Oppenheimer Downgrades Enovix (NASDAQ: ENVX) Amid Production Expansion and Strategic Shift

• Oppenheimer downgraded Enovix (NASDAQ: ENVX) to Perform from Outperform.
• Enovix reported a 38% year-over-year revenue increase to $11 million in Q3, but its adjusted loss widened to $0.15 per share.
• The company is expanding its South Korea production and focusing on drone and smart-eyewear customers, with a $37 million backlog for 2027.

Enovix (NASDAQ: ENVX) makes batteries for drone, smart-eyewear and other customers. Oppenheimer downgraded Enovix to Perform from Outperform when the stock was priced at $1.81. The action comes as the company expands production in South Korea and shifts resources toward drone and smart-eyewear customers, as highlighted by MarketBeat.

Third-quarter revenue rose 38% year over year to $11 million, up 22% from the prior quarter, as highlighted by MarketBeat. Executive Chairman T.J. Rodgers said gross margin was 34.5%, helped by smart-eyewear sales and higher-priced drone and defense products.

Enovix enters its 2027 planning with a $37 million backlog and expects revenue of $65 million to $85 million that year, as highlighted by MarketBeat. Executives distinguish the separate $216 million sales pipeline, largely tied to drones, from orders. The company plans to spend $19 million to double drone-battery capacity at its Nonsan, South Korea, facility.

The third-quarter adjusted loss widened to $0.15 per share from $0.14 a year earlier, as highlighted by Benzinga. Enovix also says it will skip system-level field testing of its pre-AI-2 smartphone units. It forecasts fourth-quarter revenue of $9 million to $10 million, down 12% to 20% from a year earlier.

Enovix trades at $1.67, down 7.49%, or $0.14. Its 52-week range is $1.65 to $9.19, and trading volume is 3.94 million shares.