Sign in

You're signed outSign in or to get full access.

DE

Dragonfly Energy Holdings Corp. (DFLI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered modest top-line growth and margin expansion: revenue $13.36M (+6.8% YoY), gross margin 29.4% (+500 bps YoY), and adjusted EBITDA $(3.65)M (vs. $(5.25)M YoY), driven by 10.8% OEM growth offset by softer DTC demand .
  • Results were above pre-announced guidance and ahead of S&P Global consensus on revenue ($13.36M vs. $13.26M*) and EPS (GAAP diluted $(0.93) vs. Primary EPS consensus $(1.44)*); adjusted EBITDA also came in better than the prior $(3.8)M guide .
  • Q2 2025 outlook: net sales ≈$14.8M and adjusted EBITDA ≈$(3.5)M; management continues to emphasize tariff mitigation, OEM-led growth, and operational efficiencies following debt restructuring and a preferred equity raise earlier in 2025 .
  • Potential stock catalysts: continued OEM penetration, early traction of the DualFlow power pack in heavy-duty trucking, sustained gross margin improvement, and progress toward the stated objective of positive adjusted EBITDA by Q4 2025 (articulated in March) .

What Went Well and What Went Wrong

What Went Well

  • OEM channel strength: OEM net sales rose 10.8% YoY to $8.09M, supporting overall revenue growth despite RV market headwinds .
  • Margin expansion and operational progress: gross margin improved to 29.4% (+500 bps YoY) as management highlighted manufacturing optimization that increased capacity without incremental headcount .
  • Strengthened financial footing and focus: following debt restructuring and a preferred equity raise, management reiterated focus on near-term revenue opportunities and path to profitability; “we do feel that we have the cash to get us back to profitability at the end of the year” .

What Went Wrong

  • DTC softness: DTC net sales declined 3.6% YoY to $5.02M on macro pressure; overall net sales mix remained more OEM-weighted, tempering margin leverage vs. a DTC-led mix .
  • Higher OpEx: operating expenses increased to $9.84M (vs. $8.89M YoY) on one-time items (patent litigation and February capital raise) .
  • Tariff and investment drag on near-term EBITDA: management guided Q2 adjusted EBITDA loss ≈$(3.5)M and noted sequential EBITDA improvement was muted by continued investment in near-term products and tariff impacts .

Financial Results

Trend vs. Prior Quarters (actuals)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($M)$12.70 $12.21 $13.36
Diluted EPS ($)$(0.11) $(1.39) $(0.93)
Gross Margin (%)22.5% 20.8% 29.4%
Adjusted EBITDA ($M)$(5.50) $(2.35) $(3.65)

Segment Net Sales by Customer Type (mix and trend)

Segment ($M)Q3 2024Q4 2024Q1 2025
OEM$7.40 $6.24 $8.09
DTC$5.20 $5.73 $5.02
Licensing—$0.25 $0.25
Total$12.70 $12.21 $13.36

Q1 2025 Actuals vs. S&P Global Consensus

MetricActualConsensusBeat/Miss
Revenue ($M)$13.36 $13.26*Beat*
GAAP Diluted EPS ($) vs. Primary EPS Consensus$(0.93) $(1.44)*Beat*

Values marked with * retrieved from S&P Global.

Additional Q1 2025 KPIs and Balance Sheet Items

KPIQ1 2025
Gross Profit ($M)$3.93
Operating Expenses ($M)$9.84
Operating Loss ($M)$(5.91)
Net Loss ($M)$(6.80)
Adjusted EBITDA ($M)$(3.65)
Cash & Equivalents ($M)$2.80
Inventory ($M)$21.73
Notes Payable (net, long-term) ($M)$33.62
Warrant Liabilities ($M)$2.01

Non-GAAP reconciliation highlights for Q1 2025 adjusted EBITDA include stock-based comp ($0.22M), preferred stock financing expenses ($0.63M), litigation/settlement ($0.54M), reverse split ($0.02M), and change in fair value of warrant liability (benefit of $3.82M) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Net SalesQ1 2025≈$13.3M (guided on 3/24) Actual $13.36M (delivered) Beat prior guide
Adjusted EBITDAQ1 2025≈$(3.8)M (guided on 3/24) Actual $(3.65)M Better than guide
Net SalesQ2 2025—≈$14.8M (new) New
Adjusted EBITDAQ2 2025—≈$(3.5)M (new) New
Adjusted EBITDAQ4 2025Target positive (stated 3/24) No explicit update in Q1 materialsNot reiterated in Q1 docs

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 = Q3’24; Q-1 = Q4’24)Current Period (Q1’25)Trend
OEM strength vs. DTC softnessQ3’24: OEM up to $7.4M; DTC weak . Q4’24: OEM +61% YoY; DTC down; mix weighed on GM .OEM +10.8% YoY to $8.1M; DTC −3.6% YoY .OEM-led growth continuing; DTC still soft.
Heavy-duty trucking expansionQ3’24: first meaningful trucking revenue; pilots converting . Q4’24: partners moving to commercial rollouts; significant 2025 contribution expected .DualFlow power pack gaining traction; ROI <1 year cited; increased fleet engagement .Building momentum; early commercial traction.
Tariffs & domestic manufacturingQ3’24: domestic positioning amid tariffs . Q4’24: tariff impact baked into outlook, relatively lower vs peers .Onshoring select components, final assembly in NV; tariff mitigation via suppliers and pricing; EBITDA outlook includes tariff effects .Active mitigation; manageable impact so far.
Dry electrode & solid-state R&DQ3’24: pursuing dry electrode; Canada subsidiary financing under evaluation . Q4’24: pivot to supplying electrodes; refocus on near-term revenue .Progress ongoing but deprioritized vs. near-term profitability; commercial interest exists .Longer-dated; near-term focus is revenue.
Corporate optimizationQ4’24: program launched; Province engaged; OpEx discipline .Capacity gains without headcount; prioritizing near-term revenue products .Executing; supporting margins and throughput.
Balance sheet/financingQ4’24: debt restructured; preferred raise; maturities extended .“Cash to get us back to profitability at year-end” after preferred funding tranches .Improved flexibility; runway reinforced.

Management Commentary

  • “We were pleased to report revenue growth of 6.8% in the first quarter, exceeding our guidance and representing our second consecutive quarter of year-over-year revenue growth… OEM customers [up 10.8%]…” .
  • “We have increased the use of automation on our product lines… [and] increased our production capacity without the need for any additional head count” .
  • On tariffs: “Our growing U.S.-based production capabilities… and onshoring of select components will help strengthen our competitive position… [we’re] negotiating favorable terms with suppliers and working with key customers regarding potential price adjustments” .
  • On liquidity and profitability: “We did just complete the preferred equity deal… we do feel that we have the cash to get us back to profitability at the end of the year” .
  • Heavy-duty trucking: the DualFlow power pack offers “ROI typically under one year” and is gaining traction among fleets seeking idle-reduction benefits without full APU electrification .

Q&A Highlights

  • Dry electrode commercialization: development continues with commercial interest, but resources prioritized to near-term revenue and profitability; electrode scale-up underway, longer-term solid-state remains a goal .
  • Liquidity and profitability path: preferred equity came in two tranches (Q1 and Q2); management believes cash is sufficient to reach year-end profitability; AP was paid down exiting Q1 .
  • Q2 adjusted EBITDA guide: lack of sequential improvement reflects continued near-term product investment and tariff-related uncertainty already incorporated in outlook .

Estimates Context

  • Q1 2025 vs S&P Global consensus: revenue $13.36M vs. $13.26M* (beat), GAAP diluted EPS $(0.93) vs. Primary EPS consensus $(1.44)* (beat). Very small coverage universe (only 1 EPS and 1 revenue estimate in Q1), reducing statistical confidence .
  • Forward look: Q2 2025 consensus revenue $14.68M* and Primary EPS $(0.95)* vs. company guidance of ≈$14.8M revenue and ≈$(3.5)M adjusted EBITDA — suggests sell-side was close on revenue, while EBITDA remains under company’s non-GAAP framework .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • OEM-led growth and two consecutive YoY revenue increases, alongside 500 bps GM expansion, indicate the optimization program is translating to better mix and execution despite DTC softness .
  • Q1 revenue and EPS topped S&P consensus and beat prior company guidance; Q2 guide implies double-digit YoY growth, with tariffs already reflected in outlook .
  • Heavy-duty trucking opportunity is gaining commercial traction (DualFlow ROI <1 year), a potential incremental growth driver independent of RV cyclicality .
  • Balance sheet flexibility improved post-debt restructuring and preferred raise; management asserts cash runway to profitability by year-end, a key milestone for sentiment re-rating .
  • Watch for continued gross margin durability near ~30% as mix, scale, and manufacturing efficiency improve; sustained margin strength would be a meaningful lever for EBITDA trajectory .
  • Near-term risks: DTC demand remains macro-sensitive; tariff path remains fluid; OpEx can fluctuate with litigation/financing items and accelerated product launches .
  • Setup into Q2/Q3: execution against OEM backlog and trucking pilots rolling to commercial deployments are likely the biggest narrative movers, alongside progress toward Q4 adjusted EBITDA positivity .