-generation AI-2TM batteries are now in customers’ hands, and we expect them to be well received,” said Dr. Talluri. “We believe these milestones, achieved on a 100% silicon-anode battery in commercial production, further validate that our proprietary cell architecture can be manufactured, certified, and deployed at commercial scale.” Enovix’s smart eyewear ramp is well underway. Recently, Enovix completed key international safety certifications for its smart eyewear cells and battery packs, including UN 38.3 transportation testing, UL 2054, and KC 62133-2, and passed the full suite of customer reliability tests covering drop, tumble, thermal cycling, and extended heat soak. Following the start of commercial production in the first quarter, the Company shipped approximately 2,100 silicon-anode AI-1 batteries during the second quarter to support a leading smart eyewear reference platform and recognized initial smart eyewear product revenue. These shipments are being made under a customer order covering 50,000 battery packs for 2026 delivery. The customer has since issued delivery orders (specifying quantities and timing) under that same 50,000-pack order for approximately 19,000 packs to be delivered in the third quarter — an approximately 9x increase over second-quarter shipments. The Company expects to fulfill the balance of the 50,000-pack order during the fourth quarter of 2026, with shipment volumes expected to grow in 2027 as downstream deployments are projected to expand. Commercialization Progress: Drones, Defense, and Industrial“Our defense and drone business delivered another quarter of strong growth and pipeline expansion,” said Dr. Talluri. “We are investing now to expand capacity so we can convert our growing pipeline into revenue as customer programs reach launch.” Demand across Enovix’s drone, defense, and industrial markets continued to expand in the second quarter. The Company’s global pipeline for products manufactured in South Korea increased 41% to approximately $183 million, up from $130 million at the end of the first quarter, with more than half of the growth driven by drone opportunities. Drone opportunities alone exceeded $100 million during the second quarter, with a substantial portion at stages where customers are actively evaluating and testing the Company’s cells or designing them into products. This pipeline represents the Company’s estimate of the peak annual production value of identified design opportunities. Enovix showcased the recently launched MX-1TM at industry conferences across the U.S. and Europe during the quarter, with customer interest in the MX1-B01TM drone cell continuing to grow. In particular, military customers are seeking products that satisfy various governmental requirements, and the Company is well-positioned to meet this demand. The product and transportation certifications necessary to support expanded customer sampling and initial deliveries are progressing well. Subsequent to quarter end, the Company commenced sampling to numerous customers in the third quarter and its drone battery passed UN 38.3 transportation testing, completing a key certification required for commercial shipment. Enovix believes demand for high-performance drone batteries that meet U.S. government sourcing requirements under the National Defense Authorization Act (NDAA) and the Trade Agreements Act (TAA) will materially exceed available supply through the end of the decade. Enovix’s South Korea manufacturing operations, with an established production history supporting defense customers, position the Company to be a scaled supplier able to address this gap, and the previously announced capacity expansion at the facility is underway, with the new capacity expected to come online in mid-2027. The expansion is expected to be capital-efficient, utilizing existing land and buildings the Company already owns and leveraging readily available production equipment. Technology ProgressIn the first quarter of 2026, Enovix produced the first engineering samples of AI-2, a next-generation smart eyewear battery expected to deliver approximately 20% higher volumetric energy density than AI-1. AI-2 leverages the EX-3MTM technology node, which reduces separator and current collector thickness, improves packaging efficiency, and increases cathode voltage. One tier 1 smart eyewear customer commenced sampling during the second quarter, and additional tier 1 customers are expected to receive samples in the third quarter. The same EX-3M innovations are also expected to support a step-function in performance gains for Enovix’s future smartphone batteries. Enovix is also advancing the energy density of the silicon-blended graphite batteries produced at its South Korea facility. MX-2TM, the next generation of the recently launched MX-1 drone cell, remains targeted for 2027, with a goal of reaching a gravimetric energy density of 400 Wh/kg — a significant advancement for this battery chemistry. Gravimetric energy density is especially critical in drone applications, where every gram of battery weight directly impacts flight time, range, payload capacity, and overall operational effectiveness. Manufacturing Readiness ProgressEnovix continued to improve execution across Fab2 production zones. In smart eyewear battery production, all but one process step outside of Zone 1 delivered yields during the second quarter of 95% or greater, with individual steps as high as 99.6%. Zone 1 dicing — a key throughput driver across our smartphone and smart eyewear production lines — delivered step-level yield of approximately 84% in the second quarter, up from approximately 80% reported last quarter. To further improve throughput and cost efficiency, the Company has been implementing a hybrid dicing configuration that combines laser and mechanical dicing in Zone 1. This approach allows Enovix to apply the most effective technique at each step and is expected to reduce cell cost while increasing production rates to support early commercial demand as qualification progresses. The transition to mechanical dicing equipment is well underway, with multiple key dicing steps expected to come online at Fab2 around the end of the year. In parallel, Enovix is streamlining the manufacturing flow by eliminating select process steps, which is expected to further improve manufacturability, throughput, and yield while reducing capital intensity and unit costs. These initiatives reflect the Company’s ongoing focus on continuously improving efficiency and scalability across its manufacturing operations. LeadershipAs recently announced, Enovix appointed Michael Vyvoda to serve as its Chief Operating Officer to lead the Company’s next phase of global manufacturing execution. Mr. Vyvoda brings decades of operations leadership, including prior experience at Apple, and will oversee manufacturing, supply chain, quality, and customer delivery as Enovix scales production across multiple products, facilities, and end markets. His immediate focus is on scaling production to meet the Company’s second-half commitments: ramping smart eyewear output, preparing manufacturing for smartphone field-test builds, and driving the cost, yield and delivery initiatives underway across Enovix’s factories. Subsequent to quarter-end, Enovix also strengthened its commercial organization with a senior sales executive who spent nearly two decades at a leading global manufacturer of lithium-ion batteries for consumer devices, where he most recently headed its largest global sales region and built long-standing relationships across major smartphone OEMs. Second Quarter and Year-to-Date 2026 Financial Results (in millions, except percentages) Second quarter 2026 revenue of $9.0 million increased 21% year-over-year and rose 19% sequentially, at the high end of the Company’s guidance range and marking the fifth consecutive quarter of year-over-year revenue growth. Year-to-date, revenue of $16.6 million increased 32% from the first half of 2025. Growth in both periods primarily reflects continued strength in defense through Enovix’s South Korea operations, where the Company’s global pipeline grew to approximately $183 million during the period, driven substantially by new drone opportunities. Enovix also achieved commercial availability of its 100% silicon-anode smart eyewear battery during the second quarter and recognized initial smart eyewear product revenue — modest in amount, but an early proof point of contribution from AI-powered wearable devices. GAAP gross profit was $1.3 million and non-GAAP gross profit was $1.8 million in 2Q26, marking the seventh consecutive quarter of positive gross profit on both a GAAP and non-GAAP basis and continued progression toward economically scalable production. GAAP gross margin was 14.4% and non-GAAP gross margin was 19.9%, down year-over-year primarily due to a shift in the mix of battery products sold through Enovix’s South Korea operations. Year-to-date, GAAP gross profit was $2.9 million and non-GAAP gross profit was $3.8 million, up from $2.2 million and $2.7 million in the first half of 2025, with non-GAAP gross margin improving to 22.8% from 21.3% on higher production volumes and operational execution improvements. Net cash used in operating activities improved to $21.8 million in 2Q26 from $25.9 million in 2Q25. Free cash flow was an outflow of $31.4 million in 2Q26, compared to an outflow of $33.8 million in 2Q25. The modest year-over-year improvement primarily reflects favorable changes in working capital, partially offset by higher capital expenditures supporting manufacturing scale-up. For the first half of 2026, net cash used in operating activities was $54.9 million and free cash flow was an outflow of $67.7 million, compared to $42.8 million and $57.0 million, respectively, in the first half of 2025. The increase in year-to-date cash use primarily reflects greater working capital usage in the first quarter of 2026 and higher interest expense associated with the semi-annual interest payment of the Company’s convertible notes issued in the third quarter of 2025. Cash, cash equivalents, and marketable securities, including restricted cash, totaled approximately $552.1 million at quarter-end, providing liquidity to support qualification completion and commercialization scale-up. Enovix continues to prioritize disciplined capital allocation as it advances manufacturing scale-up and commercialization, while maintaining flexibility to pursue select strategic opportunities. No shares were repurchased during the quarter under the Company’s previously authorized share repurchase program. The Company continues evaluating capital deployment alternatives under its existing authorization. (1) Capital Expenditures reflects cash paid for property, equipment, and manufacturing assets and is a component of our free cash flow calculation. It excludes depreciation, accretion and amortization, and other non-cash investing items. It excludes one-time cash outflows related to business acquisitions. (2) Net loss per share attributable to Enovix. (3) Weighted average shares attributable to Enovix. (1) Capital Expenditures reflects cash paid for property, equipment, and manufacturing assets and is a component of our free cash flow calculation. It excludes depreciation, accretion and amortization, and other non-cash investing items. It excludes one-time cash outflows related to business acquisitions. (2) Net loss per share attributable to Enovix. (3) Weighted average shares attributable to Enovix. Financial Outlook(unaudited, in millions, except per share data) (1) Our outlook does not include provisions for proposed tax law changes or for the recently enacted tax reform legislation, future asset impairments or for pending legal matters, other than future legal amounts that are probable and estimable. Further, due to their nature, certain income and expense items, such as certain investments, derivative and foreign currency transaction gains or losses, cannot be accurately forecast. Accordingly, we only include such items in our financial outlook to the extent they are reasonably certain. Actual results may differ materially from the outlook; (2) See Appendix for definitions and reconciliations of non-GAAP Gross Profit (Loss), non-GAAP Gross Margin, non-GAAP Operating Loss, Adjusted EBITDA, and non-GAAP Net Loss Per Share Attributable to Enovix to their nearest comparable GAAP metrics for the historical periods presented. We are not presenting a quantitative reconciliation of our guidance for non-GAAP Operating Loss and non-GAAP Net Loss Per Share Attributable to Enovix to their GAAP equivalents, in reliance on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. Further information is provided below under the heading "Non-GAAP Financial Measures"; (3) non-GAAP Net Loss Per Share represents non-GAAP Net Loss Per Share Attributable to Enovix; (4) Capital Expenditures reflects cash paid for property, equipment, and manufacturing assets and is a component of our free cash flow calculation. It excludes depreciation, accretion, amortization, and other non-cash investing items. It excludes one-time cash outflows related to business acquisitions. Conference Call Information The Company will host a live, audio-only webcast today at 5:00 PM ET / 2:00 PM PT to discuss the results and provide a business update. To register for the audio webcast, please visit: https://enovix-q2-2026.open-exchange.net/ About Enovix Enovix develops and manufactures advanced lithium-ion batteries, including proprietary silicon-anode architectures for smartphones, smart eyewear, defense, industrial, and emerging edge-AI applications. Its proprietary silicon-anode battery architecture enables higher energy density and performance in space-constrained devices while maintaining safety and reliability, supporting commercialization across consumer and industrial markets. Enovix is headquartered in Silicon Valley with facilities in India, Korea, and Malaysia, serving customers globally. For more information visit https://enovix.com and follow us on LinkedIn. Non-GAAP Financial Measures This press release includes the use of non-GAAP financial measures, which are intended to provide supplemental information regarding our performance. These non-GAAP measures include non-GAAP cost of revenue, non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP research and development expense, non-GAAP selling, general and administrative expense, non-GAAP operating expenses, non-GAAP income (loss) from operations, EBITDA, adjusted EBITDA, non-GAAP net loss attributable to Enovix shareholders, non-GAAP earnings (loss) per share, free cash flow, and other non-GAAP measures that are included in this press release. We use these non-GAAP measures to supplement our financial reporting and to evaluate ongoing operations and results, facilitate internal planning and forecasting, and assess performance against prior periods, industry peers, and the broader market. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles (GAAP) and should not be considered as an alternative to GAAP results. Industry peers and other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including but not limited to, that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. We believe that these non-GAAP measures, when considered together with the GAAP results, provide investors with an additional understanding of our operating performance. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this press release. While Enovix provides third quarter 2026 guidance for non-GAAP loss from operations, non-GAAP net loss per share and capital expenditures, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures, and we have not provided a quantitative reconciliation in reliance on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to change in fair value of common stock, stock-based compensation and related tax effects, legal costs related to shareholder lawsuit, gain on bargain purchase of assets, acquisition-related costs, and restructuring costs. As a result, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or our future financial or operating performance and are identified by words such as anticipate, believe, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, should, will, would, and similar expressions. Forward-looking statements in this press release include, but are not limited to, statements regarding: our future operating results, financial position, growth opportunities, and guidance; expected performance, capabilities, and development of our battery products and technology roadmap; the timing, results and impact of customer testing, certification and qualification requirements; the timing and scale of sampling, product launches, production ramps, and customer programs; our ability to meet customer performance requirements and progress toward commercial deployment; our ability to scale and optimize manufacturing, including improvements in yield, throughput, dicing processes, performance, cost, timing and capital efficiency of our capacity expansion; our estimation of customer demand, adoption, growth and our ability to convert pipeline opportunities into revenue; our expectations regarding regulatory, certification and government sourcing requirements, including under the NDAA and TAA; and the sufficiency and use of our capital resources and our expectations regarding the benefits and use of our current balances of cash, cash equivalents, and marketable securities. Risks, uncertainties and assumptions that could cause actual results to differ materially from the results and events anticipated by such forward-looking statements include, but are not limited to: risks related to the outcome of customer testing and qualification activities, including the possibility that our products do not meet required performance thresholds or that such testing is delayed beyond expected time frames; our ability to successfully develop, manufacture and commercialize our battery products and transition to high-volume production; our ability to scale manufacturing operations and achieve expected production capacity and yields; the level and timing of customer demand, qualification and adoption of our products across end markets; our ability to enter into and expand commercial agreements, including securing design wins, purchase orders and production contracts; our ability to execute on our business strategy and build and scale our sales and commercial capabilities; lengthy and unpredictable customer qualification and sales cycles, safety considerations and contractual terms, particularly in defense and other regulated markets; risks related to battery performance, reliability and safety; customer concentration in the defense sector and certain consumer technology markets, such as smartphones and smart eyewear; challenges in forecasting demand, inventory and manufacturing requirements that may result in additional costs and production delays; our history of losses and expectation of continued losses; risks associated with the development and commercialization of products that remain under development and may not be successfully produced at commercial scale; our ability to effectively integrate and derive benefits from acquired businesses; fluctuations in foreign currency exchange rates and interest rates; operational and safety risks associated with manufacturing equipment; intense competition and our ability to keep up with rapid technological change and evolving standards in the battery industry; our ability to attract and retain qualified personnel; the outcome of litigation, regulatory investigations and other legal matters, including the associated legal and other costs; liquidity constraints, capital availability and our ability to service existing debt; our ability to protect and enforce our intellectual property rights; volatility in the trading price of our common stock; changes in tax laws or regulations; the impact of cyber and other information technology or security related incidents on us, our customers or other parties; changes in the political, economic or regulatory environment generally and in the markets in which we operate; and other risks described in the disclosures contained in our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. These documents are available in the SEC Filings section of the Investor Relations page at https://ir.enovix.com and at www.sec.gov. Any forward-looking statements in this press release speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Note Regarding Customer Pipeline and Design Wins We may refer in this press release and other communications to our “customer pipeline” and “design wins.” Our customer pipeline represents our estimate of the peak annual production value of identified design opportunities for products manufactured in South Korea. A “design win” refers to an opportunity that has been awarded to Enovix but has not yet entered production. Customer pipeline and design win amounts do not represent customer orders, backlog or committed revenue and should not be viewed as forecasts of future revenue. Actual revenue, if any, will depend on a number of factors, including customer qualification, final program awards, production timing, capacity and volumes, and the successful launch and ramp of customer programs. These measures are forward-looking and are subject to the risks and uncertainties described above under “Forward-Looking Statements.” For media and investor inquiries, please contact: Investor Contact:                                        Monica Gould                                        [email protected] (1)  As required by ASC 260, Earnings Per Share, the share and per share amounts presented in the above table for the fiscal quarter and fiscal year-to-date ended June 29, 2025 have been retroactively adjusted to reflect the warrant dividend issued in July 2025. Net Loss Attributable to Enovix to Adjusted EBITDA Reconciliation “EBITDA” is defined as earnings (net loss) attributable to Enovix adjusted for interest income, interest expense, income tax benefit, depreciation, accretion and amortization expense. “Adjusted EBITDA” includes additional adjustments to EBITDA such as stock-based compensation expense, change in fair value of common stock warrants, impairment of equipment, warrant issuance cost, certain legal costs related to our defense of an ongoing securities class action complaint that is outside the ordinary course of business and that we do not consider representative of our performance, and other special items as determined by management which it does not believe to be indicative of its underlying business trends. These non-GAAP measures may differ from similarly titled measures used by other companies. Below is a reconciliation of net loss attributable to Enovix on a GAAP basis to the non-GAAP EBITDA and Adjusted EBITDA financial measures for the periods presented below (unaudited, in thousands): (1) These amounts reflect litigation expenses related to the defense of an ongoing securities action. Reconciliation of Operating Loss to Non-GAAP Operating Loss and Adjusted EBITDA Additionally, below is a reconciliation of GAAP operating loss to non-GAAP operating loss and adjusted EBITDA for the periods presented (unaudited, in thousands). These non-GAAP measures may differ from similarly titled measures used by other companies. (1) These amounts reflect litigation expenses related to the defense of an ongoing securities action. Free Cash Flow Reconciliation We define “Free Cash Flow” as (i) net cash from operating activities less (ii) capital expenditures, net of proceeds from disposals of property and equipment, all of which are derived from our Consolidated Statements of Cash Flow. The presentation of non-GAAP Free Cash Flow is not intended as an alternative measure of cash flows from operations, as determined in accordance with GAAP. We believe Free Cash Flow is a useful measure for investors because it provides insight into the cash generated or used by our operations after funding capital expenditures, and it helps assess our ability to pursue strategic growth initiatives. We use Free Cash Flow internally to evaluate performance, support decision-making, and measure our progress toward profitability and cash flow breakeven. This non-GAAP measure may differ from similarly titled measures used by other companies. Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measures for the periods presented below (unaudited, in thousands): Other Non-GAAP Financial Measures Reconciliation (Unaudited, in thousands, except share and per share amounts) These non-GAAP measures may differ from similarly titled measures used by other companies. (1) These amounts reflect litigation expenses related to the defense of an ongoing securities action. (1) These amounts reflect litigation expenses related to the defense of an ongoing securities action.(2) As required by ASC 260, Earnings Per Share, the share and per share amounts presented in the above table for the fiscal quarter and fiscal year-to-date ended June 29, 2025 have been retroactively adjusted to reflect the warrant dividend issued in July 2025.

Interested in Enovix Corporation? Here are five stocks we like better. Q2 revenue reached $9 million, up 21% year over year and 19% sequentially, while Enovix delivered its seventh consecutive quarter of positive GAAP and non-GAAP gross profit. The company ended the quarter with approximately $552 million in cash, equivalents, marketable securities and restricted cash. Enovix’s lead smartphone customer confirmed its cells exceeded 1,000 cycles in testing, with accelerated qualification expected to finish by year-end 2026 and potential commercial production in 2027. A second smartphone OEM is also moving toward qualification, with samples expected in the fourth quarter. Commercial momentum is expanding beyond smartphones: smart-eyewear shipments are expected to rise to about 19,000 packs in Q3 from 2,100 in Q2, while the South Korea drone and defense pipeline grew 41% to approximately $183 million in estimated peak annual production value. Q3 revenue guidance is $9 million to $10 million, though early eyewear ramp costs are expected to pressure margins. New Year, New Growth: 3 Stocks Under $2B Breaking Out in 2026 Enovix (NASDAQ:ENVX) reported second-quarter 2026 revenue at the high end of its guidance and highlighted progress in smartphone battery qualification, an initial commercial ramp in smart eyewear, and expanding drone and defense opportunities. Revenue for the quarter was $9 million, up 21% from a year earlier and 19% sequentially, according to Chief Financial Officer Ryan Benton. Defense shipments from the company’s South Korea operations remained the largest contributor, while smart eyewear produced its first product revenue during the quarter. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Best Stocks Under $15? 3 Low-Priced Picks With Upside GAAP gross profit was $1.3 million, representing a 14.4% gross margin, while non-GAAP gross profit was $1.8 million, or a 19.9% margin. Benton said the year-over-year decline in quarterly margin largely reflected the mix of battery products sold through the South Korea business rather than an operational change. Enovix recorded its seventh consecutive quarter of positive GAAP and non-GAAP gross profit. Non-GAAP operating expenses rose to $30.6 million from $28.8 million a year earlier, reflecting investments in smartphone qualification, product development, manufacturing readiness and the smart eyewear ramp. Non-GAAP operating loss was $28.8 million, better than the company’s guided loss range of $29 million to $32 million. Adjusted EBITDA was negative $18.9 million, compared with negative $20.1 million in the prior-year quarter. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be 5 Hot Stocks With Summer Buybacks You Can Cash In On The company ended the quarter with approximately $552.1 million in cash equivalents, marketable securities and restricted cash. Operating cash use was $21.8 million, while free cash flow was negative $31.4 million. Capital expenditures totaled $9.6 million. President and Chief Executive Officer Raj Talluri said Enovix’s lead smartphone customer confirmed that the company’s cells exceeded 1,000 cycles under a 0.2C discharge cycle-life test. The result independently confirmed internal testing that Enovix had previously discussed. → First Solar’s Profit Engine Faces a New Policy Test in Washington The remaining qualification work centers on an accelerated cycle-life test based on a hybrid protocol developed with the lead customer. Talluri said the test is intended to better reflect real-world smartphone use than the traditional 0.7C approach used for legacy graphite batteries. Several combinations of charge and discharge conditions are being tested, including an enhanced cell design. Enovix expects to complete the final testing by the end of 2026, followed by customer acceptance and smartphone field testing. In response to analyst questions, Talluri said the next stage after the bench testing would be a small build in which batteries are installed in phones for performance evaluation. The company expects commercial production activity to begin in 2027 if qualification proceeds as planned. A second smartphone original equipment manufacturer is moving toward a similar qualification framework, and Enovix expects to begin sample deliveries to that customer in the fourth quarter. Talluri said he expects silicon-specific qualification protocols to become more widely adopted over time because silicon anodes behave differently from graphite in accelerated testing. Enovix shipped about 2,100 AI-1 batteries to a tier-one smart eyewear customer in the second quarter and recognized its first product revenue from that customer. The company said it completed a key international safety certification for its cells and battery packs, as well as the customer’s reliability testing. The company has delivery orders for approximately 19,000 packs in the third quarter, a roughly nine-fold increase from second-quarter shipments. Those deliveries are part of a 50,000-pack customer order, with the remaining units expected to ship in the fourth quarter. Talluri said the smart eyewear market is expected to reach multiple millions of units, though actual Enovix shipment volumes will depend on customer product success and the company’s share of those programs. He said customer feedback has been favorable, particularly regarding energy density and battery life for eyewear devices running artificial intelligence applications. Benton cautioned that smart eyewear is expected to generate negative gross margin for the balance of 2026 as production ramps and overhead shifts into cost of revenue. He said Enovix expects gross margins to improve as volumes scale, but did not provide a break-even volume target. Enovix said its South Korea-made product pipeline increased 41% from the first quarter to approximately $183 million in estimated peak annual production value. More than half of the increase came from drone opportunities, which now exceed $100 million. The company said more than $40 million of the broader pipeline involves customers actively evaluating or testing cells, or designing them into products. The company’s MX-1-B01 battery is designed for drones and other applications requiring high gravimetric energy density and high continuous and pulse discharge performance. Talluri said the battery offers approximately 360 Wh/kg and could support uses including public safety, interceptor drones and intelligence, surveillance and reconnaissance applications. Enovix has ordered additional MX-1-B01 production equipment for South Korea and expects it to become operational in mid-2027. Initial commercial shipments and revenue are expected after capacity comes online and customer programs complete qualification. During the question-and-answer session, Benton said the new equipment is expected to support roughly 1 million units of capacity. The company said its South Korea supply is Trade Agreements Act compliant, while it expects National Defense Authorization Act compliance across multiple product stock-keeping units. Its drone battery completed UN 38.3 transportation testing in July, and Enovix plans to begin sampling numerous customers in the third quarter. For the third quarter, Enovix forecast revenue of $9 million to $10 million, representing year-over-year growth of approximately 13% to 25%. The outlook assumes continuing defense and industrial shipments from South Korea and a significant sequential increase in smart eyewear deliveries. Expected non-GAAP operating loss: $29 million to $32 million Expected non-GAAP net loss per share: $0.13 to $0.17 Expected capital expenditures: $8 million to $12 million Management said third-quarter gross margin will be affected by South Korea product mix and early smart eyewear ramp costs. Talluri also cited ongoing manufacturing improvements at Fab2, where cumulative yield improved for a third straight quarter. Zone 1 dicing remained the principal throughput constraint, though yield improved to approximately 84% from 80% in the first quarter. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enovix Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Kopin (KOPN) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this maker of wearable technologies would post a loss of $0.01 per share when it actually produced a loss of $0.02, delivering a surprise of -100%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Kopin, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $12.73 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 7.32%. This compares to year-ago revenues of $8.45 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kopin shares have added about 79.9% since the beginning of the year versus the S&P 500's gain of 13.3%. While Kopin has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kopin was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is breakeven on $15.4 million in revenues for the coming quarter and -$0.02 on $58.78 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Enovix Corporation (ENVX), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -7.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Enovix Corporation's revenues are expected to be $8.44 million, up 13% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kopin Corporation (KOPN) : Free Stock Analysis Report Enovix Corporation (ENVX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dropbox (DBX) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.35%. A quarter ago, it was expected that this online file-sharing company would post earnings of $0.71 per share when it actually produced earnings of $0.76, delivering a surprise of +7.04%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Dropbox, which belongs to the Zacks Internet - Services industry, posted revenues of $631.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.94%. This compares to year-ago revenues of $625.7 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Dropbox shares have added about 25.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While Dropbox has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Dropbox was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.82 on $625.31 million in revenues for the coming quarter and $3.08 on $2.51 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Computer and Technology sector, Enovix Corporation (ENVX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -7.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Enovix Corporation's revenues are expected to be $8.44 million, up 13% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dropbox, Inc. (DBX) : Free Stock Analysis Report Enovix Corporation (ENVX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $7.6 million, up 49% year over year, driven by Korean military contractors. Non-GAAP Gross Margin: 26.3%. Non-GAAP Operating Expenses: $30.8 million. Non-GAAP Loss from Operations: $28.8 million, better than the guidance range of $29 million to $32 million. Non-GAAP Net Loss per Share: $0.14. Adjusted EBITDA: Negative $20.3 million. Cash and Equivalents: Approximately $582.7 million. Free Cash Flow: Outflow of $36.3 million. Capital Expenditure Payments: $3.2 million in Q1. Q2 2026 Revenue Guidance: Expected in the range of $8 million to $9 million. Q2 2026 Non-GAAP Loss from Operations Guidance: Expected between $29 million and $32 million. Q2 2026 Non-GAAP Net Loss per Share Guidance: Between $0.13 and $0.17. Q2 2026 Capital Expenditure Payments Guidance: Projected in the range of $9 million to $13 million. Warning! GuruFocus has detected 4 Warning Signs with ENVX. Is ENVX fairly valued? Test your thesis with our free DCF calculator. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enovix Corp (NASDAQ:ENVX) commenced commercial production of its A1 battery for the smart eyewear market, with initial shipments underway and production expected to ramp up in the second half of the year. The company has aligned with Honor and another smartphone OEM on a new qualification framework for silicon-anode batteries, which better reflects real-world usage conditions. Enovix Corp (NASDAQ:ENVX) secured new customer design wins in the drone, defense, and industrial markets, with deployments expected in 2027, and a global pipeline exceeding $130 million. Manufacturing execution at Fab 2 has improved, with yields in most production zones nearing or exceeding 90%, and Zone 1 dicing delivering yields of approximately 80%. The company reported a 49% year-over-year increase in revenue to $7.6 million, driven by Korean military contractors, and achieved a non-GAAP gross margin of 26.3%. The company is still facing challenges with the throughput bottleneck in Zone 1 dicing, although progress is being made with a hybrid dicing configuration strategy. Non-GAAP operating expenses were $30.8 million, reflecting continued investment in customer qualification, research, and product development, leading to a non-GAAP loss from operations of $28.8 million. Free cash flow was an outflow of $36.3 million, primarily driven by timing-related items, including interest payments and higher inventory levels in Korea. The company has not yet made any purchases under its share repurchase authorization, indicating a cautious approach to capital allocation. Enovix Corp (NASDAQ:ENVX) is still in the early stages of commercialization for its silicon-anode batteries, with significant investments required to scale production and meet future demand. Q: Previously, management has discussed multiple pathways to achieve final smartphone qualification targets. Could you elaborate on which of these pathways currently appears most promising? A: Raj Talluri, President and CEO: We have aligned with Honor on a new qualification framework that better reflects real-world usage for silicon-anode batteries. The 0.7C legacy test requirement has been removed, and we are now focusing on a 0.2C test, which is more representative of actual smartphone usage. This change has been accepted by Honor and other lead customers, marking significant progress in our qualification process. Q: For your AI2 platform, when will the samples be submitted to customers so that testing can begin? A: Raj Talluri, President and CEO: We have engineering samples of AI2 ready, showing a 20% energy density increase over AI1. We plan to sample these to customers this quarter, and there is already significant interest from several leading smart eyewear companies. Q: Could you provide an update on the unit volumes for field testing with Honor and the expected ramp in 2027? A: Raj Talluri, President and CEO: We are currently working on a custom-sized cell for Honor's existing phone. Initial field testing will involve small volumes, with a more significant commercial launch planned for 2027. We have received the form factor for the next-generation device, which supports readiness for the upcoming product launch. Q: Regarding the drone market, what are the customer engagement and potential volumes? A: Raj Talluri, President and CEO: We are seeing tremendous interest in our NDAA-compliant drone cells, which are competitive in the market. The qualification times for drones are expected to be shorter than for smartphones due to high demand. We are already adding equipment to expand capacity in response to this interest. Q: Can you discuss the impact of the AI2 platform's 20% energy density increase on future smartphone batteries? A: Raj Talluri, President and CEO: The improvements seen in AI2 for smart eyewear will be applied to our smartphone batteries. We are working on increasing energy density by optimizing packaging efficiency and cathode voltage. This will enhance our competitive advantage in high-energy applications. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Enovix Corporation? Here are five stocks we like better. Enovix beat Q1 guidance with revenue of $7.6 million, up 49% year over year, and posted its sixth straight quarter of positive gross profit on both GAAP and non-GAAP basis. The company ended the quarter with about $582.7 million in cash and equivalents. Smart eyewear is emerging as a key growth driver, with commercial production of the AI-1 battery now underway and initial shipments in progress. Enovix also developed AI-2 samples that offer more than 20% higher volumetric energy density, and expects smart eyewear volumes to ramp further in 2026 and into the millions next year. The company is expanding beyond wearables into drones, defense, and smartphones, highlighted by new design wins, a $130 million-plus Korea pipeline, and the launch of its NDAA-compliant MX1-B01 drone battery. Enovix also reached an updated smartphone qualification framework with Honor, paving the way for a targeted deployment in the second half of 2026 and a broader launch in 2027. New Year, New Growth: 3 Stocks Under $2B Breaking Out in 2026 Enovix (NASDAQ:ENVX) reported first-quarter 2026 revenue above its guidance range as the battery developer said it is advancing commercial production for smart eyewear, refining smartphone qualification standards with customers and building a larger pipeline in drone, defense and industrial markets. President and Chief Executive Officer Dr. Raj Talluri said the quarter marked “another meaningful step” in the company’s transition toward commercialization and scale. Chief Financial Officer Ryan Benton said first-quarter revenue totaled $7.6 million, up 49% year over year and above the high end of the company’s guidance range, driven largely by batteries supplied to Korean military contractors. Non-GAAP gross margin was 26.3%, marking the sixth consecutive quarter of positive gross profit on both a GAAP and non-GAAP basis, Benton said. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Best Stocks Under $15? 3 Low-Priced Picks With Upside Non-GAAP operating expenses were $30.8 million, reflecting investments in customer qualification, research and product development, and smart eyewear production readiness. Non-GAAP loss from operations was $28.8 million, better than the company’s guidance range of $29 million to $32 million. Non-GAAP net loss per share was $0.14. Enovix ended the quarter with approximately $582.7 million in cash equivalents, restricted cash and marketable securities. Talluri said Enovix began commercial production of its AI-1 battery for its lead smart eyewear customer’s reference platform, with initial shipments underway and production expected to ramp through the second half of 2026. He said multiple customers are in the process of launching smart eyewear products. → MP Materials Is Quietly Building a Rare Earth Powerhouse 5 Hot Stocks With Summer Buybacks You Can Cash In On During the question-and-answer session, Talluri said the company expects about 50,000 smart eyewear battery units in 2026 and said volumes “should be in the millions next year,” though he cautioned that the exact scale remains difficult to predict. He described smart eyewear as a rapidly growing market in which battery life is a major product constraint. The company also produced first engineering samples of AI-2 for smartwear, which Talluri said delivered more than 20% higher volumetric energy density compared with AI-1. The improvement came from reducing inactive material and increasing cathode voltage, he said. Customer sampling of AI-2 is planned for later in the quarter, and Talluri said Enovix has already received initial sampling orders and engagement commitments from several leading smart eyewear companies. → MercadoLibre Boldly Invests in Growth: Discount Deepens Enovix said it has aligned with Honor on an updated qualification framework for silicon anode smartphone batteries. Talluri said legacy smartphone qualification protocols were designed around graphite-based batteries and included a 0.7C discharge requirement, which he said can artificially stress silicon anode cells at rates far above typical smartphone usage. According to Talluri, smartphone usage typically remains below 0.2C, and the revised framework prioritizes a version of a 0.2C cycle test that began in the first quarter. He said the 0.7C test has been removed as a “must-have” or gating requirement by Honor, and Enovix’s second smartphone OEM has also agreed to move toward a similar updated framework. Discussions with additional top OEMs are continuing. Talluri said cycle life testing at the lead customer is more than halfway complete and is tracking under the updated protocol. However, he noted that 0.1C and 0.2C tests can take longer to run than the prior accelerated 0.7C test. Enovix plans a targeted system-level deployment with Honor in the second half of 2026 to confirm in-field performance ahead of a broader commercial launch in 2027. Talluri said the initial deployment would involve small volumes, describing it as a limited launch or “friends and family” type testing. He also said Enovix has received the battery form factor for Honor’s next-generation device intended for launch in 2027. Enovix highlighted growing activity in drone, defense and industrial applications. Talluri said the company secured new customer design wins in each of those markets during the first quarter, with deployments expected in 2027. The company’s global pipeline for products manufactured in Korea now exceeds $130 million, he said, with the majority driven by drone applications. In response to an analyst question, Talluri said drones represent more than 60% of that pipeline. The company formally launched MX1-B01, a drone battery cell delivering 360 Wh/kg energy density, at the Michigan Defense Expo. Talluri said the product is designed for applications requiring extended flight time, high discharge capability and supply chain security. He said the cell is manufactured at Enovix’s South Korea factory and is NDAA compliant, which he described as an advantage for customers focused on defense-related procurement requirements. Talluri said the initial MX1 cell contains about 60% silicon-carbon material and that the company believes it can increase that percentage over time. The company is targeting MX2 in 2027 with a goal of reaching 400 Wh/kg. He said Enovix expects to tune product characteristics such as cycle life, discharge rate and swelling depending on customer requirements. Benton said Enovix is already spending capital to add equipment to an existing building at its Nonsan facility in South Korea and has “multiple empty buildings” available for future expansion. Talluri said the company acquired nearly 300,000 square feet of factory space through a prior transaction and plans to add capacity in line with demand. Talluri said Enovix continues to improve manufacturing execution at Fab2. Yields in most production zones are nearing or exceeding 90%, while Zone 1 dicing, which he described as the current throughput bottleneck, is producing step-level yields of approximately 80%. The company is implementing a hybrid dicing strategy that combines laser and mechanical approaches. Benton said the company believes it can reach 90% yield and that mechanical dicing is expected to improve throughput and lower costs over time. Talluri said Enovix has enough laser capacity to meet demand this year and plans to bring the mechanical dicing process online for next year’s demand. For the second quarter of 2026, Enovix guided for revenue of $8 million to $9 million, reflecting continued growth in defense and industrial shipments and initial smart eyewear revenue as deliveries to its lead customer begin. The company expects a non-GAAP loss from operations of $29 million to $32 million and a non-GAAP net loss per share of $0.13 to $0.17. Capital expenditure payments are projected at $9 million to $13 million, including deferred payments from the first quarter and initial spending to support Korea capacity expansion. Benton said Enovix has not made any purchases under its previously approved share repurchase authorization. He said the company’s capital deployment priorities remain qualification completion, scaling smart eyewear and defense production capabilities, and selectively pursuing strategic opportunities with a high bar for fit and return. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enovix Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Wednesday, May 13, 2026 at 5 p.m. ET Chief Executive Officer — Raj Talluri Chief Financial Officer — Ryan A. Benton Raj Talluri: Good afternoon, everyone. Thank you for joining us. This quarter marked another meaningful step in Enovix's transition towards commercialization and scale. We advanced across the areas we believe are most important for long term value creation, customer engagement, commercial deployment of our silicon anode batteries, and manufacturing readiness. I am very excited to share that in the smart eyewear market, commenced commercial production of our A1 battery for our lead customer's reference platform and have multiple customers in the process of launching smart eyewear products. Initial shipments are underway, production expected to ramp through the second half of the year. We believe this validates our ability to manufacture 100% silicon anode architecture at commercial scale. On smartphones, we align with Honor, an updated qualification framework designed specifically for silicon anode batteries. This framework, which includes revised specifications and testing protocols, better reflects real world usage conditions. We are pleased to have also aligned our second smartphone OEM on the view that they too will need to adapt a similar testing framework in order to get their products to market on a competitive timeline. Beyond these lead customer engagements, we are in active dialogue with several additional leading OEMs regarding silicon anode battery qualification standards. We are encouraged by the constructive cadence of our discussions with these OEMs as we work towards future qualifications and commercialization programs. Importantly, we believe we are doing the hard work now that will enable our future OEMs to roll out their silicon anode solutions. More rapidly. The principal structural mismatch in qualification has now been addressed to align with silicon anode performance while maintaining and in some respects increasing qualification rigor. Cycle life testing at our lead customer for batteries that we shipped at the beginning of the year is progressing under the updated protocols with the results approaching required thresholds. The deep partnership and technical engagement we are seeing with multiple customers in the smart market, reinforces our belief in the industry's interest in high performance silicon anode battery solutions. We are encouraged to see growing demand across our drone, defense, industrial applications, securing new customer design wins during Q1 2026 in each of these markets with deployments expected in 2027. Our global pipeline for products manufactured in Korea now exceeds $130 million. with the majority driven by rapidly expanding drone applications where demand for high performance battery solutions continues to outpace the available supply. This creates an opportunity for an additional scaled high performance supplier. We believe Enovix is positioned to emerge as that differentiated supplier this rapidly expanding market. We continue to improve manufacturing execution at Fab 2. Yields in most production zones are now nearing or exceeding 90%. Zone 1 dicing, a key throughput driver, is delivering step level yields of approximately 80%, demonstrating continued progress with our laser based equipment. We recently appointed Steven Bakos as senior vice president of worldwide sales to support Samira Naraghi our chief business officer. Steven brings more than 35 years of global semiconductor sales leadership from companies such as Infineon where he served as a vice president of corporate account sales for large global accounts, including Apple. This quarter, revenue was $7.6 million, driven by Korean military contractors above the high end of our guidance range and up 49% year over year. Non GAAP gross margin was 26.3%. Now I will walk through each of these areas in more detail, starting with manufacturing. On that front, I want to give you an update on our zone 1 dicing which is our current throughput bottleneck. Since I joined to improve the throughput of zone 1, we have been working on a faster, cheaper way to dice our coated rolls. We have been making great progress, Last week, I received a video from our equipment vendor showing this in action. Rather than trying to describe it with another chart, let me just show you the actual process. What you saw was our mechanical dicing system processing silicon anode strips directly from coated rolls. By implementing a hybrid dicing configuration strategy, that combines both laser and mechanical dicing approaches. I continue to be encouraged by the substantial progress our global operations and advanced manufacturing equipment teams are making in this novel area for silicon anode batteries. As we mentioned on the last call, legacy smartphone qualification protocols originally developed around the graphite-based batteries and relied on a 0.7 c discharge requirement. That standard can artificially stress silicon anode cells at discharge rates far above real world smartphone usage which typically remains well below 0.2 C. The consequence was important. Silicon live testing under this framework systematically understated a silicon anode battery's longevity. We have aligned with honor on a new silicon anode specific qualification framework. The updated framework prioritizes a version of the 0.2 c cycle test that commenced in Q1. This methodology better reflects real world usage for silicon anode batteries while enhancing the rigor and visibility into performance. We are seeing broader industry alignment on silicon anode specific qualification standards. Our second smartphone OEM has joined our lead customer removing the 0.7 C test from their list of hard requirements and is now progressing towards an updated framework similar to our lead customer. Discussions with several additional top OEMs are ongoing. We expect broad adoption of similar silicon anode specific qualification approaches over time. With this framework now established, the plan with Honor is a targeted system level deployment in the second half of the year to confirm infield performance ahead of the broader commercial launch in 2027. Importantly, we also recently received the battery form factor for their next generation device to support readiness for the next major product launch. Our commercial strategy centers on 2 complementary technology platforms that address large and, in some cases rapidly expanding market opportunities. AI, short for Artificial Intelligence Class, is our flagship 100% silicon anode platform. it is targeted at smartphones, and smart eyewear markets where volumetric energy density is a key requirement. Smartphones represent the largest battery market opportunity for Inovix. However, smart eyewear is emerging as 1 of the fastest growing new device categories. We think that the smart eyewear battery market opportunity could exceed $1 billion by the end of the decade. More broadly, the AI platform is applicable to virtually any space constrained device requiring high energy density and long cycle life including future applications in wearables, computing, industrial, EVs, and humanoid robotics. Previously, we acquired an established business producing graphite anode based products. These products are in production today, generating revenue in defense, drone, and industrial markets through our Korea facility. We have been able to leverage these capabilities in combination with our silicon anode technology know-how to create high performance MX silicon-enhanced platform. Our initial target markets for MX represent more than $4 billion in opportunity including approximately $2.4 billion in drones and $1.8 billion in defense technologies beyond drones. These applications prioritize performance and supply chain security with a greater focus on gravimetric energy density. Over the longer term, we believe the MX platform is also well positioned for adjacent markets including robotics, eVTOL, healthcare devices, transportation, agriculture, and broader industrial applications. The first product Enovix is launching on this platform is MX1, a ruggedized, drone cell design, requiring rapid discharge and high gravimetric energy density. I want to highlight something important here. These are not separate bets. They are mutually reinforcing platforms sharing technology, supply chain capabilities, and commercial infrastructure. We are increasingly seeing benefits flow in both directions with the AI platform leveraging our Korea manufacturing strength and the MX platform benefiting from our silicon expertise and global commercial reach. Alongside qualification progress, our R&D efforts continue to advance the platform. This quarter, we produced the first engineering samples of AI-2 for smart eyewear, delivering greater than 20% higher volumetric energy density compared to AI-1. This represents a meaningful architecture driven improvement. Potentially enabling product categories that require significantly more power within highly constrained form factors. We have achieved this improvement through 2 primary drivers, reducing inactive material to improve packaging efficiency and increasing the cathode voltage. Together, these advances increase energy density within the same footprint and further demonstrate the advantages of our 100% active silicon anode architecture. We believe this represents the first of many future advancements unlocking the full energy potential of our 100% active silicon anode architecture on the future AI product road map. Display equipped smart eyewear is expected to become a rapidly growing battery market. And we believe increasing power requirements create a strong fit for our technology. Smart eyewear also represents an attractive initial commercialization opportunity for our silicon anode platform. Qualification cycles are generally shorter, more flexible, and durability requirements are lower, and the market is in the early adoption stage. Customer sampling of AI-2 is planned for later this quarter, We have already received initial sampling orders and engagement commitments from several leading smart eyewear companies. The 20% energy density improvement achieved with AI-2 is important, not only for smart eyewear, but also because similar gains to the future smartphone batteries, could materially extend our technology advantage. The current AI-1 smartphone battery delivers 935 watt hours per liter has been independently validated against graphite and silicon doped alternatives. We believe this positions Innovix with a meaningful competitive advantage in high energy density mobile applications. Competing approaches remain largely focused on conventional graphite based designs with incremental silicon additions, These architectures continue to face swelling constraints that limit long term performance and energy density improvements. In contrast, our architecture is designed at a 100% active silicon anodes which we believe provides a substantially higher long term scaling opportunity. Let's talk about our second platform, MX. This week at the Michigan Defense Expo, we formally launched MX1B01, a drone battery cell delivering energy density of 360 watt-hours per kilogram positioning us competitively within the high performance drone battery market. We achieved this performance through targeted silicon content enhancements leveraging an already proven manufacturing platform. MX1 is designed for applications requiring extended flight time high discharge capability for power intensive missions, and a secure supply chain. We believe the product compares favorably to similar leading high density solutions currently available in the market and offers a material cycle life advantage. We are manufacturing these cells from our South Korea factory which has supported defense customers for years, and our commercial focus is on drone manufacturers globally as well as their packaging partners. Following the Michigan Defense Expo, we plan to showcase MX1 at 11 additional conferences around the U.S. and Europe over the next 2 quarters as we continue building customer engagement and commercial pipeline activity. This slide shows how we see the MX platform evolving beyond the initial MX1 launch. Demand for high performance drone battery supply continues to exceed the currently available western capacity, which we believe creates a meaningful opportunity for Enovix. These applications prioritize performance, reliability, and supply chain security supporting differentiated positioning relative to commoditized consumer battery markets. While drones are key near-term focus, we have also established product offerings for subsea, munitions, and industrial applications expanding the MX platform across multiple high performance end markets. Our Korea and Malaysia manufacturing footprint directly addresses defense supply chain requirements. Backed by years of production history supporting major contractors and deployed programs. A key structural advantage for Innovix is vertical integration. Because we own our manufacturing operations we are not sharing economics with third party contract manufacturers. Which we believe supports both competitive pricing and attractive long term unit economics as volume scales. As product competitiveness becomes increasingly established, the gating factor becomes commercial conversion which is why we recently appointed Steven Bakos as Senior vice president of worldwide sales, who brings more than 35 years of global semiconductor and industrial sales leadership experience and will help us build the commercial infrastructure required to support growth. Looking ahead, MX2, targeted for 2027, with the goal of reaching 400 watt hours per kilogram. Over time, we intend for MX to evolve into a broader platform strategy spanning multiple product formats and defense and industrial end markets. Now I will turn it over to Ryan to walk through our financial results. Ryan? Ryan A. Benton: Thanks, Raj. Our first quarter results reflect disciplined financial execution, alongside continued commercialization investment. First quarter revenue was $7.6 million above the high end of our guidance range, up 49% year over year. These are largely batteries deployed in active programs with repeat demand. Non GAAP gross margin was 26.3%, our sixth consecutive quarter of positive gross profit on both a GAAP and non GAAP basis. Non GAAP operating expenses were $30.8 million reflecting continued investment in customer qualification completion, research and product development, and smart eyewear production readiness. Non GAAP loss from operations was $28.8 million better than the guidance range of $29 million to $32 million Non GAAP net loss per share was $0.14 at the better end of the guidance range despite higher interest expense from the 2030 convertible notes issued last year in Q3. Adjusted EBITDA was negative $20.3 million roughly flat year over year. We ended the quarter with approximately $5.827 billion in cash, cash equivalents, restricted cash, and marketable securities. We believe this provides substantial liquidity to execute on our operating plan to support commercial scale up, and to pursue strategic opportunities from a position of strength. Free cash flow was an outflow of $36.3 million, an increase from the same period a year ago primarily driven by timing related items including the semiannual interest payment on the 2030 convertible notes working capital movements primarily higher inventory levels in Korea to support planned shipments. Capital expenditure payments were $3.2 million in Q1. Below guidance due to the timing delay of certain payments, the majority of which we expect to be paid in Q2. Turning to Q2 26 guidance. Revenue is expected in the range of $8 million to $9 million reflecting continued growth in defense and industrial shipments and initial smart eyewear revenue as deliveries to our lead customer begin. Non GAAP loss from operations is expected between $29 million and $32 million. Non GAAP net loss per share between $0.13 and $0.17 and capital expenditure payments are projected in the range of $9 million to $13 million which includes the aforementioned deferred payments as well as initial payments for the investment to support capacity expansion in Korea. Last quarter, we approved a share repurchase authorization to provide additional capital allocation flexibility. We have not made any purchases under that program. Our capital deployment priorities remain unchanged. Qualification completion, scaling smart eyewear and defense production capabilities and selectively pursuing strategic opportunities with a high bar on strategic fit and return. With that, I think we are ready to take questions. Operator? Operator: We will now begin the Q and A session. Please note that this call is being recorded. Before we go to live questions, we are going to read the 2 most highly voted questions submitted by shareholders ahead of this call during the call registration. The first question is, previously, management has discussed multiple pathways to achieve final smartphone qualification targets. Could you elaborate on which of these pathways currently appears most promising? Raj Talluri: Yeah. Thank you for the question. And thank you all for listening. Of the pathways we discussed, as I mentioned in the prepared remarks, we have now aligned with Honor at a combination of different pathways that we could use. The 0.7 C legacy test requirement, that is been mainly for based on graphite batteries. We have aligned with our customers that is not a must have requirement, so it is been removed as a gating item. We are now working on a slightly different 0.2 C test, which better reflects the real world usage of the smartphone. And that is been prioritized now. And not just with honor, but many of our other lead customers also agreed to the same thing. In general, I feel like smartphone market now people are realizing that as silicon batteries become more and more popular, we should they should really change the requirements that are in the market. That have been used mostly for graphite. So it is really nice, really great result. I am really pleased with my team being able to convince them. Now the point to see test is more than halfway done at our customer. And it is it is continuing to go and we are tracking it. Operator: The second question is for your AI-2 When will the samples be submitted to customers so that testing can begin? Raj Talluri: Yeah. As I mentioned in the remarks, that we have engineering samples now inside, and they look really good in terms of the 20% energy density increase from AI-1. Great achievement by the R&D team. You know, harnessing the full potential of silicon. And these will continue to get better over time. But these samples, we expect to sample this quarter. To our customers, and quite a few people have actually expressed interest in that, and we got a few sample batches out as of now. Thank you. Operator: We will now go to the queue. If you would like to ask a question, please use the raise hand feature on your screen. If you have dialed in via phone, please use star 9 to raise your hand and star 6 to unmute. Questions will be answered in the order they are received. Please ask 1 question and 1 follow-up question at most. We will now pause for a moment to assemble the queue. Our first question will come from Mark Shooter with William Blair. Your line is open. Please ask your question. Analyst (Mark Shooter): Thank you. Hi, guys. Congrats on the progress. My first question is just focusing in on Honor a bit. I saw in the press release that you have, some field testing looking at, about second half, right, is when you are targeting. So I am wondering if you could give us an updated understanding of what unit volumes may be for that field testing with Honor. And if successful, do you have a better view on what a on a ramp would look like in 2027? Raj Talluri: Yeah. So again, as I mentioned, now we have a you know, test methodology that we aligned with Honor. So we are in the middle of doing that. And the next big step is to actually put the battery inside an existing phone for which, you know, we made this custom size cell. it is hard to predict the number of units, and they will be small it will be initial test just to make sure that everything is smooth and limited launch maybe. But the real volume will be, you know, in 27. But we more importantly, we got the size for that particular battery that is gonna be launched in 2027, and we are now working on how to make that battery after the feed testing is complete. Analyst (Mark Shooter): Okay. Great. Thanks for the color. Switching gears into drones, which is very interesting opportunity, and congrats on the silicon carbon composite, you know, that mixed graphite cell. At 360 watt-hours per kilogram, that is gonna put you, you know, well in the running against, the current peer set. So I am wondering if you could speak to maybe some of the customers that you are engaged with in sampling and say you win all that business today, everyone you are engaged with. Do you have an idea of what those call times look like and your current unit volume and revenue capacity? Raj Talluri: Yeah. Firstly, thank you for that comment on the drone cell. We are also super proud of the engineering team that came up with it in a very short order, particularly because we have a well manufacturing facility that we own, we were able to quickly make that. You know, the product actually is extremely competitive with what is in the market today. And is made totally within our factories. it is not contract manufactured. Actually, I have the fact, a battery cell here with me. You know, we have a bunch of these cells now. So we there is a lot of interest. And I just got a call from our sales team who is at the Detroit you know, drone show right now about the tremendous interest they are seeing. Because this is also a NDA compliant cell, which is actually you know, big deal for, many of our customers. The go to market of this works this way. Typically, there are people who take this and put them in packs. And put the BMS around it and the system around it, and that goes into multiple drone makers. So it is hard to call the volumes right now, but the market is so fast and growing really fast that we think that the cycle times, the qualifications time will be, you know, shorter than things like smartphones because they have such demand. And also a cycle life does not have to be that long in these. Our cell goes to 300 cycles. But even shorter cycles are okay in some of these markets. Ryan A. Benton: And maybe I will I will chime in. You know, Mark, you asked about volumes. You know? Again, we have talked about in the CapEx forecast in prepared remarks. We are already spending dollars to add equipment to 1 of the existing buildings in the Nonson facility. And, you know, 1 of the great strengths advantages that we have sitting on our balance sheet is we have multiple empty buildings in that facility as well. So we have you know, numerous stages of additional expansion capacity there, and we are just gonna do that in a methodical way as demand presents itself. Analyst (Mark Shooter): that is great. Thanks for the color, guys. Operator: Your next question will come from Colin Rusch with Oppenheimer. Your line is open. Please ask your question. Analyst (Colin Rusch): Thanks so much, guys. You know, could you talk a little bit about the mix of silicon material that you have in the new drone batteries? And the pathway from 360 to 400, how much of that is being driven by increased thickness or, you know, different form factor or increased concentration of silicon in the in the anode. Raj Talluri: Yeah. Great question, Colin. So when we did this 1, we did it was to there is an existing requirement for a cell that in the market today that many of the customers wanted us to provide something that is with the fully NDA compliant, you know, made within our factories. So we made that 1, and we quickly got into that performance. Actually, it performs really well. The cycle life is really good and the capacity holds. We have about 60% SIC in that cell. But we now believe that we can get that to much higher percentage Because, you know, in this market, some amount of swelling is okay. Because it is inside a drone, and you could put pressure and put it in there. it is not a space constrained situation like a like a smartphone. And, also, the discharge rate and the pulse discharge, and the number of cycles are variables we can keep tuning. You know, we mentioned know, 400 watt hours per liter as something that we could produce. I believe we can go much higher than that. By just making the right trade offs between cycle life and rate and the amount of swelling that allow You know? So I think the good news is we have been working on silicon for a long time, so we know exactly what electrolytes work well with silicon. We are working with graphite for a long time in non sun. We have that know how. And we have a factory that is been supplying for difference for a long time. So our quality of the products that we actually supply to defense is very, very high bar, and that factory is actually qualified for that. So that is why I think that, you know, you will see a pretty competitive roadmap from us. For this market very quickly. Analyst (Colin Rusch): Great. And then, you know, looking at the laser cutting, I did just wanna understand kind of the cadence of learning cycle on yield improvement and how we should think about the engineering work that you are doing and how quickly you can implement that to start getting a little bit better, you know, output on the overall facility. Raj Talluri: Yeah. So as I mentioned, from last quarter to this quarter, we have improved our yield across multiple zones. You know, well into the 90% range now in most of the zones. The laser dicing is in the kind of the 80% range, but that is improved quite a bit from last time. But as you guys saw in the video, we have been working on this for a while, and today, I thought was a good time to show you a combination of laser and mechanical dicing that actually cuts much, much, much faster and much cleaner. When you laser dice, there are also some challenges we have been working on for a while, which is, you know, how to get to the yield and the throughput so on. it is an expensive way to do things. So we have always you know, right when I started we have been working on a different way to actually do this. You saw the mechanical Dyson now. So we have enough lasers, and we have enough throughput to meet the demand for this year. And we will get the mechanical dicer. Our plan is to get it online this year. For the next year's demand, we can use a mechanical dicer with some combination of laser finishing it up. So really exciting results. So hope you guys saw that video also the throughput that we can produce with that. Analyst (Colin Rusch): Okay. Thanks so much, guys. Thanks, Colin. Operator: Your next question will come from Jeffrey Osborne with TD Cowen. Please unmute your audio and ask your question. Analyst (Jeffrey Osborne): Yeah. Thank you. Maybe just a quick 2 questions, but 1 quick follow-up on Collins. Can you get to 90% yields without that machinery in place, or do you need to add the new machinery to get there And that is more of like a 2027 event getting to 90%. Ryan A. Benton: Maybe I will take It is. Yeah. Raj Talluri: Yeah. Ryan A. Benton: I think we are capable of getting a nice 90% yield. But, again, it goes hand in hand with throughput. I mean, again, you saw the video. Really, the mechanical dicer is just able to operate so much faster. And so ultimately, this you know, I am the finance guy. Ultimately, it is it is about cost. We just think it is the most economical way eventually in some of the subprocess steps to operate. Analyst (Jeffrey Osborne): Perfect. Thanks for that. And cost of the machines. Right? These are much it is a less expensive way to get throughput. Raj Talluri: Yeah. Perfect. And my 2 questions is 1, Ryan, I was wondering if you can update us on the M&A pipeline. I think you have been out there searching for a couple quarters now. And then just, Raj, a clarification. You mentioned providing packs to honor to put in a phone, small quantities in the second half of the year, but then you mentioned something about getting a second design. It was unclear. Is there a second SKU that they have given you, or is the SKU that they gave you they intend to produce in 2027? I am just trying to get a sense of your relationship as deepening with them. And they are giving you a glimpse of what they intend to commercialize after the first product launch. it is it is it is exactly the latter. So we actually have a SKU that will launch in 2027. So which is actually a fairly large deal. And shows the relationships we have with them. Analyst (Jeffrey Osborne): And then in terms of the packs to honor the quantities, any comments on that? Raj Talluri: It will be small volume. Again, it will be, just a test and make sure that the system level stuff works okay, and we get small initial launch And I think that is you know, again, that is fine with us to just to make sure everything is good before we get into high volume. Analyst (Jeffrey Osborne): Does that like, thousands, friends, and family and stuff? Raj Talluri: that is that is probably what it that is probably what you should think of. Ryan A. Benton: And then on the first question in terms of the M&A pipeline, so I am I am I am really pleased with the pipeline that we have multiple opportunities that we are pursuing. Again, as we as we said and repeated time and time again, we are gonna be disciplined. So it has to meet a strategic fit. We are gonna be disciplined on price. So it is fair to say that we have we have looked at quite a few opportunities that we just did not like the price tag, and we have moved on from. That we are I think we are we are excited about some of the opportunities we are pursuing. But, again, there are not going to waver. We think we are gonna be disciplined stewards of the capital and make sure it makes sense, and it is something that Raj really sees as strategic fit and benefit. And it is something that I can be here on an earnings call and be proud of the price we paid for. Analyst (Jeffrey Osborne): Perfect. Thank you. Operator: Your next question will come from Ananda Baruah with Bank of America. Your line is open. Please ask your question. Analyst: Hi. Thanks for taking my questions. Raj, I wanted to ask the first question on smart eyewear batteries. I think the press release says that you expect 50 thousand units in 2026. How should we think that scales as we head into next year? How should we think about the revenue progression from smart Eyewear over the next few years? Raj Talluri: Yeah. So the 50 thousand is, you know, this year. Firstly, I wanted to say that you know, with the way where the yields are and the throughput is and the way it is working, we are now able to manufacture this cell in our lines. The customer will deliver to the customer, they are testing them, it looks good. So firstly, that is, I think, a great result. We you know, as I mentioned, it is a huge market growing rapidly. It should be in the millions next year. it is hard to tell exactly how much. We have sampled to many different customers now because what we have is a battery that really makes the product, you know, because the energy density you know, right now, as you know, many glasses out there, they do not last the whole day. So this 1 actually continues to improve on that. And now that is why we decided to launch the next product using our AI-2 in that space first. You know, because the market was really asking for even more because they are it just it just very difficult to have the product last all day without that. So we do think that the first product will launch this year. And next product, you know, AI-2, we are gonna sample this summer, and that will go into production next year. So we expect it to be in the millions next year. Analyst: Okay. Thanks for the details there. For a follow-up, can I ask Ryan as you ramp the smartphones later this year and next year, the smartphone batteries, how does that impact gross margin? I think some OpEx might move into COGS. So can you just help us understand how we should think about gross margin progression as smartphones become a bigger part of the mix? Ryan A. Benton: Yeah. Certainly. So certainly, as we as we ramp the smart and the smartphones, you are gonna see some change in and you will see some of the costs right now that we have in operating expense will move up above the line into the cost of goods sold line whenever you think about our cost structure, the majority of our cost of sales is materials. So it is it is really about continuing to drive the bill of materials cost down, and those will be materials that we purchase for those for those orders as we prepare to ship them. So that is the vast majority of our COGS So when you talk about direct labor, variable overhead, and even a fixed set and fixed overhead to some extent. Although we have some you know, material costs as it relates to the cost of the factory, as we get to a decent amount of volume. It ends up being the very small percentage of our of our costs. Analyst: Okay. Thanks for all the details. Appreciate it. Yep. Operator: Your next question will come from Derek Soderberg with Cantor Fitzgerald. Your line is open. Please ask your question. Analyst (Derek Soderberg): Yeah. Hey, guys. Thanks for taking my questions. I was wondering if there is any way you can segment that $130 million Korea pipeline drones and defense opportunities, how much of that is sort of legacy RouteJade and how much of that is drones? Raj Talluri: Firstly, this is future looking revenue. Not right. So it is actually, a lot of it is new designs that we are that we are working with customers to get. And so in some sense, some of it is continuation of the defense business that RouteJade had. But majority of it is actually new stuff that we are that we are winning. And drones is, like, you know, over 60% of that. Analyst (Derek Soderberg): Got it. that is helpful. And then just curious on the NDA compliance piece. I was wondering how unique that is. I know there is a couple others that have that, but not too many at this point. You know, might it be difficult for others to sort of achieve that over the next couple years? And then, you know, within drones, what kind of drones are you getting interest in? You know, there is a wide variety of you know, sea drones, air drones, heavy and light. Where do you guys think you can build a nice business in drones? Raj Talluri: Yeah. So a NDA compliance is actually not that easy to achieve because there is multiple elements to that on the way the cost of the things that are sourced, what percentage of them have to be from this and countries, and then where the cells are actually manufactured. So for us, you know, we manufacture them in Nonsan, South Korea, which is a non-free country. So which is very good there. And then most of the material we have in there majority of it is actually not sourced there either from a few countries either. So in that sense, it is a big advantage for us and that we own our factories and we have the material. You know, in terms of drones, we are seeing it in, like, training, you know, public surveillance, inspection, public safety, multiple markets like that. What varies between these drones is, you kind of like a discharge rate, then it also depends upon how many cycles. The first product we made is, as I showed, you know, 300 cycles. High discharge rate, this 1 that I talked about. But we have the technology, and we have the know-how, and we have the factory now to make different products optimized for slightly different lesser cycles, but more energy density, and so on. So we will have a roadmap of products addressing various parts of the market. You know, as we as we start building out that roadmap. Analyst: it is an opportunity that is really grew very fast and came quickly. You know? Ryan A. Benton: And I will touch on my apologies if you already mentioned it, but, obviously, we have got a long history of subsea drones. And so that is something that I think will continue to be a strength for us as well. Analyst (Derek Soderberg): Perfect. Thanks, guys. Operator: Your next question will come from Alek Valero with Loop Capital. Please unmute your audio and ask your question. Analyst (Alek Valero): Yeah. Hey, guys. Thank you for taking my question. Yeah. Just on smartphones, what impact is, memory cost inflation having on your lower end phone volumes? Raj Talluri: We are not shipping much volume right now. Right? So I think not so much impact right now, but we do see that the number of units shipped this year will probably be much lesser in terms of the total number of smartphone units shipped. Hopefully, that will normalize over the next couple of years by the time we get into higher volume may be less of hopefully, it would be less of an impact. But right now, not too much impact. Analyst (Alek Valero): Okay. Thank you for clarifying that and Yeah. Another clarification question. Did you say that the 0.7 C testing requirement was removed or you are hoping to remove it? And if so, what impact does that have on your smartphone qualification timeline? Raj Talluri: Yeah. it is our customers agreed to remove that as a must do. They have agreed to actually have a variation of the 0.2 see and 0.1 C and so on, which is actually how the phone is actually used. As the gating requirement. So that does help. You know, in terms of timelines, it will probably be a little bit longer because the 0.1 C, 0.2 C take longer to run. The 0.7 C is a fast discharge. it is an accelerated test, but it hurts the battery. So they realized it is hurting the battery. it is not really helping. So in that sense, it may take a little bit longer to do 0.1 C, 0.2 C discharge because the time it takes to qualify is a little longer, at least on the first launches. But once we get to it, we understand what it is, we understand the trend, it should become normalized. Analyst (Alek Valero): Got it. Thank you. Mhmm. Operator: Your next question will come from William Peterson with JPMorgan. Your line is open. Please ask your question. Analyst (William Peterson): Yeah. Hi. Good afternoon, and thanks for all the details on the call thus far. For AI-2, the 20% increase in energy density, you know, using this sort of the next generation platform, can you speak about the trade offs of this, including cycle life that we can consider? I realize this at least in the first stages for eyewear, but assuming I am assuming that AI 1 will be your focus for your initial and second smartphone customer. But do you have a plan to sample AI-2 for smartphones next year, or is this longer dated? I am basically trying to get a sense for what needs to be solved for the next gen to be used in smartphones and you know, basically, it is a question we have asked in the past, but how should we think about your road map for smartphones beyond AI 1? Raj Talluri: Yeah. Absolutely. I mean, look, I think the advantages we showed with the 20% increase on the smart glasses, that is why we showed a little bit of color on how we got to that. We increased the cathode voltage. We reduced the amount of inactive materials in there. We will put those and we will absolutely put those things into our smartphone battery, and you will see us improve it similarly. there is a few other things that we are continuing to improve. Packaging efficiency is 1 of them, how we actually package this. They are slightly different electrolytes. So we have a strong roadmap that will keep increasing energy density. I mean, the thing you got I have mentioned to you, Bill, is that as I mentioned before, we use 100% silicon, but we are not getting the full potential of the energy density increase 100% silicon could and should provide because we have been trying to solve these other problems like cycle life, 0.7 C, you know, accelerated testing. Fast charge, and so on. But once we now work with the customers to get those things you know, understood and how exactly to do the qualification, we will continue to improve our energy density. And first instantiation of our improvement energy density we showed in the in the AI-2 in the smart glass. But we will quickly roll that into smartphones for next year. Ryan A. Benton: And the I will just chime in as well here. You know, the finance guy's happy to report that of these key things on the road map, not only improve the energy density, but also reduce cost out of the bill materials and reduce the cost of manufacture. So it is really a kind of magic time when that happens. Raj Talluri: Okay. And 1 other thing, Bill, maybe since you asked about density road map, I know, it is a question that is come up. Our battery swells very little. So the existing batteries, even with the ones with the silicon dope, still swell. So the most of the smart OEMs actually leave a space in the phone for to allow the battery to swell at end of life. So we actually do not need that space. So when if we get that space also, that is what we are working with our customers. They allow us to use that. Our energy density can be even higher. So we will be once we get to qualification, we will be able to take advantage of that piece also. Analyst (William Peterson): Thanks for that color. On the timeline for shifting or the general trend to move towards mechanical dicing, Are there any new challenges that we need to be mindful of? I am wondering about, you know, particles or mechanical stress or other technical issues you need to overcome. Or maybe even said another way, why was not mechanical dicing the primary path for this relative to laser dicing? Raj Talluri: Well, I mean, you know, again, as you saw in the video, I wanted to show you guys a little bit of the This is a complex machine that we have been working on building for a while. it is not like you just take a roller and put a roll in it. Right? So we have to build roll to roll roller. We have to ablate. You know, we have to dice it. We have to find the right kind of binders and materials to actually make the right kind of coating in electrolytes so that, as you said, when you do it mechanically, it still holds. So there is a lot of R&D, lot of know how has gone into it. We have been working on it for since I joined. So in that sense, it is a it is a very excited by it is a great technology that our teams have advanced. And there is still you know, again, there is still issues to be solved. Right? So we have to finish the dicing of it. We have to finish the anode, finish the cathode, and put it in a full cell. We are gonna take this year to actually do that because we have enough lasers to you know, meet all the demand we have for this year. And, absolutely, next year is when we would like to roll that out. Analyst (William Peterson): Great. And if I could sneak 1 more in, it is it is on the part that you wrote. So 70-5, 72 to 75 tests to life cycle and 1 below freezing power test. Mhmm. I think the power I am not sure about the freezing power test, but is there any insights to how your, you know, expectations? I think you feel I think you feel more confident about the life the cycle life, but what about this freezing power test? Something that I do not think I have heard much about in the past. Raj Talluri: Yeah. it is it is it is 1 of those common use case because what happens is silicon behaves differently than at very low temperatures. So if your phone with a silicon battery at extremely cold when you start using the phone, and you suddenly have a use case where you pull a lot of energy out is very quickly, you know, there are some challenges to how much energy a battery can put out So these are the kind of situations where we are working very closely with our customers to see at what use cases does this happen, how much does it pull in, and which parts of the world and so on. So it is, again, like the 0.7 C test, silicon is different from graphite. So the test you had before do not quite work exactly the same. But, you know, so that is 1 of those things that we are working with them. And I do believe that we will we will slowly get past that also as we continue with the journey. Thanks, Raj and Ryan for the details. Analyst (William Peterson): Yeah. Thanks, sir. Operator: Your next question will come from Gus Richard with Northland Capital Markets. Please unmute your audio and ask your question. Analyst (Gus Richard): Yes. Thanks for taking the questions. You mentioned the 130 million of pipeline for military projects. Is that an annual number or is that, you know, a lifetime opportunity and, you know, how much currently how much capacity in Korea do you have to support that? Raj Talluri: Yeah. So it is it is a total. We keep terms of what are the new designs that we are talking to customers and they are coming. So We typically can update that every quarter. it is not, like, annual. it is lifetime of those designs we have. They may take 1 year. They may take 2 years, you know, time to launch. We have enough capacity right now, but we are adding capacity now as Ryan mentioned, and we are building out that factory more. Fortunately, in the last acquisition we made, we got almost 300 thousand square feet factory with lots of buildings and power and dry rooms and so on. Very good acquisition we were fortunate to get from SolarEdge. We are now feeding it to keep increasing the capacity. In line with the demand because the qualifications take a little time. So we are going to work on the capacity increase in line with that demand. In a relative basis, of course, this is, you know, relatively standard equipment. So it is it is just blocking and tackling. Analyst (Gus Richard): Got it. And then when you mentioned the eyewear customer, I believe you said it was a reference design. I was wondering if that is an OEM or like, chip company's reference design. Raj Talluri: Yeah. Well, you know, again, because of confidentiality, I cannot say really more than who that is. But 1 thing I will say is, I wear maybe I add a little color to it. If you actually think of things like eyewear, there are things people wear on their on their personality. So it is a very style based thing. So most of the eyewear things we buy, as you know, comes from a fashion brands. Right? So like, I mean, you can think of Gucci's and Prada's and Ray-Bans, and you know, and so on that you buy from Sunglass Hut. So most of the tech companies are even chip companies and so on will actually make a reference platform. So the ultimate product is actually branded as a fashion product. Right? So that is why it is very key to get a reference design, you know, with 1 of those leading technology providers. So that then the channel to market can be through the fashion brands. Got it. Analyst (Gus Richard): Thanks so much. Thanks, guys. Yeah. Operator: Are no further questions at this time. With that, I would like to turn it over to doctor Raj Talluri for closing remarks. Raj Talluri: Yeah. I mean, thank you, everyone, and thank you for your all the questions. You know, over the past year, much of the discussion has been on validation of the technology and its commercial readiness. You know, we believe this quarter, we provided additional evidence. And the conversation can increasingly shift towards you know, disciplined execution against commercial commercialization milestones The markers to watch over the coming quarters are clear: continued progress and qualification targeted system level deployments, initial smartphone production ramp, and conversion of this drone pipeline into revenue. Now we view these as tangible operational milestones. We expect to demonstrate progress methodically over time. And thank you all for your support. Before you buy stock in Enovix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enovix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,744!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,353,500!* Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Enovix (ENVX) Q1 2026 Earnings Transcript was originally published by The Motley Fool