Dragonfly Energy Reports Q2 2025 Financial Results with Improved Revenue and Reduced Losses

Dragonfly Energy Holdings Corp. reported its financial results for the second quarter of 2025, revealing a net loss of $7.0 million, a significant improvement from the $13.6 million loss recorded in the same period last year. The company's revenue for the quarter reached $16.2 million, up 23% from $13.2 million in Q2 2024, driven primarily by increased sales to original equipment manufacturers (OEMs) and the introduction of licensing revenue from a partnership with Stryten Energy LLC. For the first half of 2025, Dragonfly's total revenue was $29.6 million, compared to $25.7 million in the prior year, reflecting a 15% increase.

The company's cost of goods sold (COGS) for the second quarter was $11.6 million, which represented a 16% increase from $10.0 million in Q2 2024. This rise in COGS was attributed to higher unit volumes, although it was partially offset by lower material costs from consuming previously purchased inventory. Gross profit for the quarter improved to $4.6 million, or 28.3% of net sales, compared to $3.2 million, or 24% of net sales, in the prior year. Operating expenses also decreased to $7.9 million from $9.9 million, primarily due to reduced research and development costs and lower general and administrative expenses.

In terms of strategic developments, Dragonfly has been focusing on expanding its product offerings and market reach. The company launched the Battle Born DualFlow Power Pack, targeting the trucking industry, and has been working on solid-state battery technology. As of June 30, 2025, Dragonfly had cash and cash equivalents of $2.7 million, down from $4.8 million at the end of 2024, and a working capital of $8.4 million. The company has also been actively managing its debt, having entered into several amendments to its term loan agreement, which included deferring principal and interest payments until April 2026.

Dragonfly's operational metrics indicate a slight recovery in the RV market, with sales of 12,134 batteries in Q2 2025 compared to 11,526 in Q2 2024. The company has also been diversifying its customer base, with OEM sales accounting for a larger share of total revenue. However, the direct-to-consumer segment has remained relatively flat, reflecting ongoing macroeconomic pressures. The company is also exploring new markets, including industrial and trucking sectors, to drive future growth.

Looking ahead, Dragonfly anticipates continued revenue growth as it expands its product lines and market penetration. However, the company has expressed concerns regarding its ability to maintain compliance with financial covenants under its term loan agreement, which could impact its operations. Management has indicated that additional capital may be necessary to support ongoing operations and strategic initiatives, and the company plans to pursue various financing options to ensure liquidity and operational stability.