Dragonfly Energy Holdings Corp. reported a net loss of $6.6 million for the first quarter of 2026, a slight improvement from the $6.8 million loss recorded in the same period of 2025. The company's net sales decreased by 27.3% to $9.7 million, down from $13.4 million year-over-year. This decline was primarily attributed to reduced sales from original equipment manufacturers (OEMs) and direct-to-consumer (DTC) channels, as customers adjusted inventory levels in response to a slower market recovery and macroeconomic pressures. The gross profit also fell significantly, decreasing by 56.5% to $1.7 million, with a gross profit margin of 17.6%, down from 29.4% in the prior year.
In terms of operational metrics, Dragonfly sold 5,783 batteries in the first quarter of 2026, compared to 10,845 batteries in the same quarter of 2025. The company continues to focus on expanding its market presence, particularly in the trucking and industrial sectors, with the recent launch of the Battle Born DualFlow Power Pack. Additionally, Dragonfly received a significant purchase order from Stevens Transport valued at over $3 million for approximately 500 trucks, marking a notable expansion in its heavy-duty trucking solutions.
The company has also made strategic moves to enhance its financial position, including a restructuring of its term loan agreement, which reduced total debt from $93.1 million to approximately $19.4 million. This restructuring included a principal paydown and the issuance of 25,000 shares of Series B Preferred Stock in exchange for outstanding debt. As of March 31, 2026, Dragonfly had cash and cash equivalents totaling $8.6 million, with a working capital of $23.4 million. The company anticipates needing to raise additional funds to support ongoing operations and strategic initiatives.
Looking ahead, Dragonfly Energy is optimistic about increasing sales as it expands its product offerings and customer base. The company is also focused on optimizing its operations and reducing costs, particularly in research and development and general administrative expenses. Management has expressed confidence in its ability to navigate current market challenges and achieve profitability, contingent on successful execution of its growth strategies and maintaining compliance with financial covenants associated with its debt.
About Dragonfly Energy Holdings Corp.
Dragonfly Energy Holdings Corp. manufactures non-toxic, environmentally friendly lithium-ion batteries primarily for consumer markets such as RVs, marine vessels, and off-grid energy storage, as well as industrial and trucking applications. The company leverages proprietary dry-electrode and solid-state battery technologies, offering long-lasting, safe, and high-performance power solutions. Its dual-brand strategy, strong OEM relationships, and in-house manufacturing support market disruption and sustainable energy transition globally.
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