Ultralife Corporation Stock price
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $98.31m | Revenue (TTM) = $187.24m
Market Cap = $98.31m | Estimated Revenue = $229.40m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $136.25m | Revenue (TTM) = $187.24m
Enterprise Value = $136.25m | Forward Revenue = $229.40m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Ultralife Corporation Stock Analysis
Analyst Opinions
7 Analysts have issued a Ultralife Corporation forecast:
Analyst Opinions
7 Analysts have issued a Ultralife Corporation forecast:
Ultralife Corporation Events
Past Events
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AUG
7
Q2 2026 Earnings Call
about 2 months ago
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MAY
8
Q1 2026 Earnings Call
5 months ago
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MAR
10
Q4 2025 Earnings Call
7 months ago
|
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NOV
18
Q3 2025 Earnings Call
10 months ago
|
StocksGuide Free
Ultralife Corporation — Q2 2026 Earnings Call
1. Management Discussion
Thank you for standing by and welcome to Ultralife Corporation's Second Quarter 2026 Earnings Conference Call. [Operator Instructions]
I would now like to hand the call over to Jody Burfening. Please go ahead.
Thank you, Lateef, and good morning, everyone. Thank you for joining us for Ultralife Corporation's Earnings Conference Call for the second quarter of fiscal 2026. With us on today's call are Mike Manna, Ultralife's President and CEO, and Phil Fain, Ultralife's Chief Financial Officer.
The earnings press release was issued earlier this morning, and if anyone has not yet received a copy, I invite you to visit the company's website, www.ultralifecorp.com, where you'll find the release under Investor News in the Investor Relations section.
Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of new products on a global basis, and disruptions or delays in supply of raw materials and components due to business conditions, global conflicts, weather, or other factors not under the company's control.
The company cautions investors not to place undue reliance on forward-looking statements which reflect the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission, including the latest quarterly report on Form 10-Q.
In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures.
With that, I would now like to turn the call over to Mike. Good morning, Mike.
Good morning. Welcome to Ultralife's Q2 2026 Earnings Call. Earlier today, we announced Q2 revenue of $47.9 million with operating profit of $3.4 million, which resulted in an EPS of $0.15 per share. We made positive progress on several fronts during the second quarter. We continue to build a strong and growing backlog, supported by an expanding product portfolio as recent product developments transition from development into commercialization. In addition, our new plant leaders in Newark and Raynham are continuing to gain experience and drive operational improvements.
Their teams are executing key gross margin initiatives, which have begun to deliver measurable benefits and are expected to contribute further improvements as these efforts gain traction. Our Communications Systems business is gaining momentum, supported by multiple new product releases, a growing opportunity funnel, and active development programs focused on expanding revenue and improving business stability. We remain confident in the long-term upside of this business and are continuing to invest in product development, customer engagement, and projects that position us to pursue large sustained revenue opportunities.
With defense spending continuing to emphasize force modernization and advanced network capabilities, our product portfolio remains closely aligned with emerging program requirements. We believe this favorable spending environment will support incremental program awards and long-term growth opportunities. We exited the quarter with a record backlog of $117.5 million, with over $14 million of the backlog from products released within the last year, including the Conformal Wearable Battery, an updated Manpack radio battery for a NATO partner, new amplifiers, new speakers, and new battery packs for medical and safety customers.
We expect our brand realignment to complete over the back half of the year, consolidating under the Ultralife Master brand, which will bring clear, concise messaging to our customers that we design and deliver critical RF and portable power products.
I will now turn it over to Phil to talk through the detailed numbers.
Thank you, Mike, and good morning, everyone. Earlier this morning, we released our second quarter results for the quarter ended June 30th, 2026. We have also updated our investor presentation in the Investor Relations section of our website, and our Form 10-Q was filed with the SEC earlier this morning. Consolidated revenues totaled $47.9 million compared to $48.6 million for the second quarter of 2025. Overall, government defense sales increased 5% while commercial sales decreased 4.7%.
Revenues from our Battery & Energy Products segment were $44.2 million compared to $45.9 million last year, a 3.7% decrease. The year-over-year decrease reflects a 4.7% decline in commercial sales, primarily attributable to lower oil and gas sales reflecting geopolitical factors, offsetting a 7.2% increase in medical battery sales. Government defense sales declined 1.4% due to the shipment of a very large order for an allied country last year.
The sales split between commercial and government defense for our battery business was 68-32, identical to that reported for the 2025 quarter, and the domestic to international split was 59-41 compared to 73-27 for the 2025 period, reflecting the heightened global demand for our products. Revenues from our Communications Systems segment of $3.8 million increased 39.3% from the $2.7 million we reported last year, due primarily to the timing of orders. On a consolidated basis, the commercial to government defense sales split was 62-38 compared to 65-35 for the 2025 second quarter.
Our total backlog exiting the second quarter was $117.5 million, the highest level in the company's history, representing a $33 million or 39% increase over the comparable 2025 period. The backlog remains diverse in nature across our commercial and government defense customer base, and the replenishment rate remains high, representing 63% of trailing 12-month sales. Our consolidated gross profit was $13.9 million, an increase of 19.5% over the 2025 period.
As a percentage of total revenues, consolidated gross margin was 28.9%, a 500 basis point increase from the 23.9% reported for last year's second quarter. The increase resulted from favorable sales product mix for both business segments and the net refund of IEEPA tariffs, which had been recognized as costs in previous periods. The net tariff refund in the second quarter of 2026 was $1.1 million and accounted for 230 basis points of the year-over-year increase in gross margin.
Gross profit for our Battery & Energy Products business was $12.5 million compared to $10.8 million last year, an increase of 15.4%. Gross margin was 28.3%, a 470 basis point increase over 23.6% last year due to sales mix and the tariff net refund, with this refund accounting for 250 basis points of the year-over-year increase. Accordingly, gross margin excluding the net tariff refund was 25.8%. For our Communications Systems segment, gross profit was $1.4 million compared to $0.8 million for the year-earlier period.
Gross margin was 36.3% compared to 28.4% last year, primarily due to favorable sales mix. Operating expenses were $10.4 million, an increase of $1.1 million, or 10.6% from the year-earlier quarter. New product development costs increased 39.1% related to the continued investment in our product offering and vertical integration opportunities within our portfolio. In addition, we incurred one-time costs of $0.9 million relating to litigation expenses for our cyber insurance claim and the completion of certain consulting fees to help expedite gross margin improvement at our two largest manufacturing facilities.
As a percentage of revenues, operating expenses were 21.8% compared to 19.8% for last year's second quarter. Operating income was $3.4 million compared to $2.3 million last year, reflecting the overall increase in gross margin to 26.6%, when excluding the tariff refund. Operating margin increased to 7.2% compared to 4.7% for the 2025 second quarter. Other expense reported below operating income was $0.5 million for the quarter primarily comprised of interest expense from the financing of our Electrochem acquisition, partially offset by the second quarter estimated portion of a refundable tax credit for certain qualifying battery cells and packs we manufacture under the 45X Advanced Manufacturing Production Tax Credit.
This tax credit, established by the Inflation Reduction Act, runs through 2032. Other expense for the year-earlier period was $1.1 million, reflecting the acquisition financing. Our tax provision for the second quarter was $0.5 million compared to $0.2 million for the 2025 quarter, computed on a GAAP basis at statutory rates. Net income was $2.5 million or $0.15 per share on a GAAP fully diluted basis. This compares to net income of $0.9 million or $0.05 per share for the 2025 quarter.
Adjusted EBITDA, defined as EBITDA including non-cash stock-based compensation expense and one-time costs not reflective of our ongoing operations, was $6.1 million or 12.8% of sales compared to $4.1 million or 8.5% for the prior year quarter. Adjusted EBITDA on a TTM basis is $17.1 million or 9.1% of sales.
Turning to our balance sheet, we ended the second quarter with working capital of $69.8 million and a current ratio of 2.9 compared to $68.5 million and 2.8 for 2025 year-end. Looking beyond our second quarter results, our backlog, the sheer number of our growth initiatives, our continued focus on gross margin improvement, progress with our vertical integration opportunities, and the transition of our various sub-brands to the Ultralife Master brand keep us positioned to realize the leverage of our business model.
I will now turn it back to Mike.
Thank you, Phil, for the detailed review of the Q2 2026 results. For 2026, we have four distinct priorities well underway. Our first priority was to accelerate the revenue capture in the Communications Systems business. We have several new products now moving through commercial capture phase, including products that already received initial orders, with additional product releases planned later this year.
During Q2, we showcased our new StrikeHub product line at Special Operations Week and HPE Discover. StrikeHub provides vehicle mounting, network switching, power, and UPS to support edge compute solutions targeting Special Operations Forces, U.S. Air Force Joint Fires Network, and U.S. Army Next-Gen Command and Control applications. We're actively working with multiple partners on longer-term opportunities that we believe can attain profitable baseline revenue in the business over the next year. The second priority is improving gross margin within our Battery & Energy business, with our Newark operations serving as the initial focus.
As discussed on the last earnings call, we successfully addressed the significant scrap issue associated with our largest margin-impacting product line and began realizing positive P&L benefits as we ended the second quarter. We've also corrected the second largest contributor to margin inefficiencies, and updates are currently being implemented through the supply chain, with benefits expected to begin materializing mid-Q3. These two initiatives alone are expected to generate annual savings of approximately $600,000 to $800,000 to the Battery & Energy gross margin.
We have several lean manufacturing and automation projects underway at our Raynham facility, aimed at increasing throughput, improving quality, and enhancing operational efficiency. These investments are particularly important as we anticipate more than 30% growth in customer demand and cell consumption over the next year. Third, we continue to expand the vertical integration opportunities resulting from the Electrochem acquisition, enabling us to incorporate Electrochem cells into our existing battery pack assemblies and increase the amount of content we provide to customers.
This strategy not only enhances our competitive position, but also broadens our addressable market for battery pack solutions. In addition, through our enhanced marketing efforts, we are experiencing growing demand in support of both large and small water-based drone platforms utilizing Electrochem cells. These opportunities are progressing well, and we expect them to contribute meaningful incremental revenue beginning in the fourth quarter and continuing over the next several years.
Lastly, on priority 4, we are well underway in our company branding realignment under the Ultralife Master brand, which will be completed this year, clarifying our customer messaging and market positioning as a market leader in battery and RF Products. Switching to development projects, we continue to invest in products on both sides of the business to drive revenue and opportunities for organic growth. Within communication systems, continued focus remains on multiple new product development projects with 2026 launch dates.
We're expanding our ruggedized computing portfolio by integrating new HPE server products and configurations tailored for tactical and mission-critical environments. We have already received several initial orders and continue to pursue additional program awards with expected 2026 deliveries. Our new 21 amplifier is under evaluation with multiple global customers for potential adoption in key modernization programs, while we continue to receive orders from international partners with deliveries expected this year. We remain engaged with radio manufacturers to pair amplifiers with OEM platforms and drive pull-through sales opportunities.
We will introduce the advanced variant of the 21 amplifier in 2026, supporting the newest high-speed single-channel and frequency-hopping MANET waveforms in a compact, body-worn form factor. We're also releasing new vehicle radio mounts in 2026 that integrate our entire amplifier portfolio with multiple handheld radio platforms, providing customers with a cost-effective universal mounting solution for both legacy vehicle fleets and new vehicle programs. Our Crescent small form factor wearable edge compute solution, which provides portable high-end compute capability in manned vehicle and drone applications, is in the final design stages.
We have an established strong partner ecosystem to support hardware development, system integration, and software tool development while incorporating voice of customer feedback to refine requirements, with the first prototypes available later this year. On the Battery & Energy side of the business, our primary focus remains driving new business growth through transformational programs and strategic OEM partnerships. We currently have multiple OEM development programs underway aimed at bringing new customer-specific products to market over the next several years.
In addition, we are collaborating with existing customers on several initiatives to enhance the performance of current products and refresh product designs to meet evolving market requirements. With respect to our conformal battery, which powers dismounted soldier systems, I'm pleased to say we have shipped more than $2 million in orders during 2026. Current backlog exceeds $7 million and is expected to fully ship before year-end.
We have secured several cell and battery pack development programs supporting water-based defense drone applications. Design and prototype funding is in place for 2026, with production expected to begin in early 2027. This represents an exciting and expanding segment of our business where we have an established leadership position as a supplier of advanced underwater battery solutions in both rechargeable and non-rechargeable configurations. We are nearing completion of product development activities with an OEM partner for a rechargeable power pack powering a remote surveillance system. This development and product certifications are scheduled to be completed in Q4, with product deliveries beginning in early 2027.
We've established initial production capabilities for our thin cell technology platform to support customers in the medical wearables and asset tracking markets. Our sales pipeline continues to gain momentum with several opportunities advancing through qualification processes. These ultra-thin battery designs enable smaller, more discreet wearable sensors than those typically available today, improving user comfort while delivering longer device operating life. Continued investment in new product development remains a key component of our long-term growth strategy.
Expanding and diversifying our product portfolio not only creates new revenue opportunities, but also reinforces our legacy of delivering mission-critical power solutions. Our strategic priorities remain unchanged: converting long-term development programs into recurring revenue, advancing vertical integration where it creates value, and maintaining a disciplined focus on operational excellence and efficiency improvements. During 2026, we've made meaningful progress on gross margin improvement initiatives within the battery business.
Looking ahead, we have multiple new communication system products scheduled for launch this year in support of next-gen command and control programs. At the same time, we continue to streamline our operations and strengthen our market recognition through our consolidation of our business under the Ultralife Master brand. With a healthy backlog exceeding $117 million as we enter the second quarter and a robust development pipeline across both business segments, we are well positioned for revenue growth.
Several custom battery programs serving medical, safety, and drone markets are expected to transition to new production later this year and into 2027. In addition new amplification and man-wearable computing products are slated for release in our Communications Systems business, further supporting our growth outlook and expanding our market opportunities. I will now pass it back to the operator for questions.
[Operator Instructions] Our first question comes from the line of Will Lauber of Visionary Wealth Advisors. Your line is open, Will.
2. Question Answer
I guess my question was, I saw last month that L3Harris had won the NGC2 award for their Falcon Manpack. I'm assuming that you guys will get some or most of that business. So I guess my question is, what has happened to the backlog since the end of the quarter, or how much has been added in July?
Well, in July, we've had a lot of order pull-through to our backlog. I mean, we're almost at $130 million as we sit today.
Okay. And with the Falcon Manpack order, would it be safe to assume that, that was just like one division and it will roll out to all the divisions? Or do you have any insight into that?
We do not directly have the insight as to which divisions it's going to at this point. We may in the future, but right now we don't.
Okay. And then with the Hewlett Packard Enterprise servers for the NGC2, I noticed that the Army had conducted some tests in some pretty extreme conditions last month. Is there any kind of report as to how the Hewlett Packard servers held up in that heat?
Well, from what we hear, everything made it through the testing. We don't really get a lot of detail other than that at this point.
But accompanying the Hewlett Packard Enterprise servers is our state-of-the-art cooling system. So when you're dealing with some extreme heat, let's say in California -- Fort Irwin in California, they're designed to withstand that heat.
Okay. That's good, because I saw in some of the press mentions that there was some of the equipment that didn't handle the heat as well.
[Operator Instructions] I would now like to turn the conference back to Mike Manna for closing remarks. Sir?
All right. Thanks, everyone, for listening to today's call. We look forward to talking to you next time during the Q3 2026 earnings call. Bye now.
This concludes today's conference call. Thank you for participating. You may now disconnect.
Ultralife Corporation — Q1 2026 Earnings Call
1. Management Discussion
Good day, and thank you for standing by. Welcome to the Ultralife Corporation First Quarter 2026 Results Call.
[Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jody Burfening. Please go ahead.
Speaker 1.
Thank you, Marvin, and good morning, everyone, and thank you for joining us this morning for Ultralife Corporation's Earnings Conference Call for the first quarter of fiscal 2026. With us on today's call are Mike Manna, Ultralife's President and CEO; and Phil Fain, Ultralife's Chief Financial Officer. The earnings press release was issued earlier this morning. And if anyone has not yet received a copy, I invite you to visit the company's website, ultralifecorp.com, where you'll find the release under Investor News in the Investor Relations section. Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of our new products on a global basis and disruptions or delays in our supply of raw materials and components due to business conditions, global conflicts, weather or other factors not under our control. The company cautions investors not to place undue reliance on forward-looking statements, which reflect the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could cause or affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission, including the latest annual report on Form 10-K. In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures. With that, I would now like to turn the call over to Mike. Good morning, Mike.
Good morning. Welcome to Ultralife's Q1 2026 Earnings Call. Earlier today, we announced Q1 revenue of $47.4 million with an operating profit loss of $0.2 million, which resulted in a loss of $0.03 per share. We had a challenging start to the year on both sides of the business due to several factors, including order shipment timing, shipment delays to our Middle East customers, plant shutdowns for reorganization and weather events and consultation fees. We have a growing backlog and product portfolio due to new product releases that we need to support this year. So we have added and trained direct labor resources in our Random and Newark facilities to staff lines for the increased demand expected in 2026. This expense comes free revenue is critical given the nature of our products to ensure product quality. We now have new experienced plant leadership in both of those locations to drive manufacturing efficiencies and gross margin initiatives. Our Communication Systems business, which I acknowledge had another underwhelming quarter, has multiple new products and projects underway to grow the baseline revenue and stabilize the business. We believe in the upside of this business and continue to invest in product development to capture large, sustained revenue opportunities. A large part of the communications business continues to be government-related with long development and procurement cycles for the products we sell. We exited the quarter with a record backlog of $115.1 million with over $12 million of backlog from products released within the last year. These new product launches are dependent on the launch schedules of our customers' product and often we incur training and ramp costs prior to revenue capture. We continue our brand realignment under the Ultralife brand, which will bring clear concise messaging to our customers that we design and deliver critical RF and portable power products. I will turn it over to Phil to talk through the detailed numbers.
Thank you, Mike, and good morning, everyone. Earlier this morning, we released our first quarter results for the quarter ended March 31, 2026. We have also filed our Form 10-Q with the SEC. Consolidated revenues totaled $47.4 million compared to $50.7 million for the first quarter of 2025. Revenues from our Battery & Energy Products segment were $44.2 million compared to $46.3 million last year, a 4.7% decrease. The year-over-year decrease reflects a 5.5% decline in commercial sales attributable to oil and gas customers and a 2.7% decline in government defense sales relative to the shipment of a very large order for an allied country last year. Medical sales increased 5.9% for the 2026 quarter. The sales split between commercial and government defense for our battery business was 69-31 compared to 64-36 reported for the 2025 quarter, and the domestic to international split was 66-34 compared to 78-22 for the 2025 period, reflecting the global demand for our products. Revenues from our Communications Systems segment of $3.3 million declined 25.7% from the $4.4 million we reported last year, resulting from the timing of expected orders. On a consolidated basis, the commercial to government defense sales split was 64-36 compared to 58-42 for the 2026 and 2025 quarters, respectively. Our total backlog exiting the first quarter was $115.1 million, the highest level in the company's history and representing a $20.1 million or a 21.1% increase over the comparable 2025 period. The backlog remains diverse in nature across our commercial and government defense customer base and the replenishment rate remains high, representing 61% of trailing 12-month sales. Our consolidated gross profit was $10.1 million, down 20.7% from the 2025 period. As a percentage of total revenues, consolidated gross margin was 21.3%, a 380 basis point decline from the 25.1% reported for last year's first quarter. Gross profit for our Battery & Energy Products business was $9.4 million compared to $11.4 million last year, a decrease of 18.2%. Gross margin was 21.2% compared to 24.7% last year. The year-over-year reduction primarily resulted from nonrecurring events resulting in lost production days in the 2026 period, negatively impacting gross margin by approximately $0.8 million. This included 3-plus days due to the failure of the substation that provides power to our Newark facility and 16 days equivalent to over 25% of the total Q1 production days for our Ranum facility for multiple reasons. including the preparation, execution and reconciliation of our initial wall-to-wall physical inventory with full integration into the new ERP system, the disposal of fully reserved obsolete inventory and overall realignment to minimize our use of costly outside warehousing, all of which was further compounded by severe weather. In addition to the aforementioned, also impacting gross margin were higher energy costs experienced in our Northeast facility and our sales mix, which resulted in higher net tariff costs. For our Communications Systems segment, gross profit was $0.8 million compared to $1.3 million for the year earlier period. Gross margin was 21.2% compared to 29.5% last year, primarily due to lower factory volume and product mix. Operating expenses were $10.3 million, an increase of $1 million or 10.5% from the year earlier quarter. The majority of the year-over-year increase is comprised of onetime costs exceeding $0.8 million related to certain consulting fees to help expedite our gross margin improvement in our 2 largest manufacturing facilities, litigation expenses incurred for our cybersecurity claim and the final costs for our Random systems transition. In addition, new product development costs increased 23.3% related to the continued investment in our product offering and vertical integration opportunities within our portfolio. As a percentage of revenues, operating expenses were 21.8% compared to 18.4% for last year's first quarter. We incurred an operating loss of $0.2 million compared to income of $3.4 million last year, primarily reflecting the lost production days and onetime costs in our Battery & Energy Products segment and the 25.7% decline in Communication Systems sales. Other expense reported below operating income was $0.4 million for the quarter, primarily comprised of interest expense from the financing of our [ Electrochem ] acquisition, partially offset by the first quarter estimated portion of a refundable tax credit for certain qualifying battery cells and packs we manufacture under the 45x advanced manufacturing production tax credit. This tax credit was established by the Inflation Reduction Act and runs through 2032. This compares to expense of $1 million for the year earlier period, reflecting the acquisition financing. Our resulting tax benefit for the first quarter was $0.2 million compared to a provision of $0.6 million computed on a GAAP basis at statutory rates. Net loss was $0.5 million or $0.03 per share compared to income of $1.9 million or $0.11 per share on a GAAP basis. Adjusted EBITDA, defined as EBITDA, including noncash stock-based compensation expense and onetime acquisition and other nonrecurring costs, not reflective of our ongoing operations was $3.2 million or 6.8% of sales compared to $5.4 million or 10.7% for the prior year quarter. Adjusted EBITDA on a TTM basis is $15 million or 8% of sales. Turning to our balance sheet. We ended the first quarter with working capital of $67.1 million and a current ratio of 2.6 compared to $68.5 million and 2.8 for 2025 year-end. Looking beyond our first quarter results, our backlog, the sheer number of our growth initiatives, including our conformal wearable battery order now in hand, upgraded leadership in our 2 largest manufacturing facilities focused on gross margin improvement, progress with our vertical integration opportunities and the transition of our various sub-brands to the Ultralife master brand keep us positioned to realize the leverage of our business model. I will now turn it back to Mike.
Thank you, Phil, for the detailed review of the Q1 2026 results. For 2026, we have 4 distinct priorities underway. Our first priority is to improve the revenue capture of the Communication Systems business. We have several new products in the commercial capture phase with initial orders received and multiple new products slated for release this year. We're actively working with multiple partners on long-term programs of record and long-term projects that we believe will bring recurring baseline revenue back into the business over the next year. The second priority, which is in our Battery and Energy business is improved gross margin with the initial target being our Newark operation. We have identified a corrective action for the largest contributor of scrap, which has been implemented and will start eliminating the issue midyear as we work through existing parts supply with ongoing efforts to identify root cause and corrective actions and other major scrap contributors. We continue to work lean and process improvements at all facilities to existing lines and on new product lines is added in the facilities. We continue to add -- expand vertical integration opportunities enabled by the acquisition of Electrochem, allowing us to incorporate Electrochem cells into existing pack assemblies and broaden our addressable pack assembly market. We have combined the like entities into a single subdivision within the Battery & Energy Products business, now internally known as the Telemetry Power Systems business. We expect to more than double the use of our own cells internal packs this year as customer qualifications are completed. Lastly, we are focused on the company-wide branding alignment, which is well underway and will be completed this year, clarifying our customer messaging and market positioning. Switching to development projects. We continue to invest in products on both sides of the business to drive revenue and opportunities for organic growth. Our Communication Systems business continues to expand our global military vehicle business, highlighted by a recent $4 million multiyear award from an international partner for our universal vehicle adapter, a handheld radio charger supporting legacy and current radios. We're integrating multiple HPE server products and configurations to expand opportunity in the ruggedized computing market. We received several smaller orders and are pursuing additional program awards with expected Q2 deliveries while continuing customer engagements to capture voice of customer feedback and improve the performance and adaptation of these kits. We received funding from a special operations organization to develop and field initial prototypes of a vehicle-based tactical network hub, Strike Hub, integrating HPE servers, switches and power management. Strike Hub is a potential solution for the emerging next-gen command and control NGC2 tactical network requirements initiative. Our new 20-watt amplifier has received multiple orders with deliveries expected in Q2 and Q3 2026. We are engaging radio manufacturers to pair the amplifier with OEM radios to drive pull-through sales. Later this year, we plan to introduce an advanced variant, a 20-watt amplifier that supports the newest high-speed single-channel and frequency hoppening mini waveforms in a compact body warm form factor. We are developing new radio mounts that integrate our amplifiers with various handheld radios, providing a cost-effective adaptical vehicle mounting solution, which is planned for availability later in 2026. Our crushing small form factor wearable AI compute solution continues to advance. We have assembled a strong partner team supporting hardware development, integration and software tools to capture voice of customer requirements and accelerate the progress toward initial prototypes expected in 2026. On the Battery and Energy side of the business, we are focused on new business growth through our transformational projects and OEM partnerships. We have multiple OEM projects ongoing to bring new customer bespoke products to market over the coming years and with existing customers to revise existing products to increase performance and/or refresh designs. On the conformal wearable battery used to power dismounted soldier systems, I am pleased to say we shipped our first order in full and have current backlog in excess of $8 million. This backlog is expected to ship in 2026, and we have quoted multiple large volume opportunities mainly for international customers. This is the first larger transformational project revenue stream and shows the potential that all of our development projects have. Our 19 amp power, final cell has passed all performance validation testing requirements, and we're now waiting on our customers' device certification and initial production planning to complete. We've begun new product development activities with an OEM powering a remote surveillance system with a rechargeable power pack. This development is anticipated to complete in Q3 with anticipated production deliveries beginning late year. As mentioned in the last call, we received production orders for a battery pack to provide power backup for a new pump application for a major medical OEM. This project started with them over 7 years ago, and their product is now finally launching. These orders are scheduled to start shipping in mid-2026 concurrently as our customer ramps their device manufacturing. We have established initial production capabilities for our thin cell technology to support customers in the medical wearable sector in various item tracking applications. The sales pipeline continues to strengthen with several projects now in the qualification phase. These smaller thinner designs will enable a more discrete wearable sensor than typically available in today's marketplace, allowing better patient experience and longer device life. Investing in new product development is essential to continuing to diversify and strengthen our product portfolio, driving future growth and building on our legacy of delivering critical power products. Our priorities remain converting long-term development efforts into revenue, advancing vertical integration where possible and maintaining a strong focus on operational efficiency initiatives. With a hefty backlog, including over $12 million of new products as we exit Q1, I believe we are well positioned for future revenue growth. Our focus remains on increasing product offering and sales engagement for our Communication Systems business increased gross margin and revenue in our Battery Energy business, along with vertical integration opportunities in our Telemetry Power Systems business. I will now pass it back to the operator for questions.
[Operator Instructions]
And I'm showing no questions at this time. I'll now turn it back to Mike Manna for closing remarks.
All right. Thanks for listening today's call, everyone. We look forward to talking to you next time during the Q2 2026 earnings call. Bye now.
Thank you for your participation in today's conference. This concludes the program. You may now disconnect.
Ultralife Corporation — Q4 2025 Earnings Call
1. Management Discussion
Good day, and thank you for standing by. Welcome to the Ultralife Corporation Fourth Quarter 2025 Results Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I'd now like to hand the conference over to Jody Burfening. Please go ahead.
Thank you, Liz, and good morning, everyone, and thank you for joining us this morning for Ultralife Corporation's earnings conference call for the fourth quarter of fiscal 2025.
With us on today's call are Mike Manna, Ultralife's President and CEO; and Phil Fain, Ultralife's Chief Financial Officer. The earnings press release was issued earlier this morning. And if anyone has not yet received a copy, I invite you to visit the company's website, www.ultralifecorp.com, where you'll find the release under Investor News in the Investor Relations section.
Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of new products on a global basis and disruptions or delays in our supply of raw materials and components due to business conditions, global conflicts, weather or other factors not under our control.
The company cautions investors not to place undue reliance on forward-looking statements, which reflect the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission.
In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures.
With that, I would now like to turn the call over to Mike. Good morning, Mike.
Good morning. Welcome to Ultralife's Q4 and full year 2025 results call. Earlier today, we announced Q4 revenue of $48.5 million, an increase of 10.6% year-over-year, with an operating profit loss of $10.6 million after a onetime noncash impairment, which results in a loss of $0.45 EPS.
We finished the year 2025 with revenue of $191.2 million, with over $30 million from new products less than 5 years old, which is a growth of 16.2% year-over-year, which after the noncash write-down resulted in a full year operating profit loss of $5.9 million, which equates to a full year loss of $0.35 EPS.
During 2025, we completed the Electrochem transition and various operational initiatives to reduce ongoing costs. I am excited to see our backlog grow to $110 million exiting the year, diversified across several markets and applications with over $6 million of it driven from new products released in 2025. In 2026, I expect the Communication Systems business to rebound as new product sales begin and long-delayed programs start selling through, with the Battery & Energy business improving gross margin and revenue from new product launches. Our improved brand promotion and collaboration of worldwide resources will drive organic growth and new customer opportunities.
I will turn it over to Phil to talk through the detailed numbers.
Thank you, Mike, and good morning, everyone. Earlier this morning, we released our fourth quarter results for the quarter ended December 31, 2025. We have also updated our investor presentation in the Investor Relations section of our website and plan to file our Form 10-K with the SEC in the near future.
Turning to our financial results for the fourth quarter. Consolidated revenues totaled $48.5 million compared to $43.9 million for the fourth quarter of 2024, driven by strong performance for our Battery & Energy Products segment. Revenues for this segment were $45.9 million compared to $39.9 million last year, a 15.1% increase. Excluding third-party sales for Electrochem acquired on October 31, 2024, from both periods, sales for this segment increased 9.5% year-over-year.
This organic growth was driven by a 39.6% increase in medical, a 20.4% increase in industrial and other commercial and a 1.2% increase in government defense, partially offset by a 3.6% decrease in oil and gas market sales.
The sales split between commercial and government defense for our battery business was 73-27 compared to 70-30 reported for the 2024 quarter, and the domestic to international split was 71-29 compared to 62-38 for the 2024 period, primarily reflecting our acquisition of Electrochem.
Revenues from our Communications Systems segment of $2.6 million declined 35.2% from the $4 million we reported last year, primarily attributable to timing of expected orders, which were delayed by the U.S. government shutdown. On a consolidated basis, the commercial to government defense sales split was 66-34 compared to 62-38 for the 2025 and 2024 full years, respectively.
Our total backlog exiting the fourth quarter was $110.2 million, an increase of $20 million or 22.1% from the $90.3 million exiting the third quarter and remains diverse in nature across our commercial and government defense customer base. The replenishment rate remains high, and the backlog represents a very healthy 58% of TTM sales. Virtually all of the backlog is expected to ship in 2026.
Our consolidated gross profit was $12.1 million, up 13.7% from the 2024 period. As a percentage of total revenues, consolidated gross margin was 24.9%, a 70 basis point improvement from the 24.2% reported for last year's fourth quarter. Gross profit for our Battery & Energy Products business was $11.5 million compared to $9.5 million last year, an increase of 23.7%. Gross margin was 25.1%, a 170 basis point increase from the 23.4% reported for last year's quarter, primarily due to product mix and higher factory cost absorption.
For our Communications Systems segment, gross profit was $0.5 million compared to $1.3 million for the year earlier period. Gross margin was 19.9% compared to 31.9% last year, primarily due to lower factory volume.
Operating expenses were essentially flat year-over-year, when excluding the $12.2 million noncash intangible asset impairment charge as we transition from numerous sub-brands reflecting the names of our acquisitions to the Ultralife master brand and the onetime costs of completing the transition of Electrochem to Ultralife systems, legal fees associated with our cyber insurance claim and certain consulting costs to help expedite our gross margin improvement and upgrade our operations leadership.
Operating loss was $10.6 million, reflecting the intangible asset impairment charge and the onetime costs compared to operating income of $1.5 million last year. Other income was $0.4 million for the fourth quarter of 2025 as the interest expense from the financing of our Electrochem acquisition was more than offset by our expected $1.4 million refundable tax credit for certain qualifying battery cells and packs we manufacture under the 45X Advanced Manufacturing Production Tax Credit established by the Inflation Reduction Act of 2022, which runs through 2032.
This compares to other expense of $1 million for the year earlier period, primarily reflecting the acquisition financing. Our resulting tax benefit for the fourth quarter was $2.8 million compared to a provision of $0.3 million last year, computed on a GAAP basis at statutory rates. The benefit primarily reflects the reversal of deferred tax liabilities associated with the impairment charge.
Net loss was $7.4 million or $0.45 per share on a GAAP basis, which includes $0.57 for the intangible asset impairment charge, net of the related tax benefits. This compares to net income of $0.2 million or $0.01 per share for the 2024 quarter.
Adjusted EBITDA, defined as EBITDA, including noncash stock-based compensation expense and onetime acquisition and other costs not reflective of our ongoing operations was $5.7 million or 11.7% of sales compared to $3.9 million or 8.9% for the prior year quarter. Adjusted EBITDA on a TTM basis is $17.3 million or 9% of sales.
Turning to our balance sheet. We ended the fourth quarter with working capital of $68.5 million and a current ratio of 2.8 compared to $67.9 million and 3.3 for 2024 year-end. Our liquidity remains solid. During 2025, we reduced our acquisition debt principal by $4.8 million, which exceeds the $2.8 million amortization required for the full year under our debt agreement.
Going forward, the increase in our backlog, the sheer number of our growth initiatives, consulting expertise in our largest facilities to expedite the execution of our gross margin improvement plans and help transition our new upgraded plant leadership, the transition of various sub-brands to the Ultralife master brand and the realignment of our oil and gas thionyl chloride operations into a unified business under a single leader position us well to realize the leverage of our business model.
I will now turn it back to Mike.
Thank you, Phil, for the detailed review of the Q4 and full year 2025 results.
As mentioned in the last call, we closed out a year with a lot of momentum and focus on preparation for future growth expectations. During 2025, we transitioned our largest acquisition to date, Electrochem, out of their parent systems and in Ultralife systems for ERP, MRP, networking, mail and office.
We closed 2 of our smaller manufacturing facilities in North America, which decreased our North American locations from 7 to 5. We began systems consolidation at our Houston facilities, brought in external lean and operational support for our Newark facility and launched global rebranding efforts to eliminate customer confusion and better align sales and marketing resources worldwide.
As we transition into 2026, we have 4 distinct priorities underway. We need our Communication Systems business to be profitable and growing. We have several new products in the commercial capture phase with initial orders received and multiple new products slated for release in 2026. We are actively working with multiple partners on large programs of record and long-term projects that we will bring -- that we believe will bring recurring baseline revenue back into the business.
The second priority, which is in the Battery & Energy side of the business is improved gross margin with the initial target being our Newark operation. We have several recurring yield issues and inefficiencies that we continue to address with the help of external consultants in conjunction with the new leadership team that recently joined. We have revised pricing in several product areas and have cost-down projects ongoing with multiple customers.
We continue to expand vertical integration opportunities enabled by the acquisition of Electrochem, allowing us to incorporate Electrochem cells into existing pack assemblies and broaden our addressable pack assembly market in areas such as pipeline inspection, seismic telemetry and sonobuoys. Internally, we decided as part of our strategic planning process to align several of our Battery & Energy facilities under single leadership to drive these transitions and maximize the synergies.
The facilities that will encompass the newly formed Telemetry Power Systems division are the U.S. locations of Houston and Raynham, our Surrey location in Canada and our wholly owned facility in Shenzhen, China. This reorganization is expected to be completed in Q1.
Lastly, we will focus on the company-wide branding alignment. We had a complex and confusing number of brands and trade names for a company of our size. This effort will reduce the redundant costs of supporting and justifying multiple brands and trade names, shore up messaging both internally and externally to customers that we are a global critical power provider of energy and RF products.
Switching to development projects. We continue to invest in products on both sides of the business to drive revenue and opportunities for organic growth. The Communication Systems business continues to focus on the market expansion of ruggedized server cases through new programs and multiple server variants, providing greater opportunity to increase the market share in ruggedized computing environments. Several military programs are reviewing this solution now for possible fielding as components of the broader readiness upgrades.
We have a road map to enhance our current DC power supply supporting a forward vehicular and DC power applications to the open compute standard. Being OPC compliant opens the business aperture for our power supply to support other computer manufacturer hardware in forward field environments.
Our new A-2303 amplifier has completed testing with multiple customers and initial orders received with deliveries expected in Q2 2026. We are currently engaged with multiple radio manufacturers to pair a new amplifier solution with radios globally. Our Crescent man wearable compute solution continues to evolve as we held meetings with multiple agencies refining the voice of customer requirements. This critical feedback enables us to accelerate progress and ensure form fit and function for initial prototypes expected in 2026.
On the Battery & Energy side of the business, we are focused on new business growth through transformational projects and OEM partnerships. I will start with the conformal wearable battery used to power dismounted soldier systems, where we've now begun shipping production quantities and shipped our first order in full. We have orders in backlog that will ship in the first half of 2026 and have quoted multiple large volume opportunities, mainly for international customers with expected awards for 2026 deliveries. We will continue to refine the production process as we receive and ship additional orders.
Our 19 amp-hour Thin Cell has passed all performance validation testing requirements, and we're now waiting for our customers' device certifications and initial production planning to complete. We have begun new product development activities with an OEM powering a remote surveillance system with a rechargeable power pack. This development is anticipated to be completed in Q3 with productions and deliveries beginning in Q4.
On a project we have not mentioned due to its long development cycle, now just over 7 years, we have received production orders for a battery pack to provide power backup for a new pump application for a major medical OEM. These orders are scheduled to start shipping in mid-2026 concurrently as our customer ramps their device manufacturing.
As mentioned earlier, we have established initial production capabilities for our thin cell technology to support customers in the medical wearable sector and various item tracking applications. The sales pipeline continues to strengthen with several new projects now in the qualification phase. We are investing additional development effort in the product line with unique cell designs that further reduce the thickness of the product, while reducing manufacturing complexity with an eye on large-scale automation as we expect thin wearable sensors will continue to proliferate. These smaller thinner designs will enable a more discrete wearable sensor than typically available in today's marketplace, allowing for better patient experience and longer device life.
Growing our medical cart power options, we released the X5-SuperLite, a USB-C hot-swappable power system, which has now completed all certifications and is in production. We have received initial production orders for shipment in 2026. This product will be on display at the HIMS Show in Las Vegas this week.
Investing in new product development is essential to continuing to diversify and strengthen our product portfolio, driving future growth and building on our legacy of delivering critical power solutions. Our priorities remain converting long-term development efforts into revenue, advancing vertical integration where possible and maintaining a strong focus on operational efficiency initiatives.
As I continue to focus on the strategic projects and future of the business, we entered 2026 with the Electrochem transition completed, the largest number of new products for sale ever in our Communication Systems business, multiple large opportunities for both sides of the businesses, a reduced North American facility count, a unified back-office systems across most of North America and a strong brand architecture evolution underway. With a healthy backlog, including over $6 million of new products to begin the year, I believe we are well positioned for future growth with the overall reduced operating costs throughout 2026.
I'll now pass it back to the operator for questions.
[Operator Instructions] We have a question from Gregory Weaver with Invicta Capital Management.
2. Question Answer
It sounds like there's a lot of good growth as well as margin expansion opportunities. Would you care to help us frame that a little bit and kind of what your goals are in terms of organic growth rate or kind of where you want to get that 9% EBITDA margin?
Yes. I mean, overall, we started really a road map a few years ago really to get our new product pipeline on both sides of our business really humming and delivering organic growth. And as much as we'd like to have it just happen immediately, there's time. It's not -- we're often part of someone else's solution. We're very seldom selling an end solution to the marketplace. So it's not only us developing our stuff, it's our customers getting their things through all their quals and certifications into market.
But overall, we're targeting to be 2x GDP as a minimum in our organic growth side. We'd love to be greater than 10% EBITDA to start short term. Long term, we'd love it to be higher. And long term, we continue to look for other ways we can grow the business. As we pay down the debt on this last acquisition, we'll be looking for what's next.
All right. I appreciate that. So on the Comm Systems business, I mean, when I was involved in the company years, probably 20 years ago, you had a huge order in that business, and you were right in that and now it's extremely low levels here, I guess, but you said you want to get it back to a baseline revenue. I guess kind of what's your definition of baseline revenue for that business.
Baseline is $25 million. That's where we need to be with the potential for breakaway large orders, maybe not to the extent of what we experienced years ago with SATCOM, but there are some very, very large opportunities out there, starting with Joint Fires that's received a lot of publicity. It's through the R&D stage and into the solicitation stage. And I think we're aligned with the right parties to be in a position to execute on what we see going forward for the business.
Okay. I appreciate that, Phil. And I guess just last one. You mentioned offhand, Mike, about -- I've listened to some old calls here about this medical order. As I remember, that was kind of a -- if it's the same one, it was kind of a topic for quite a while and then I guess the customer kept dragging their feet. So I guess what's the ramp look like there? And is that a sizable opportunity?
Well, the new medical order, we don't often talk about a lot of the medical projects just because the history has been that they drag on for an extended period of time. And no one wants to hear about something that's 5 years out typically. We still have some of that in the thin cell area where we have some medical projects with thin cell that we expected to see revenue by now, and we're still kind of waiting for these POs.
On the order that we have, it's an OEM that we've been working with for a number of years, obviously. We already have a pretty good relationship with the customer, and we have a good revenue stream already. This will be a 6-figure plus opportunity per year, and it's just beginning to be a product launch. So we expect this to be a good little pop to the business.
Okay. Maybe it was the thin film one that I was thinking of beforehand that you've been waiting for, right?
Yes. We're still waiting for.
Yes. Okay.
[Operator Instructions] I'm showing no further questions at this time. I'd like to turn the call back to Mike Manna for closing remarks.
All right. Thanks, everyone. We look forward to talking to you at the next call for the Q1 2026 earnings. Have a great day. Bye now.
This concludes today's conference call. Thank you for participating. You may now disconnect.
Ultralife Corporation — Q3 2025 Earnings Call
1. Management Discussion
Good day, and thank you for standing by. Welcome to the Ultralife Corporation Third Quarter 2025 Results Call. [Operator Instructions]
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jody Burfening. Please go ahead.
Thank you, Antonio, and good morning, everyone, and thank you for joining us this morning for Ultralife Corporation's earnings conference call for the third quarter of fiscal 2025. With us on today's call are Mike Manna, Ultralife's President and CEO; and Phil Fain, Ultralife's Chief Financial Officer.
The earnings press release was issued earlier this morning, and if anyone has not yet received a copy, I invite you to visit the company's website, www.ultralifecore.com, where you'll find the release under Investor News in the Investor Relations section.
Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties.
The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenue from key customers, delays or reductions in U.S. and foreign military spending, acceptance of new products on a global basis disruptions or delays in our supply of raw materials and components due to business conditions, global conflicts, whether or other factors not under the company's control.
The company cautions investors not to place undue reliance on forward-looking statements, which reflect the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission including the latest report on Form 10-K.
In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures.
With that, I would now like to turn the call over to Mike. Good morning, Mike.
Thank you, Jody. Good morning. Welcome to our call on Ultralife's Q3 operating results. Earlier this morning, we reported Q3 sales of $43.4 million with an operating loss of $1 million, including a onetime adjustment of $1.1 million for various costs related to the final services transition of Electrochem and the planned closure of our Calgary location, which resulted in a GAAP net loss of $0.07.
In Q3, we saw revenue growth year-over-year but faced several challenges with gross margin. primarily due to incoming supply chain quality issues, which affected product mix and line efficiencies in our Battery & Energy business. Our communications business continues to weigh on earnings as new products are launched and sell-through gains momentum.
Our overarching strategy of diversification through M&A and new product development remains critical to stabilizing and improving the profitability as many of our existing products service components or accessories within our customer systems giving us limited control over order timing, volume and mix. As we've grown through M&A, periodically, we need to review our infrastructure and align it properly to serve our customers in a cost-effective manner.
With that said, -- with that in mind, we have decided to close our Calgary location, which is a smaller facility supporting oil and gas battery packs acquired with the Excel acquisition, with production being relocated to our Houston facility.
Additionally, we are progressing through a company-wide rebranding initiative with the first phase targeted for completion in Q4. This effort will emphasize the Ultralife brand as our unified market identity enabling more cohesive marketing efforts, stronger brand equity and reduced redundancy.
Ultimately, this alignment will enhance our global position as a leading critical power provider. With that said, because of the investment in new products and our M&A activity, we continue to see large opportunities develop on both sides of our business with favorable discussions with various partners and customers. With our leveraged business model and reduced facility count, we can add significant revenue with interval increase to overall costs.
I will now turn it over to Phil to talk through the detailed numbers.
Thank you, Mike, and good morning, everyone. Earlier this morning, we released our third quarter results for the quarter ended September 30, 2025. We filed our Form 10-Q with the SEC yesterday and have updated our investor presentation in the Investor Relations section of our website.
As noted in our November 7 press release, we requested an extension to file our Form 10-Q with the SEC to allow for the completion of our accounting close for Electrochem -- the service agreement under which Electrochem's former parent maintained their books and records concluded in the third quarter, and we have now transitioned Electrochem to Ultralife's information systems.
A summary of our third quarter results follows. Consolidated revenues totaled $43.4 million compared to $35.7 million for the third quarter of 2024. Revenues from our Battery & Energy Products segment were $39.9 million compared to $32.5 million last year. Excluding third-party sales for Electrochem which we acquired on October 31, 2024.
Sales for this segment increased 1.9% year-over-year. Government defense sales for the 2025 quarter increased 19%, reflecting strong demand from the U.S.-based global Prime. This growth was partially offset by a 5.7% decrease in commercial sales resulting from declines of 13.3% in oil and gas sales due to macroeconomic and geopolitical factors and 10.4% in medical battery sales due to the timing of orders.
The sales split between commercial and government defense for our battery business was 70-30, almost identical to 69-31 reported for the 2024 quarter, and the domestic to international split was 72-28 compared to 56-44 for the 2024 period, reflecting our acquisition of Electrochem and the heightened domestic shipments of our government defense products.
Revenues from our Communications Systems segment of $3.4 million increased 8.2% from the $3.2 million we reported last year. On a consolidated basis, the commercial to government defense sales split was 65-35, almost identical to 63-37 for the 2024 third quarter.
Our total backlog exiting the third quarter was $90.1 million, a 6.5% increase over the $84.5 million exiting the second quarter. The replenishment rate remains diverse in nature with commercial customers comprising approximately 55% of the backlog and government defense customers comprising the remaining 45%. Our consolidated gross profit was $9.6 million, an increase of 10.8% over the $8.7 million for the 2024 period.
As a percentage of total revenues, consolidated gross margin was 22.2%, a 210 basis point decline from the 24.3% reported for last year's third quarter. Gross profit for our Battery & Energy Products business was $8.8 million compared to $8 million last year, an increase of 9.6%. Gross margin was 22.1% compared to 24.7% last year. The year-over-year reduction resulted from manufacturing inefficiencies primarily due to quality issues associated with key incoming raw materials and components that disrupted our operations and, to a lesser extent, sales mix, reflecting the declines in generally higher-margin medical and oil and gas sales.
For our Communications Systems segment, gross profit was $0.8 million compared to $0.6 million for the year earlier period. Gross margin was 23.3% compared to 20% last year. Operating expenses were $10.6 million, an increase of $2.4 million or 29.4% from the year earlier quarter. The year-over-year increase is comprised of $1.3 million related to the inclusion of Electrochem and $1.1 million of nonrecurring costs.
The onetime costs include a $0.5 million provision to close our Calgary facility costs related to our transition of Electrochem to Ultralife information systems and litigation costs for our cyber insurance claim. We anticipate annual savings from our closure of Calgary of approximately $0.8 million throughout 2026. As a percentage of revenues, operating expenses were 24.4% compared to 22.9% for last year's third quarter.
Excluding the onetime costs, operating expenses were 21.9% of revenues for the third quarter of 2025. Operating loss was $1.0 million compared to operating income of $0.5 million last year reflecting the decline in Battery & Energy Products gross margin due in large part to quality issues and incoming materials, the onetime nonrecurring costs totaling $1.1 million and Communication Systems delayed sales orders.
Other expense reported below operating income was $0.8 million for the quarter compared to $0.2 million for the year earlier period, primarily resulting from the increase in interest expense on the acquisition debt and the impact of foreign currency fluctuations. Our resulting tax benefit for the third quarter was $0.5 million compared to a provision of $0.1 million for the 2024 quarter computed on a GAAP basis at statutory rates.
Net loss was $1.2 million or $0.07 per share on a GAAP fully diluted basis. This compares to net income of $0.3 million or $0.02 per share for the 2024 quarter. Adjusted EBITDA, defined as EBITDA, including noncash stock-based compensation expense and onetime acquisition and other costs not reflected of our ongoing operations was $2.0 million or 4.7% of sales compared to $1.9 million or 5.4% for the prior year quarter.
Adjusted EBITDA on a TTM basis is $15.5 million or 8.3% of sales.
Turning to our balance sheet. We ended the third quarter with working capital of $66.9 million and a current ratio of 3.0 compared to $67.9 million and $3.3 million for 2024 year-end. Our liquidity remains solid. In the first 9 months of 2025, we have reduced our debt principal by $4.1 million, which already exceeds the $2.8 million amortization required for the full year under our debt agreement.
While we do not have any draws on the $30 million revolver portion of our debt agreement and no present plans to do so, our balance sheet provides the borrowing base capacity for this amount.
In closing, we have initiated several actions, which Mike will cover, which position us to improve our gross margins, reduce redundant facilities, consolidate operations diversify our supply chain and better promote our Ultralife brand on a global basis. These actions better position us to more fully realize the profitability leverage associated with our increasing sales funnel.
I will now turn it back to Mike.
Thank you, Phil. For the detailed review of the Q3 2025 results. As mentioned in our last call, our priorities remain clear for 2025. First, completion of the Electrochem transition, which over the last few quarters has been completed in full. We continue to expand vertical integration opportunities enabled by the acquisition of Electrochem, allowing us to incorporate Electrochem cells into existing pack assemblies and broaden our addressable market in areas such as pipeline inspection, seismic telemetry and sonobuoys.
We are qualifying cells with several oil and gas customers to enable transition of their battery packs to utilize Electrochem cells and expect to see benefit of these efforts in 2026. Secondly, we remain focused on strengthening our sales opportunity pipeline to drive growth through 2026 and beyond. While continuing to strategically diversify our business and customer base.
Our efforts are aimed not only at expanding the overall size of the funnel but also prioritizing opportunities that can generate consistent, repeatable annual revenue. We've been reviewing our multiple brands and market initiatives and have started a company-wide branding alignment. We currently have a complex and confusing number of brands and trade names for a company of our size. This effort will reduce the redundant costs of supporting and justifying multiple brands and trade names, short messaging, both internally and external linked to customers that we are a global critical power provider of energy and RF products.
Third, we are intensifying our efforts in improving and stabilizing gross margin through pricing, material cost deflation and lean productivity projects in both the Battery and Energy and communications businesses.
As we enter Q4, we have had an external expertise to drive targeted lean exercises and process improvements at our Newark location to increase gross margin. We are closing our Calgary location which is focused on providing production -- focused on providing production centers of excellence with all the necessary systems to support our customers and prepare for expected growth.
Switching to development projects. We continue to invest in products on both sides of the business to drive revenue and opportunities for organic growth. The Communications Systems business is expanding the ruggedized server case portfolio to service new programs and server variants, which will provide greater opportunity to expand the market share in the ruggedized computing environment.
We completed an initial design for the latest next-gen communication and control solution, utilizing our ruggedized server expertise in HPE's line of exceptional servers for AI and edge computing. Several military programs are using this solution now for possible fielding its components to the broader readiness initiatives.
We showcased our new amplifier in Crescent Server products at the Defense Security Equipment International Show in September, which is one of the U.K. EU's largest defense trade shows, where we met with multiple OEM and governmental representatives. We have sampled amplifiers out with specific partners for trials currently with expected orders inbound and production shipments starting in 2026. Crescent Server continues to evolve, and we have received critical feedback and direction to fully develop this tip of the spear compute capability for forward field applications with initial production expected in 2026.
Meanwhile, we are finalizing the design of our next high-performance amplifier, targeting advanced radio platforms with the latest high-speed waveforms utilized by the U.S. and armed forces. We have preproduction parts in-house for testing and final validation and expect to have preproduction units for evaluation in Q1 2026.
Lastly, on the communications side of the business, we read an initial PO from an international customer for prototype electronic warfare amplifiers. This is our first project leveraging our amplification expertise to counter electronics in the battlefield. On the Battery and Energy side of the business, we have a great deal of activity across several products with new business being the key focus.
But first, I will mention we received the BA 53 Battery award in Q3 for $5.2 million which will be delivered throughout 2026, our first sizable award for this product in over 4 years. On the new business side, I will start with the confirma wearable battery, where we've now begun shipping production quantities -- we've quoted multiple large volume opportunities, mainly for international customers with expected awards for 2026 deliveries. We've passed 2 critical quality audits in our China location, the most important 1 being for our high-capacity thinochlorideD cell with an opportunity in the space.Testing continues to go well, and we expect you all testing and validation testing to complete in Q4 with initial production volume commitments to come soon after.
On the 123A side of our business, we have received a follow-on PEO from a major illumination company which will begin deliveries in Q4 and throughout the first half of 2026. We're working on several new products for battery packs utilizing our XR123a cells, which offer 30% increase in energy density over the standard 123A cell.
As mentioned earlier, we established initial production capabilities for our thin cell technology to support customers in the medical wearable sector and various item tracking application. The sales pipeline continues to strengthen with several projects now in the qualification phase. We are investing additional development effort in this product line with the unique cell designs that further reduce the thickness of the product, while reducing manufacturing complexity with an in large-scale automation as we expect thin wearable sensors will continue to proliferate.
We've expanded our family of X5 medical card products -- with the release of our latest product, a portable power bank that provides power to pull mounted equipment or any other item that requires extended run time utilizing USB-C, mostly targeting tablet and portable computers.
Production validation and certification are finishing up, and we have samples out the key partners in support of product quotations. Investing in new product development is essential to diversifying and strengthening our product portfolio, driving future growth and building our legacy of delivering critical power solutions. Our priorities remain: converting long-term development product development efforts in the revenue, advancing vertical integration where possible, and maintaining a strong focus on the operational efficiency initiatives.
I continue to focus on the long-term projects and future of the business. And although we've had a challenging 2025 I'm confident we are making the right moves to stabilize and grow the business over the long term.
As we go through the end of the year, we will enter 2026 with the Electrochem transition completed, the largest number of new products for sale ever in our Communication Systems business, multiple large opportunities for both sides of the business, a reduced North American facility count unified back office systems across most of North America and a strong brand architecture evolution underway. I believe we are well pitioned for future growth with overall reduced operational costs. We'll go back to the operator for questions.
[Operator Instructions]
And I'm showing no questions at this time. I would now like to hand the call to Mike for closing remarks.
All right. Thanks, everyone, for listening to today's call. We look forward to talking to you again next time during the Q4 2025 earnings call. Bye now.
And this concludes today's program. Thank you for participating. You may now disconnect.
Financial data from Ultralife Corporation
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 187 187 |
5%
5%
100%
|
|
| - Direct Costs | 142 142 |
5%
5%
76%
|
|
| Gross Profit | 46 46 |
5%
5%
24%
|
|
| - Selling and Administrative Expenses | 28 28 |
17%
17%
15%
|
|
| - Research and Development Expense | 12 12 |
29%
29%
6%
|
|
| EBITDA | -7.10 -7.10 |
167%
167%
-4%
|
|
| - Depreciation and Amortization | 1.24 1.24 |
11%
11%
1%
|
|
| EBIT (Operating Income) EBIT | -8.34 -8.34 |
191%
191%
-4%
|
|
| Net Profit | -6.55 -6.55 |
305%
305%
-3%
|
|
In millions USD.
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Ultralife Corporation Stock News
Company Profile
Ultralife Corp. engages in the manufacture and sale of products for power solutions. It operates through the Battery and Energy Products and Communications System segments. The Battery and Energy Products segment includes Lithium 9-volt, cylindrical, thin cell and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems, and accessories such as cables. The Communications System segment comprises radio frequency amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, integrated communication systems for fixed or vehicle applications, and communications and electronics systems design. The company was founded by Arthur M. Liberman in December 1990 and is headquartered in Newark, NY.
StocksGuide Premium
| Head office | United States |
| CEO | Mr. Manna |
| Employees | 678 |
| Founded | 1990 |
| Website | www.ultralifecorporation.com |
