Shares of Enovix Corporation (ENVX) plummeted 7.95% in after-hours trading on Wednesday following the release of its third quarter 2025 financial results. The sharp decline came despite the company reporting significant year-over-year revenue growth, as investors focused on weak fourth-quarter guidance and continued losses.
For Q3 2025, Enovix reported revenue of $8.0 million, representing an 85% increase compared to the same period last year. The company attributed this growth primarily to continued strength in its Korea operations, including increased defense program shipments. However, Enovix still posted a GAAP net loss of $53.7 million, or $0.26 per share, wider than the loss of $22.5 million, or $0.12 per share, in the same quarter last year. On a non-GAAP basis, the net loss per share was $0.14, which beat analyst expectations of a $0.16 loss per share.
The stock's decline appears to be driven by Enovix's weak guidance for the fourth quarter. The company expects Q4 revenue to be in the range of $9.5 million to $10.5 million, falling short of analyst estimates of $12.05 million. Additionally, Enovix guided for an adjusted loss of $0.16 to $0.20 per share, compared to analyst expectations of a $0.14 loss per share. Despite management's comments on "continued operating progress" and "sequential revenue growth" expected in Q4, investors seem concerned about the company's path to profitability and the pace of its commercialization efforts, particularly regarding its AI-1 battery technology for smartphones.
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