Dragonfly Energy Holdings Corp., an industry leader in lithium battery technology, reported its financial and operational results for the third quarter ended Sept. 30.
“Third quarter heavy-duty trucking revenue more than doubled sequentially to $1.3 million, in line with our August outlook, driven by expanding commercial fleet adoption,” commented Dr. Denis Phares, chief executive officer. “For the first time, we received orders from fleets moving directly into commercial deployment without a pilot program, reflecting the credibility we have established through years of field validation. Based on our current order book, we expect trucking revenue to nearly double again in the fourth quarter on a sequential basis. Persistently high diesel prices are also driving greater urgency among fleets seeking to offset fuel costs, and we believe Dragonfly’s commercial trucking portfolio positions us well to capitalize on this opportunity.
“RV market conditions remained challenging, which drove net sales below our expectations. However, adoption within our premium OEM partnerships remains healthy, as customers continue to standardize lithium systems and increase energy storage content across their product lineups.
“Following our acquisition of Dakota Lithium at the end of July, we have been rebuilding inventory, re-engaging its dealer and distribution network, and strengthening its e-commerce capabilities. Early demand has been encouraging. We expect new inventory to begin arriving toward the end of the fourth quarter, with broader availability and a more meaningful revenue contribution beginning in the first quarter of 2027. We also expect Dakota to be accretive to Adjusted EBITDA as we leverage our existing infrastructure with minimal incremental overhead.”
Third Quarter 2026 Financial & Operating Results
Net sales were $12.2 million, below the company’s previously issued guidance of approximately $13.5 million, and included $7.1 million in OEM net sales and $4.8 million in DTC net sales. The decline in OEM net sales reflects ongoing softness in the RV industry, where wholesale shipments were down 13.7% year-to-date through September, according to the RV Industry Association. Despite that backdrop, adoption of the company’s solutions continued to broaden. DTC net sales declined 4.7%, reflecting continued macroeconomic pressures.
Gross profit was $3.3 million, with a gross margin of 27.0%, compared to gross profit of $4.7 million and a gross margin of 29.7% in the third quarter of 2025. The year-over-year declines were primarily driven by lower volumes. Operating expenses totaled $7.3 million, compared to $8.5 million a year ago, reflecting progress on the company’s cost-reduction initiatives. The company continues to pursue additional operational efficiencies.
The company reported a Net Loss of $(5.5) million and a Net Loss Attributable to Common Stockholders of $(6.7) million, or $(3.71) per diluted share. This compares to a Net Loss and Net Loss Attributable to Common Stockholders of $(11.1) million, or $(16.45) per diluted share, in the third quarter of 2025.
Adjusted EBITDA, excluding stock-based compensation, changes in the fair market value of warrants, and other one-time expenses, was $(2.3) million, compared to $(2.1) million in the third quarter of 2025. The $0.2 million year-over-year decline in Adjusted EBITDA, despite a 23.8% decrease in net sales, reflects the progress we have made through our cost-reduction initiatives. Sequentially, Adjusted EBITDA declined $0.7 million from $(1.6) million in the second quarter of 2026.
Summary & Outlook
“Looking ahead to the fourth quarter, we expect trucking revenue to nearly double sequentially as existing fleet customers expand their deployments and we onboard new fleets. While RV market conditions remain challenging, we expect continued progress in trucking and Dakota Lithium, combined with our ongoing cost-reduction initiatives, to support our path toward profitability. We also anticipate broader product availability and a more meaningful revenue contribution from Dakota Lithium beginning in the first quarter of 2027, with the acquisition expected to be accretive to adjusted EBITDA as we leverage our existing infrastructure. We remain focused on achieving sustainable positive adjusted EBITDA, supported by continued growth in trucking, Dakota Lithium and ongoing cost efficiencies,” said Phares.
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