Dragonfly Energy Holdings Corp. reported a fourth‑quarter 2025 net loss of $45.0 million, or $14.92 per diluted share, on revenue of $13.1 million. OEM sales drove the quarter, rising 30.1% to $8.1 million, while direct‑to‑consumer sales fell 17.4% to $4.7 million. Gross profit of $2.4 million gave a margin of 18.2%, down from 20.8% year‑over‑year, largely due to a year‑end inventory adjustment and lower volumes. Operating expenses climbed to $12.6 million, reflecting one‑time charges from debt restructuring, lease impairment, and settlements.
The full‑year 2025 results showed net sales of $58.6 million, a 15.8% increase, with OEM revenue up 33.8% and DTC revenue declining to $20.7 million from $22.6 million. Gross profit rose 34.6% to $15.6 million, expanding the margin to 26.7%—370 basis points higher than the prior year. Operating expenses totaled $38.8 million, and the company posted a net loss of $69.9 million, or $14.80 per diluted share. Adjusted EBITDA for the year was negative $11.8 million, a reduction from the prior year’s $18.5 million loss.
Dragonfly completed a debt restructuring in November 2025 that involved a substantial prepayment, conversion of debt into preferred stock, and principal forgiveness, improving liquidity and simplifying the balance sheet. The company also launched a cost‑realignment program that is expected to deliver $8.9 million in annualized savings, including executive and employee salary cuts, workforce reductions, and facility consolidation. Management emphasized a strategic pivot away from the direct‑to‑consumer market toward OEM, trucking, and industrial channels, citing stronger long‑term demand in those segments. A notable commercial win was a large order from Werner Enterprises for the Battle Born DualFlow Power Pack, validating the company’s technology in the trucking sector.
CEO Dr. Denis Phares said, “The fourth quarter capped a year of meaningful progress for Dragonfly Energy. 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.” He added that the company “expects operating leverage to improve as the year progresses” and that “we anticipate revenue of $9.5 million and an adjusted EBITDA loss of $4.6 million for the first quarter of 2026.”
Analysts had expected a Q4 2025 EPS of a loss of $0.60; the reported loss of $4.57 per share missed consensus by 471%. Revenue beat the consensus estimate of $12.94 million, with the quarter’s $13.06 million in sales exceeding expectations. For Q1 2026, analysts projected revenue of $15.03 million, so the guidance of $9.5 million represents a significant downward revision.
The results highlight a company in transition: revenue growth is driven by OEM expansion, but the DTC segment continues to contract, reflecting macro‑economic pressure on the recreational‑vehicle market. Gross margin compression in Q4 was driven by inventory adjustments and lower volumes, while the full‑year margin improvement signals better scale and pricing power. The debt restructuring and cost‑realignment initiatives are expected to reduce cash burn and improve operating leverage, positioning Dragonfly to move toward positive adjusted EBITDA as the commercial business matures. Headwinds remain in the DTC market and in the early ramp of the trucking segment, but the company’s focus on high‑margin OEM and industrial opportunities provides a tailwind for long‑term profitability.
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