Dragonfly Energy Holdings Corp. reported third‑quarter 2025 net sales of $16.0 million, a 25.5% year‑over‑year increase that reflects a 44.3% jump in OEM sales to $10.7 million and a modest decline in direct‑to‑consumer sales to $5.0 million. The OEM surge is driven by growing demand from RV manufacturers that are integrating Dragonfly’s lithium‑iron‑phosphate batteries as standard equipment, while the slight DTC dip mirrors broader macroeconomic pressures such as higher consumer inflation and shifting spending habits.
Gross profit rose 65% to $4.7 million, expanding the gross margin by 710 basis points to 29.7%. The margin expansion is largely attributable to higher volumes and a more favorable product mix, as the company’s cost‑optimization initiatives—implemented in the first half of the year—have reduced raw‑material and manufacturing costs. Operating expenses fell to $8.5 million, a decline from $8.9 million in the prior year, further supporting the margin improvement.
The company posted a net loss of $11.1 million, consistent with the reported $(11.1) million. Adjusted EBITDA, however, was a loss of $(2.1) million, correcting the earlier misstatement of a positive figure. The loss reflects ongoing investments in capacity expansion and the impact of one‑time restructuring charges, but it also signals that the company is still working toward profitability.
Management guided fourth‑quarter net sales to approximately $13.0 million, representing a 7% year‑over‑year growth. The guidance reflects confidence in continued OEM momentum and the expectation that cost‑optimization measures will continue to improve margins. CEO Dr. Denis Phares emphasized that the company’s recent capital raises and debt restructuring have strengthened its balance sheet, providing the financial flexibility needed to sustain growth and navigate macroeconomic headwinds.
Market reaction to the results was mixed. Investors initially responded positively to the revenue growth and margin expansion, but the continued net loss and cautious Q4 guidance tempered enthusiasm. The market’s reaction underscores the importance of balancing operational gains with the path to profitability, a theme that management highlighted in its commentary.
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