Dragonfly Energy (DFLI) Q3 2025 Financial Results Summary
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 |