RENO – October 27, 2026 -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) narrowed its second-quarter Adjusted EBITDA loss to $1.6 million, a $3.0 million sequential improvement from the first quarter, as cost cuts took hold. Preliminary net sales of $13.2 million matched company guidance, and Adjusted EBITDA came in above it.
Cost cuts lift margins while sales fall
Gross profit was $4.3 million at a 33.0% gross margin, against $4.6 million and 28.3% in the comparison period. Lower battery and accessory unit volumes reduced gross profit, partly offset by a $1.1 million tariff refund booked in cost of sales. Operating expenses fell to $7.2 million from $7.9 million.
Net loss attributable to common shareholders was $5.5 million, or $0.43 per diluted share, versus $7.0 million, or $5.77 per share, in the comparison period. Adjusted EBITDA improved $0.6 million from a $2.2 million loss in the second quarter of 2025. CEO Denis Phares credited the “operating leverage inherent in our improved cost structure.”
OEM and direct-to-consumer sales decline in a weak RV market
OEM net sales were $8.4 million and direct-to-consumer (DTC) net sales were $4.5 million. OEM sales fell year over year while RV shipments were down 14.2% through midyear. The company said it still expanded model placements and power-system content with existing OEM partners.
DTC sales declined on weaker consumer demand and negative third-party online commentary about certain products, which the company says hurt customer sentiment. It has started legal proceedings over that commentary.
Stevens Transport deliveries start, with trucking revenue set to more than double in Q3
Deliveries under the Stevens Transport purchase order began during the quarter. Dragonfly expects heavy-duty trucking revenue to more than double sequentially in the third quarter as fleets expand beyond initial pilot programs. It expects further growth in the fourth quarter and beyond.
Dragonfly acquires Dakota Lithium assets after quarter-end
The acquired brand serves marine, outdoor recreation, powersports, golf cart and other specialty battery markets. Dragonfly expects Dakota to contribute meaningful revenue and be accretive to Adjusted EBITDA from the fourth quarter. The deal diversifies revenue beyond the core RV and trucking segments.
Lenders amended Dragonfly's debt terms in connection with the transaction. The amendments reduce the minimum cash covenant, convert the next two quarters of interest to paid-in-kind interest, and defer Senior Leverage Ratio and Fixed Charge Coverage Ratio requirements until September 2027. The company expects them to preserve about $1 million of near-term liquidity.
Q3 guidance calls for $13.5 million in sales and a $2.4 million EBITDA loss
Dragonfly guides third-quarter net sales to about $13.5 million and Adjusted EBITDA to about $(2.4) million. It attributes the wider loss to two timing factors: continued expense on vacated facility space being marketed for sublease, and costs to restore Dakota Lithium's commercial operations. It expects to complete the principal remaining facility-consolidation actions in the third quarter.
The company reaffirmed its target of Adjusted EBITDA profitability at an annualized net sales run rate of about $70 million. It cautioned that the second-quarter figures are preliminary and may change as the Form 10-Q is prepared.