Dragonfly Energy (DFLI) Q4 2024 earnings summary

Executive summary

• Debt restructuring and preferred stock offering improved financial flexibility, reclassified debt as long-term, and extended maturity to October 2027.

• Launched a corporate optimization program to streamline costs and shift focus from long-term R&D to near-term revenue, especially in RV, trucking, and industrials.

• Promoted Dr. Vik Singh to COO to drive operational efficiency and lead the optimization program.

• Q4 2024 net sales grew 17% year-over-year to $12.2 million, led by 61% OEM sales growth; full-year net sales declined 21% to $50.6 million due to DTC weakness.

• Net loss was $9.8 million for Q4 and $40.6 million for the year; adjusted EBITDA was negative $2.3 million for Q4 and negative $18.5 million for the year.

Financial highlights

• Q4 net sales increased 17% year-over-year to $12.2 million, with OEM sales up 61% to $6.2 million and DTC sales down to $5.7 million.

• Gross profit rose 12.5% to $2.5 million; Q4 gross margin was 20.8% (down from 21.6%).

• Q4 operating expenses increased to $6.3 million due to higher G&A, R&D, facility consolidation, and one-time patent litigation and reverse stock split costs.

• Net loss was $9.8 million (diluted loss per share $1.39) for Q4; full-year net loss per share was $(5.91).

• Cash and cash equivalents at year-end were $4.8 million, down from $12.7 million a year prior.

Outlook and guidance

• Q1 2025 net sales expected at $13.3 million; adjusted EBITDA expected at negative $3.8 million.

• Targeting positive adjusted EBITDA for the entire fourth quarter of 2025, driven by revenue growth and optimization efforts.

• Full-year guidance assumes continued momentum in trucking and industrials, and a rebound in RV market demand.