Brand write-down drives Ultralife (NASDAQ: ULBI) Q4 2025 net loss

Rhea-AI Filing Summary

Ultralife Corporation reported fourth-quarter and full-year 2025 results showing solid revenue growth but a GAAP net loss driven by a non-cash brand write-down. Q4 revenue rose 10.6% to $48.5 million, led by 15.1% growth in Battery & Energy Products, while Communications Systems revenue fell 35.2% to $2.6 million on order timing.

Backlog increased to $110.2 million at year-end, up from $90.3 million in the prior quarter. Ultralife recorded a $12.2 million impairment on tradename and trademark intangibles tied to consolidating multiple acquired brands under the Ultralife master brand. This contributed to a Q4 net loss attributable to Ultralife of $7.4 million, or $(0.45) per share, compared with $0.2 million, or $0.01 per share, a year earlier.

Despite the impairment, adjusted EBITDA improved to $5.7 million in Q4 2025, or 11.7% of sales, versus $3.9 million or 8.9% a year ago, and reached $17.3 million on a trailing twelve‑month basis. Management highlighted operational restructuring, a unified brand strategy and strengthened plant leadership as steps intended to support profitable growth, cash generation and debt reduction in 2026.

Positive

• Revenue and backlog growth: Q4 2025 revenue increased 10.6% year over year to $48.5 million, driven by 15.1% Battery & Energy Products growth, while backlog rose to $110.2 million from $90.3 million in the prior quarter.
• Improving underlying profitability: Gross margin expanded to 24.9% from 24.2%, and adjusted EBITDA increased to $5.7 million (11.7% of sales) from $3.9 million (8.9%), with trailing twelve‑month adjusted EBITDA reaching $17.3 million.
• Tax credit support: Other income benefited from an expected $1.4 million refundable 45X Advanced Manufacturing Production Tax Credit for qualifying battery cells and packs, more than offsetting interest expense from the Electrochem acquisition financing.

Negative

• GAAP loss from impairment: A $12.2 million non-cash impairment of tradename and trademark intangibles tied to a master brand initiative drove Q4 operating results to a $10.6 million loss and a net loss of $7.4 million, or $(0.45) per share.
• Communications Systems weakness: Communications Systems revenue declined 35.2% year over year to $2.6 million, and segment gross margin fell to 19.9% from 31.9%, primarily due to lower factory volume and product mix.
• Higher operating expenses: Q4 operating expenses rose to $22.7 million from $9.1 million, reflecting the impairment, inclusion of Electrochem for the full quarter, and $1.1 million of one-time costs related to system transition and cyber insurance litigation.

Insights

Equity analyst

Ultralife’s Q4 shows stronger core operations but a headline GAAP loss from a non-cash brand impairment.

Ultralife grew Q4 2025 revenue 10.6% to $48.5 million, with Battery & Energy Products up 15.1% and stronger medical and industrial demand. Backlog ended 2025 at $110.2 million, up from $90.3 million in Q3, improving near-term revenue visibility even as Communications Systems revenue fell 35.2% on order timing.

Profitability is mixed. Gross margin ticked up to 24.9%, and adjusted EBITDA rose to $5.7 million (11.7% of sales) from $3.9 million (8.9%). However, a $12.2 million impairment on tradename and trademark intangibles linked to consolidating sub-brands under the Ultralife master brand pushed operating results from a $1.5 million profit last year to a $(10.6) million loss.

GAAP net loss attributable to Ultralife was $(7.4) million, or $(0.45) per share, versus a small profit a year ago. The company also booked expected $1.4 million in refundable 45X battery production tax credits, more than offsetting acquisition-related interest expense in other income. Future results will depend on executing operational initiatives, maintaining backlog conversion and stabilizing the Communications Systems business.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

March 10, 2026

Date of Report (Date of Earliest Event Reported)

ULTRALIFE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-20852	16-1387013
(State of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2000 Technology Parkway, Newark, New York 14513

(Address of principal executive offices) (Zip Code)

(315) 332-7100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, $0.10 par value per share		ULBI		NASDAQ Stock Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On March 10, 2026, Ultralife Corporation issued a press release regarding the financial results for its fourth quarter ended December 31, 2025. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by this reference.

Item 9.01 Financial Statements, Pro Forma Financials and Exhibits

(d) Exhibits.

Exhibit Number		Exhibit Description
99.1		Press Release of Ultralife Corporation dated March 10, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 10, 2026		ULTRALIFE CORPORATION
	By:	/s/ Philip A. Fain
		Philip A. Fain
		Chief Financial Officer and Treasurer

Exhibit 99.1

Ultralife Corporation Reports Fourth Quarter Results

NEWARK, N.Y. – March 10, 2026 -- 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 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.

ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)

(Unaudited)

		December 31, 2025				December 31, 2024
ASSETS
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 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								Nine-Month Period 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								Nine-Month Period 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
Stock-Based Compensation Expense			12,181				-				12,181				-
Severance and Other Costs for Plant Closure			-				-				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

Company Contact:

Ultralife Corporation

Philip A. Fain

(315) 210-6110

pfain@ulbi.com

Investor Relations Contact:

Alliance Advisors IR

Jody Burfening

(212) 838-3777

jburfening@allianceadvisors.com

FAQ

How did Ultralife (ULBI) perform financially in Q4 2025?

Ultralife grew Q4 2025 revenue 10.6% to $48.5 million, but reported a GAAP net loss of $7.4 million or $(0.45) per share. Results were pressured by a non-cash $12.2 million intangible asset impairment tied to brand consolidation.

What drove Ultralife’s revenue growth in the fourth quarter of 2025?

Q4 2025 growth came mainly from the Battery & Energy Products segment, where sales rose 15.1% to $45.9 million. Within this, medical battery revenue increased 39.6%, industrial and other commercial sales grew 20.4%, while oil & gas revenue declined modestly.

Why did Ultralife record a $12.2 million impairment in Q4 2025?

Ultralife booked a $12.2 million non-cash impairment to reduce tradename and trademark intangible values after launching a master brand strategy. Several acquired brands will be retired, consolidating under the Ultralife name, with Electrochem retained only as a product brand on select primary cells.

How did Ultralife’s backlog change by the end of 2025?

Ultralife’s total backlog reached $110.2 million exiting Q4 2025, up from $90.3 million at the end of the third quarter. Management highlighted this 22% sequential increase as evidence of strong order flow supporting future revenue conversion opportunities.

What happened to Ultralife’s Communications Systems segment in Q4 2025?

Communications Systems revenue fell to $2.6 million, down 35.2% from $4.0 million a year earlier, mainly due to timing of expected orders. Segment gross margin declined to 19.9% from 31.9%, reflecting lower factory volume and product mix.

How did Ultralife’s adjusted EBITDA trend in Q4 and full-year 2025?

Adjusted EBITDA increased to $5.7 million in Q4 2025, 11.7% of sales, versus $3.9 million or 8.9% a year earlier. On a trailing twelve‑month basis, adjusted EBITDA reached $17.3 million, or 9.0% of sales, indicating stronger underlying operating performance.

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 229.4 KB

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• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.5 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE 11.2 KB
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