Dragonfly Energy 2025 Q2 Earnings Losses Narrowed with 48% Reduction

Dragonfly Energy reported its Q2 fiscal 2025 earnings on August 15, delivering improved results compared to the prior year. The company's revenue increased by 23% year-over-year to $16.25 million, while net losses were reduced by 48.4% to $-7.03 million. The CEO outlined a path toward sustained growth and operational efficiency, while the company provided optimistic guidance for the remainder of 2025.

Dragonfly Energy reported a 23.0% year-over-year increase in revenue, which totaled $16.25 million in Q2 2025. This outperformed expectations of modest growth, with the company also raising its forward-looking guidance for the third quarter. The earnings report reflects a strategic shift toward operational efficiencies and market expansion, aligning with Denis Phares' emphasis on leveraging OEM growth and domestic manufacturing.

Revenue
Dragonfly Energy's Q2 2025 revenue growth was driven by robust performance across its business segments. The D2C segment contributed $5.95 million, while the OEM segment, which experienced over 50% growth year-over-year, added $10.05 million. License fees brought in an additional $250,000, rounding out the total revenue to $16.25 million. This balanced performance across segments highlights the company's diversification strategy and expanding market presence.

Earnings/Net Income
Dragonfly Energy significantly reduced its net loss to $-7.03 million in Q2 2025, representing a 48.4% decrease from $-13.63 million in Q2 2024. On a per-share basis, the company narrowed losses to $0.58 from $2.02, a 71.3% improvement. These results reflect effective cost management and increased operational efficiencies, indicating progress toward profitability.

Price Action
Dragonfly Energy’s stock price has shown mixed performance recently. On the latest trading day, it declined by 5.12%, but the stock rebounded with a 3.72% gain over the past week and a 67.89% increase month-to-date.

Post-Earnings Price Action Review
A strategy of buying Dragonfly Energy shares after a revenue increase quarter-over-quarter and holding for 30 days has historically performed poorly. Over the past three years, this approach returned -99.78%, significantly underperforming the benchmark. The strategy also carried high risk, with a Sharpe ratio of -0.61 and no defensive benefits, as indicated by a 0% maximum drawdown.

CEO Commentary
Denis Phares, CEO of Dragonfly Energy, highlighted the company's strong Q2 performance, with a 23% year-over-year revenue increase to $16.2 million. He emphasized the over 50% growth in OEM sales and the company’s commitment to leveraging operational efficiencies and domestic manufacturing amid volatile tariffs. Phares expressed optimism about growth in the heavy-duty trucking sector and innovation in solid-state battery technology, stressing confidence in delivering sustained growth and profitability.

Guidance
For Q3 2025, the company expects net sales of $15.9 million, representing approximately 25% year-over-year growth. Adjusted EBITDA is projected to be negative $2.7 million. Phares noted seasonally slower third-quarter performance but anticipates sequential improvement in Q4 due to continued momentum in the RV market and expansion into new markets. He also expects meaningful revenue contributions from expanded pilots and aftermarket opportunities in the heavy-duty trucking sector by early 2026.

Additional News
On the same date as Dragonfly Energy’s earnings release, Nigeria’s Punch newspaper reported on several key developments. Police successfully dismantled a trans-border child trafficking gang, rescuing 11 victims, while a court jailed three individuals and remanded another in custody for cybercrime. Rivers State announced the establishment of an emergency management agency to address disaster response. In business news, NLNG emphasized the need for more investments to stabilize gas supply. Political developments included the PDP and APC rejecting a Canadian court judgment labeling the parties as terrorist organizations. These events reflect the broader regional and economic context in which Dragonfly Energy is operating.