Sign in

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

DE

Dragonfly Energy Holdings Corp. (DFLI)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue grew 17% year over year to $12.21M, driven by 61% OEM growth, but missed both prior Q4 guidance ($13.5–$14.0M) and S&P Global consensus ($13.71M); gross margin compressed to 20.8% vs 21.6% last year due to mix and material costs . Q4 revenue consensus shown with an asterisk below (S&P Global).*
  • Net loss was $(9.84)M (–$1.39 EPS) versus +$3.31M (+$0.50) in Q4 2023, reflecting higher interest expense and lower margin mix; adjusted EBITDA was $(2.35)M vs $(1.83)M last year .
  • 2024 year revenue was $50.65M vs consensus $52.09M; 1Q25 guidance: net sales ≈$13.3M and adjusted EBITDA ≈$(3.8)M; management targets positive adjusted EBITDA in 4Q25, supported by a debt restructuring and a corporate optimization program . FY revenue consensus shown with an asterisk below (S&P Global).*
  • Potential catalysts: (1) debt restructuring (reclassifies debt long-term, extends maturity to 2027, eases covenants), (2) OEM momentum and trucking rollout, (3) renewed RV recontenting; risks include DTC softness, tariff/mix headwinds, prior Nasdaq listing notices addressed through a reverse split and compliance remediation in Q4 2024 .

What Went Well and What Went Wrong

  • What Went Well

    • OEM strength: Q4 OEM sales +61% YoY to $6.24M; overall net sales +17% YoY to $12.21M as RV OEM adoption and new customers offset DTC softness .
    • Strategic financing and cost actions: completed a significant debt restructuring and capital raise; launched a corporate optimization program to align costs and target Q4 2025 positive adjusted EBITDA .
    • New channels and end-markets: distribution partnerships (Keystone Automotive, NTP STAG, SeaWide, Meyer) and trucking wins (e.g., fleets moving to fleet-wide implementations) broaden revenue drivers .
    • Management quote: “We believe these actions greatly strengthen our near-term financial position… including achieving positive anticipated Adjusted EBITDA in the fourth quarter.” — CEO Denis Phares .

  • What Went Wrong

    • Missed guidance and estimates: Q4 revenue (12.21M) missed the prior Q4 guidance ($13.5–$14.0M) and S&P Global consensus ($13.71M); DTC declined 13% YoY amid macro pressure .*
    • Margin pressure: gross margin fell to 20.8% (from 21.6% YoY; 22.5% in Q3) due to higher material costs and mix shift to lower-margin OEM; adjusted EBITDA declined to $(2.35)M vs $(1.83)M last year .
    • One-time and structural costs: operating expenses rose to $6.31M (vs $5.35M), driven by patent litigation, reverse split costs, and move-in expenses for the new facility, depressing profitability .

Financial Results

MetricQ4 2023Q3 2024Q4 2024Q4 2024 Consensus
Revenue ($)$10.44M $12.72M $12.21M $13.71M*
Gross Margin %21.6% 22.5% 20.8% —
Net Income ($)$3.31M $(6.78)M $(9.84)M —
Diluted EPS ($)$0.50 $(0.11) $(1.39) $(1.32)*
Operating Expenses ($)$5.35M $8.90M $6.31M —
Adjusted EBITDA ($)$(1.83)M $(5.46)M $(2.35)M —

Segment net sales mix (trend)

Customer Type ($)Q4 2023Q3 2024Q4 2024
DTC$6.56M $5.15M $5.73M
OEM$3.88M $7.40M $6.24M
Licensing$0.00M $0.17M $0.25M
Total Net Sales$10.44M $12.72M $12.21M

KPIs and balance sheet markers

KPIJun 30, 2024Sep 30, 2024Dec 31, 2024
Cash & Equivalents ($)$4.70M $8.02M $4.85M
Inventory ($)$28.65M $24.01M $21.72M
Notes Payable – Current ($)$21.90M $24.40M $0.00M
Notes Payable – Non-Current ($)—$0.00M $29.65M
Gross Margin % (quarter)—22.5% 20.8%
Adjusted EBITDA ($, quarter)—$(5.46)M $(2.35)M

Note: Consensus values marked with an asterisk are from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/OutcomeChange
Net Sales ($)Q4 2024$13.5–$14.0M (Q3 call) $12.21M Actual Lower vs prior guidance
Gross Margin %Q4 202422%–25% (Q3 call) 20.8% Actual Lower vs prior guidance
Operating Expenses ($)Q4 2024$5.5–$6.5M (Q3 call) $6.31M Actual At high end
Net Sales ($)Q1 2025—≈$13.3M (guide) New
Adjusted EBITDA ($)Q1 2025—≈$(3.8)M (guide) New
Adjusted EBITDAQ4 2025—Target positive New

Earnings Call Themes & Trends

TopicQ2 2024 (prior)Q3 2024 (prior)Q4 2024 (current)Trend
Debt/liquidityHighlighted equity facility; preparing licensing cash from Stryten Covenant waivers; going-concern risks disclosed Debt restructuring; maturity to 2027; covenant relief except monthly liquidity; capital raise Improving flexibility
RV marketMacro kept DTC soft; expected H2 improvement OEM up; guide Q4 revenue lift; recontenting expected OEM +61% YoY; DTC –13% YoY; recontenting signs continue Mixed: OEM up, DTC soft
TruckingEarly pilots; targeting idle-reduction ROI First meaningful trucking revenue; larger 2025 opportunity Fleet wins moving to rollout; expect 2025 contributions Building momentum
Technology (dry electrode)Scaling design; gov’t funding discussions Canada subsidiary financing under evaluation Pivot to supplying electrode tapes to cell makers; focus resources on near-term revenue Pragmatic refocus
Tariffs/supply chainInventory drawdown; margin vigilance Margin impact from mix; 22.5% GM Tariff impact modeled; lower exposure vs peers, but managed via suppliers/customers Managed headwind
Corporate actions—Reverse split (1:9) approved/implemented in Nov 2024 Corporate optimization; COO promotion Cost discipline

Management Commentary

  • “Despite ongoing challenges in the RV market, our fourth-quarter net sales grew approximately 17%,… driven by increased adoption among OEM customers.” — CEO Denis Phares .
  • “We successfully negotiated a debt restructuring… eliminating covenants except a monthly liquidity requirement… and extending maturity to October 2027.” — Denis Phares (prepared remarks) .
  • “We expect the fourth quarter to be… adjusted EBITDA positive.” — Denis Phares (on 4Q25) .
  • “Feedback from customers… has consistently demonstrated substantial improvements in idle time… from the mid-30% range to low single digits.” — CCO Wade Seaburg (trucking) .

Q&A Highlights

  • Path to EBITDA positivity: Management expects full 4Q25 to be adjusted EBITDA positive and views the trucking/industrial pipeline and RV OEM growth as sufficient drivers; no contingency plan was articulated beyond the current pipeline .
  • Dry electrode strategy: Pivoting near-term from building large-format cells in-house to supplying electrode tapes to customers who can produce cells, freeing resources for revenue-driving initiatives .
  • Tariff impact: Tariffs are baked into outlook; company’s percentage exposure is lower than peers due to labor/overhead and non-imported components; mitigation includes supplier/customer negotiations .
  • RV recontenting: OEMs broadening lithium adoption across more models; Dragonfly Intelligence-enabled products aiding OEM sophistication; management expects outperformance vs modest RVIA industry growth .

Estimates Context

  • Q4 2024: Revenue $12.21M vs S&P Global consensus $13.71M (miss); EPS –$1.39 vs –$1.32 consensus (miss) .*
  • FY 2024: Revenue $50.65M vs S&P Global consensus $52.09M (miss) .*
  • Q1 2025: Company guides ~$13.3M net sales; S&P Global revenue consensus ~$13.26M; management guides adjusted EBITDA ≈$(3.8)M .*

Note: Estimates marked with an asterisk are from S&P Global.

Key Takeaways for Investors

  • OEM-led recovery but DTC remains soft: Mix shift favored OEM in Q4; watch DTC normalization and whether RV recontenting sustains margin improvement .
  • Q4 guidance miss underscores near-term demand variability: Despite YoY growth, Q4 revenue/GMs fell short of prior guide; monitoring early 1Q25 trajectory (guide ~$13.3M) is critical for momentum read-through .
  • Margin path hinges on mix and optimization: Gross margin contracted to 20.8% on mix/material costs; corporate optimization and new facility efficiencies are intended to support 2025 margin progress .
  • De-risked balance sheet: Debt restructuring reclassifies debt long-term and extends maturity (to Oct 2027); liquidity covenant remains; capital raise adds flexibility, easing near-term going-concern concerns signaled earlier in 2024 .
  • Trucking could be a 2025 swing factor: Fleet rollouts (auxiliary power and liftgate solutions) offer incremental growth with ROI-led adoption; pace of commercial rollout will influence revenue scale-up .
  • 2025 milestone: Positive adjusted EBITDA targeted in Q4 2025; execution on revenue growth plus cost discipline are the catalysts to re-rate the stock narrative .
  • Corporate/market mechanics: Reverse split (Nov 2024) and subsequent compliance update reduce delisting risk; continue to monitor Nasdaq listing metrics and equity facility usage for dilution dynamics .

Footnote: Estimates marked with an asterisk (*) are values retrieved from S&P Global.