Enovix Corp
For the period ended Jul 5, 2026. Filed Aug 12, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 5, 2026 · Filed Aug 12, 2026
ENVX$2.76+15.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-04-05; filed 2026-05-14.
0001828318-26-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-05; filed 2026-08-12.
0001828318-26-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 91 previous paragraphs and 104 current paragraphs.
51 unchanged; 27 reworded; 24 added; 12 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Smartphones
Current report
Advanced smartphone qualification continues with our lead smartphone original equipment manufacturer (“OEM”) customer. During the second quarter of 2026, our lead smartphone customer confirmed that our batteries passed more than 1,000 cycles under the 0.2C discharge cycle test. The final accelerated cycle-life testing is underway built around a hybrid protocol defined in close collaboration with the customer and designed for silicon-anode cells. 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 our cells, including an enhanced design, across these multiple variants. We anticipate completing this final test in the fourth quarter of 2026, with targeted system-level field testing to follow. Our second smartphone OEM customer continues moving toward a similar qualification framework, following a path parallel to that of our lead customer. We expect to begin sample deliveries to this customer in the fourth quarter of 2026.
Current report
Smart Eyewear
Current report
In smart eyewear, we continued to make significant progress toward broader commercialization during the second quarter of 2026. Following the start of commercial production in the first quarter, we shipped approximately 2,100 silicon-anode AI-1 batteries and recognized initial smart eyewear product revenue under a customer order for 50,000 packs for delivery in 2026. We also completed key international safety certifications and customer reliability testing. The customer has since issued delivery orders for approximately 19,000 packs for third-quarter delivery, and we expect to fulfill the balance of the order in the fourth quarter of 2026, with shipment volumes expected to grow in 2027 as downstream deployments are projected to expand.
Current report
Drones, Defense and Industrial
Current report
Demand across our drone, defense and industrial end markets continued to expand during the second quarter of 2026. Our global pipeline for products manufactured at our South Korea facility grew approximately 41% to approximately $183 million, up from $130 million at the end of the first quarter, with more than half the growth driven by drone opportunities. This pipeline represents our estimate of the peak annual production value of identified design opportunities and does not represent contracted or committed revenue. The timing and extent to which these opportunities convert into revenue will depend on a number of factors, including our ability to satisfy customer qualification requirements, secure design wins and scale production to meet customer demand, and some or all of these opportunities may not ultimately result in revenue.
Current report
We believe our established manufacturing operations in South Korea position us to address demand for high-performance drone batteries that meet applicable U.S. government sourcing requirements, including under the National Defense Authorization Act (NDAA) and the Trade Agreements Act (TAA), which we expect to exceed available industry supply through the end of the decade. Subsequent to quarter end, our drone battery passed UN 38.3 transportation testing, completing a key certification required for commercial shipment, and we commenced sampling to numerous customers. We are also continuing the previously announced capacity expansion at our South Korea facility, with new capacity expected to come online in mid-2027.
Current report
Manufacturing Readiness and Technology
Current report
During the second quarter of 2026, we continued to make progress improving manufacturing execution and yields at Fab2. In smart eyewear production, substantially all process steps outside of Zone 1 achieved yields of 95% or greater, while Zone 1 dicing, which remains 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% in the prior quarter. We continue to implement manufacturing improvements intended to increase throughput and reduce costs, including a hybrid dicing configuration that combines laser and mechanical dicing, as well as further simplification of the manufacturing flow. Multiple key dicing steps are expected to come online around the end of 2026. Achieving the yield, throughput and cost levels necessary to support manufacturing at scale remains an important execution priority, and the timing and expected benefits of these initiatives remain subject to manufacturing and operational risks.
Current report
In parallel with these manufacturing initiatives, we continued to advance our product and technology roadmap across our targeted end markets. We have begun customer sampling of our next-generation AI-2 TM battery for smart eyewear, which is expected to deliver significantly higher volumetric energy density than AI-1. The underlying technology innovations are also expected to support a step-function in performance gains for our future smartphone batteries. We also continued to advance our technology roadmap for products manufactured at our South Korea facility, including MX-2 TM, the next generation of our MX-1 TM drone cell, which remains targeted for 2027.
Current report
Global Risks.
Current report
Revenue for the fiscal quarter ended July 5, 2026 was $9.0 million, compared to $7.5 million for the fiscal quarter ended June 29, 2025. The increase in revenue of $1.6 million, or 21%, was principally from higher sales to defense customers.
Current report
Revenue for the fiscal year-to-date ended July 5, 2026 was $16.6 million, compared to $12.6 million for the fiscal year-to-date ended June 29, 2025. The increase in revenue of $4.1 million, or 32%, was primarily attributable to increased sales to defense and industrial customers.
Current report
Cost of revenue for the fiscal year-to-date ended July 5, 2026 was $13.8 million, compared to $10.4 million during the prior fiscal year-to-date ended June 29, 2025. The increase in cost of revenue of $3.4 million, or 33%, was primarily attributable to higher production volume supporting the revenue growth netted with the lower costs to produce defense products resulting from the acquisition of assets from SETK in the second fiscal quarter of 2025.
Current report
As of July 5, 2026 and December 28, 2025, we had $0.9 million and $0.8 million of deferred contract costs on our Condensed Consolidated Balance Sheets.
Current report
Research and development (“R&D”) expenses during the fiscal quarter ended July 5, 2026 were $24.4 million, compared to $28.1 million during the fiscal quarter ended June 29, 2025. The decrease of $3.7 million, or 13%, was primarily attributable to lower salaries, benefits and stock-based compensation of $2.7 million, less materials usage of $1.7 million and lower contracting costs of $0.6 million. These decreases were offset by higher consumable usage of $0.6 million, higher common expenses allocation into R&D of $0.3 million and higher depreciation expense of $0.3 million.
Current report
Research and development expenses for the fiscal year-to-date ended July 5, 2026 were $51.0 million, compared to $54.1 million during the prior fiscal year-to-date ended June 29, 2025. The decrease of $3.1 million, or 6%, was primarily attributable to lower salaries, benefits and stock-based compensation of $3.4 million, less materials usage of $1.3 million and more costs being capitalized to fixed assets of $1.2 million. These decreases were offset by higher depreciation expense of $1.2 million, higher consumable usage of $1.2 million, higher contracting costs of $0.3 million and higher common expenses allocation into R&D of $0.1 million.
Current report
Selling, general and administrative expenses for the fiscal quarter ended July 5, 2026 were $20.2 million, compared to $17.5 million for the fiscal quarter ended June 29, 2025. The increase of $2.6 million, or 15%, was primarily attributable to higher salaries, benefits and stock-based compensation of $1.9 million, higher consulting expenses of $0.9 million, facilities expenses of $0.4 million and higher depreciation expense of $0.3 million. These increases were offset by higher common expenses allocated to R&D of $0.3 million and acquisition costs incurred in 2025 of $0.7 million.
Current report
Selling, general and administrative expenses for the fiscal year-to-date ended July 5, 2026 were $39.1 million, compared to $34.4 million for the fiscal year-to-date ended June 29, 2025. The increase of $4.7 million, or 14%, was primarily attributable to higher salaries, benefits and stock-based compensation of $2.8 million, higher consulting expenses of $1.5 million, facilities expenses of $0.4 million and higher depreciation expense of $0.6 million. These increases were offset by higher common expenses allocated to R&D of $0.1 million and acquisition costs incurred in 2025 of $0.7 million.
Current report
Gain on Bargain Purchase of Assets
Current report
In April 2025, we acquired battery cell manufacturing assets located in South Korea from SETK for total purchase consideration of $10.0 million in cash. As a result of this business acquisition, we recorded $4.8 million of gain on bargain purchase as the estimated fair value of the acquired assets exceeded the purchase consideration. There was no gain on bargain purchase for the fiscal year-to-date ended July 5, 2026.
Current report
Other Income (Expense), Net
Current report
Other income, net for the fiscal year-to-date ended July 5, 2026 was $1.3 million, which primarily consisted of a one-time realized foreign exchange gain related to the Malaysia tenancy agreement being modified and foreign currency losses due to the strengthening of Malaysian Ringgits to U.S. dollars. For fiscal year-to-date ended June 29, 2025, other income, net was $1.4 million, which primarily consisted of a one-time import duty forgiveness of $2.4 million offset by foreign currency losses due to the strengthening of the Malaysian Ringgits and the South Korean Won to U.S. dollars.
Current report
Income tax benefit for the fiscal year-to-date ended July 5, 2026 and June 29, 2025 was $0.6 million and $1.0 million, respectively, which was calculated based on the estimated annualized effective tax rate and was due to the income tax benefit in foreign jurisdictions.
Removed paragraphs (12)
Previous report
Advanced smartphone qualification and commercialization efforts. Advanced smartphone qualification is progressing with our lead smartphone Original Equipment Manufacturer (“OEM”) customer, Honor, and a second smartphone OEM. We have aligned with our lead customer on utilizing a silicon-specific evaluation framework for cycle-life testing that we believe better reflects real-world usage conditions for silicon-anode batteries than legacy testing methods. A second smartphone OEM customer has also aligned with the removal of select legacy requirements for silicon-anode batteries and we are in discussions on a replacement qualification framework expected to be consistent with the foregoing silicon-specific evaluation framework. These updated protocols increase testing rigor and duration rather than reduce qualification requirements. However, the ultimate timing on such qualification is outside of our control, and there can be no assurance as to when qualification will be completed.
Previous report
Expanded customer engagement and commercial traction across end markets. Our engagement with customers continues to expand across AI-powered applications requiring high energy density in compact form factors. We have commenced early production and initial shipments of our smart eyewear platform, representing our first scaled commercial proof point for our 100% silicon-anode architecture.
Previous report
We have also secured additional design wins in defense, drone, and industrial applications, with deployments expected to begin in 2027. Our global pipeline for products manufactured in South Korea has grown to more than $130 million as of the end of the first quarter of 2026, driven primarily by increased demand in drone applications, where demand for high-performance, non-China supply continues to outpace available Western supply. Our revenue remains concentrated in a small number of South Korean defense customers, and therefore the loss of any such customer would have a material impact on our revenues in the near term. Furthermore, this concentration also exposes us to risks specific to defense procurement, including Korean government budget cycles, procurement decisions, program cancellations or deferrals, and geopolitical factors affecting the Korean Peninsula and broader Northeast Asia region. Changes in South Korean defense priorities or reductions in procurement budgets for unmanned systems, drone platforms, subsea applications, or other programs utilizing our batteries could materially reduce demand from our primary customer base.
Previous report
Advanced technology development roadmap. We produced our initial AI-2 engineering samples for smart eyewear applications incorporating EX-3M technology innovations, which are expected to deliver more than 20% improved volumetric energy density relative to our AI-1 product. Customer sampling is planned for the second quarter of 2026, with initial commitments from several leading technology companies. We anticipate that these EX-3M innovations will support performance gains for future smartphone batteries. To further support defense, drone, and industrial customers, we are also launching our “Mission Execution” platform (MX-1), a silicon-enhanced battery product line designed for high-performance applications, including aerial drones. We are targeting an MX-2 version of this line in 2027, with a goal of continuing to increase energy density.
Previous report
Improved manufacturing readiness and execution. We are continuing to advance execution at Fab2 in Malaysia, achieving step-level yields of approximately 80% in Zone 1 dicing operations, with yields in most other production zones nearing or exceeding 90%. We have implemented a hybrid dicing configuration strategy combining laser and mechanical processes to improve throughput and support increasing production volumes as commercialization progresses. Fab2 has not yet produced smartphones at commercial volume, and the transition to high-volume manufacturing involves execution risks that remain unresolved. Capital expenditure payments are expected to increase materially in the future quarters primarily attributable to the settlement of previously deferred Fab2 equipment invoices and initial funding commitments associated with the South Korea capacity expansion initiative.
Previous report
Delivered strong revenue growth and continued gross margin improvement. First quarter 2026 revenue of $7.6 million increased 49% year-over-year, driven primarily by defense and industrial shipments. Gross margin improved to 20.4% in the first quarter of 2026, up from 5.1% in the first quarter of 2025, representing our sixth consecutive quarter of positive gross profit. Gross margins are subject to fluctuation from period to period based on product mix, as shipments across defense, industrial, and consumer applications carry different margin profiles.
Previous report
Maintained solid liquidity while investing in growth. Net cash used in operating activities was $33.1 million for the first quarter of 2026, compared to $16.9 million in the first quarter of 2025, reflecting investments in manufacturing scale-up, inventory build in South Korea, the timing of the semi-annual convertible note interest payment, and working capital movements. We ended the quarter with approximately $582.7 million in cash, cash equivalents, and investments to support ongoing qualification and commercialization activities.
Previous report
Access to Capital. Assuming we do not experience any significant delays in the research and development and manufacturing of our products or any deterioration in our capital efficiency, we believe we will meet our longer-term expected future cash requirements and obligations. We believe we will be able to do this through a combination of available cash, cash equivalents, investments and future debt financings, projected revenues and access to other public or private equity offerings and potential strategic arrangements.
Previous report
Revenue for the fiscal quarter ended April 5, 2026 was $7.6 million, compared to $5.1 million for the fiscal quarter ended March 30, 2025. The increase in revenue of $2.5 million, or 49%, was principally due to increased product shipments from our South Korea facility to defense contractors, industrial customers, and consumer electronics customers.
Previous report
Research and development (“R&D”) expenses during the fiscal quarter ended April 5, 2026 were $26.5 million, compared to $25.9 million during the fiscal quarter ended March 30, 2025. The increase of $0.6 million, or 2%, was primarily attributable to higher depreciation expense of $0.8 million related to the assets placed into service for Fab2 and assets acquired from SolarEdge Technology Korea in the second fiscal quarter of 2025, as well as higher materials and tooling expenses of $1.0 million to support the build-out of Fab2. These increases were offset by a decrease of $1.0 million in stock-based compensation expense.
Previous report
Selling, general and administrative expenses for the fiscal quarter ended April 5, 2026 were $18.9 million, compared to $16.9 million for the fiscal quarter ended March 30, 2025. The increase of $2.0 million, or 12%, was primarily attributable to a $1.2 million increase of stock-based compensation expense, $0.6 million in professional fees and higher depreciation expense of $0.4 million related to the assets acquired from SolarEdge Technology Korea in the second fiscal quarter of 2025. These increases were partially offset by a one-time property tax refund of $0.6 million resulted from a county audit concluded during fiscal quarter ended April 5, 2026.
Previous report
Other Income, Net
Reworded paragraphs (27)
Previous wording
To date, we have concentrated our operational efforts on researching, developing and commercializing the next generation technology behind our silicon-anode lithium-ion battery cell architecture. Most recently, we launched the AI-1 TM product platform, our Artificial Intelligence Class TM batteries for the next generation of mobile smartphones, smart eyewear and other AI-enabled devices that require significantly higher total energy storage and power to perform AI functions locally. We also serve customers in defense and industrial markets through our conventional and silicon-doped graphite battery products across a range of battery sizes and configurations optimized for high discharge rate applications, such as drones, subsea systems, and munitions defense systems.
Current wording
To date, we have concentrated our operational efforts on researching, developing and commercializing the next generation technology behind our silicon-anode lithium-ion battery cell architecture. We recently launched the AI-1 TM product platform, our Artificial Intelligence Class TM batteries for the next generation of mobile smartphones, smart eyewear and other AI-enabled devices that require significantly higher total energy storage and power to perform AI functions locally. We also serve customers in defense and industrial markets through our conventional and silicon-blended graphite battery products across a range of battery sizes and configurations optimized for high discharge rate applications, such as drones, subsea and munitions defense systems.
Previous wording
Drones represent another priority area of focus, as we believe our products provide a strong competitive advantage for serving customers that are increasingly prioritizing higher energy density, extended flight time, and supply-chain diversification. In addition to the smartphone, smart eyewear and defense and industrial markets, we are pursuing deployment of our technology across other edge-AI applications, as well as computing and EVs, among others.
Current wording
Drones represent a priority area of focus for us, as we believe our products provide a strong competitive advantage for serving customers that are increasingly prioritizing higher energy density, extended flight time, and supply-chain diversification. To support this anticipated growth, we have invested in additional capacity in our facility and launched MX-1, our first silicon-enhanced product platform, which is designed for rugged applications requiring rapid discharge and high gravimetric energy density. Finally, in addition to the smartphone, smart eyewear and defense and industrial markets, we are pursuing deployment of our technology across other edge-AI applications, as well as computing and EVs, among others.
Previous wording
We generate revenue from the sale of batteries and battery pack products (“Product Revenue”). Our performance and future success depend on several factors that present significant opportunities, but also pose risks and challenges as described in the section titled “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
We generate revenue from the sale of batteries and battery pack products. As we continue to commercialize our battery technologies and expand our product offerings, our operating results and future growth will depend on, among other factors, the successful qualification and adoption of our products by customers, our ability to scale manufacturing efficiently, and the development of demand across our target markets. These factors present significant opportunities as well as risks and uncertainties, as described below and in the section titled “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Global Risks. Our manufacturing operations in Malaysia and South Korea, and our supply chain for raw materials and components, are subject to evolving trade policies, tariffs, export restrictions, and geopolitical tensions. We face risks related to significant changes in United States trade policy, including tariffs on products imported from China and other countries and potential retaliatory actions by those countries. Escalating geopolitical tensions, changes in tariff regimes affecting components sourced from or processed in China, or disruptions to our Malaysia-based manufacturing operations could increase our cost of production and adversely affect our margins and competitive position. Although we do not currently anticipate a material change in risk to our near-term outlook from the existing trade environment, the extent and future outcome of these global risks are highly unpredictable and uncertain and may adversely affect our future financial condition, results of operations, and cash flows.
Current wording
Our manufacturing operations in Malaysia and South Korea, and our supply chain for raw materials and components, are subject to evolving trade policies, tariffs, export restrictions, and geopolitical tensions. We face risks related to significant changes in United States trade policy, including tariffs on products imported from China and other countries and potential retaliatory actions by those countries. Escalating geopolitical tensions, changes in tariff regimes affecting components sourced from or processed in China, or disruptions to our Malaysia-based manufacturing operations could increase our cost of production and adversely affect our margins and competitive position. Although we do not currently anticipate a material change in risk to our near-term outlook from the existing trade environment, the extent and future outcome of these global risks are highly unpredictable and uncertain and may adversely affect our future financial condition, results of operations, and cash flows.
Previous wording
Cost of revenue includes materials, labor, depreciation and amortization expense, freight costs and other direct costs related to manufacturing our products and service contracts. Labor consists of personnel-related expenses such as salaries, benefits, and stock-based compensation. We anticipate that cost of revenue will continue to increase as we optimize and expand our production line.
Current wording
Cost of revenue includes materials, labor, depreciation and amortization expense, freight costs and other direct costs related to manufacturing our products and service contracts. Labor consists of personnel-related expenses such as salaries, benefits, and stock-based compensation. We anticipate that cost of revenue will continue to increase as we optimize and expand our production line. Gross margin may also fluctuate from period to period as our product and customer mix evolves during this early stage of commercialization.
Previous wording
Comparison of the fiscal quarter ended April 5, 2026 to the fiscal quarter ended March 30, 2025
Current wording
Comparison of the fiscal quarter and fiscal year-to-date ended July 5, 2026 to the fiscal quarter and fiscal year-to-date ended June 29, 2025
Previous wording
As of April 5, 2026 and December 28, 2025, we had $4.6 million and $5.3 million of deferred revenue on our Condensed Consolidated Balance Sheets, respectively.
Current wording
As of July 5, 2026 and December 28, 2025, we had $4.0 million and $5.3 million of deferred revenue on our Condensed Consolidated Balance Sheets.
Previous wording
Cost of revenue for the fiscal quarter ended April 5, 2026 was $6.0 million, compared to $4.8 million for the fiscal quarter ended March 30, 2025. The increase in cost of revenue of $1.2 million, or 25%, was primarily attributable to higher production volume during the fiscal quarter ended April 5, 2026.
Current wording
Cost of revenue for the fiscal quarter ended July 5, 2026 was $7.7 million, compared to $5.5 million for the fiscal quarter ended June 29, 2025. The increase in cost of revenue of $2.2 million, or 40%, was primarily attributable to higher production volume supporting the revenue growth netted with the lower cost to produce the defense product resulting from the acquisition of assets from SolarEdge Technologies Korea, Ltd. (“SETK”) in the second fiscal quarter of 2025.
Previous wording
For the fiscal quarter ended April 5, 2026, the change in fair value of common stock warrants of $6.4 million was mainly attributable to a decrease in the fair value of the 5,500,000 Private Placement Warrants (as defined in Note 3 “Fair Value Measurement” of our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q). For the fiscal quarter ended March 30, 2025, the change in fair value of common stock warrants of $15.8 million was attributable to a decrease in the fair value of the 5,500,000 Private Placement Warrants.
Current wording
For the fiscal quarter and fiscal year-to-date ended July 5, 2026, the changes in fair value of common stock warrants of $0.2 million and $6.6 million, respectively, were mainly attributable to a decrease in the fair value of the 5,500,000 Private Placement Warrants (as defined in Note 3 “Fair Value Measurement” of our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q). For the fiscal quarter and fiscal year-to-date ended June 29, 2025, the changes in fair value of common stock warrants of $5.9 million and $9.9 million, respectively, were attributable to a fluctuation in the fair value of the 5,500,000 Private Placement Warrants.
Previous wording
The decrease in fair value of the Private Placement Warrants in each of these periods was primarily due to a decrease in our common stock price during the respective fiscal quarter.
Current wording
The decrease in fair value of the Private Placement Warrants in each of these periods was primarily due to a decrease in our common stock price during the respective fiscal quarter. In addition, for fiscal quarter ended July 5, 2026, the fair value was also impacted by these warrants’ short remaining expected term. The Private Placement Warrants were unexercised and expired on July 14, 2026.
Previous wording
Interest income for fiscal quarter ended April 5, 2026 was $5.8 million, compared to $2.4 million during the fiscal quarter ended March 30, 2025. The increase of $3.3 million, or 137%, was primarily attributable to higher average cash balance and yields earned on short-term and long-term investments.
Current wording
Interest income for fiscal quarter ended July 5, 2026 was $5.1 million, compared to $2.4 million during the fiscal quarter ended June 29, 2025. The increase of $2.7 million, or 112%, was primarily attributable to higher average cash balance and yields earned on short-term and long-term investments.
Previous wording
Interest expense for the fiscal quarter ended April 5, 2026 was $7.0 million, compared to $1.7 million for the fiscal quarter ended March 30, 2025. The increase of $5.3 million, or 308%, was primarily attributable to the issuance of additional convertible senior notes in the third fiscal quarter of 2025.
Current wording
Interest expense for the fiscal quarter ended July 5, 2026 was $6.5 million, compared to $1.7 million for the fiscal quarter ended June 29, 2025. The increase of $4.8 million, or 282%, was primarily attributable to the issuance of additional convertible senior notes in the third fiscal quarter of 2025.
Previous wording
Other income, net for the fiscal quarter ended March 30, 2025 was $2.4 million, which primarily consists of a one-time import duty forgiveness of $2.4 million.
Current wording
Other income, net for the fiscal quarter ended July 5, 2026 was $1.0 million, which primarily consisted of a one-time realized foreign exchange gain related to the Malaysia tenancy agreement being modified.
Previous wording
Other income, net for the fiscal quarter ended April 5, 2026 was $0.3 million, which primarily consisted of foreign currency loss resulting from the strengthening of Malaysian ringgit as compared to the U.S. dollar, offset by a weakening of the South Korean won.
Current wording
Other expense, net for the fiscal quarter ended June 29, 2025 was $1.0 million, which primarily consisted of foreign currency losses due to the strengthening of the Malaysian Ringgits and the South Korean Won to U.S. dollars.
Previous wording
Income tax benefit for the fiscal quarter ended April 5, 2026 was $0.1 million compared to an income tax benefit of $0.2 million for fiscal quarter ended March 30, 2025. The tax benefit was calculated based on the estimated annual effective tax rate. The decrease of $0.1 million in tax benefit was primarily attributable to lower income tax benefit on the losses generated from certain foreign jurisdictions.
Current wording
Income tax benefit for the fiscal quarter ended July 5, 2026 was $0.4 million compared to an income tax benefit of $0.9 million for fiscal quarter ended June 29, 2025. The tax benefit was calculated based on the estimated annual effective tax rate. The decrease of $0.5 million in tax benefit was primarily attributable to lower income tax benefit on the losses generated from certain foreign jurisdictions.
Previous wording
We have incurred operating losses and negative cash flows from operations since inception through April 5, 2026 and expect to continue to incur operating losses for the foreseeable future. As of April 5, 2026, we had cash, cash equivalents, restricted cash, and short-term and long-term investments of $582.7 million, working capital of $507.6 million and an accumulated deficit of $1.02 billion.
Current wording
We have incurred operating losses and negative cash flows from operations since inception through July 5, 2026 and expect to continue to incur operating losses for the foreseeable future. As of July 5, 2026, we had cash, cash equivalents, restricted cash, and short-term and long-term investments of $552.1 million, working capital of $453.6 million and an accumulated deficit of $1.06 billion.
Previous wording
For the fiscal year-to-date ended April 5, 2026, we used $3.2 million of our cash to fund our acquisitions of property and equipment. We will continue to increase our property and equipment purchases in the near future to support the build-out of our manufacturing facilities and our battery manufacturing production. For more information regarding our purchase commitments, please see the contractual obligations and commitments section below.
Current wording
For the fiscal year-to-date ended July 5, 2026, we used $12.8 million of our cash to fund our acquisitions of property and equipment. We will continue to increase our property and equipment purchases in the near future to support the build-out of our manufacturing facilities and our battery manufacturing production. For more information regarding our purchase commitments, please see the contractual obligations and commitments section below.
Previous wording
Fiscal Quarter Ended April 5, 2026 Compared to Prior Fiscal Quarter Ended March 30, 2025
Current wording
Fiscal Year-to-Date Ended July 5, 2026 Compared to Prior Fiscal Year-to-Date Ended June 29, 2025
Previous wording
Net cash used in operating activities was $33.1 million for the fiscal quarter ended April 5, 2026. Net cash used in operating activities consisted of a net loss of $38.3 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of the Private Placement Warrants of $6.4 million, stock-based compensation expense of $11.8 million and depreciation and amortization expense, net of accretion of $9.4 million.
Current wording
Net cash used in operating activities was $54.9 million for the fiscal year-to-date ended July 5, 2026. Net cash used in operating activities consisted of a net loss of $81.3 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of the Private Placement Warrants of $6.6 million, stock-based compensation expense of $24.8 million and depreciation and amortization expense, net of accretion of $19.4 million.
Previous wording
Net cash used in operating activities was $16.9 million for the fiscal quarter ended March 30, 2025. Net cash used in operating activities consisted of a net loss of $23.5 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of Private Placement Warrants of $15.8 million, stock-based compensation expense of $12.0 million and depreciation and amortization expense, net of accretion on investments of $8.4 million.
Current wording
Net cash used in operating activities was $42.8 million for the fiscal year-to-date ended June 29, 2025. Net cash used in operating activities consisted of a net loss of $67.8 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of Private Placement Warrants of $9.9 million, stock-based compensation expense of $26.1 million and depreciation and amortization expense, net of accretion on investments of $17.3 million.
Previous wording
Net cash provided by investment activities was $18.3 million for the fiscal quarter ended April 5, 2026, which primarily consisted of maturities of $125.0 million of investments, partially offset by $3.2 million of equipment purchases and $103.5 million of investment purchases.
Current wording
Net cash used in investing activities was $15.3 million for the fiscal year-to-date ended July 5, 2026, which primarily consisted of $12.8 million of equipment purchases and $230.1 million of investment purchases offset by maturities of $227.6 million of investments.
Previous wording
Net cash used by investing activities for the fiscal quarter ended March 30, 2025 was $64.4 million, which primarily consisted of $6.3 million of equipment purchases and $58.1 million of short-term investment purchases.
Current wording
Net cash used in investing activities for the fiscal year-to-date ended June 29, 2025 was $91.1 million, which primarily consisted of $14.2 million of equipment purchases and $85.5 million of short-term investment purchases.
Previous wording
Net cash used in financing activities was $2.5 million for the fiscal quarter ended April 5, 2026, which primarily consisted of $1.7 million of payroll tax payments for shares withheld upon vesting of restricted stock units and $0.7 million used to fund the purchase of additional shares of Routejade from a minority shareholder.
Current wording
Net cash used in financing activities was $2.0 million for the fiscal year-to-date ended July 5, 2026, which primarily consisted of $3.4 million of payroll tax payments for shares withheld upon vesting of restricted stock units and $0.7 million used to fund the purchase of additional shares of Routejade from a minority shareholder.
Previous wording
Net cash used in financing activities was $1.5 million for the fiscal quarter ended March 30, 2025, which primarily consisted of $0.5 million of transaction costs related to a secondary offering in the fourth quarter of 2024, and $1.8 million of payroll tax payments for shares withheld upon vesting of restricted stock units, partially offset by $0.8 million of proceeds from the exercise of stock options to purchase our common stock.
Current wording
Net cash used in financing activities was $2.7 million for the fiscal year-to-date ended June 29, 2025, which primarily consisted of $0.5 million of transaction costs related to a secondary offering in the fourth quarter of 2024, and $2.9 million of payroll tax payments for shares withheld upon vesting of restricted stock units, partially offset by $0.8 million of proceeds from the exercise of stock options to purchase our common stock.
Previous wording
The lease for our Fab2 manufacturing facility was originally scheduled to expire in July 2026, however, in April 2026, we signed a one-year renewal extending the expiration to July 31, 2027. The monthly rental payments under the terms of the lease are approximately RM962,267 (approximately $0.2 million U.S. dollars per month). See Note 12 “Subsequent Events” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further details regarding the lease renewal. The Company is evaluating its alternatives, including facility purchase, alternative manufacturing site options and further extension of the lease to support long-term operational continuity and future growth.
Current wording
The lease for our Fab2 manufacturing facility was originally scheduled to expire in July 2026, however, in April 2026, we signed a one-year renewal extending the expiration to July 31, 2027. The monthly rental payments under the terms of the lease are approximately RM962,267 (approximately $0.2 million U.S. dollars per month). See Note 5 “Leases” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further details regarding the lease renewal. The Company is evaluating its alternatives, including facility purchase, alternative manufacturing site options and further extension of the lease to support long-term operational continuity and future growth.
Previous wording
We expect to enter into other commitments to support our product development, the build-out of our manufacturing facilities, and our business development, which are generally cancellable upon notice. Additionally, from time to time, we enter into agreements in the normal course of business with various vendors, which are generally cancellable upon notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of service providers, up to the date of cancellation. As of April 5, 2026, our commitments included approximately $4.0 million of our open purchase orders, including equipment purchase orders, and contractual obligations that occurred in the ordinary course of business. For contractual obligations, please See Note 7 “Commitments and Contingencies” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Current wording
We expect to enter into other commitments to support our product development, the build-out of our manufacturing facilities, and our business development, which are generally cancellable upon notice. Additionally, from time to time, we enter into agreements in the normal course of business with various vendors, which are generally cancellable upon notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of service providers, up to the date of cancellation. As of July 5, 2026, our commitments included approximately $3.2 million of our open purchase orders, including equipment purchase orders, and contractual obligations that occurred in the ordinary course of business. For contractual obligations, please see Note 7 “Commitments and Contingencies” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Previous wording
The preparation of our condensed consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities in our consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
Current wording
The preparation of our condensed consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities in our consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. These estimates and assumptions include but are not limited to: valuation of the Private Placement Warrants, the impairment of long-lived assets, the net realizable value of inventory, stock-based compensation relating to performance-based restricted stock units (“PRSUs”) and income taxes. We believe that application of these critical accounting estimates involves our subjective judgments and assumptions, which have had, or are reasonably likely to have, a material impact on our condensed consolidated financial statements.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Interest income for fiscal year-to-date ended July 5, 2026 was $10.9 million, compared to $4.9 million during the fiscal year-to-date ended June 29, 2025. The increase of $6.0 million, or 124%, was primarily attributable to higher average cash balance and yields earned on short-term and long-term investments.
Current report — wording carried from elsewhere
Interest expense for the fiscal year-to-date ended July 5, 2026 was $13.5 million, compared to $3.4 million for the fiscal year-to-date ended June 29, 2025. The increase of $10.1 million, or 295%, was primarily attributable to the issuance of additional convertible senior notes in the third fiscal quarter of 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Actual results may differ materially from these estimates. These estimates and assumptions include but are not limited to: valuation of the Private Placement Warrants, the impairment of long-lived assets, the net realizable value of inventory, stock-based compensation relating to performance-based restricted stock units (“PRSUs”) and income taxes. We believe that application of these critical accounting estimates involves our subjective judgments and assumptions, which have had, or are reasonably likely to have, a material impact on our condensed consolidated financial statement.