Dragonfly Energy Reports Q2 2026 Financial Results with $4.4M Net Loss

Dragonfly Energy Holdings Corp. reported its financial results for the second quarter of 2026, revealing a net loss of $4.4 million, a decrease from a net loss of $7.0 million in the same period last year. The company's revenue for the quarter was $13.2 million, down 19% from $16.2 million in the prior year, primarily due to lower sales to original equipment manufacturers (OEMs) and direct-to-consumer (DTC) channels. The decline in OEM sales was attributed to a slower-than-expected recovery in the recreational vehicle (RV) market, while DTC sales were impacted by macroeconomic pressures and negative online commentary regarding certain products.

In terms of operational metrics, Dragonfly sold 9,049 batteries in the second quarter of 2026, compared to 12,134 batteries in the same quarter of 2025. The company’s cost of goods sold decreased to $8.8 million from $11.6 million, reflecting lower unit volumes and a $1.1 million tariff refund recognized as a reduction in costs. Gross profit for the quarter was $4.3 million, resulting in a gross margin of 33%, an increase from 28.3% in the previous year, largely due to the tariff refund.

Strategically, Dragonfly has been focusing on expanding its product offerings and market reach. The company recently launched the Battle Born DualFlow Power Pack, targeting the trucking industry, and received a significant purchase order from Stevens Transport valued at over $3 million. Additionally, Dragonfly completed the acquisition of assets associated with the Dakota Lithium brand for $4 million, which is expected to enhance its product lineup and contribute to revenue growth in the fourth quarter of 2026.

As of June 30, 2026, Dragonfly had cash and cash equivalents of $6.3 million and a working capital of $19.9 million. The company has been actively managing its liquidity, having entered into an at-the-market equity offering program to raise up to $50 million. The recent Seventh Amendment to its Term Loan Agreement provides additional liquidity flexibility, allowing for interest payments to be made in kind through the end of 2026. Looking ahead, Dragonfly anticipates that its sales will increase as it expands into new markets and continues to grow its customer base, despite ongoing macroeconomic challenges.