Dragonfly Energy (NASDAQ:DFLI) reported second-quarter net sales in line with its guidance and said adjusted EBITDA improved sequentially as earlier cost-reduction actions flowed through the business. The company also highlighted its first meaningful revenue contribution from heavy-duty trucking and outlined plans to expand through its acquisition of Dakota Lithium’s assets.
President and Chief Executive Officer Denis Phares said second-quarter adjusted EBITDA improved by $3 million from the first quarter, while trucking revenue began to translate years of pilot programs and product validation into financial results.
Second-Quarter Results and Third-Quarter Outlook
Dragonfly reported preliminary second-quarter net sales of $13.2 million, including $8.4 million in OEM sales and $4.5 million in direct-to-consumer sales. Management said OEM adoption trends remained healthy, though the RV market continued to weigh on results.
Gross profit was $4.3 million, and gross margin expanded 470 basis points year over year to 33.0%. The gross-margin result included a $1.1 million benefit from tariff refund payments recognized in cost of sales.
- Operating expenses totaled $7.2 million, down from $7.9 million.
- Net loss attributable to common shareholders was $5.5 million, or $0.43 per diluted share, compared with a loss of $7.0 million, or $5.77 per share.
- Adjusted EBITDA was negative $1.6 million, improving $0.6 million from the prior year despite lower sales and improving $3.0 million sequentially.
Phares attributed the EBITDA improvement to cost-reduction actions and said the company expects to complete the principal remaining steps in its facility consolidation during the third quarter.
For the third quarter, Dragonfly expects net sales of approximately $13.5 million, with trucking growth offsetting continued weakness in RVs. The company expects adjusted EBITDA of approximately negative $2.4 million.
Management said the expected sequential EBITDA decline reflects timing factors rather than a change in the business’s underlying trajectory. Those factors include expenses associated with vacated space being marketed for sublease and incremental operating costs to restore Dakota Lithium’s commercial operations before the acquired business begins generating more substantial revenue.
Trucking Revenue Begins to Scale
Chief Commercial Officer Wade Seaburg said heavy-duty trucking generated approximately $500,000 in second-quarter revenue. Based on orders in hand, the company expects trucking revenue to more than double to approximately $1.3 million in the third quarter and continue rising sequentially in the fourth quarter and beyond.
Dragonfly began shipping against a purchase order from Stevens Transport during the quarter. The shipments include its Battle Born DualFlow Power Pack, all-electric auxiliary power unit and inverter. Seaburg said the order represents the first phase of Stevens Transport’s plan to move its fleet of 2,500 trucks onto Dragonfly’s products.
The company is also working with Werner Enterprises on implementation of an initial production order and sees potential for broader adoption in coming quarters, Seaburg said. Additional pilot programs are underway during the summer, and successful results could lead to expanded deployments beginning in the fourth quarter and continuing into 2027.
Seaburg said the trucking environment has improved as fleet conditions stabilize following an extended freight recession. He also cited elevated diesel prices and the coming 2027 engine transition as factors strengthening the economic case for the company’s systems, which are designed to reduce idling, fuel consumption, maintenance needs and driver comfort challenges.
Asked about the potential scale of the trucking opportunity in 2027 and 2028, Seaburg said it was difficult to put a number on the opportunity because fleet pilots and broader rollouts can progress at different speeds. He said the company is engaging with some of the largest public and private for-hire and private fleets.
Dakota Lithium Acquisition and Liquidity Amendments
Dragonfly acquired Dakota Lithium’s assets for $4 million, consisting of $1 million in cash and $3 million in Dragonfly common stock issued at $2 per share and subject to a 12-month lockup.
Phares said Dakota Lithium brings an established brand, customer base, distributor network and product offerings spanning marine, outdoor recreation, powersports, golf cart and other specialty markets. Dakota generated approximately $12 million in net revenue during 2025, although working-capital and inventory constraints reduced its performance from prior-year levels, according to Dragonfly.
Management said it plans to use Dragonfly’s existing commercial, fulfillment, operational and customer-support infrastructure to restore product availability and grow Dakota Lithium with limited incremental operating expense. Phares described the acquired business as a complementary sales channel with a broader product mix and access to markets where Dragonfly has had less presence.
Dragonfly expects Dakota Lithium to begin making a meaningful revenue contribution and to be accretive to adjusted EBITDA in the fourth quarter. The company said the acquisition is included in its target of reaching positive adjusted EBITDA at an annualized net-sales run rate of approximately $70 million.
In connection with the transaction, Dragonfly amended its term loan agreement. Its lenders reduced the minimum cash covenant, allowed the company to pay the next two quarters of interest in kind, and deferred compliance with senior leverage and fixed-charge coverage ratio covenants until September 2027.
RV Market Remains Soft; Industrial Opportunities Emerge
The RV market remained challenging during the second quarter. Seaburg said RVIA-reported shipments were down 14.2% through midyear, while management expects broader market softness to continue through the end of 2026 and into 2027 amid pressure on discretionary spending.
Still, Dragonfly said it is gaining inclusion across additional OEM model lineups and seeing higher energy-storage content in existing models. Seaburg said the company continues to see positive product take rates at the OEM level and more standardization options.
Management also pointed to potential industrial opportunities that are not included in current expectations. Seaburg identified intelligent transportation systems, including battery backup for traffic signals, as well as cellular and telecom applications within industrial solar, as areas showing early potential.
Separately, Dragonfly appointed Robert Keller as director of national fleet sales and added Dr. Lukas Lutz to its board in June. The company also said it received a Japanese patent allowance related to dry powder coating layers in electrochemical cells, adding to recent U.S. and European patent allowances for its dry electrode manufacturing approach.
About Dragonfly Energy (NASDAQ:DFLI)
Dragonfly Energy Corp. is a designer and manufacturer of lithium iron phosphate (LiFePO4) battery systems geared toward mobile, residential and commercial energy storage applications. The company develops modular battery packs and integrated power management solutions that focus on safety, long cycle life and compact form factors. Dragonfly’s core product lineup includes 12-volt and 24-volt battery modules, as well as multi-unit rack systems tailored for backup power, solar energy storage and off-grid installations.
Serving a broad range of end markets, Dragonfly Energy’s batteries are commonly deployed in recreational vehicles, marine vessels, overland expedition setups and residential solar arrays.
