Full Year 2025 Revenue Increased 16% Driven By 34% Growth in OEM Sales
Announces Reduction of Expenses, Improved Cost Structure and Accelerated Path to Profitability While Providing Greater Alignment with Shareholders
Targets Positive Adjusted EBITDA at
Fourth Quarter and Full Year 2025 Financial Highlights
- Net sales were
$13.1 million and$58.6 million . - OEM net sales were
$8.1 million and$36.9 million . - Gross Margin was 18.2% and 26.7%.
- Net Loss was
$(45.0) million and$(69.9) million . - Adjusted EBITDA was
$(3.8) million and$(11.8) million .
“The fourth quarter capped a year of meaningful progress for Dragonfly Energy,” commented Dr.
“Earlier this month, we implemented a series of actions intended to significantly improve our cost structure and sharpen our focus on commercial markets as our customer base continues to evolve toward OEM, trucking, and industrial channels,” continued
“As we approach the second quarter of 2026, we remain focused on expanding OEM relationships, improving operational efficiency, and strengthening our financial foundation to support our path to sustainable profitability.”
Strategic Cost Realignment
In
- Board and Executive Leadership Compensation Adjustments: Each member of Dragonfly’s executive leadership team and Board of Directors has agreed to reduce their cash compensation by approximately 20% for the remainder of fiscal 2026, effective
April 1, 2026 . In lieu of cash compensation, they have received equity-based incentives, aligning incentives with long-term shareholder value. - Workforce and Compensation Adjustments: Dragonfly is implementing a 20% reduction in total payroll expense through a combination of targeted workforce reductions and salary adjustments. Non-executive employees participating in salary reductions have received equity-based compensation.
- Reduction in Discretionary Spending: The Company is reducing discretionary spending, including a reduction in DTC-focused marketing expenses, as it shifts resources towards growing commercial revenues.
- Facility Consolidation: Dragonfly is consolidating its rental space, which is expected to result in a
$4.0 million reduction in expenses.
Fourth Quarter 2025 Financial and Operating Results
(All financial result comparisons made are against the prior-year period unless otherwise noted)
| (in thousands) | ||||||
| Fiscal Quarter Ended | ||||||
| Change (YoY) | ||||||
| OEM | 30.1 | % | ||||
| DTC | -18.0 | % | ||||
| Licensing Fee | 0 | % | ||||
| 6.9 | % | |||||
Net sales increased 6.9% to
Gross profit was
The Company reported a Net Loss of
Adjusted EBITDA is a non-GAAP measure and should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with
Full Year 2025 Financial and Operating Results
(All financial result comparisons made are against the prior-year period unless otherwise noted)
| (in thousands) | ||||||
| Fiscal Year Ended | ||||||
| Change (YoY) | ||||||
| OEM | 33.8 | % | ||||
| DTC | -8.5 | % | ||||
| Licensing | 139.8 | % | ||||
| 15.8 | % | |||||
Gross Profit increased 34.6% to
The Company reported a Net Loss of
The fourth quarter and full year 2025 financial and operating results are preliminary and are subject to finalization and adjustment in connection with the audit of the financial statements for the fiscal year ended
Summary and Outlook
“In 2025, we took important steps to strengthen the business, substantially improving our balance sheet while expanding our customer base and product portfolio. Together with our ongoing operational initiatives, newly implemented cost realignment, and enhanced focus on commercial revenues, we believe
“For the first quarter of 2026, we anticipate revenue of
Q1 2026 Guidance
Net Sales of approximately $9.5 million.- Adjusted EBITDA of approximately $(4.6) million*
* The Company cannot reconcile its expected adjusted operating EBITDA under "Q1 2026 Guidance" without unreasonable effort because certain items that impact net (loss) income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. Actual results may vary from the guidance and the variations may be material.
Use of Non-GAAP Financial Measures
The Company provides non-GAAP financial measures including EBITDA and Adjusted EBITDA as a supplement to GAAP financial information to enhance the overall understanding of the Company’s financial performance and to assist investors in evaluating the Company’s results of operations, period over period. Adjusted non-GAAP measures exclude significant unusual items. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for financial information prepared on a GAAP basis.
EBITDA is defined as earnings before interest and other income (expenses), income taxes, and depreciation and amortization. Adjusted EBITDA is calculated as EBITDA adjusted for stock-based compensation, change in fair market value of warrant liabilities, non-recurring costs associated with strategic financing, reverse stock split, litigation and loss on settlement. Adjusted EBITDA is a performance measure that the Company believes is useful to investors and analysts because it illustrates the underlying financial and business trends relating to the Company’s core, recurring results of operations and enhances comparability between periods.
Adjusted EBITDA has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of net loss or other results as reported under GAAP. Some of these limitations are:
| ? | Adjusted EBITDA does not reflect the Company’s cash expenditures, future requirements for capital expenditures, or contractual commitments; |
| ? | Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs; |
| ? | Adjusted EBITDA does not reflect the Company’s tax expense or the cash requirements to pay taxes; |
| ? | Although amortization and depreciation are non-cash charges, the assets being amortized and depreciated will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; |
| ? | Adjusted EBITDA should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items for which the Company may adjust in historical periods; and |
| ? | Other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. |
Webcast Information
The
An archive of the webcast will be available for a period of time shortly after the call on the Events and Presentations page on the Investor Relations section of Dragonfly Energy’s website, along with the earnings press release.
About
To learn more about
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding the Company’s guidance for the first quarter of 2026, preliminary results of operations and financial position for fourth quarter and fiscal year 2025, planned products and services, business strategy and plans, market size and growth opportunities, competitive position and technological and market trends. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions.
These forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the Company’s control) which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may impact such forward-looking statements include, but are not limited to: improved recovery in the Company’s core markets, including the RV market; the Company’s ability to successfully increase market penetration into target markets; the Company’s ability to penetrate the heavy-duty trucking and other new markets; the growth of the addressable markets that the Company intends to target; the Company’s ability to retain members of its senior management team and other key personnel; the Company’s ability to maintain relationships with key suppliers including suppliers in
If any of these risks materialize or any of the Company’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Preliminary Results
Fourth quarter and full year 2025 financial and operating results are preliminary, as they are subject to finalization and adjustment in connection with the preparation of the Annual Report on Form 10-K for fiscal 2025 to be filed later this month. During the course of the preparation of these financial statements, Dragonfly may identify items that would require the Company to make material adjustments to the preliminary financial results. As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information. The preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP and reviewed by our independent registered public accounting firm.
Financial Tables
| Unaudited Condensed Consolidated Balance Sheets | ||||||||||||
| ( | ||||||||||||
| As of | ||||||||||||
| Current Assets | ||||||||||||
| Cash and cash equivalents | $ | 18,270 | $ | 4,849 | ||||||||
| Accounts receivable, net of allowance for credit losses | 4,215 | 2,416 | ||||||||||
| Inventory | 24,234 | 21,716 | ||||||||||
| Prepaid expenses | 1,088 | 806 | ||||||||||
| Prepaid inventory | 937 | 1,362 | ||||||||||
| Prepaid income tax | 353 | 307 | ||||||||||
| Assets held for sale | - | 644 | ||||||||||
| Other current assets | 1,083 | 825 | ||||||||||
| Total Current Assets | 50,180 | 32,925 | ||||||||||
| Property and Equipment | ||||||||||||
| Property and Equipment, Net | 20,741 | 22,107 | ||||||||||
| Operating lease right of use asset, net | 15,240 | 19,737 | ||||||||||
| Other assets | 388 | 445 | ||||||||||
| Total Assets | $ | 86,549 | $ | 75,214 | ||||||||
| Current Liabilities | ||||||||||||
| Accounts payable | $ | 10,322 | $ | 10,716 | ||||||||
| Accrued payroll and other liabilities | 4,053 | 4,129 | ||||||||||
| Accrued tariffs | 943 | 1,915 | ||||||||||
| Accrued settlement, current portion | - | 750 | ||||||||||
| Customer deposits | 121 | 317 | ||||||||||
| Deferred revenue, current portion | 1,000 | 1,000 | ||||||||||
| Uncertain tax position liability | - | 55 | ||||||||||
| Dividends Payable | 317 | - | ||||||||||
| Notes payable, current portion, net of debt issuance costs | 433 | - | ||||||||||
| Operating lease liability, current portion | 2,533 | 2,926 | ||||||||||
| Financing lease liability, current portion | 35 | 47 | ||||||||||
| Total Current Liabilities | 19,757 | 21,855 | ||||||||||
| Long-Term Liabilities | ||||||||||||
| Deferred revenue, net of current portion | 2,583 | 3,583 | ||||||||||
| Warrant liabilities | 713 | 5,133 | ||||||||||
| Accrued settlement, net of current portion | - | 1,750 | ||||||||||
| Notes payable, non current portion, net of debt issuance costs | 9,212 | 29,646 | ||||||||||
| Operating lease liability, net of current portion | 20,470 | 22,588 | ||||||||||
| Financing lease liability, net of current portion | 28 | 63 | ||||||||||
| Total Long-Term Liabilities | 33,006 | 62,763 | ||||||||||
| Total Liabilities | 52,763 | 84,618 | ||||||||||
| Commitments and Contingencies | ||||||||||||
| Redeemable Preferred Stock | ||||||||||||
| Preferred stock - Series A 5,000 shares at | ||||||||||||
| no shares issued and outstanding as of | ||||||||||||
| 2024, respectively | - | - | ||||||||||
| Preferred stock - Series B, 25,000 shares at | ||||||||||||
| and no shares issued and outstanding as of | 22,256 | - | ||||||||||
| 2024 respectively | ||||||||||||
| Stockholders' Equity (Deficit) | ||||||||||||
| Preferred stock, 4,995,000 shares at | - | - | ||||||||||
| Common stock, 400,000,000 shares at | - | - | ||||||||||
| 1 | - | |||||||||||
| Additional paid in capital | 163,622 | 72,750 | ||||||||||
| Accumulated deficit | (152,093 | ) | (82,154 | ) | ||||||||
| Stockholders' Equity (Deficit) | 11,530 | (9,404 | ) | |||||||||
| Total Liabilities, Redeemable Preferred Stock and Stockholders' Equity | $ | 86,549 | $ | 75,214 | ||||||||
| Unaudited Condensed Interim Consolidated Statement of Operations | ||||||||||||||||||
| ( | ||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| $ | 13,059 | $ | 12,212 | $ | 58,630 | $ | 50,645 | |||||||||||
| Cost of Goods Sold | 10,681 | 9,674 | 42,983 | 39,019 | ||||||||||||||
| Gross Profit | 2,378 | 2,538 | 15,647 | 11,626 | ||||||||||||||
| Operating Expenses | ||||||||||||||||||
| Research and development | 704 | 956 | 2,981 | 5,451 | ||||||||||||||
| General and administrative | 9,384 | 7,031 | 25,659 | 21,909 | ||||||||||||||
| Selling and marketing | 2,490 | 1,696 | 10,180 | 10,025 | ||||||||||||||
| Total Operating Expenses | 12,578 | 9,683 | 38,820 | 37,385 | ||||||||||||||
| Loss From Operations | (10,200 | ) | (7,145 | ) | (23,173 | ) | (25,759 | ) | ||||||||||
| Other Income (Expense) | ||||||||||||||||||
| Interest expense, net | (3,713 | ) | (6,251 | ) | (20,265 | ) | (21,504 | ) | ||||||||||
| Other Expense | 131 | - | 131 | (36 | ) | |||||||||||||
| Debt Extinguishment | (31,843 | ) | - | (31,843 | ) | - | ||||||||||||
| Change in fair market value of warrant liability | 493 | 3,554 | 5,117 | 6,684 | ||||||||||||||
| Total Other Expense | (34,932 | ) | (2,697 | ) | (46,860 | ) | (14,856 | ) | ||||||||||
| Net Loss Before Taxes | (45,132 | ) | (9,842 | ) | (70,033 | ) | (40,615 | ) | ||||||||||
| Income Tax Benefit | (94 | ) | - | (94 | ) | - | ||||||||||||
| Net Loss | $ | (45,038 | ) | $ | (9,842 | ) | $ | (69,939 | ) | $ | (40,615 | ) | ||||||
| Less: Preferred Stock Dividends | (869 | ) | - | (869 | ) | - | ||||||||||||
| Net Loss Attributable to Common Shareholders | $ | (45,907 | ) | $ | (9,842 | ) | $ | (70,808 | ) | $ | (40,615 | ) | ||||||
| Net Loss Per Share- Basic & Diluted | $ | (14.92 | ) | $ | (13.89 | ) | $ | (14.80 | ) | $ | (59.15 | ) | ||||||
| Weighted Average Number of Shares- Basic & Diluted | 3,077,812 | 708,596 | 4,783,337 | 686,683 | ||||||||||||||
| Unaudited Condensed Consolidated Statement of Cash Flows | ||||||||||
| Twelve Months Ended | ||||||||||
| ( | ||||||||||
| 2025 | 2024 | |||||||||
| Cash flows from Operating Activities | ||||||||||
| Net Loss | $ | (69,939 | ) | $ | (40,615 | ) | ||||
| Adjustments to Reconcile Net Loss to | ||||||||||
| Used in Operating Activities | ||||||||||
| Stock based compensation | 714 | 1,020 | ||||||||
| Amortization of debt discount | 7,591 | 7,241 | ||||||||
| Change in fair market value of warrant liability | (5,117 | ) | (6,684 | ) | ||||||
| Non-cash interest expense (paid-in-kind) | 12,047 | 10,058 | ||||||||
| Debt restructuring fees (paid-in-kind) | 465 | - | ||||||||
| Provision for credit losses | 140 | 3 | ||||||||
| Depreciation and amortization | 2,236 | 1,372 | ||||||||
| Amortization of right of use assets | 2,472 | 2,231 | ||||||||
| Loss on disposal of property and equipment | 199 | - | ||||||||
| Loss on impairment of right-of-use assets | 2,667 | |||||||||
| Loss on impairment of assets | - | 873 | ||||||||
| Loss on extinguishment of debt | 31,285 | |||||||||
| Write-off of prepaid inventory | - | 69 | ||||||||
| Changes in Assets and Liabilities | ||||||||||
| Accounts receivable | (1,939 | ) | (780 | ) | ||||||
| Inventories | (2,518 | ) | 17,062 | |||||||
| Prepaid expenses | (282 | ) | 170 | |||||||
| Prepaid inventory | 425 | (50 | ) | |||||||
| Prepaid income tax | (46 | ) | - | |||||||
| Other current assets | (258 | ) | (707 | ) | ||||||
| Other assets | 57 | (445 | ) | |||||||
| Accounts payable and accrued expenses | 1,151 | (4,029 | ) | |||||||
| Operating lease liabilities | (3,153 | ) | (1,344 | ) | ||||||
| Accrued tariffs | (972 | ) | 202 | |||||||
| Accrued settlement | (2,500 | ) | 2,500 | |||||||
| Deferred revenue | (1,000 | ) | 4,583 | |||||||
| Uncertain tax position liability | (55 | ) | (36 | ) | ||||||
| Customer deposits | (196 | ) | 116 | |||||||
| Total Adjustments | 43,413 | 33,425 | ||||||||
| (26,526 | ) | (7,190 | ) | |||||||
| Cash Flows From Investing Activities | ||||||||||
| Proceeds from disposal of property and equipment | - | 8 | ||||||||
| Purchase of property and equipment | (1,949 | ) | (2,684 | ) | ||||||
| (1,949 | ) | (2,676 | ) | |||||||
| Cash Flows From Financing Activities | ||||||||||
| Proceeds from public offering (ATM), net | 63 | 2,043 | ||||||||
| Proceeds from public offering , net | 83,538 | - | ||||||||
| Proceeds from preferred stock offering, net of fees | 7,330 | - | ||||||||
| Proceeds from note payable, related party | - | 2,700 | ||||||||
| Repayment of note payable, related party | - | (2,700 | ) | |||||||
| Repayment of note payable | (49,081 | ) | ||||||||
| Principal payments on finance leases | (47 | ) | (45 | ) | ||||||
| Proceeds from exercise of options | - | 4 | ||||||||
| Payment of debt financing fees | (465 | ) | - | |||||||
| Net Cash Provided by Financing Activities | 41,338 | 2,002 | ||||||||
| 13,421 | (7,864 | ) | ||||||||
| Cash and cash equivalents - beginning of period | 4,849 | 12,713 | ||||||||
| Cash and cash equivalents - end of period | $ | 18,270 | $ | 4,849 | ||||||
| Supplemental Disclosures of Cash Flow Information: | ||||||||||
| Cash paid for income taxes | 7 | - | ||||||||
| Cash paid for interest | $ | 5 | $ | 6,288 | ||||||
| Supplemental Non-Cash Items | ||||||||||
| Purchases of property and equipment, not yet paid | $ | 179 | $ | 1,703 | ||||||
| Recognition of right of use asset obtained in exchange for operating lease liability | $ | 642 | $ | 18,653 | ||||||
| Accrued dividends | $ | 317 | $ | - | ||||||
| Dividends paid in kind | $ | 79 | $ | - | ||||||
| Recognition of leasehold improvements obtained in exchange for operating lease liability | $ | - | $ | 4,683 | ||||||
| Recognition of machinery & equipment obtained in exchange for financing lease liability | $ | - | $ | 53 | ||||||
| Accretion of preferred stock discount | $ | 478 | $ | - | ||||||
| Conversion of preferred stock to common stock | $ | 7,330 | $ | - | ||||||
| Conversion of notes payable to preferred shares | $ | 25,000 | $ | - | ||||||
| Recognition of warrant liability - Penny Warrants | $ | - | $ | 7,354 | ||||||
| Recognition of warrant liability - Investor Warrants | $ | 697 | $ | - | ||||||
| Settlement of accrued liability for employee stock purchase plan | $ | 97 | $ | 250 | ||||||
| Reclassification of assets held for sale to machinery and equipment | $ | 644 | $ | - | ||||||
| Reclassification of assets held for sale | $ | - | $ | 644 | ||||||
| Reconciliation of GAAP to Non-GAAP Measures (Unaudited) | |||||||||||||||||||
| ( | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| EBITDA Calculation | |||||||||||||||||||
| Net Loss Attributable to Common Shareholders | $ | (45,907 | ) | $ | (9,842 | ) | $ | (70,808 | ) | $ | (40,615 | ) | |||||||
| Interest Expense | 3,713 | 6,251 | 20,265 | 21,504 | |||||||||||||||
| Taxes | (94 | ) | - | (94 | ) | - | |||||||||||||
| Depreciation and Amortization | 425 | 381 | 2,236 | 1,372 | |||||||||||||||
| EBITDA | $ | (41,863 | ) | $ | (3,210 | ) | $ | (48,401 | ) | $ | (17,739 | ) | |||||||
| Adjustments to EBITDA | |||||||||||||||||||
| Stock Based Compensation | 135 | 261 | 714 | 1,020 | |||||||||||||||
| Change in fair market value of warrant liability | (493 | ) | (3,554 | ) | (5,117 | ) | (6,684 | ) | |||||||||||
| Non-Recurring/One-Time Expenses: | |||||||||||||||||||
| Tariff Investigation | - | - | - | 463 | |||||||||||||||
| Stryten Agreement | - | - | - | 284 | |||||||||||||||
| Severance | - | - | 35 | - | |||||||||||||||
| Loss on Impairment of Assets | - | 873 | - | 873 | |||||||||||||||
| Impairment of right-of-use asset and disposal of associated assets | 2,432 | 3,043 | |||||||||||||||||
| of associated assets | |||||||||||||||||||
| Prior year tariff estimate adjustment | - | - | 287 | - | |||||||||||||||
| Preferred Stock Financing expenses | - | - | 686 | - | |||||||||||||||
| Reverse Stock Split | 61 | 90 | 76 | 90 | |||||||||||||||
| Litigation Fees and Loss on Settlement | 289 | 3,124 | 862 | 3,124 | |||||||||||||||
| Loss on Disposal of Assets | 126 | 69 | 126 | 69 | |||||||||||||||
| Debt Restructure Expenses | 1,938 | - | 2,291 | - | |||||||||||||||
| ChEF Equity Facility termination fee | 891 | - | 891 | - | |||||||||||||||
| Debt Extinguishment | 31,843 | - | 31,843 | - | |||||||||||||||
| Preferred Stock Dividend | 869 | - | 869 | - | |||||||||||||||
| Adjusted EBITDA | (3,772 | ) | (2,347 | ) | (11,795 | ) | (18,500 | ) | |||||||||||
Investor Relations:
DragonflyIR@advisiry.com
