Dragonfly Energy (DFLI) Q4 2025 earnings summary

Executive summary

• Net sales for 2025 increased 16% to $58.6 million, driven by 34% growth in OEM channel revenue and new commercial wins in trucking, rail, and marine.

• Strategic cost realignment in March 2026 targets $8.9 million in annualized savings, including executive and workforce compensation reductions and a shift in focus toward OEM, trucking, and industrial markets.

• Significant commercial progress in heavy-duty trucking, with Werner Enterprises placing the first major order for the Battle Born DualFlow Power Pack.

• Expanded presence in adjacent markets such as industrial, marine, and rail, and advanced the intellectual property portfolio to nearly 90 patents.

• Net loss for 2025 was $69.9 million, with adjusted EBITDA at negative $11.8 million, both improving from the prior year.

Financial highlights

• Q4 2025 net sales grew 6.9% to $13.1 million, with OEM revenue up 30% year-over-year; DTC revenue declined to $4.7 million.

• Q4 gross profit was $2.4 million (18.2% margin), down from $2.5 million (20.8% margin) year-over-year.

• Operating expenses for 2025 were $38.8 million, up slightly from $37.4 million in 2024, mainly due to one-time restructuring and impairment costs.

• Adjusted EBITDA loss improved to $11.8 million from $18.5 million in 2024, reflecting better operational efficiency.

• Cash and cash equivalents at year-end 2025 were $18.3 million, up from $4.8 million at the end of 2024.

Outlook and guidance

• Q1 2026 revenue expected to be $9.5 million, with adjusted EBITDA loss of $4.6 million.

• Anticipates improved operating leverage and path to positive adjusted EBITDA as annual revenue approaches $70 million.

• Expects second half of 2026 to benefit from pent-up demand in heavy-duty trucking and expanded OEM partnerships.