Enovix shares fell 13.6% as investors reacted negatively to cautious commentary on commercialization timelines and margin pressures despite progress in customer engagements and manufacturing. The market clearly signaled disappointment with the pace of scale and the lack of clear near-term revenue acceleration.

• Q1 revenue was $7.6 million, driven by Korean military contractors, and grew 49% year-over-year but remains limited in scale.
• Non-GAAP gross margin contracted to 26.3%, highlighting ongoing margin pressures in early production stages.
• Commercial production commenced for the A1 battery in smart eyewear, with shipments ramping expected through H2, but smartphone qualification remains in early stages with updated testing protocols only recently aligned.
• Manufacturing yields improved, with most zones nearing or exceeding 90%, though Zone 1 dicing, a throughput bottleneck, is still being optimized with a hybrid dicing solution under development.
• The company emphasized active customer dialogues and a growing pipeline ($130 million) — primarily in drone and industrial markets — but scaled commercial launch timelines remain cautious with broader smartphone commercialization expected in 2027.