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Enovix Corporation (ENVX) stock fell Friday as investors weighed the battery maker's wider quarterly loss, workforce cuts and decision to end smartphone battery testing.
The stock plunged despite stronger revenue and growing demand for batteries manufactured outside China.
During Thursday's third-quarter 2026 earnings call, executives highlighted rising demand from defense and drone customers. They also outlined plans to prioritize smart eyewear over smartphone batteries.
Enovix reported a third-quarter adjusted loss of 15 cents per share, compared with a loss of 14 cents per share a year earlier.
Revenue rose 37.7% year over year to $11 million from $7.99 million, beating the $9.7 million analyst estimate.
The company forecast fourth-quarter revenue of $9 million to $10 million and 2027 revenue of $65 million to $85 million.
Enovix also announced plans to cut 220 jobs, aiming to save about $8.5 million annually.
The company ended the quarter with $512.2 million in cash, investments and restricted cash.
CEO Ryan Benton said U.S. and allied customers increasingly want batteries made outside China.
Benton said Enovix could benefit from its control over manufacturing and its largely China-free supply chain.
Chief Revenue Officer Steve Bakos said manufacturing location and supply-chain compliance now play a major role in purchasing decisions.
Enovix highlighted its Trade Agreements Act-compliant facility in South Korea and its roadmap for National Defense Authorization Act compliance.
Enovix's pipeline of drone, defense and industrial opportunities grew 18% to about $216 million.
The company also secured an initial order for 100,000 batteries.
Benton said rising demand is forcing Enovix to prioritize customers when allocating production capacity.
Bakos said the company remains focused on expanding manufacturing capacity to meet demand.
Meanwhile, Enovix is ending system-level field testing of its pre-AI-2 smartphone batteries after earlier cells missed energy-density goals.
Instead, the company is shifting resources toward smart eyewear.
Enovix has a backlog of 50,000 smart eyewear battery packs and has shipped about 19,000 units this year.
ENVX Price Action: Enovix shares were down 11.08% at $1.60 at the time of publication on Friday according to market data.
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