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Enovix (ENVX)
NASDAQ:ENVX
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Enovix (ENVX) AI Stock Analysis

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ENVX

Enovix

(NASDAQ:ENVX)

Rating:54Neutral
Price Target:
$10.50
▲(9.15% Upside)
Enovix's overall score is driven by strong corporate events and positive earnings call highlights, despite challenges in profitability and valuation. The company's strategic initiatives and market expansion efforts are promising, but financial performance and technical indicators suggest caution.
Positive Factors
Capital and Funding
The warrant transaction is set to close, growth capital is incoming, and the trading situational overhang is removed from the stock.
Product Development
Polaris Battery Labs tested Enovix’s AI-1 battery and stated it is the highest energy density smartphone battery.
Negative Factors
Investor Risks
Investor risks include technology risk with Enovix’s unique cell architecture, scaling risks and timeline shifts at Fab2.
Market Volatility
The stock could remain volatile until the warrants are fully exercised, affecting investor sentiment in the short term.

Enovix (ENVX) vs. SPDR S&P 500 ETF (SPY)

Enovix Business Overview & Revenue Model

Company DescriptionEnovix Corporation (ENVX) is a technology company specializing in the design and manufacturing of advanced lithium-ion batteries. The company operates primarily in the energy sector, focusing on enhancing battery performance for applications in consumer electronics, electric vehicles, and industrial uses. Enovix is known for its innovative 3D Silicon™ architecture, which aims to significantly increase energy density and improve battery life compared to traditional lithium-ion batteries.
How the Company Makes MoneyEnovix generates revenue primarily through the sale of its advanced battery products to various industries, including consumer electronics and electric vehicles. The company operates on a business-to-business (B2B) model, partnering with leading manufacturers to integrate its battery technology into their products. Key revenue streams include direct sales of battery cells, licensing agreements for its proprietary technology, and potential joint ventures with automotive and tech firms seeking to enhance their energy storage solutions. Additionally, strategic partnerships with major companies in the electric vehicle and consumer electronics markets contribute to its earnings, as these collaborations often involve long-term contracts for battery supply.

Enovix Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in revenue growth, product launches, and market expansion, with strong financial health and strategic initiatives. However, there are concerns about potential increases in net operating loss and challenges in production ramp-up.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
Q2 revenue of $7.5 million, above the guidance range, with a 98% year-on-year increase driven by strong demand for products.
Improved Gross Margin
Non-GAAP gross margin reached 31%, reflecting the higher margin of the defense products from the Korean factory.
Launch of A1 Product Platform
The A1 platform was launched, featuring a leadership platform with a core battery architecture, achieving 900 watt hours per liter and 1,000 cycles, with over 400 patents.
Progress in Smart Eyewear and IoT Markets
Significant progress in smart eyewear and IoT markets with increased sampling and potential for the Enovix battery to become a standard in the ecosystem.
Strong Financial Position
The company finished Q2 with $203.4 million in cash, and a $60 million share buyback program was authorized.
Negative Updates
Increased Net Operating Loss
Net operating loss is expected to increase slightly in Q3 due to less favorable product mix and increased operating expenses related to manufacturing readiness scale-up.
Potential Delays in Production Ramp-up
There may be challenges in ramping up production in the new factory, with potential for unforeseen issues, although steps have been taken to mitigate them.
Company Guidance
During the call, the company discussed several key metrics and achievements for the second fiscal quarter of 2025. They reported Q2 revenue of $7.5 million, which surpassed their guidance range and represented a 98% year-on-year increase. The non-GAAP gross margin reached 31%, reflecting the higher margin of their defense products. The company launched its A1 product platform, achieving key milestones with strategic customers. Notably, the A1 platform boasts 900 watt-hours per liter with a 3C charge rate, and a cycle life of up to 1,000 cycles, marking it as a significant advancement with 100% active silicon anode. They also highlighted ongoing sampling with major smartphone OEMs and IoT customers, and an aggressive focus on expanding their manufacturing capabilities, including the addition of new equipment and increased capacity at their Malaysia facility. Financial guidance for Q3 anticipates sequential revenue growth and a slight increase in net operating loss, attributed to product mix changes and increased operating expenses related to scaling manufacturing readiness.

Enovix Financial Statement Overview

Summary
Enovix is experiencing revenue growth but faces challenges with profitability and cash flow management. The balance sheet shows moderate leverage, but improvements in operational efficiency and profitability are needed for long-term financial health.
Income Statement
45
Neutral
Enovix shows a positive revenue growth rate of 16.16% TTM, indicating potential market expansion. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is slightly positive, suggesting some improvement in cost management, but overall profitability remains a concern.
Balance Sheet
50
Neutral
The debt-to-equity ratio of 0.82 TTM indicates moderate leverage, which is manageable but requires monitoring. The return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid capital structure, but the company needs to improve profitability to enhance shareholder returns.
Cash Flow
40
Negative
Enovix's cash flow situation is challenging, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some efficiency in cash usage relative to net losses. However, the negative growth in free cash flow and operating cash flow coverage ratio highlight liquidity concerns.
BreakdownTTMDec 2024Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue26.60M23.07M6.20M0.000.000.00
Gross Profit2.61M-2.04M-17.04M-1.97M-3.38M-161.00K
EBITDA-87.39M-172.18M-189.34M-68.03M-25.33M-16.00M
Net Income-128.04M-222.24M-51.62M-126.04M-37.38M-16.19M
Balance Sheet
Total Assets469.11M527.17M440.59M482.56M64.96M16.61M
Cash, Cash Equivalents and Short-Term Investments203.41M272.87M322.85M385.29M29.14M10.23M
Total Debt192.03M192.56M8.23M9.07M0.005.65M
Total Liabilities262.46M277.77M84.16M156.45M28.75M12.91M
Stockholders Equity203.75M246.74M356.43M326.12M36.22M3.71M
Cash Flow
Free Cash Flow-139.54M-184.82M-118.95M-95.29M-47.00M-12.63M
Operating Cash Flow-89.41M-108.63M-82.74M-51.70M-20.05M-10.98M
Investing Cash Flow-111.98M-1.38M-36.21M-43.58M-26.95M-1.65M
Financing Cash Flow102.98M150.75M56.51M451.49M65.92M5.79M

Enovix Technical Analysis

Technical Analysis Sentiment
Negative
Last Price9.62
Price Trends
50DMA
11.86
Negative
100DMA
9.59
Negative
200DMA
9.65
Negative
Market Momentum
MACD
-0.61
Positive
RSI
31.24
Neutral
STOCH
24.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENVX, the sentiment is Negative. The current price of 9.62 is below the 20-day moving average (MA) of 10.45, below the 50-day MA of 11.86, and below the 200-day MA of 9.65, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 31.24 is Neutral, neither overbought nor oversold. The STOCH value of 24.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENVX.

Enovix Risk Analysis

Enovix disclosed 70 risk factors in its most recent earnings report. Enovix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Enovix Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$886.79M-68.88%209.20%4.24%
64
Neutral
$10.74B15.628.16%2.00%2.79%-14.82%
58
Neutral
$784.96M-22.60%14.82%-19.27%
56
Neutral
$1.79B125.43%128.49%-697.81%
54
Neutral
$1.89B-68.46%60.04%52.49%
53
Neutral
$1.81B-84.40%-1.70%9.93%
51
Neutral
$868.70M-33.65%20.84%24.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ENVX
Enovix
9.38
0.76
8.82%
PLUG
Plug Power
1.48
-0.27
-15.43%
MVST
Microvast Holdings
2.64
2.37
877.78%
EOSE
Eos Energy Enterprises
7.51
5.05
205.28%
SLDP
Solid Power
4.07
2.70
197.08%
AMPX
Amprius Technologies Inc
7.32
6.33
639.39%

Enovix Corporate Events

Delistings and Listing ChangesPrivate Placements and Financing
Enovix Warrants Expiration Set for August 29, 2025
Neutral
Aug 28, 2025

On August 28, 2025, Enovix Corporation announced that the alternate price condition for its Nasdaq-traded warrants under ENVXW was satisfied, setting August 29, 2025, as the expiration date. Consequently, the warrants will cease trading and must be exercised by 5:00 p.m. New York City time on that date, after which they will become void. As of August 27, 2025, approximately 12.6 million warrants had been exercised, generating around $110.1 million in gross proceeds, with further proceeds expected before expiration. This development is significant for stakeholders as it impacts the company’s financial inflow and the rights of warrant holders.

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Enovix Announces Early Expiration of Warrants
Positive
Aug 28, 2025

On August 28, 2025, Enovix Corporation announced that the volume-weighted average price of its common stock exceeded $10.50, meeting the early expiration price condition for its warrants traded under ENVXW. Consequently, Enovix set August 29, 2025, as the alternate expiration date for these warrants, which must be exercised by 5:00 p.m. on that day. Approximately 12.3 million warrants have already been exercised, generating $107.5 million in gross proceeds, which will support the company’s production and commercialization efforts. This milestone reflects strong shareholder confidence and positions Enovix for future growth in the battery technology industry.

Executive/Board ChangesBusiness Operations and Strategy
Enovix Appoints Dan McCranie to Board of Directors
Positive
Aug 14, 2025

On August 12, 2025, Enovix Corporation appointed J. Daniel ‘Dan’ McCranie to its Board of Directors, expanding the board to eight members, six of whom are independent. McCranie, a veteran in the semiconductor and technology sectors, brings extensive experience in board governance and leadership, having served in various roles at companies like onsemi and Freescale Semiconductor. His appointment is expected to strengthen Enovix’s board as the company focuses on expanding commercialization and manufacturing of its advanced battery technology.

Delistings and Listing ChangesBusiness Operations and Strategy
Enovix Announces Stock Price Milestone for Warrants
Positive
Jul 28, 2025

On July 28, 2025, Enovix Corporation announced that its common stock price exceeded $10.50 for five consecutive trading days, allowing the company to reserve the right to set an Alternate Expiration Date for its warrants. The earliest expiration date for these warrants is August 19, 2025, contingent on the stock maintaining its price above $10.50. This strategic move could potentially impact warrant holders and reflects Enovix’s proactive approach to managing its financial instruments, positioning itself advantageously in the market.

Delistings and Listing ChangesBusiness Operations and Strategy
Enovix Announces Warrants Distribution to Shareholders
Positive
Jul 21, 2025

On July 21, 2025, Enovix Corporation announced the distribution of warrants to purchase its common stock to shareholders and certain convertible noteholders as of the July 17, 2025 record date. This move reflects the company’s confidence in its long-term value and aims to prioritize shareholders, with the warrants set to expire on October 1, 2026, unless an early expiration condition is met. The warrants are expected to commence trading on the Nasdaq Stock Market under the ticker ‘ENVXW’ on July 22, 2025.

Dividends
Enovix Clarifies Warrant Dividend Distribution Details
Neutral
Jul 15, 2025

On July 15, 2025, Enovix Corporation released a supplemental FAQ document to clarify logistical and eligibility-related topics concerning its previously announced warrant dividend distribution. This update aims to ensure a smooth experience for shareholders, particularly addressing potential limitations for those holding Enovix stock in margin accounts. The distribution will provide one warrant for every seven shares of common stock held as of July 17, 2025, with specific conditions outlined for warrant exercise and expiration. The announcement underscores Enovix’s commitment to transparency and shareholder engagement as it approaches the warrant dividend record date.

Private Placements and FinancingDividendsBusiness Operations and Strategy
Enovix Announces Special Dividend via Warrants
Positive
Jul 7, 2025

On July 7, 2025, Enovix Corporation announced a special dividend in the form of warrants to holders of its common stock as of July 17, 2025. This strategic move aims to provide immediate shareholder value and a cost-efficient financing option, potentially raising up to $253.8 million. The warrants, which will be distributed on or about July 21, 2025, can be exercised for cash and are expected to trade on the Nasdaq Stock Market. This announcement coincides with the launch of Enovix’s AI-1TM battery platform, marking a significant milestone in the company’s operations and positioning within the battery industry.

Financial Disclosures
Enovix Reports Strong Q2 2025 Financial Results
Positive
Jul 7, 2025

Enovix Corporation announced its preliminary financial results for the second quarter of 2025, reporting a revenue of $7.5 million, which exceeded its guidance range and represented a 98% increase from the same quarter in 2024. The company achieved its third consecutive quarter of positive gross profit and significantly reduced its operating and net losses compared to the previous year. Enovix’s performance reflects strong customer demand across multiple markets and positions the company for significant scaling as new products and customers are introduced.

Stock Buyback
Enovix Announces $60M Share Repurchase Program
Positive
Jul 2, 2025

On July 2, 2025, Enovix Corporation announced a share repurchase program authorized by its Board of Directors, allowing the company to buy back up to $60 million of its common stock. This initiative aims to provide Enovix with greater flexibility in managing its capital structure and underscores the company’s confidence in its long-term fundamentals and its commitment to delivering shareholder value. The repurchase program, effective from June 30, 2025, does not obligate the company to repurchase a specific number of shares and may be adjusted or discontinued at any time.

Executive/Board ChangesShareholder Meetings
Enovix Holds 2025 Annual Stockholders Meeting
Neutral
Jun 16, 2025

On June 12, 2025, Enovix Corporation held its 2025 Annual Meeting of Stockholders, where 67.5% of the voting power was represented. During the meeting, stockholders approved the election of seven directors for a one-year term, the compensation of named executive officers, and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025