Dragonfly Energy cuts expenses by $8.9M, reports 16% revenue growth

Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) implemented cost-reduction measures expected to generate $8.9 million in annual savings while reporting full-year 2025 revenue growth of 16% to $58.6 million, the company announced March 16.

The battery technology company's strategic realignment includes a 20% reduction in cash compensation for executives and board members beginning April 1, 2026, with equity-based incentives replacing lost cash compensation. The company also implemented a 20% reduction in total payroll expense through workforce adjustments and salary cuts, facility consolidation worth $4 million in expense reduction, and decreased discretionary spending focused on direct-to-consumer marketing.

Fourth-quarter net sales increased 6.9% to $13.1 million compared to $12.2 million in the prior year period. OEM sales drove growth with a 30.1% increase to $8.1 million, while direct-to-consumer sales declined 18% to $4.7 million. For the full year, OEM sales jumped 33.8% to $36.9 million, offsetting an 8.5% decline in DTC sales to $20.7 million.

The company reported a fourth-quarter net loss of $45.0 million, or $14.92 per diluted share, compared to a net loss of $9.8 million or $13.89 per share in the prior year. Full-year net loss widened to $69.9 million from $40.6 million. Adjusted EBITDA was negative $3.8 million for the quarter and negative $11.8 million for the year.

Gross margin for the quarter was 18.2%, down from 20.8% due to inventory adjustments and lower volumes. Full-year gross margin expanded to 26.7% from 23% in 2024, reflecting higher sales volumes.

For the first quarter of 2026, Dragonfly Energy expects revenue of approximately $9.5 million and an adjusted EBITDA loss of $4.6 million. The company targets positive adjusted EBITDA at a $70 million annual revenue run rate.

Chief Executive Officer Dr. Denis Phares said the cost realignment positions the company to operate more efficiently while focusing on commercial markets where it sees strongest long-term demand, including OEM, trucking and industrial channels.

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