Enovix Begins Commercial Production of Silicon-Anode Smart Eyewear Battery

Enovix Advances Toward Smartphone Qualification Completion

FREMONT, Calif., May 13, 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 first quarter of 2026. The Company will host a live webcast at 5:00 PM ET / 2:00 PM PT to discuss the results and provide a business update. To register for the webcast, please visit: https://enovix-q1-2026.open-exchange.net/.

Commercialization Progress

"Smartphones remain our priority as we advance toward completing qualification with our lead customer and prepare for commercial production for the most demanding market in consumer electronics," said Dr. Raj Talluri, President and CEO of Enovix. "We aligned with our lead smartphone customer on a silicon-specific qualification framework -- a significant step forward in completing this process. Our second smartphone OEM customer has also acknowledged that the legacy 0.7C cycle-life test is not appropriate for silicon batteries. We are discussing a replacement qualification framework expected to be consistent with the one adopted by our lead customer. We believe this addresses the primary structural barrier to qualification of our 100% silicon anode batteries and reinforces the broader applicability across the smartphone market. Based upon results to date, we continue to see encouraging performance trends across energy density, fast charge, and safety metrics, while cycle-life testing under these enhanced protocols remains ongoing. We recognize this qualification process has taken longer than we originally anticipated -- these updated frameworks represent the clearest path to completing it. Beyond smartphones, our defense business continues to generate strong commercial momentum. In addition, our smart eyewear battery is entering early production."

Cycle-life testing is now progressing under these updated evaluation frameworks, with results approaching performance thresholds. These frameworks extend testing duration while providing improved visibility into real-world performance across multiple operating conditions. Final qualification timing will depend on completion of testing and customer validation processes. These updated protocols increase testing rigor and duration rather than reduce qualification requirements. The Company is also continuously advancing its core battery platform, expected to deliver further cycle-life improvements and represent additional product qualification pathways. This supports our expectation for a targeted system-level deployment in the second half of 2026 with a lead smartphone OEM to confirm in-field performance ahead of broader commercial introduction. Simultaneously, we are in collaboration with our lead customer on the battery form factor for next year's product launch.

Customer engagement continues to expand across AI-powered applications requiring high energy density in compact form factors. In smart eyewear, Enovix has begun initial shipments and expects to ramp manufacturing in the third quarter to support a leading smart eyewear reference platform. We expect to produce approximately 50,000 units in 2026 and increase into 2027 as downstream deployments expand. We believe this represents an important initial validation that our 100% silicon-anode architecture can be manufactured at commercial scale.

In parallel, Enovix sees growing demand across drone, defense, and industrial applications, securing new customer design wins during Q1 2026 in each of these markets with deployments expected in 2027. The Company's 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 available supply and creates opportunity for an additional scaled, high-performance supplier. We believe Enovix is positioned to emerge as that differentiated supplier in this rapidly expanding market.

MX-1$(TM)$ Drone Product Launch

To further support growth in these markets, Enovix is launching MX-1 -- short for Mission Execution -- a platform designed for applications requiring rugged design, rapid discharge, and high gravimetric energy density. MX-1 is the Company's first silicon-enhanced product line, developed by its integrated R&D and operations teams, and manufactured in our South Korea factory. MX-1 builds on a proven graphite-anode architecture, already deployed with leading South Korean defense contractors. The first MX-1 platform product -- MX1-B01 drone cell -- with 360 Wh/kg energy density and extended cycle life, positioning Enovix competitively with leading high-performance battery suppliers. Looking ahead, our next generation product is targeted for 2027 with a goal of reaching 400 Wh/kg.

Technology Progress

Enovix produced its first AI-2 engineering samples this quarter, a next-generation smart eyewear battery expected to deliver more than 20% higher volumetric energy density than AI-1. AI-2 leverages the EX-3M technology node, which reduces separator and current collector thickness, improves packaging efficiency, and increases cathode voltage. Customer sampling is planned for later in the second quarter of 2026. The same EX-3M innovations are also expected to support a step-function in performance gains for Enovix's future smartphone batteries.

Manufacturing Readiness Progress

Enovix continued to improve execution across Fab2 production zones. Zone 1 dicing -- a key throughput driver -- delivering step-level yield of approximately 80% in Q1, demonstrating continued progress in throughput and yield. To further improve throughput at the dicing stage, the Company is implementing a hybrid dicing configuration strategy combining laser and mechanical dicing. This approach allows Enovix to apply the most effective technique at each step and is expected to increase production rates and support early commercial demand as qualification progresses.

Leadership

As previously announced, Enovix recently appointed Steve Bakos as Senior Vice President of Worldwide Sales to help drive its next phase of commercial expansion. Bakos brings more than 35 years of global semiconductor sales leadership, most recently serving as Vice President of Corporate Account Sales at Infineon Technologies. Earlier in his career, he held senior sales, distribution and marketing leadership roles at Linear Technology, Intersil, and Exar. His appointment reflects expanding market opportunities and Enovix's commitment to building the commercial infrastructure needed for scaled revenue growth.

First Quarter 2026 Financial Results

(in millions, except percentages)

   -- First quarter 2026 revenue of $7.6 million exceeded the high end of the 
      Company's guidance range and increased 49% year-over-year, primarily 
      reflecting continued strength in defense and industrial shipments. Cells 
      manufactured through Enovix's South Korea operations continue deployment 
      across defense applications, including aerial drones, subsea systems and 
      munitions platforms, while next-generation silicon-anode developments 
      position Enovix to support future higher-performance applications. 
      Operational experience from these programs continues to inform 
      manufacturing improvements as Enovix prepares for commercial-scale 
      battery production. Revenue growth this quarter reflects increasing 
      traction in markets capable of supporting broader scale over time. 
 
   -- GAAP gross profit was $1.6 million and non-GAAP gross profit was $2.0 
      million in 1Q26. Non-GAAP gross margin improved to 26.3%, reflecting 
      improved production volumes and continued progress in manufacturing 
      execution, marking the sixth consecutive quarter of positive gross profit 
      on both a GAAP and non-GAAP basis. This marks a continued progression 
      toward economically scalable production. 
 
   -- Net cash used in operating activities of $33.1 million in 1Q26, compared 
      to an outflow of $16.9 million in 1Q25. Free cash flow was an outflow of 
      $36.3 million in 1Q26, compared to an outflow of $23.2 million in 1Q25 
      primarily reflecting changes in working capital, the timing of capital 
      expenditures, continued investment in manufacturing scale-up, 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 totaled approximately 
      $582.7 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 disciplined capital deployment 
      alternatives under its existing authorization. 
 
First Quarter 2026 Financial Summary 
 (unaudited, in millions, except per share data and 
 percentages) 
                             GAAP                        Non-GAAP 
                 Q1 2026  Q1 2025  YoY<DELTA>  Q1 2026  Q1 2025  YoY<DELTA> 
--------------   -------  -------  ----------  -------  -------  ---------- 
Revenue             $7.6     $5.1     $2.5        $7.6     $5.1        $2.5 
Gross profit        $1.6     $0.3     $1.3        $2.0     $0.4        $1.6 
Gross margin       20.4%     5.1%    15pts       26.3%     7.5%       19pts 
 
Operating 
 expenses          $45.4    $42.8     $2.6       $30.8    $28.3      ($2.5) 
Loss from 
 operations      ($43.9)  ($42.6)    ($1.3)    ($28.8)  ($28.0)      ($0.8) 
 

(MORE TO FOLLOW) Dow Jones Newswires

May 13, 2026 16:05 ET (20:05 GMT)