Dragonfly Energy Holdings Corp.

Dragonfly reported second-quarter preliminary net sales of $13.2 million, including $8.4 million of OEM net sales and $4.5 million of DTC net sales. Gross profit was $4.3 million and gross margin was 33.0%, up 470 basis points year over year, including a $1.1 million benefit from tariff refund payments in cost of sales. Operating expenses were $7.2 million, down from $7.9 million, and net loss attributable to common shareholders was $5.5 million, or $0.43 per diluted share, versus a net loss of $7.0 million, or $5.77 per share. Adjusted EBITDA was negative $1.6 million, improving $0.6 million year over year and $3.0 million sequentially. For Q3, the company expects net sales of approximately $13.5 million and adjusted EBITDA of approximately negative $2.4 million. Management said Dakota Lithium is expected to begin contributing meaningful revenue and be accretive to adjusted EBITDA in Q4, while heavy-duty trucking should continue growing sequentially.

Denis Phares framed the quarter as evidence that the company’s cost reset and market investments are beginning to work. He highlighted that trucking is now becoming a meaningful revenue stream after years of pilots, and he positioned the Dakota Lithium acquisition as a low-incremental-cost way to expand product breadth, customer reach, and operating leverage. His tone was constructive and confident, repeatedly tying the pieces together toward the company’s longer-term goal of positive adjusted EBITDA at an annualized revenue run rate of about $70 million.

No separate CFO spoke; Denis Phares covered the financial update. He said gross margin expanded to 33.0%, up 470 basis points year over year, with the improvement aided by a $1.1 million tariff refund benefit. He also noted operating expenses fell to $7.2 million from $7.9 million due to cost reduction actions, and that sequential adjusted EBITDA improved $3.0 million despite lower net sales. On liquidity, he said the lenders reduced the minimum cash covenant, allowed the next 2 quarters of interest to be paid in kind, and deferred certain leverage and fixed-charge covenant compliance until September 2027, which he said preserves near-term flexibility.

Analysts focused heavily on Dakota Lithium, asking how the acquisition affects the company’s financial model and the $70 million annualized revenue run rate. Management said that target does include Dakota’s revenue and costs, and described Dakota as a complementary sales channel with limited additional operating expense, mainly some payroll and marketing. Questions also pressed on the RV market, where management said softness remains and dealers/OEMs expect weakness to continue through the end of 2026 and into 2027, though OEM take rates for Dragonfly products remain positive. On trucking, management said the pipeline includes very large fleets in pilot or early discussion stages and that the opportunity could drive very significant growth in 2027, but they would not quantify it yet.