Dragonfly Energy 2025 Q1 Earnings Revenue Grows 6.8% Amid Improved Net Loss
Daily EarningsFriday, May 16, 2025 11:22 pm ET
3min readDragonfly Energy (DFLI) reported its fiscal 2025 Q1 earnings on May 16th, 2025. The company saw a 6.8% increase in total revenue, reaching $13.36 million compared to the previous year. Net sales exceeded guidance with OEM net sales rising by 11% year-over-year. Adjusted EBITDA also surpassed expectations, despite remaining negative. Dragonfly anticipates second-quarter net sales of $14.8 million, which would mark a 12% year-over-year increase. The strategic focus remains on product innovation, cost management, and revenue diversification.
Revenue
Dragonfly Energy's total revenue for Q1 2025 increased 6.8% to $13.36 million, compared to $12.51 million in Q1 2024. OEM sales grew by 10.8% to $8.1 million, reflecting increased adoption by existing customers. The direct-to-consumer segment saw a slight decline to $5 million, down from $5.2 million.
Earnings/Net Income
Dragonfly Energy reduced its losses significantly, reporting a net loss of $6.80 million for Q1 2025, down from $10.37 million in the same period of 2024. Earnings per share improved, narrowing to a loss of $0.93 per share from $1.55 per share previously. This improvement in EPS suggests a positive trend in the company’s financial performance.
Price Action
The stock price of increased by 7.87% during the latest trading day, despite a 7.98% drop over the most recent full trading week and a 32.10% decline month-to-date.
Post-Earnings Price Action Review
The strategy of buying shares upon earnings misses and holding them for 30 days has shown promising results. This approach capitalizes on potential price volatility following disappointing earnings reports. Backtesting indicates that this strategy outperforms a traditional buy-and-hold approach, yielding a higher average ROI and experiencing lower drawdowns. The strategy is designed to exploit market inefficiencies where earnings misses trigger price reactions. By targeting short-term price movements within a defined 30-day period, investors can potentially achieve stronger risk-adjusted returns. This approach effectively mitigates the risk of holding through price corrections while allowing participation in post-earnings momentum.
CEO Commentary
“We are pleased to report a second consecutive quarter of year-over-year revenue growth, driven by demand from OEM customers, demonstrating the strength of our long-term partnerships and proprietary product offerings,” remarked Dr. Denis Phares, Chief Executive Officer. He noted that while the RV market faces challenges, there are positive customer adoption trends, particularly in the heavy-duty trucking sector. Dr. Phares emphasized the importance of the corporate optimization initiative, which is enhancing manufacturing efficiency and throughput. He expressed confidence that operational improvements and a recent capital raise will support the company's path to growth and profitability.
Guidance
“We anticipate net sales of approximately $14.8 million for the second quarter, representing year-over-year growth of approximately 12%. Our strategic priorities remain focused on driving value through product innovation, revenue diversification, and prudent cost management,” the company stated. Adjusted EBITDA is expected to be approximately $(3.5) million.
Additional News
In recent weeks, Dragonfly Energy has made significant strides in its product development initiatives, particularly with the launch of the Battle Born DualFlow Power Pack. This hybrid electrification solution targets the trucking industry, enhancing the company's competitive offerings. Additionally, Dragonfly Energy announced a strategic partnership to optimize component sourcing, aiming to mitigate tariff impacts. The company is also actively negotiating favorable terms with suppliers and collaborating closely with key customers on potential price adjustments, further solidifying its market position during volatile economic conditions.
Revenue
Dragonfly Energy's total revenue for Q1 2025 increased 6.8% to $13.36 million, compared to $12.51 million in Q1 2024. OEM sales grew by 10.8% to $8.1 million, reflecting increased adoption by existing customers. The direct-to-consumer segment saw a slight decline to $5 million, down from $5.2 million.
Earnings/Net Income
Dragonfly Energy reduced its losses significantly, reporting a net loss of $6.80 million for Q1 2025, down from $10.37 million in the same period of 2024. Earnings per share improved, narrowing to a loss of $0.93 per share from $1.55 per share previously. This improvement in EPS suggests a positive trend in the company’s financial performance.
Price Action
The stock price of increased by 7.87% during the latest trading day, despite a 7.98% drop over the most recent full trading week and a 32.10% decline month-to-date.
Post-Earnings Price Action Review
The strategy of buying shares upon earnings misses and holding them for 30 days has shown promising results. This approach capitalizes on potential price volatility following disappointing earnings reports. Backtesting indicates that this strategy outperforms a traditional buy-and-hold approach, yielding a higher average ROI and experiencing lower drawdowns. The strategy is designed to exploit market inefficiencies where earnings misses trigger price reactions. By targeting short-term price movements within a defined 30-day period, investors can potentially achieve stronger risk-adjusted returns. This approach effectively mitigates the risk of holding through price corrections while allowing participation in post-earnings momentum.
CEO Commentary
“We are pleased to report a second consecutive quarter of year-over-year revenue growth, driven by demand from OEM customers, demonstrating the strength of our long-term partnerships and proprietary product offerings,” remarked Dr. Denis Phares, Chief Executive Officer. He noted that while the RV market faces challenges, there are positive customer adoption trends, particularly in the heavy-duty trucking sector. Dr. Phares emphasized the importance of the corporate optimization initiative, which is enhancing manufacturing efficiency and throughput. He expressed confidence that operational improvements and a recent capital raise will support the company's path to growth and profitability.
Guidance
“We anticipate net sales of approximately $14.8 million for the second quarter, representing year-over-year growth of approximately 12%. Our strategic priorities remain focused on driving value through product innovation, revenue diversification, and prudent cost management,” the company stated. Adjusted EBITDA is expected to be approximately $(3.5) million.
Additional News
In recent weeks, Dragonfly Energy has made significant strides in its product development initiatives, particularly with the launch of the Battle Born DualFlow Power Pack. This hybrid electrification solution targets the trucking industry, enhancing the company's competitive offerings. Additionally, Dragonfly Energy announced a strategic partnership to optimize component sourcing, aiming to mitigate tariff impacts. The company is also actively negotiating favorable terms with suppliers and collaborating closely with key customers on potential price adjustments, further solidifying its market position during volatile economic conditions.
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