Ultralife 2025 Q3 Earnings Sharp Net Loss of $1.25M, 547% Deterioration from Previous Year

Ultralife (ULBI) reported fiscal 2025 Q3 earnings on Nov 17, 2025, with revenue rising 21.5% to $43.37 million year-over-year. The results marked a significant swing to a loss of $0.07 per share, a 450% negative change from the prior-year profit, and a net loss of $1.25 million, reflecting a 547% deterioration in profitability. The company provided no explicit revenue or EPS guidance for future periods.

Revenue

Ultralife’s total revenue surged to $43.37 million in Q3 2025, driven by a 21.5% year-over-year increase. The Battery & Energy Products segment contributed $39.95 million, reflecting strong demand and the inclusion of Electrochem Solutions, while Communications Systems added $3.42 million. Organic growth, excluding the Electrochem acquisition, stood at 2.5%, underscoring underlying momentum despite supply chain challenges.

Earnings/Net Income

The company swung to a net loss of $1.25 million in Q3 2025, a 547% deterioration from the $279,000 net income in Q3 2024. GAAP EPS fell to -$0.07 from $0.02, reflecting one-time costs tied to the Calgary facility closure and manufacturing inefficiencies. The earnings miss highlights operational pressures despite revenue growth.

Post-Earnings Price Action Review

The strategy of buying ULBI shares on earnings dates and holding for 30 days showed mixed results over three years. Positive returns of 14.95% and 12.97% in 2023 and 2024 were offset by an 11.61% loss in 2025, yielding a cumulative 16.31% gain. Immediate post-release volatility, such as the 3.00% drop on Nov 18, 2025, underscored market sensitivity to earnings. Long-term performance, however, remained tied to investor sentiment and operational improvements.

CEO Commentary

CEO Mike Manna emphasized a 2.5% organic revenue increase in Q3 2025, excluding Electrochem, but noted supply chain inefficiencies and delayed Communications Systems orders hurt profitability. Strategic priorities include lean initiatives, supply chain resilience, and operational efficiency to drive sustainable growth.

Guidance

Ultralife expects to complete the Calgary facility closure by Q1 2026, aiming for $0.8 million annual savings. Management highlighted advancing new products into production and leveraging a growing pipeline of multi-year programs. No forward-looking revenue or EPS targets were provided.

Additional News

Ultralife’s acquisition of Electrochem Solutions boosted Battery & Energy Products revenue, while the Calgary facility closure incurred a $1.1 million one-time charge. CEO Mike Manna reiterated a focus on vertical integration in the oil & gas sector and operational efficiency. Insider trading data showed recent purchases by executives and hedge funds, with some investors trimming positions amid earnings uncertainty.