Enovix Corp Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark Shooter - William Blair - Analyst : Hi team, you have Mark Shooter on for Jed. I was wondering a question about customer conversations. How have they developed since the tariffs have been implemented on April 2? Your top two Chinese customers, are they concerned about working with a US company when they have so much, internal battery supply? And on the flip side, are any US companies or consumer electronics companies more willing to engage? Rather than being like a fast follower.

Question: Mark Shooter - William Blair - Analyst : Thanks, Rash. I appreciate the call. As a follow up here. I do, the slide that you provided with the updated baseline cells, that's very helpful. And if I'm looking at the material set, the silicon, carbon composites that OEMs have been using in 2024, that's what you're now comparing against. And if I were to the same materials that you'd be using or similar materials that you'd be using in EX2M, so the direct compare, the way I'm looking at it is that the Enovix' architecture allows more of that silicon carbon composite material in the cell, and that can give you that 20% energy density boost, am I thinking about that correctly?

Question: Mark Shooter - William Blair - Analyst : That's great. Thank you, Raj.

Question: Colin Rusch - Oppenheimer - Analyst : Thanks so much guys. Raj, can you talk about the importance of the coding line, that you're getting with the Solar Edge acquisition to facilitating not only your RAM but also some of the learning cycles for some of those newer chemistries and being able to commercialize in an efficient way.

Question: Colin Rusch - Oppenheimer - Analyst : Excellent. And then from a materials perspective, obviously there's an awful lot going on in terms of evolution of both and cathode materials, and I guess I'm curious about the number of relationships, number of companies you're able to work with in terms of some of those advanced materials as you look at evolving the platform and being able to, kind of accelerate or at least, execute against some of the increased density that you guys are talking about here.

Question: Colin Rusch - Oppenheimer - Analyst : Excellent. I appreciate it guys.

Question: George Gianarikas - Canaccord Genuity - Analyst : Hi, everyone. Thank you for taking my questions. Maybe to start, can you share any of the financial metrics around your recent acquisition in South Korea, the revenue capacity, revenue expectations, margin profile, maybe a little bit more detail on the purchase price. Thank you.

Question: George Gianarikas - Canaccord Genuity - Analyst : Thank you. And maybe as a follow-up, you mentioned in the press release some momentum, some sampling momentum with additional and markets. I think a handheld computer was one of them. Can you yeah, I know that a lot, has to go well for this to happen in 2026, but to the extent you could sort of think about a revenue profile of the firm in 2026, maybe into 2027, how many different end markets do you expect to serve at REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 9:00PM, ENVX.OQ - Q1 2025 Enovix Corp Earnings Call that time? Will you be strictly smartphone or do you, more, maybe more of a defense footing? Will you entertain niche markets like handheld computers and maybe some smartphones. I'm just kind of curious as to break down that revenue profile. Thank you.

Question: George Gianarikas - Canaccord Genuity - Analyst : Thank you.

Question: Ananda Baruah - Loop Capital - Analyst : Yeah, thanks guys for taking the question. I really appreciate it. Good to see you guys. Ryan, good to meet you, I guess, on a one-way screen here. Yeah, definitely. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 9:00PM, ENVX.OQ - Q1 2025 Enovix Corp Earnings Call I guess, yeah, just Raj, the first question is, I think you had mentioned earlier in the year, and this may be what you're referring to, with the first OEM, sending cells to them this quarter. Is it this June through August time frame, still, the work being done in there that will then put you guys in position to begin to understand what the programs with them in '26 could look like, which could then also inform the volumes of '26. Is that still a crucial work getting done in that June to August time frame?

Question: Ananda Baruah - Loop Capital - Analyst : You, are you guys got it. And then, should we develop an expectation that you guys can begin to in the fall, share your initial view on program in SKU inclusion, and so I guess at least whatever you SKU inclusion, like sort of volume inclusion, or at least volume TAM, give the SKU inclusion, will there be any of that provided in the fall?

Question: Ananda Baruah - Loop Capital - Analyst : Okay, that's great. And then, I guess just as a quick follow up, and I can see before here, the silicon doping, process, technique that you had talked about. Like how much silicon on the anode are they getting to, like, sort of at max that you guys have seen?

Question: Ananda Baruah - Loop Capital - Analyst : No, that's super helpful. Okay, guys, I appreciate it. Thanks so much.

Question: Derek Soderberg - Cantor Fitzgerald - Analyst : Yeah, hey guys, thanks for taking the questions and my congrats to Ryan on the new position. Wanted to follow up on George's earlier question, just around the revenue capacity, following the acquisition of the SolarEdge facility, sounded like 4X, the square footage of the 23 acquisition. Is this an acquisition that maybe takes the Routejade potential revenue from sort of 20 million to 30 million to 100 million plus. Now, I understand that some of the electrodes will be used in EX batteries, but can you help us maybe quantify the potential revenue capacity or production capacity expansion with the newly expanded site?

Question: Derek Soderberg - Cantor Fitzgerald - Analyst : God, that's helpful. And then as my follow up, for Ajay, wondering if you can share where the HVM line is today in terms of throughput relative to some of the UPH expectations you've, put out in the past. Just wondering, where throughput is at this point and have you sort of passed the 90% yield throughput yet? Can you just give us an update on how things are progressing?

Question: Derek Soderberg - Cantor Fitzgerald - Analyst : That's helpful. Thanks, guys.

Question: Bill Peterson - J.P. Morgan - Analyst : Yeah, hi, good afternoon and thanks for taking the questions and also thanks for the details on the com the competition. I guess for completeness, on these sort of leading edge, competitive sales, are these in the 800 watt-hour per liter range. We've also been getting sort of questions on cycle life. And I know you're looking at achieving 1,000. I'm seeing some competitors or, maybe even closer to 1,500, but I guess how to, just to benchmark where the current leading edges, how do they compare in terms of cycle life and also maybe some of these other factors you talked about things like temperature window, fast charging, and so forth.

Question: Bill Peterson - J.P. Morgan - Analyst : Okay, but what about at least in terms of energy density just so we understand like where you're coming from. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 9:00PM, ENVX.OQ - Q1 2025 Enovix Corp Earnings Call

Question: Bill Peterson - J.P. Morgan - Analyst : Okay. And then as a follow up, want to talk about your defense pipeline. You've been talking about it a bit more even with the older root shade acquisition, but are there additional orders forming in 2025 and it looks like your additional capacity can support that defense opportunities. Can you break down the interest you have by geography? I presume you could be getting more in the US as for the reasons you said, but, I just, and maybe just around the opportunity itself. I think maybe two years back, the US military alone was around 350 million. So maybe I updated thoughts on your opportunity.

Question: Bill Peterson - J.P. Morgan - Analyst : Thanks, Raj.

Question: Gus Richard - Northland Capital Markets - Analyst : Thank you for taking my question. I'm just curious on the SolarEdge acquisition, is there anything running through the factory at this point, or was it idle and sort of what is it going to take to get it up and running and how long?

Question: Gus Richard - Northland Capital Markets - Analyst : Right, and then could you just walk through sort of the milestones in front of you in terms of getting the out of Fab2 shipping production to customers, what milestones you have to hit for your, lead customer, for example, where are you in that milestones? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 9:00PM, ENVX.OQ - Q1 2025 Enovix Corp Earnings Call

Question: Gus Richard - Northland Capital Markets - Analyst : Got it. Thanks so much.

Question: Ananda Baruah - Loop Capital - Analyst : Hey thanks guys for taking a follow up. Hey, Raj, can you remind us, where PC calls again fall in the timeline and like I guess, yeah, I'll start there. When the PC calls will fall in the timeline, I'll probably have to follow up on that.

Question: Ananda Baruah - Loop Capital - Analyst : I got it. So, and Raj, when you say take the smartphone calls and sort of the jump off spot, the launch pad for the PC calls. Would that be these first two OEM calls that you're talking about? And so at some point, so is it at some point, I'm not trying to pin you down, but just to visualize it, some point by let's say mid '26, you can start that 18 month clock. Is that a good way to think about it, or is it? Sorry about that. Yeah, so.

Question: Ananda Baruah - Loop Capital - Analyst : Got it. Okay, great. Thanks a lot. Appreciate that.

Question: Ryan Pfingst - B.Riley - Analyst : Yeah, hey guys, thanks for the time. I just wanted to jump in with one on the EV opportunity, in the release you comment on the major charge time improvement by a leading battery supplier in Asia invalidating your cooling architecture. Can you just dig in a bit there and provide a little more color?

Question: Ryan Pfingst - B.Riley - Analyst : Understood. Appreciate it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 9:00PM, ENVX.OQ - Q1 2025 Enovix Corp Earnings Call

Question: Mark Shooter - William Blair - Analyst : Hi team, it's Mark again, but thank you for the follow up. For the smart glasses market, in the charts that you provided, you cite a larger performance benefit than even in the smartphones. I'm wondering if you can give us some info of what about the smart glasses application gives Enovix architecture even more performance advantage. And if that is the case, are there any additional margin benefits that could come from that application?

Question: George Gianarikas - Canaccord Genuity - Analyst : Thanks for taking my question. Curious if you could provide any update on the pricing dynamics you're seeing in the market, whether or not they continue to support this margin target that you laid out a couple of years ago. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 9:00PM, ENVX.OQ - Q1 2025 Enovix Corp Earnings Call