Business Model Breakdown
How Ultralife Corp Makes Money
ULBI
Market Cap
$114M
Annual Revenue
$191M
Profit Margin
-3.1%
The Short Version
Ultralife Corp designs, manufactures, and sells a range of advanced battery and power solutions, as well as communications and electronics systems. They serve highly specialized markets, primarily defense, aerospace, and industrial sectors, where reliability, performance, and specific form factors are critical. Their customers include government agencies and industrial partners who require robust and often custom-engineered power and communication solutions for demanding environments.
Where the Revenue Comes From
Battery & Energy Products (primary revenue stream, likely >60% of total revenue)
Communications Systems (secondary revenue stream, likely <40% of total revenue)
Who buys: Government (primarily military), defense contractors, and industrial original equipment manufacturers (OEMs).
Why It Works (Competitive Advantages)
- ✔Specialized battery and power solutions tailored for demanding defense and industrial applications.
- ✔Established customer relationships and lengthy product qualification processes creating high switching costs.
- ✔Proprietary technology and intellectual property in niche battery chemistries and communications systems.
Economic Moat: Narrow (Intangible Assets/IP, Switching Costs, Cost Advantages)
What Our Analysis Says
DVR Score as of May 6, 2026
The previous score of 6/100 acknowledged Ultralife Corp's stability and niche competence but highlighted its lack of 10x growth attributes. The material changes since the last analysis, specifically the Q4 2025 earnings reported on March 10, 2026, show a miss on both revenue ($48.48M vs. $57.0M estimate) and EPS ($0.12 vs. $0.24 estimate), accompanied by a negative net margin (-3.09%). This represents a deterioration in recent financial performance and questions the previous assessment of fundamental stability, further diminishing any long-shot potential for exponential growth. While the balance sheet remains strong, the decline in profitability trajectory and missed expectations, without any new significant growth drivers, justifies a downward adjustment of 2 points to reflect the increased operational risk and reduced near-term optimism for a 10x return.