Press Release: Dragonfly Energy Announces Significant Corporate Actions and Reports Fourth Quarter and Full Year 2025 Preliminary Results

Dow Jones03-17

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 $70 Million Annual Revenue Run Rate

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. 

RENO, Nev., March 16, 2026 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) ("Dragonfly Energy" or the "Company"), an industry leader in energy storage and battery technology and maker of Battle Born Batteries$(R)$ , today announced significant corporate actions and reported financial and operational results for the fourth quarter and full year ended December 31, 2025.

"The fourth quarter capped a year of meaningful progress for Dragonfly Energy," commented Dr. Denis Phares, Chief Executive Officer. "In 2025, we strengthened our balance sheet through decisive capital actions, expanded key RV and heavy-duty trucking partnerships, and delivered solid year-over-year revenue growth despite continued market headwinds. We also advanced strategic initiatives across product development and manufacturing, which we believe support the continued adoption of our solutions and position the Company for long-term growth."

"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 Dr. Phares. "We believe these steps position Dragonfly Energy to operate more efficiently while aligning the organization with the areas where we are seeing the strongest long-term demand."

"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 March 2026, Dragonfly Energy implemented a strategic cost realignment designed to reduce operating expenses, better align incentives with shareholders and sharpen the Company's focus on its commercial channels, including OEM, trucking, and industrial end markets. The Company expects the initiative to generate approximately $8.9 million in annualized savings. Key elements of the initiative include:

   -- 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)

 
                        Net Sales by Customer Type 
                              (in thousands) 
 
                             Fiscal Quarter Ended 
                    -------------------------------------- 
                     December 31, 2025   December 31, 2024   Change (YoY) 
------------------  -------------------  -----------------  -------------- 
OEM                       $8,114              $6,236              30.1% 
DTC                       $4,695              $5,725             -18.0% 
Licensing Fee              $250                $250                  0% 
Net Sales                 $13,059             $12,212              6.9% 
 
 

Net sales increased 6.9% to $13.1 million. OEM net sales grew 30.1% to $8.1 million, led by continued strong adoption of our products at the factory level. DTC net sales were $4.7 million compared to $5.7 million, reflecting ongoing macroeconomic pressures and lessening corporate focus on DTC sales.

Gross profit was $2.4 million, with a gross margin of 18.2%, compared to gross profit of $2.5 million and gross margin of 20.8%. The year-over-year declines were due to a year-end inventory adjustment and lower volumes. Operating Expenses were $12.6 million, compared to $9.7 million. The increase was primarily related to one-time expenses associated with the debt restructure, as well as loss on lease impairment and settlements.

The Company reported a Net Loss of $(45.0) million, or $(14.92) per diluted share, compared to Net Loss of $(9.8) million or $(13.89) per diluted share. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of our warrants, and other one-time expenses, was $(3.8) million, compared to $(2.3) million. Adjusted EBITDA was impacted by a year-end inventory valuation adjustment.

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.

Full Year 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 Year Ended 
                  ------------------------------------ 
                  December 31, 2025  December 31, 2024   Change (YoY) 
----------------  -----------------  -----------------  -------------- 
OEM                    $36,934            $27,612            33.8% 
DTC                    $20,696            $22,616            -8.5% 
Licensing              $1,000              $417             139.8% 
Net Sales              $58,630            $50,645            15.8% 
 
 

Net Sales increased 15.8% to $58.6 million. OEM net sales increased 33.8%, led by increased product adoption and new customer acquisitions. DTC net sales declined to $20.7 million, from $22.6 million, reflecting continued softness in the RV market due to continued macroeconomic pressures.

Gross Profit increased 34.6% to $15.6 million and gross margin expanded 370 basis points to 26.7%, reflecting higher sales volumes. Operating Expenses were $(38.8) million, compared to $(37.4) million.

The Company reported a Net Loss of $(69.9) million, or $(14.80) per diluted share, compared to a Net Loss of $(40.6) million or $(59.15) per diluted share. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of the Company's warrants, and other one-time expenses, was negative $(11.8) million, compared to negative $(18.5) million.

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 December 31, 2025 and the preparation of the Company's Annual Report on Form 10-K for the three months and fiscal year ended December 31, 2025. The preliminary financial results included in this press release have been prepared by, and are the responsibility of, the Company's management. During the course of the preparation of the Company's financial statements and related notes as of and for the three months and full year ended December 31, 2025, the Company may identify items that would require it to make material adjustments to the preliminary financial results presented herein. As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information. This preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP and reviewed by the Company's independent registered public accounting firm.

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 Dragonfly Energy is positioned to achieve profitability and deliver long-term value for shareholders."

"For the first quarter of 2026, we anticipate revenue of $9.5 million and adjusted EBITDA loss of $4.6 million. First quarter results are expected to reflect softer than anticipated conditions in the RV market, particularly in January, along with a slower-than-expected ramp in the trucking segment. Activity has shown signs of stabilizing, and we expect operating leverage to improve as the year progresses," concluded Dr. Phares.

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 Dragonfly Energy management team will host a conference call to discuss its fourth quarter and full year 2025 financial and operational this afternoon, March 16, 2026 at 4:30 PM 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: 41799. 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 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 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.

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

 
               Dragonfly Energy Holdings Corp. 
       Unaudited Condensed Consolidated Balance Sheets 
    (U.S. Dollars in thousands, except share and per share 
                             data) 
 
                                       As of 
                       December 31, 2025    December 31, 2024 
                      -------------------  ------------------- 
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 $0.0001 
 par value, 
 authorized, 
 no shares issued 
 and outstanding as 
 of December 31, 
 2025 and 
 2024, respectively                    -                    - 
 Preferred stock - 
 Series B, 25,000 
 shares at $0.0001 
 par value, 
 authorized, 
 and no shares 
  issued and 
  outstanding as of 
  December 31, 2025 
  and                             22,256                    - 
 2024 respectively 
Stockholders' 
Equity (Deficit) 
 Preferred stock, 
 4,995,000 shares 
 at $0.0001 par 
 value, authorized, 
 no shares issued 
 and outstanding as 
 of December 31, 
 2025 and December 
 31, 2024, 
 respectively                          -                    - 
 
 Common stock, 
 400,000,000 shares 
 at $0.0001 par 
 value, authorized, 
 12,078,713 and 
 723,265 shares 
 issued and 
 outstanding as of 
 December 31, 2025 
 and 2024, 
 respectively                          -                    - 
                                       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 
                          ==============       ============== 
 
 
 
                  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           Year Ended 
                    ----------------------  ------------------------ 
                     December    December    December     December 
                        31,         31,         31,          31, 
                       2025        2024        2025        2024 
 
Net Sales           $   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 
                     =========    =======    =========    ======= 
 
 
                Dragonfly Energy Holdings Corp. 
       Unaudited Condensed Consolidated Statement of Cash 
                              Flows 
                      Twelve Months Ended 
                      (U.S. in thousands) 
                                            2025       2024 
Cash flows from Operating Activities 
Net Loss                                  $(69,939)  $(40,615) 
                                           -------    ------- 
Adjustments to Reconcile Net Loss to 
Net Cash 
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 
                                           -------    ------- 
Net Cash Used in Operating Activities      (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) 
                                           -------    ------- 
       Net Cash Used in Investing 
        Activities                          (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 
                                           -------    ------- 
 
Net Decrease in Cash and cash 
 equivalents                                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 
                                           =======    ======= 
 
 
                    Dragonfly Energy Holdings Corp. 
        Reconciliation of GAAP to Non-GAAP Measures (Unaudited) 
                      (U.S. Dollars in Thousands) 
                            Three Months Ended         Year Ended 
                            -------------------  ---------------------- 
                            December   December  December    December 
                               31,       31,        31,         31, 
                              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:

Eric Prouty

Szymon Serowiecki

AdvisIRy Partners

DragonflyIR@advisiry.com

(END) Dow Jones Newswires

March 16, 2026 16:15 ET (20:15 GMT)

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