Ultralife Corporation Reports Fourth Quarter Results

Rhea-AI Summary

Ultralife (NASDAQ:ULBI) reported Q4 2025 revenue of $48.5M, up 10.6% year-over-year, with gross profit of $12.1M (24.9% margin). The company recorded a $12.2M intangible-asset impairment, producing a GAAP loss of $7.4M (EPS -$0.45).

Adjusted EBITDA was $5.7M (11.7% of sales) and backlog rose to $110.2M, a 22% increase versus Q3 2025. Battery & Energy Products sales grew 15.1% to $45.9M; Communications Systems sales fell 35.2% to $2.6M.

Positive

• Revenue +10.6% in Q4 2025 to $48.5M
• Battery & Energy Products sales +15.1% to $45.9M
• Backlog +22% sequentially to $110.2M exiting 2025
• Adjusted EBITDA $5.7M (11.7% of sales) in Q4 2025

Negative

• Intangible-asset impairment of $12.2M drove Q4 operating loss
• GAAP net loss attributable to Ultralife $7.4M; EPS ($0.45) in Q4 2025
• Communications Systems sales down 35.2% to $2.6M year-over-year
• Operating expenses rose to $22.7M in Q4 2025 reflecting impairment and one-time costs

Key Figures

Q4 2025 revenue: $48.5 million Q4 2025 gross margin: 24.9% of revenue Q4 2025 GAAP EPS: ($0.45) per share +5 more

8 metrics

Q4 2025 revenue $48.5 million Versus $43.9M in Q4 2024; 10.6% year-over-year increase

Q4 2025 gross margin 24.9% of revenue Compared to 24.2% gross margin in Q4 2024

Q4 2025 GAAP EPS ($0.45) per share Includes ($0.57) per share impact from impairment net of tax benefits

Intangible asset impairment $12.2 million Non-cash tradename and trademark impairment recorded in Q4 2025

Q4 2025 Adjusted EBITDA $5.7 million 11.7% of sales vs $3.9M and 8.9% of sales in Q4 2024

Backlog exiting Q4 2025 $110.2 million Up from $90.3M exiting the third quarter of 2025

Full-year 2025 revenue $191,159 (thousands) Versus $164,456 (thousands) in full-year 2024

Cash balance $9,345 (thousands) Cash as of December 31, 2025 on the balance sheet

Market Reality Check

Price: $5.33 Vol: Volume 56,799 is 1.81x th...

high vol

$5.33 Last Close

Volume Volume 56,799 is 1.81x the 20-day average of 31,346, indicating elevated pre-news activity. high

Technical Price $5.33 is trading below the 200-day MA of $6.78 and 44.07% under the 52-week high.

Peers on Argus

ULBI was up 1.43% pre-release with several peers also positive (e.g., RFIL +3.66...

ULBI was up 1.43% pre-release with several peers also positive (e.g., RFIL +3.66%, CBAT +5.15%, NEOV +4.31%), but the momentum scanner did not flag a coordinated sector move.

Previous Earnings Reports

5 past events · Latest: Nov 18 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 18	Q3 2025 earnings	Negative	-8.8%	Strong revenue but margin compression, EPS loss and one-time charges.
Aug 07	Q2 2025 earnings	Neutral	-17.0%	Acquisition-driven revenue growth offset by EPS decline and weaker segment mix.
May 09	Q1 2025 earnings	Positive	+3.5%	Double-digit revenue growth, higher gross profit and healthy backlog build.
Apr 01	Q4 2024 earnings	Neutral	-6.1%	Stable margins, modest operating income and initial Electrochem contribution.
Nov 08	Q3 2024 earnings	Negative	-14.0%	Revenue and EPS declines driven by sharp Communications Systems weakness.

Pattern Detected

Recent earnings releases have generally seen weak price follow-through, with an average 1-day move of -8.51% and mostly negative market reactions.

Recent Company History

Over the last five earnings cycles from Nov 2024 through Nov 2025, Ultralife showed consistent revenue growth, helped by the Electrochem acquisition, but profitability has fluctuated. Communications Systems repeatedly declined, while Battery & Energy Products drove expansion and backlog built into the $80–100M+ range. GAAP EPS trended lower, pressured by acquisition, integration, and restructuring costs. Against this backdrop, the new Q4 2025 report continues themes of stronger sales and backlog but includes a sizeable intangible impairment and ongoing mix and operating cost pressures.

Historical Comparison

-8.5% avg move · Across the last five earnings announcements, ULBI’s average 1-day move was -8.51%, as markets focuse...

earnings

-8.5%

Average Historical Move earnings

Across the last five earnings announcements, ULBI’s average 1-day move was -8.51%, as markets focused on margin pressure, Communications Systems softness and integration costs despite steady revenue and backlog growth.

From Q3 2024 through Q3 2025, Ultralife’s earnings showed revenue expanding, aided by Electrochem, while Communications Systems contracted and integration, restructuring and acquisition-related costs weighed on EPS and operating income.

Market Pulse Summary

This announcement highlights Q4 2025 revenue growth to $48.5M, improved gross margin of 24.9%, and b...

Analysis

This announcement highlights Q4 2025 revenue growth to $48.5M, improved gross margin of 24.9%, and backlog expanding to $110.2M, alongside a non-cash $12.2M tradename impairment that drove GAAP EPS to ($0.45). Compared with prior earnings, it continues themes of Electrochem-fueled growth, mixed segment performance, and restructuring. Investors may focus on adjusted EBITDA of $5.7M, full-year revenue of $191,159 (thousands), and how operational changes translate into sustained margins and cash generation.

Key Terms

gaap, adjusted ebitda, non-gaap financial measures, stock-based compensation, +2 more

6 terms

gaap financial

"Net (loss) income attributable to Ultralife Corporation was ($7.4) million or ($0.45) per basic and diluted share on a GAAP basis..."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

adjusted ebitda financial

"Adjusted EBITDA of $5.7 million compared to $3.9 million for the 2024 fourth quarter..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial measures financial

"Non-GAAP Financial Measures Adjusted EBITDA In evaluating our business, we consider and use adjusted EBITDA, a non-GAAP financial measure..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

stock-based compensation financial

"Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense and one-time acquisition..."

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

45x advanced manufacturing production tax credit regulatory

"our expected $1.4 million refundable tax credit... under the 45X Advanced Manufacturing Production Tax Credit..."

A 45x advanced manufacturing production tax credit is a government incentive that gives manufacturers a fixed tax benefit for each eligible unit they produce of certain advanced products, effectively acting like a per-item rebate on production. It matters to investors because it increases a producer’s after-tax profit and can lower break-even costs—similar to getting a discount on materials—making companies more competitive, improving margins, and potentially raising future cash flow and valuation.

form 10-k regulatory

"Further information... is included in Ultralife’s Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K."

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

AI-generated analysis. Not financial advice.

NEWARK, N.Y., March 10, 2026 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating results for the fourth quarter and full year ended December 31, 2025 as follows:

Fourth Quarter:

• Sales of $48.5 million compared to $43.9 million for the 2024 fourth quarter
• Gross profit of $12.1 million, or 24.9% of revenue, compared to $10.6 million, or 24.2% of revenue, for the 2024 fourth quarter
• Operating (loss) income of ($10.6) million, which includes a ($12.2) million intangible asset impairment charge and ($1.2) million of one-time costs, compared to $1.5 million for the 2024 fourth quarter
• GAAP EPS of ($0.45), which includes ($0.57) for the intangible asset impairment charge net of the related tax benefits, compared to $0.01 for the 2024 fourth quarter
• Adjusted EBITDA of $5.7 million compared to $3.9 million for the 2024 fourth quarter
• Backlog of $110.2 million exiting 2025 compared to $90.3 million exiting the third quarter

“During the fourth quarter we took a number of decisive actions to remove structural and manufacturing inefficiencies from our global operations. For example, we commenced the realignment of our four thionyl chloride/oil & gas operations into one business within our Battery & Energy Products segment focused on industrial, specialty and telemetry solutions in order to optimize synergies, deepen customer engagement and expand value propositions. We also designed a master brand strategy uniting all acquired sub-brands under the Ultralife brand and aligning sales of the total Ultralife portfolio, and we completed steps to strengthen the operational leadership at our two largest manufacturing facilities. While we were intensely focused on addressing operational improvements during the quarter, strong order flow increased backlog to $110 million at the end of 2025, representing a 22% increase over the third quarter,” said Mike Manna, President and Chief Executive Officer.

“As a result, we have entered 2026 from a position of strength, better prepared to efficiently ramp new products into high volume production; execute and continue to replenish our strong backlog; and capitalize on increasing demand for our products and numerous opportunities for large, multi-year programs. In addition, we have greater confidence in our ability to deliver sustainable profitable growth and incremental cash flow in 2026 enabling us to reduce debt, support strategic capital expenditures, continue our investment in new product development and maximize the value of our global brand,” concluded Mr. Manna.

Asset Impairment Charge

In the fourth quarter of 2025 Ultralife decided to undergo a comprehensive rebranding initiative that consolidated all sub-brands under a singular, unified master brand – Ultralife. To this end, the Accutronics, Southwest Electronic Energy, Excell Battery, McDowell Research and AMTI brands will no longer be used. The Electrochem brand will remain in use, but as a product brand on select primary cells. As a result of the rebranding initiative, Ultralife recorded a $12.2 million non-cash charge to reduce the value of the Company’s tradename and trademark intangible assets.

Fourth Quarter 2025 Financial Results

Revenue was $48.5 million compared to revenue of $43.9 million for the fourth quarter of 2024, an increase of 10.6%. Battery & Energy Products sales increased 15.1% to $45.9 million compared to $39.9 million last year. Organic sales for this segment, excluding the year-over-year timing impact of the Electrochem acquisition which occurred on October 31, 2024, increased 9.5%. The organic growth was primarily driven by a 39.6% increase in medical battery sales, a 20.4% increase in industrial and other commercial market sales and a 1.2% increase in government/defenses sales, partially offset by a 3.6% decrease in oil & gas market sales.   Communications Systems sales decreased by 35.2% to $2.6 million compared to $4.0 million for the same period last year, primarily attributable to the timing of expected orders. Our total backlog exiting the fourth quarter was $110.2 million compared to $90.3 million reported for the third quarter.

Gross profit was $12.1 million, or 24.9% of revenue, compared to $10.6 million, or 24.2% of revenue, for the same quarter a year ago. Battery & Energy Products gross margin was 25.1%, compared to 23.4% last year, primarily due to product mix and higher factory cost absorption. Communications Systems gross margin was 19.9% compared to 31.9% last year, primarily due to lower factory volume and product mix.

Operating expenses were $22.7 million, compared to $9.1 million for the fourth quarter of 2024, reflecting the intangible asset impairment charge of $12.2 million, the inclusion of Electrochem for the full 2025 quarter and one-time non-recurring costs of $1.1 million primarily related to the transition of Electrochem to Ultralife systems and litigation expenses incurred for our cyber insurance claim. Excluding the impairment charge, operating expenses were 21.6% of revenue compared to 20.8% of revenue for the year-earlier period.  

Operating (loss) income was ($10.6) million compared to $1.5 million last year, driven by the intangible asset impairment charge and the 35.2% decline in Communications Systems sales.

Other income (expense) was $0.4 million primarily comprised of interest expense from the financing of our Electrochem acquisition 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 and running through 2032. This compares to ($1.0) million for the year-earlier period primarily reflecting the acquisition financing.

Net (loss) income attributable to Ultralife Corporation was ($7.4) million or ($0.45) per basic and diluted share on a GAAP basis which includes ($9.4) million for the intangible asset impairment charge net of the related tax benefit or ($0.57) per share, compared to $0.2 million or $0.01 per basic and diluted share for the fourth quarter of 2024.

Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense and one-time acquisition and other non-recurring costs and non-cash purchase accounting adjustments, was $5.7 million for the fourth quarter of 2025, or 11.7% of sales, compared to $3.9 million, or 8.9% of sales, for the year-earlier period. On a trailing twelve-month basis, adjusted EBITDA was $17.3 million or 9.0% of sales.

See the “Non-GAAP Financial Measures” section of this release for a reconciliation of adjusted EBITDA to net (loss) income attributable to Ultralife Corporation.

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government/defense and commercial customers across the globe.

Headquartered in Newark, New York, the Company's business segments include Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorporation.com.

Conference Call Information

Ultralife will hold its fourth quarter earnings conference call on today at 8:30 AM ET.

To ensure a fast and reliable connection to our investor conference call, we require participants dialing in by phone to pre-register using this link prior to the call: https://register-conf.media-server.com/register/BIf9df949a927a4356820e8cfb1becccdc. This will eliminate the need to speak with an operator. Once registered, dial-in information will be provided along with a personal identification number. Should you register early and misplace your details, you can simply click back on this same link at any time to register and view this information again. A live webcast of the conference call will be available to investors in the Events & Presentations Section of the Company’s website at http://investor.ultralifecorporation.com. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location.

This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions including the impact of tariffs and inflation, 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, delays or material price increases in our supply of raw materials and components due to business conditions, new or additional tariffs, 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 Ultralife’s Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K.

Company Contact:	Investor Relations Contact:
Ultralife Corporation	Alliance Advisors IR
Philip A. Fain	Jody Burfening
(315) 210-6110	(212) 838-3777
pfain@ulbi.com	jburfening@allianceadvisors.com

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
(Unaudited)
ASSETS
		December 31, 2025					December 31, 2024
Current Assets:
Cash		$9,345					$6,854
Trade Accounts Receivable, Net		33,948					29,370
Inventories, Net		54,008					51,363
Prepaid Expenses and Other Current Assets		8,500					9,573
Total Current Assets		105,801					97,160
Property, Plant and Equipment, Net		40,397					40,485
Goodwill		45,376					45,006
Other Intangible Assets, Net		10,933					24,557
Deferred Income Taxes, Net		10,494					8,413
Other Non-Current Assets		3,911					4,830
Total Assets		$216,912					$220,451
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable		$17,423					$14,160
Current Portion of Long-Term Debt		4,125					2,750
Accrued Compensation and Related Benefits		2,754					2,911
Accrued Expenses and Other Current Liabilities		13,031					9,470
Total Current Liabilities		37,333					29,291
Long-Term Debt, Net		45,526					51,502
Deferred Income Taxes		1,000					1,443
Other Non-Current Liabilities		2,919					4,028
Total Liabilities		86,778					86,264
Shareholders' Equity:
Common Stock		2,109					2,107
Capital in Excess of Par Value		192,859					191,828
Accumulated Deficit		(40,340)					(34,442)
Accumulated Other Comprehensive Loss		(3,141)					(4,006)
Treasury Stock		(21,492)					(21,492)
Total Ultralife Corporation Equity		129,995					133,995
Non-Controlling Interest		139					192
Total Shareholders’ Equity		130,134					134,187
Total Liabilities and Shareholders' Equity		$216,912					$220,451

                                                                        

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
	Three-Month Period Ended				Year Ended
	December 31,		December 31,		December 31,		December 31,
	2025		2024		2025		2024
Revenues:
Battery & Energy Products	$45,908		$39,880		$178,042		$144,081
Communications Systems	2,573		3,972		13,117		20,375
Total Revenues	48,481		43,852		191,159		164,456
Cost of Products Sold:
Battery & Energy Products	34,363		30,549		135,402		107,764
Communications Systems	2,062		2,704		9,736		14,378
Total Cost of Products Sold	36,425		33,253		145,138		122,142
Gross Profit	12,056		10,599		46,021		42,314
Operating Expenses:
Research and Development	2,821		2,415		10,398		8,268
Selling, General and Administrative	7,660		6,710		29,344		24,081
Intangible Asset Impairment	12,181		-		12,181		-
Total Operating Expenses	22,662		9,125		51,923		32,349
Operating (Loss) Income	(10,606)		1,474		(5,902)		9,965
Other Income (Expense)	400		(979)		(2,496)		(1,664)
(Loss) Income Before Income Taxes	(10,206)		495		(8,398)		8,301
Income Tax (Benefit) Provision	(2,753)		262		(2,447)		1,892
Net (Loss) Income	(7,453)		233		(5,951)		6,409
Net (Loss) Income Attributable to Non-Controlling Interest	(31)		39		(53)		97
Net (Loss) Income Attributable to Ultralife Corporation	($7,422)		$194		($5,898)		$6,312
Net (Loss) Income Per Share Attributable to Ultralife Common Shareholders – Basic	($.45)		$.01		($.35)		$.38
Net (Loss) Income Per Share Attributable to Ultralife Common Shareholders – Diluted	($.45)		$.01		($.35)		$.38
Weighted Average Shares Outstanding – Basic	16,654		16,629		16,642		16,555
Weighted Average Shares Outstanding – Diluted	16,654		16,762		16,642		16,767

Non-GAAP Financial Measures

Adjusted EBITDA

In evaluating our business, we consider and use adjusted EBITDA, a non-GAAP financial measure, as a supplemental measure of our operating performance in addition to U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures. We define adjusted EBITDA as net (loss) income attributable to Ultralife Corporation before net interest expense, (benefit) provision for income taxes, depreciation and amortization, and stock-based compensation expense, plus/minus expense/income that we do not consider reflective of our ongoing continuing operations. We reconcile adjusted EBITDA to net (loss) income attributable to Ultralife Corporation, the most comparable financial measure under GAAP. Neither current nor potential investors in our securities should rely on adjusted EBITDA as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of adjusted EBITDA to net (loss) income attributable to Ultralife Corporation.

ULTRALIFE CORPORATION AND SUBSIDIARIES
CALCULATION OF ADJUSTED EBITDA
(Dollars in Thousands)
(Unaudited)
	Three-Month Period Ended				Year Ended
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Net (Loss) Income Attributable to Ultralife Corporation	($7,422)		$194		($5,898)		$6,312
Adjustments:
Interest Expense, Net	937		829		3,953		1,940
Income Tax (Benefit) Provision	(2,753)		262		(2,447)		1,892
Depreciation Expense	1,015		831		3,981		3,125
Amortization Expense	292		348		1,518		1,032
Impairment of Intangible Assets	12,181		-		12,181		-
Stock-Based Compensation Expense	237		208		935		698
Severance and Other Costs for Plant Closures	-		-		641		-
Acquisition and Other Non-Recurring Costs	1,188		1,111		2,300		1,361
Non-Cash Purchase Accounting Adjustment	-		120		120		120
Adjusted EBITDA	$5,675		$3,903		$17,284		$16,480

FAQ

What were Ultralife (ULBI) fourth quarter 2025 financial results?

Ultralife reported Q4 2025 revenue of $48.5M and a GAAP net loss of $7.4M. According to the company, adjusted EBITDA was $5.7M and gross margin was 24.9%, with EPS of ($0.45) reflecting a $12.2M intangible-asset impairment charge.

Why did Ultralife (ULBI) report an operating loss in Q4 2025?

The operating loss primarily reflects a $12.2M intangible-asset impairment and one-time costs. According to the company, these non-cash and transition expenses increased operating expenses, outweighing operating income despite higher revenue and improved adjusted EBITDA.

How did Ultralife's (ULBI) backlog change at year-end 2025 and why does it matter?

Backlog rose to $110.2M, a 22% increase from Q3 2025. According to the company, stronger order flow supports expected production ramps and revenue conversion potential, indicating demand momentum for Battery & Energy Products and multi-year program opportunities.

What happened to Ultralife's (ULBI) Communications Systems sales in Q4 2025?

Communications Systems revenue declined 35.2% to $2.6M in Q4 2025. According to the company, the drop was primarily due to the timing of expected orders, resulting in lower factory volume and adverse product mix for that segment.

What does Ultralife's (ULBI) adjusted EBITDA signal for investors in Q4 2025?

Adjusted EBITDA was $5.7M (11.7% of sales), showing operational profitability before non-cash charges. According to the company, adjusted EBITDA improved versus year-earlier despite the impairment, underscoring core margin recovery in Battery & Energy Products.