Third Quarter Net Sales and Adjusted EBITDA Exceeded Guidance Driven by 44% OEM Growth
Gross Margin Expanded 710 Basis Points Year-over-Year
Recent Public Offerings and Debt Restructuring Significantly Improve Financial Position
Guides to Fourth Quarter Net Sales of Approximately $13.0 Million
Third Quarter 2025 Financial Highlights
(All comparisons made are against the prior-year period)
-- Net sales were $16.0 million, compared to $12.7 million, up 25.5%. -- OEM net sales were $10.7 million, compared to $7.4 million, up 44.3% -- Gross Margin was 29.7%, compared to 22.6%, up 710 basis points. -- Net Loss was $(11.1) million, compared to $(6.8) million. -- Adjusted EBITDA was $(2.1) million, compared to $(5.5) million.
RENO, Nev., Nov. 14, 2025 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. ("Dragonfly Energy" or the "Company") (Nasdaq: DFLI), an industry leader in energy storage and battery technology, today reported
its financial and operational results for the third quarter ended September 30, 2025.
"Following our second quarter earnings call, we have taken decisive actions to strengthen our balance sheet and further position Dragonfly Energy for sustained growth," said Dr. Denis Phares, Chief Executive Officer. "Since July, we successfully completed three public offerings, raising approximately $90 million in cumulative gross proceeds, enabling us to secure a comprehensive debt restructuring agreement with our lenders. Together, these actions significantly reduced our outstanding debt and improved our financial position, providing greater flexibility to pursue near-term strategic opportunities and long-term investments in battery technology."
"Looking at the third quarter, our results demonstrated strong operational execution, as net sales grew 26% year-over-year, marking another consecutive quarter of year-over-year net sales growth. Gross margin expanded an impressive 710 basis points, reflecting higher volumes, product mix, and benefits from our cost optimization initiatives."
"We are particularly encouraged by the growing number of RV OEMs integrating our solutions as standard equipment, validating our compelling value proposition as the industry remains focused on premium offerings. Our deepening RV partnerships, continued expansion into adjacent markets, and growing patent portfolio strengthen our competitive advantage and reinforce Dragonfly's position as a commercial leader in energy storage."
Third Quarter 2025 Financial and Operating Results
(All financial result comparisons made are against the prior-year period unless otherwise noted)
Net Sales by Customer Type
(in thousands)
Fiscal Quarter Ended
--------------------------------------
September 30, 2025 September 30, 2024 Change (YoY)
-------------- ------------------ ------------------ ------------
OEM $10,679 $7,400 44.3%
DTC $5,038 $5,153 -2.2%
Licensing Fee $250 $167 49.7%
Net Sales $15,967 $12,720 25.5%
Net Sales increased 25.5% to $16.0 million. OEM net sales grew 44.3% to $10.7 million, led by continued strong adoption of our products at the factory level. DTC net sales were $5.0 million compared to $5.2 million, reflecting ongoing macroeconomic pressures.
Gross Profit increased 65.0% to $4.7 million, and gross margin expanded 710 basis points to 29.7%, led by increased volume, favorable product mix, and benefits from our cost optimization initiatives. Operating Expenses were $8.5 million, down from $8.9 million, which includes lower R&D costs.
The Company reported a Net Loss of $(11.1) million, or $(0.20) per diluted share, compared to Net Loss of $(6.8) million or $(0.98) per diluted share. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of our warrants, and other one-time expenses, was $(2.1) million, compared to $(5.5) million.
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 United States generally accepted accounting principles ("GAAP"). Please refer to the reconciliation of Adjusted EBITDA to its nearest GAAP measure in this release.
Summary and Outlook
"This was a transformative quarter for Dragonfly Energy. We have significantly strengthened our financial foundation through decisive capital actions while delivering strong operational results, creating a solid foundation as we continue executing our growth initiatives. Looking ahead, we expect fourth quarter net sales to be approximately $13.0 million, representing year-over-year growth of approximately 7%. We remain confident in our ability to deliver sustainable growth and create long-term value for our shareholders." concluded Dr. Phares.
Q4 2025 Guidance
-- Net Sales of approximately $13.0 million. -- Adjusted EBITDA of approximately $(3.3) million*
* The Company cannot reconcile its expected adjusted operating EBITDA under "Q4 2025 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 our 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 Dragonfly Energy management team will host a conference call to discuss its third quarter 2025 financial and operational this afternoon, November 14, 2025, at 4:30PM Eastern Time. The call can be accessed live via webcast by clicking here, or through the Events and Presentations page within the Investor Relations section of Dragonfly Energy's website at https://investors.dragonflyenergy.com/events-and-presentations/default.aspx. The call can also be accessed live via telephone by dialing (646) 564-2877, toll-free in North America (800) 549-8228, or for international callers +1 (289) 819-1520, and referencing conference ID: 68465. Please log in to the webcast or dial in to the call at least 10 minutes prior to the start of the event.
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 Dragonfly Energy
Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) is a comprehensive lithium battery technology company, specializing in cell manufacturing, battery pack assembly, and full system integration. Through its renowned Battle Born Batteries$(R)$ brand, Dragonfly Energy has established itself as a frontrunner in the lithium battery industry, with hundreds of thousands of reliable battery packs deployed in the field through top-tier OEMs and a diverse retail customer base. At the forefront of domestic lithium battery cell production, Dragonfly Energy's patented dry electrode manufacturing process can deliver chemistry-agnostic power solutions for a broad spectrum of applications, including energy storage systems, electric vehicles, and consumer electronics. The Company's overarching mission is the future deployment of its proprietary, nonflammable, all-solid-state battery cells.
To learn more about Dragonfly Energy and its commitment to clean energy advancements, visit https://investors.dragonflyenergy.com/.
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 fourth quarter of 2025, results of operations and financial position, 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 China; the Company's ability to maintain relationships with key customers; the Company's ability to protect its patents and other intellectual property; the Company's ability to successfully utilize its patented dry electrode battery manufacturing process and optimize solid state cells as well as to produce commercially viable solid state cells in a timely manner or at all, and to scale to mass production; the Company's ability to timely achieve the anticipated benefits of its licensing arrangement with Stryten Energy LLC; the Company's ability to achieve the anticipated benefits of its customer arrangements with THOR Industries and THOR Industries' affiliated brands (including Keystone RV Company); the Company's ability to maintain the listing of its common stock and public warrants on the Nasdaq Capital Market; the Russian/Ukrainian conflict; the Company's ability to generate revenue from future product sales and its ability to achieve and maintain profitability; and the Company's ability to compete with other manufacturers in the industry and its ability to engage target customers and successfully convert these customers into meaningful orders in the future. These and other risks and uncertainties are described more fully in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC and in the Company's subsequent filings with the SEC available at www.sec.gov.
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.
Financial Tables
Dragonfly Energy Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands, except share and per share
data)
As of
September 30, December 31,
2025 2024
--------------- ----------------
Current Assets
Cash and cash equivalents $ 3,838 $ 4,849
Accounts receivable, net of
allowance for credit losses 4,792 2,416
Inventory 22,718 21,716
Prepaid expenses 849 806
Prepaid inventory 1,237 1,362
Prepaid income tax 311 307
Assets held for sale - 644
Other current assets 764 825
Total Current Assets 34,509 32,925
---------- ---------
Property and Equipment
Property and Equipment, Net 20,906 22,107
Operating lease right of use asset,
net 17,977 19,737
Other assets 451 445
Total Assets $ 73,843 $ 75,214
========== =========
Current Liabilities
Accounts payable $ 11,867 $ 10,716
Accrued payroll and other
liabilities 4,998 4,129
Accrued tariffs 1,591 1,915
Accrued settlement, current portion 2,125 750
Customer deposits 252 317
Deferred revenue, current portion 1,000 1,000
Uncertain tax position liability 55 55
Notes payable, current portion, net
of debt issuance costs 877 -
Operating lease liability, current
portion 2,868 2,926
Financing lease liability, current
portion 42 47
---------- ---------
Total Current Liabilities 25,675 21,855
---------- ---------
Long-Term Liabilities
Deferred revenue, net of current
portion 2,833 3,583
Warrant liabilities 1,205 5,133
Accrued settlement, net of current
portion - 1,750
Notes payable, non current portion,
net of debt issuance costs 44,546 29,646
Operating lease liability, net of
current portion 21,128 22,588
Financing lease liability, net of
current portion 33 63
Total Long-Term Liabilities 69,745 62,763
---------- ---------
Total Liabilities 95,420 84,618
---------- ---------
Commitments and Contingencies (See Note
5)
Redeemable Preferred stock
Preferred stock - Series A 5,000
shares at $0.0001 par value,
authorized, no shares issued and
outstanding as of September 30, 2025
and December 31, 2024, respectively - -
Stockholders' (Deficit)
Preferred stock, 4,995,000 shares at
$0.0001 par value, authorized, no
shares issued and outstanding as of
September 30, 2025 and December 31,
2024, respectively - -
Common stock, 400,000,000 shares at
$0.0001 par value, authorized,
61,742,104 and 7,232,650 shares
issued and outstanding as of
September 30, 2025 and December 31,
2024, respectively 6 1
Additional paid in capital 85,472 72,749
Accumulated deficit (107,055) (82,154)
---------- ---------
Total Stockholders' (Deficit) (21,577) (9,404)
---------- ---------
Total Liabilities, Redeemable Preferred
Stock and Stockholders' Deficit $ 73,843 $ 75,214
========== =========
Dragonfly Energy Holdings Corp.
Unaudited Condensed Interim Consolidated Statement
of Operations
(U.S. Dollar in Thousands, except share and per share
data)
Three Months Ended
---------------------------
Sep 30, Sep 30,
2025 2024
------------ -------------
Net Sales $ 15,967 $ 12,720
Cost of Goods Sold 11,231 9,850
Gross Profit 4,736 2,870
Operating Expenses
Research and development 585 1,631
General and administrative 5,299 4,361
Selling and marketing 2,630 2,904
---------- ---------
Total Operating Expenses 8,514 8,896
---------- ---------
Loss From Operations (3,778) (6,026)
Other Income (Expense)
Interest expense, net (6,409) (5,615)
Other Expense - (13)
Change in fair market value of warrant
liability (883) 4,875
Total Other Expense (7,292) (753)
---------- ---------
Net Loss Before Taxes (11,070) (6,779)
---------- ---------
Income Tax (Benefit) Expense - -
---------- ---------
Net Loss $ (11,070) $ (6,779)
========== =========
Net Loss Per Share- Basic & Diluted $ (0.20) $ (0.98)
========== =========
Weighted Average Number of Shares- Basic
& Diluted 56,156,184 6,925,395
========== =========
Dragonfly Energy Holdings Corp.
Unaudited Condensed Consolidated Statement of Cash
Flows
Nine Months Ended
(U.S. in thousands)
2025 2024
--------- -----------
Cash flows from Operating Activities
Net Loss $(24,901) $(30,773)
Adjustments to Reconcile Net Loss to Net Cash
Used in Operating Activities
Stock based compensation 578 759
Amortization of debt discount 5,240 4,490
Change in fair market value of warrant
liability (4,624) (3,130)
Non-cash interest expense (paid-in-kind) 11,233 6,590
Provision for credit losses 87 40
Depreciation and amortization 1,810 991
Amortization of right of use assets 1,948 1,585
Loss on disposal of property and
equipment 156 -
Loss on impairment of ROU assets 454 -
Changes in Assets and Liabilities
Accounts receivable (2,463) (2,128)
Inventories (1,002) 14,765
Prepaid expenses (43) 38
Prepaid inventory 125 (365)
Other current assets 61 (635)
Other assets (6) (445)
Income taxes payable (4) 174
Accounts payable and accrued expenses 3,780 (969)
Operating lease liabilities (2,160) (661)
Accrued tariffs (324) 168
Accrued settlement (375) -
Deferred revenue (750) 4,833
Customer deposits (65) (12)
------- -------
Total Adjustments 13,656 26,088
------- -------
Net Cash Used in Operating Activities (11,245) (4,685)
------- -------
Cash Flows From Investing Activities
Purchase of property and equipment (1,808) (1,691)
------- -------
Net Cash Used in Investing Activities (1,808) (1,691)
------- -------
Cash Flows From Financing Activities
Proceeds from public offering (ATM), net 63 1,705
Proceeds from public offering , net 4,684 -
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)
Proceeds from exercise of options - 4
Financing lease liabilities (35) (27)
Net Cash Provided by Financing
Activities 12,042 1,682
------- -------
Net Decrease in Cash and cash equivalents (1,011) (4,694)
Cash and cash equivalents - beginning of
period 4,849 12,713
------- -------
Cash and cash equivalents - end of period $ 3,838 $ 8,019
======= =======
Supplemental Disclosures of Cash Flow
Information:
Cash paid for income taxes 4 -
Cash paid for interest $ 4 $ 4,782
======= =======
Supplemental Non-Cash Items
Purchases of property and equipment, not
yet paid $ 16 $ 2,460
======= =======
Recognition of right of use asset
obtained in exchange for operating
lease liability $ 642 $ 18,653
======= =======
Recognition of leasehold improvements
obtained in exchange for operating
lease liability $ - $ 4,683
======= =======
Conversion of preferred stock to common
stock $ 7,330 $ -
======= =======
Recognition of warrant liability -
Investor Warrants $ 696 $ 6,381
======= =======
Settlement of accrued liability for
employee stock purchase plan $ 73 $ 112
======= =======
Reclassification of assets held for sale
to machinery and equipment $ 644 $ -
======= =======
Dragonfly Energy Holdings Corp.
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
(U.S. Dollars in Thousands)
Three Months Ended
------------------------
Sep 30, Sep 30,
2025 2024
------------ ----------
EBITDA Calculation
Net (Loss) Before Taxes $ (11,070) $(6,779)
Interest Expense 6,409 5,615
Depreciation and Amortization 460 327
------- ------
EBITDA $ (4,201) $ (837)
Adjustments to EBITDA
Stock - Based Compensation 168 256
Separation Agreement Expense 35 -
Lease and Fixed Asset Impairment 611 -
Preferred Stock Financing expenses 13 -
Debt Restructure Expense 354 -
Change in fair market value of warrant
liability 883 (4,875)
------- ------
Adjusted EBITDA $ (2,137) $(5,456)
Investor Relations:
Eric Prouty
Szymon Serowiecki
AdvisIRy Partners
DragonflyIR@advisiry.com
(END) Dow Jones Newswires
November 14, 2025 16:05 ET (21:05 GMT)
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