Dragonfly Energy 2025 Q2 Earnings Strong Performance as Net Loss Narrows by 48.4%

Dragonfly Energy (DFLI) reported its fiscal 2025 Q2 earnings on August 14, 2025. The company showed strong progress with a 23% year-over-year revenue increase and a significant reduction in net losses. Management provided positive guidance for the remainder of the year, including a projected path toward EBITDA breakeven. The results indicate improvement and alignment with the company’s strategic direction.

Dragonfly Energy reported a 23.0% increase in total revenue, reaching $16.25 million in Q2 2025 compared to $13.21 million in the same period of 2024. The growth was driven by a 50% rise in original equipment manufacturer (OEM) sales, which generated $10.05 million. Direct-to-customer (DTC) revenue stood at $5.95 million, while license fee revenue contributed $250,000. The OEM segment emerged as the key growth driver, reflecting stronger integration of Dragonfly’s solutions into factory-level operations.

Dragonfly Energy significantly narrowed its losses in Q2 2025, reducing its net loss to $7.03 million from $13.63 million in the prior year, representing a 48.4% improvement. On a per-share basis, the loss narrowed to $0.58 from $2.02, showing a 71.3% reduction in losses. These figures indicate meaningful progress in the company’s financial performance.

Dragonfly Energy’s stock price dropped 5.12% during the latest trading day but showed resilience with a 3.72% gain for the week and a strong 67.89% increase month-to-date, reflecting mixed investor sentiment.

The post-earnings price action revealed a poor performance for the “buy on revenue raise and hold for 30 days” strategy. Over the past three years, this approach returned -99.78%, underperforming the benchmark by 146.26%. The strategy exhibited a negative Sharpe ratio of -0.61 and no defensive benefit, with a maximum drawdown of 0%.

Dragonfly Energy’s CEO, Denis Phares, highlighted strong Q2 performance with 23% year-over-year revenue growth to $16.2 million. He attributed this to over 50% growth in OEM sales and emphasized the importance of OEM partnerships in driving long-term expansion. Phares noted a slight decline in DTC sales due to macroeconomic caution but reiterated that future growth would come from scaling OEM operations. He also pointed to the value of domestic manufacturing and a recent solid-state battery patent as strategic advantages. Phares expressed optimism about the company’s ability to scale through corporate optimization, innovation, and expansion into heavy-duty trucking.

Phares guided for Q3 2025 net sales of $15.9 million, reflecting year-over-year growth of approximately 25%. The company expects adjusted EBITDA to remain negative at $2.7 million. Phares mentioned seasonal softness in Q3 but anticipates sequential revenue improvement in Q4, driven by continued OEM growth and expanded pilot programs in heavy-duty trucking. The path to EBITDA breakeven in Q4 will depend on new truck orders and pilot program expansion, with meaningful contributions expected in the first half of 2026.

Additional News

The Nigerian media landscape was dominated by several high-profile developments in the week following Dragonfly Energy’s earnings report. The Economic and Financial Crimes Commission (EFCC) made headlines with the arrest of five individuals in Akwa Ibom for illegal mining. The operation underscored the government’s ongoing efforts to crack down on economic crimes and preserve natural resources. Meanwhile, political tensions flared as Nigeria's ruling and opposition parties rejected a Canadian court ruling that labeled them as terrorist organizations. The decision has sparked national debate and raised concerns about foreign interference in domestic affairs.

In another significant development, Dangote Group pledged full medical support for Phyna’s injured sister, highlighting the philanthropic efforts of Nigeria’s business leaders amid rising public health concerns. The group’s involvement has drawn praise and reinforced the growing trend of corporate social responsibility in the country’s private sector.