Dragonfly Energy (DFLI) Q3 2025 Financial Results Summary

2025-11-15 · Stocks · QuoteReporter

Dragonfly Energy (DFLI) Q3 2025 Financial Results Summary

On November 14, 2025, Dragonfly Energy Holdings Corp. (“Dragonfly Energy” or the “Company”) released its financial results for the third quarter ended September 30, 2025. Below is a summary of the key financial highlights and operational metrics from the report.

Financial Highlights

Net Sales:
Total net sales were $16.0 million, an increase of 25.5% compared to $12.7 million a year ago.
OEM (Original Equipment Manufacturer) net sales rose to $10.7 million, reflecting a growth of 44.3% from $7.4 million in the same quarter last year.
DTC (Direct-to-Consumer) sales decreased to $5.0 million, down by 2.2% from $5.2 million a year earlier.
Licensing fee revenue increased by 49.7%, reaching $250,000 from $167,000.
Gross Margin:
The gross margin expanded by 710 basis points to 29.7%, compared to 22.6% in Q3 2024. This improvement was attributed to higher sales volumes and an advantageous product mix.
Net Loss:
The Company reported a net loss of $(11.1 million), compared to a net loss of $(6.8 million) in Q3 2024.
The net loss per diluted share was $(0.20) compared to $(0.98) in Q3 2024.
Adjusted EBITDA:
Adjusted EBITDA for the quarter stood at $(2.1 million), an improvement from $(5.5 million) a year earlier.
Operating Expenses:
Total operating expenses were $8.5 million, a decrease from $8.9 million in the prior year, mainly due to lower R&D costs.

Strategic Developments

The CEO, Dr. Denis Phares, indicated that recent public offerings raised approximately $90 million in gross proceeds, which facilitated a comprehensive debt restructuring, bolstering Dragonfly’s financial position.
Strong operational execution during Q3 contributed to continuous growth in net sales and gross margin improvement.
Partnerships with RV OEMs have strengthened, showing an increasing trend of integrating Dragonfly’s solutions into standard offerings, showcasing their value proposition.

Future Guidance

For Q4 2025, the Company projects net sales to be approximately $13.0 million, indicating an expected year-over-year growth of about 7%.
Adjusted EBITDA for the fourth quarter is anticipated to be approximately $(3.3 million).

Cash and Liabilities

Current Assets: Increased to $34.5 million from $32.9 million year-on-year.
Current Liabilities: Grew to $25.7 million, an increase from $21.9 million the previous year.
Total Liabilities were reported at $95.4 million, up from $84.6 million.

Dividend and Share Repurchase

There was no declaration of a quarterly dividend or any share repurchase announced during this quarter.

Summary

Overall, Dragonfly Energy demonstrated significant growth in both net sales and gross margin in Q3 2025, driven mainly by a 44% increase in OEM sales. While the net loss did increase year-over-year, the Company showed an improvement in adjusted EBITDA, signaling a positive trend in operational efficiency. The strategic steps taken towards debt reduction and capital raise position Dragonfly favorably for future growth initiatives as they continue to strengthen their market presence in the energy storage sector.

Unaudited Condensed Consolidated Statement of Operations (in thousands)

Three Months Ended	Sep 30, 2025	Sep 30, 2024
Net Sales	$15,967	$12,720
Cost of Goods Sold	11,231	9,850
Gross Profit	4,736	2,870
Operating Expenses
Research and development	585	1,631
General and administrative	5,299	4,361
Selling and marketing	2,630	2,904
Total Operating Expenses	8,514	8,896
Loss From Operations	(3,778)	(6,026)
Other Income (Expense)
Interest expense, net	(6,409)	(5,615)
Other Expense	–	(13)
Change in fair market value of warrant liability	(883)	4,875
Total Other Expense	(7,292)	(753)
Net Loss Before Taxes	(11,070)	(6,779)
Income Tax (Benefit) Expense	–	–
Net Loss	$(11,070)	$(6,779)
Net Loss Per Share- Basic & Diluted	$(0.20)	$(0.98)
Weighted Average Number of Shares- Basic & Diluted	56,156,184	6,925,395

Unaudited Condensed Consolidated Balance Sheets (in thousands)

	As of September 30, 2025	As of December 31, 2024
Current Assets
Cash and cash equivalents	$3,838	$4,849
Accounts receivable, net of allowance	$4,792	$2,416
Inventory	$22,718	$21,716
Prepaid expenses	$849	$806
Prepaid inventory	$1,237	$1,362
Prepaid income tax	$311	$307
Assets held for sale	–	$644
Other current assets	$764	$825
Total Current Assets	$34,509	$32,925
Property and Equipment
Property and Equipment, Net	$20,906	$22,107
Operating lease right of use asset, net	$17,977	$19,737
Other assets	$451	$445
Total	$73,843	$75,214
Current Liabilities
Accounts payable	$11,867	$10,716
Accrued payroll and other liabilities	$4,998	$4,129
Accrued tariffs	$1,591	$1,915
Accrued settlement, current portion	$2,125	$750
Customer deposits	$252	$317
Deferred revenue, current portion	$1,000	$1,000
Uncertain tax position liability	$55	$55
Notes payable, current portion	$877	–
Operating lease liability, current	$2,868	$2,926
Financing lease liability, current	$42	$47
Total Current Liabilities	$25,675	$21,855
Long-Term Liabilities
Deferred revenue, net of current part	$2,833	$3,583
Warrant liabilities	$1,205	$5,133
Accrued settlement, net of current	–	$1,750
Notes payable, non current	$44,546	$29,646
Operating lease liability, net	$21,128	$22,588
Financing lease liability, net	$33	$63
Total Long-Term Liabilities	$69,745	$62,763
Total Liabilities	$95,420	$84,618
Commitments and Contingencies	(See Note 5)
Redeemable Preferred stock
Preferred stock – Series A	5,000 shares at $0.0001 par value	–
Stockholders’ (Deficit)
Preferred stock
Common stock	$6	$1
Additional paid in capital	$85,472	$72,749
Accumulated deficit	$(107,055)	$(82,154)
Total Stockholders’ (Deficit)	$(21,577)	$(9,404)
Total	$73,843	$75,214