Key Points
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Revenue (GAAP) surpassed estimates at $16.2 million in Q2 2025, reflecting a 23.0% increase from the prior year period.
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Net loss (GAAP) narrowed to $7.0 million, with EPS (GAAP) of $(0.58), beating projections of $(0.95).
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OEM (original equipment manufacturer) channel net sales soared 50.6% year-over-year on a GAAP basis
Dragonfly Energy (NASDAQ:DFLI), a Nevada-based energy storage technology company known for manufacturing lithium iron phosphate (LFP) batteries and integrated energy storage systems, released its results for the second quarter of fiscal 2025 on August 14, 2025. The highlight of the period was GAAP revenue of $16.2 million, beating the $14.7 million consensus by 10.3% (GAAP). The company also delivered a net loss per share (GAAP) of $(0.58), ahead of analyst expectations at $(0.95). Operational improvements led to higher gross margins and smaller year-over-year losses. Overall, the quarter showed meaningful progress in top-line growth, margin expansion, and the scaling of OEM partnerships, although net losses and consumer market softness persisted.
|
Metric |
Q2 2025 |
Q2 2025 Estimate |
Q2 2024 |
Y/Y Change |
|---|---|---|---|---|
|
EPS (GAAP) |
$(0.58) |
$(0.95) |
$(2.02) |
71.3 % |
|
Revenue (GAAP) |
$16.2 million |
$14.7 million |
$13.2 million |
23.0 % |
|
Gross Margin |
28.3 % |
24.0 % |
4.3 pp |
|
|
Adjusted EBITDA |
$(2.2 million) |
$(6.2 million) |
63.9 % |
|
|
Net Loss |
$(7.0 million) |
$(13.6 million) |
-48.5 % |
Source: Analyst estimates for the quarter provided by FactSet.
Understanding Dragonfly Energy’s Business and Strategic Focus
Dragonfly Energy develops and manufactures advanced lithium iron phosphate (LFP) battery packs and integrated energy storage systems. Its core offerings serve the recreational vehicle (RV), marine, heavy-duty trucking, and industrial markets. The company’s batteries and systems replace traditional lead-acid batteries, providing faster charging, longer life, and improved safety.
Recently, Dragonfly Energy has emphasized innovations such as non-flammable solid-state battery technology and its proprietary dry-electrode manufacturing process. These technologies aim to enhance safety, efficiency, and performance. Partnerships with OEMs and expansion into heavy-duty trucking and other markets are now central to its growth strategy. Its success depends on scaling these relationships, maintaining margin improvements, and further diversifying end markets.
Quarter in Review: Financial Performance and Operational Developments
Revenue (GAAP) increased by 23.0%. Net sales (GAAP) outpaced expectations and were driven by strong performance in OEM channels. Net sales in the OEM segment jumped 50.6%, reaching $10.1 million compared to $6.7 million a year earlier (GAAP). OEM partnerships, particularly in RVs and heavy-duty trucking, kept momentum high, with one key RV partner adopting Dragonfly’s integrated energy storage as standard for select 2026 models, indicating solid future revenue potential from this channel.
In contrast, direct-to-consumer (DTC) net sales declined by 9.0%, totaling $5.9 million versus $6.5 million in the prior year. Licensing revenue, which was new in Q2 2025 at $250,000 (GAAP), contributed to net sales.
The company’s gross margin (GAAP) expanded to 28.3%, improving by 4.3 percentage points from the previous year. This increase resulted from lower inventory costs and more efficient absorption of fixed costs as volumes rose. Operating expenses dropped 20.2% compared to Q2 2024, supported by reductions in research and development and general administrative expenses. Adjusted EBITDA (non-GAAP) improved from $(6.2) million to $(2.2) million. However, the company remains in a net loss position and continues to consume cash, with cash reserves dropping to $2.7 million as of June 30, 2025.
However, Dragonfly did record $7.33 million in net proceeds from a preferred stock offering in the first six months of 2025, supporting liquidity in the near term. The company’s exchange of its remaining preferred shares simplified its capital structure and removed future interest obligations, but the share count rose from 7.2 million to 37.4 million year to date, mostly due to equity financing and conversions.
Products and Market Position
The company’s key products include lithium iron phosphate (LFP) battery systems and drop-in replacement batteries for a variety of vehicle and stationary applications. Dragonfly also provides integrated storage solutions, targeting heavy-duty trucking and off-grid industrial clients. The Battle Born Batteries brand, also part of the product family, is widely recognized in the RV and marine sectors for its reliability and performance.
OEM partnerships played a critical role in the quarter. These relationships enabled Dragonfly to become a standard energy storage provider for select 2026 RV models and supported ongoing penetration into heavy-duty trucking markets. The licensing of proprietary technology began to contribute to revenue, representing an additional avenue for capitalizing on its extensive intellectual property.
Looking Ahead: Guidance and Watch Points
For Q3 2025, management guided to net sales of approximately $15.9 million, Adjusted EBITDA (non-GAAP) is expected to remain negative at around $(2.7) million, reflecting ongoing efforts to narrow losses but not reach profitability.
No specific updates were given on timelines for solid-state battery commercialization or significant new technology milestones. Investors should monitor the pace of OEM adoption, DTC recovery, and any breakthroughs on next-generation battery development in future quarters. The company remains focused on expanding its presence in trucking and growing licensing income. DFLI does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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