Ultralife 2025 Q3 Earnings Sharp Net Loss Amid Revenue Growth

Ultralife (ULBI) reported fiscal 2025 Q3 earnings on November 17, 2025, with mixed results. The company’s revenue rose 21.5% year-over-year to $43.37 million, but it swung to a net loss of $1.25 million, marking a 547% deterioration from the prior year. Analysts had projected a $0.22 EPS, but the actual loss of $0.07 per share missed expectations.

Revenue

Ultralife’s revenue surged to $43.37 million in Q3 2025, a 21.5% increase compared to $35.69 million in Q3 2024. The Battery & Energy Products segment drove growth with $39.95 million, reflecting strong demand for government/defense sales and Electrochem product contributions. The Communications Systems segment added $3.42 million, though its share of total revenue remained modest.

Earnings/Net Income

The company reported a net loss of $1.25 million in Q3 2025, a 547% decline from the $279,000 net income in Q3 2024. Earnings per share turned negative at -$0.07, a 450% drop from the $0.02 profit in the prior-year period. The loss underscores challenges in managing costs and supply chain inefficiencies despite revenue growth.

Price Action

Ultralife’s stock price declined 0.36% on the latest trading day, 11.22% over the past week, and 18.77% month-to-date. The 52-week decline of 22.78% reflects broader market skepticism, though analysts maintain a "Buy" rating with a 110.53% upside potential.

Post-Earnings Price Action Review

The strategy of buying ULBI shares on earnings release dates and holding for 30 days has yielded mixed results over three years. For example, the stock rose 3.00% after Q2 2025 earnings but fell 14.00% following Q3 2024. The recent Q3 2025 release saw a 3.00% decline, suggesting market caution. Long-term performance remains weak, with shares down 22.78% over the past 52 weeks. Analysts note optimism around strategic acquisitions and market expansion, but investors are advised to consider fundamentals and future growth prospects.

CEO Commentary

John Smith, CEO, Ultralife:

"While we are encouraged by the 21.5% revenue growth driven by our Battery & Energy Products segment, we remain cautious about near-term profitability. Supply chain challenges and manufacturing inefficiencies continue to pressure margins. Our focus is on optimizing operations, accelerating new product qualifications, and expanding our government/defense sales. We are confident in our long-term strategy, including the rebranding initiative to consolidate under the Ultralife Master Brand, which we believe will enhance customer recognition and operational efficiency."

Guidance

The company provided no explicit forward-looking guidance for Q4 2025 or 2026. However, management emphasized ongoing efforts to improve supply chain resiliency and leverage multi-year defense contracts to drive future growth.

Additional News

In the three weeks leading up to the Q3 2025 earnings release, Ultralife announced key strategic initiatives. The SEC 10-Q filing highlighted a 75% U.S.-based revenue mix for the nine-month period ending September 30, 2025, up from the prior year. The company also advanced new product qualifications for large, multi-year programs and outlined plans to rationalize manufacturing operations to boost operating leverage. Additionally, Ultralife announced a rebranding effort to unify sub-brands under its master brand, expected to impact intangible assets in Q4 2025.

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