Dragonfly Energy Holdings Corp. reported its financial and operational results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter & Full Year 2024 Financial Highlights
- Net sales of $12.2 million and $50.6 million
- OEM net sales of $6.2 million and $27.6 million
- Gross margin of 20.8% and 23.0%
- Net loss of $(9.8) million and $(40.6) million
- Adjusted EBITDA of $(2.0) million and $(18.5) million
“After quarter end, we were very pleased to have successfully negotiated a significant debt restructuring with our lenders, allowing for covenant relief while pushing off the maturity date. With this action, our debt will be classified as long-term debt on our balance sheet. Concurrent with the debt restructuring, we also secured additional capital through a strategic investor,” commented Dr. Denis Phares, chief executive officer. “We believe these actions greatly strengthen our near-term financial position, allowing us to focus on executing on our key strategic initiatives for 2025, including achieving positive anticipated Adjusted EBITDA in the fourth quarter.
“In addition, we have launched a corporate optimization program to establish a more efficient cost structure, aligning our operations with near-term revenue growth opportunities, which we believe will provide us with a path to profitability. As part of this initiative, we have promoted Dr. Vick Singh to chief operating officer, where he will oversee the program while also driving operational efficiencies across the company.
“Despite ongoing challenges in the RV market, our fourth-quarter net sales grew approximately 17%, marking a return to year-over-year growth, driven by increased adoption among OEM customers,” continued Phares. “Throughout the year, we have made significant strides in expanding our customer base beyond the RV sector, leveraging strategic partnerships in trucking and industrial markets. We believe the strong order activity from our recently announced partnerships reinforces this strategy, and we anticipate meaningful revenue contributions in 2025 and beyond.”
Fourth Quarter 2024 Financial & Operating Results
(All financial result comparisons made are against the prior-year period unless otherwise noted)
Net sales increased 17.0% to $12.2 million. OEM net sales grew 61% to $6.2 million, driven by increased adoption of existing products and new customer acquisitions. DTC net sales were $5.7 million compared to $6.6 million, reflecting ongoing macroeconomic pressures.
Gross profit increased 12.5% to $2.6 million. Gross margin was 20.8%, compared to 21.6%, due to higher material costs and a shift in mix to OEM sales. Operating expenses were $(6.3) million, compared to $(5.4) million. The increase was primarily due to one-time expenses related to patent litigation and the reverse stock split. Dragonfly Energy also incurred expenses associated with moving into its new 400,000 square foot facility. This strategic relocation is expected to drive long-term operational efficiencies as it centralizes operations previously spread across multiple locations.
The company reported a net loss of $(9.8) million, or $(1.39) per diluted share, compared to net income of $3.3 million or $0.50 per diluted share. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of its warrants, and other one-time expenses, was negative $(2.3) million, compared to negative $(1.8) million.
Full Year 2024 Financial & Operating Results
(All financial result comparisons made are against the prior-year period unless otherwise noted)
Net sales were $50.6 million, compared to $64.4 million. OEM net sales of $27.6 million were flat year-over-year, as increased adoption of existing products and new customer acquisitions were offset by the impact of its largest customer transitioning its product from a standard offering to an option. DTC net sales declined to $22.6 million, from $36.9 million, reflecting continued softness in the RV market due to continued macroeconomic pressures.
Gross profit was $11.6 million, with a gross margin of 23.0%, compared to gross profit of $15.4 million, with a gross margin of 24.0%. The year-over-year declines were primarily attributable to lower sales volume. Operating expenses were $(34.0) million, compared to $(42.9) million, led by lower employee-related costs and lower stock-based compensation, partially offset by higher R&D costs.
The company reported a net loss of $(40.6) million, or $(5.91) per diluted share, compared to a net loss of $(13.8) million or $(2.36) per diluted share. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of its warrants, and other one-time expenses, was negative $(18.5) million, compared to negative $(17.1) million.
Click here to view the full report and Dragonfly Energy’s financial tables.
