Shares of Enovix Corporation (ENVX) plummeted 16.61% in pre-market trading on Thursday, following the release of its third-quarter 2025 financial results and fourth-quarter guidance. The sharp decline came despite the company reporting better-than-expected Q3 earnings, as investors focused on the weaker-than-anticipated outlook for the coming quarter.
For Q3 2025, Enovix reported revenue of $8.0 million, representing an 85% increase compared to the same period last year and slightly above analysts' expectations of $7.93 million. The company posted a non-GAAP net loss per share of $0.14, beating the consensus estimate of $0.16. However, Enovix's Q4 revenue guidance of $9.5 million to $10.5 million fell short of Wall Street's expectations of $12.05 million, likely contributing significantly to the stock's pre-market decline. The company also guided for a wider adjusted loss of $0.16 to $0.20 per share for Q4, compared to the $0.14 loss per share expected by analysts.
Despite highlighting progress with its lead smartphone customer and advancing toward the commercial launch of its AI-1 battery technology, investors seem concerned about the company's path to profitability. Enovix ended the quarter with a strong cash position of $648 million, but the market appears more focused on the pace of revenue growth and the timeline for achieving profitability in the competitive battery sector. Adding to the negative sentiment, both Canaccord Genuity and Oppenheimer cut their target prices for Enovix, with Canaccord lowering it from $22 to $21 and Oppenheimer reducing it from $26 to $24, signaling tempered optimism among analysts.
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