Heavy-Duty Trucking Revenue More Than Doubled Sequentially as Fleet Adoption Accelerates

Trucking Momentum Expected to Continue, With Q4 2026 Trucking Revenue Projected to Nearly Double on a Sequential Basis

Completed Acquisition of Dakota Lithium Brand, Expanding Into New Markets and Broadening Product Portfolio

Provides Q4 2026 Guidance of Approximately Breakeven Adjusted EBITDA

Third Quarter 2026 Financial Summary  

  • Net sales were $12.2 million
  • OEM net sales were $7.1 million
  • Gross Margin was 27.0%
  • Net Loss Attributable to Common Stockholders was $(6.7) million
  • Adjusted EBITDA was $(2.3) million

RENO, Nev., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) (“Dragonfly Energy” or the “Company”), an industry leader in lithium battery technology, today reported its financial and operational results for the third quarter ended September 30, 2026.

“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 and Operating Results

Net Sales by Customer Type
(in thousands)
      
 Fiscal Quarter Ended  
 September 30, 2026 September 30, 2025
 Change (YoY)
OEM $7,122 $10,679 -33.3%
DTC $4,802 $5,038 -4.7%
Licensing Fee$250 $250 0%
Net Sales$12,174 $15,967 -23.8%
        

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 our 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 our 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 and 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,” concluded Dr. Phares.

Q4 2026 Guidance

  • Net Sales of approximately $12.5 million
  • Adjusted EBITDA of approximately breakeven*

The Adjusted EBITDA outlook reflects the anticipated benefit of certain tariff-related refunds, along with continued progress on the Company’s cost-reduction initiatives.

* The Company cannot reconcile its expected Adjusted EBITDA under “Q4 2026 Guidance” without unreasonable effort because certain items that impact net (loss) income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time. Actual results may vary from the guidance and the variations may be material.

Use of Non-GAAP Financial Measures

Adjusted EBITDA is a non-GAAP measure and should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with United States generally accepted accounting principles (“GAAP”). Please refer to the reconciliation of Adjusted EBITDA to its nearest GAAP measure in this release.

The Company provides non-GAAP financial measures including EBITDA and Adjusted EBITDA as a supplement to GAAP financial information to enhance the overall understanding of the Company’s financial performance and to assist investors in evaluating the Company’s results of operations, period over period. Adjusted non-GAAP measures exclude significant unusual items. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for, financial information prepared on a GAAP basis.

EBITDA is defined as earnings before interest and other income (expenses), income taxes, and depreciation and amortization. Adjusted EBITDA is calculated as EBITDA adjusted for stock-based compensation, change in fair market value of warrant liabilities, non-recurring costs associated with strategic financing, reverse stock split, litigation and loss on settlement. Adjusted EBITDA is a performance measure that the Company believes is useful to investors and analysts because it illustrates the underlying financial and business trends relating to the Company’s core, recurring results of operations and enhances comparability between periods.

Adjusted EBITDA has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of net loss or other results as reported under GAAP. Some of these limitations are:

  • Adjusted EBITDA does not reflect the Company’s cash expenditures, future requirements for capital expenditures, or contractual commitments;

  • Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;

  • Adjusted EBITDA does not reflect the Company’s tax expense or the cash requirements to pay taxes;

  • Although amortization and depreciation are non-cash charges, the assets being amortized and depreciated will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements;

  • Adjusted EBITDA should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items for which the Company may adjust in historical periods; and

  • Other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.

Webcast Information

The Dragonfly Energy management team will host a conference call to discuss its third quarter 2026 financial and operational results this afternoon, November 12, 2026, at 5:00 PM Eastern Time. The call can be accessed live via webcast by clicking here, or through the Events and Presentations page within the Investor Relations section of Dragonfly Energy’s website at https://investors.dragonflyenergy.com/events-and-presentations/default.aspx. To join by phone and participate in the Q&A, please register in advance here; dial-in details and a unique PIN will be provided upon registration. Please log in to the webcast or dial in to the call at least 10 minutes prior to the start of the event.

An archive of the webcast will be available for a period of time shortly after the call on the Events and Presentations page on the Investor Relations section of Dragonfly Energy’s website, along with the earnings press release.

About Dragonfly Energy

Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) is a lithium battery technology company spanning battery cell manufacturing, pack assembly and full-system integration. The Company develops and delivers energy storage solutions for mobile, off-grid, industrial and specialty applications.

Dragonfly Energy is advancing domestic battery cell manufacturing through its patented dry electrode process and the development of next-generation battery technologies, including all-solid-state battery cells. Its work combines advanced research and development with software-enabled intelligence to improve the performance and capabilities of energy storage systems.

To learn more about Dragonfly Energy and its commitment to clean energy advancements, visit https://investors.dragonflyenergy.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding the Company’s guidance for the fourth quarter of 2026, including the anticipated benefit of tariff-related refunds, the expected benefits of the Dakota Lithium acquisition, the expected contribution of the Dakota Lithium acquisition to revenue and Adjusted EBITDA, the expectations regarding heavy-duty trucking revenue growth and fleet adoption, the Company’s Adjusted EBITDA profitability targets, results of operations and financial position, planned products and services, business strategy and plans, market size and growth opportunities, competitive position and technological and market trends. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions.

These forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the Company’s control) which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may impact such forward-looking statements include, but are not limited to: the timing and extent of recovery in the Company’s core markets, including the RV market; the Company’s ability to successfully increase market penetration into target markets; the Company’s ability to penetrate the heavy-duty trucking and other new markets; fluctuations in diesel fuel prices and their effect on fleet demand for the Company’s products; the growth of the addressable markets that the Company intends to target; the Company’s ability to successfully integrate Dakota Lithium and realize the anticipated benefits of the acquisition; the timing and amount of any tariff-related refunds and changes in tariffs or trade policy; the Company’s ability to retain members of its senior management team and other key personnel; the Company’s ability to maintain relationships with key suppliers, including suppliers in China; the Company’s ability to maintain relationships with key customers; the Company’s ability to protect its patents and other intellectual property; the Company’s ability to successfully utilize its patented dry electrode battery manufacturing process and optimize solid-state cells as well as to produce commercially viable solid-state cells in a timely manner or at all, and to scale to mass production; the Company’s ability to timely achieve the anticipated benefits of its licensing arrangement with Stryten Energy LLC; the Company’s ability to achieve the anticipated benefits of its customer arrangements with Stevens Transport; the Company’s ability to maintain the listing of its common stock and public warrants on the Nasdaq Capital Market; the impact of geopolitical conflicts; the Company’s ability to generate revenue from future product sales and its ability to achieve and maintain profitability; and the Company’s ability to compete with other manufacturers in the industry and its ability to engage target customers and successfully convert these customers into meaningful orders in the future. These and other risks and uncertainties are described more fully in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC and in the Company’s subsequent filings with the SEC available at www.sec.gov.

If any of these risks materialize or any of the Company’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Financial Tables

Dragonfly Energy Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
(U.S. Dollars in Thousands, except share and per share data)
       
    As of
    September 30, 2026 December 31, 2025
Current Assets    
 Cash and cash equivalents $1,941  $18,270 
 Accounts receivable, net of allowance for credit losses  4,214   4,215 
 Inventory  19,736   24,234 
 Prepaid expenses  652   1,088 
 Prepaid inventory  2,323   937 
 Prepaid income tax  359   353 
 Other current assets  2,429   1,083 
  Total Current Assets  31,654   50,180 
Property and Equipment    
  Property and Equipment, Net  20,419   20,741 
 Intangible Assets, Net  2,225   - 
 Operating lease right of use asset, net  14,350   15,240 
 Other assets  378   388 
 Total Assets $69,026   $86,549  
       
Current Liabilities    
 Accounts payable $9,418  $10,322 
 Accrued payroll and other liabilities  2,389   4,053 
 Accrued tariffs  341   943 
 Customer deposits  242   121 
 Deferred revenue, current portion  1,000   1,000 
 Dividends Payable  518   317 
 Notes payable, current portion, net  12,483   433 
 Operating lease liability, current portion  2,273   2,533 
 Financing lease liability, current portion  17   35 
  Total Current Liabilities  28,681   19,757 
Long-Term Liabilities    
 Deferred revenue, net of current portion  1,833   2,583 
 Warrant liabilities  3   713 
 Notes payable, non current portion, net of debt issuance costs  -   9,212 
 Operating lease liability, net of current portion  18,854   20,470 
 Financing lease liability, net of current portion  77   28 
 Total Long-Term Liabilities  20,767   33,006 
Total Liabilities  49,448    52,763  
Commitments and Contingencies    
Redeemable Preferred Stock    
 Preferred stock - Series B, 25,000 shares at $0.0001 par value, authorized,    
 and 25,000 shares issued and outstanding as of September 30, 2026 and  24,122   22,256 
 December 31, 2025, respectively    
Stockholders' Equity    
 Preferred stock, 4,995,000 shares at $0.0001 par value, authorized, no shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively
  -   - 
     
 Common stock, 50,000,000 shares at $0.0001 par value, authorized, 1,878,418 and 1,509,839 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively        
 Additional paid in capital  164,099   163,623 
Accumulated deficit
  (168,643)  (152,093)
Stockholders' Equity
  (4,544)  11,530 
Total Liabilities, Redeemable Preferred Stock and Stockholders' Equity
 $69,026
  $86,549
 
          


Dragonfly Energy Holdings Corp.
Unaudited Condensed Interim Consolidated Statement of Operations
(U.S. Dollars in Thousands, except share and per share data)
    Three Months Ended
    Sep 30, Sep 30,
     2026   2025 
       
Net Sales $12,174  $15,967 
       
Cost of Goods Sold  8,889   11,231 
       
Gross Profit  3,285   4,736 
       
Operating Expenses    
 Research and development  633   585 
 General and administrative  5,112   5,299 
 Selling and marketing  1,593   2,630 
       
Total Operating Expenses  7,338   8,514 
       
 Loss From Operations  (4,053)  (3,778)
       
Other Income (Expense)    
 Interest expense, net  (1,774)  (6,409)
 Other Income  411   - 
 Change in fair market value of warrant liability  (123)  (883)
  Total Other Expense  (1,486)  (7,292)
       
Net Loss Before Taxes  (5,539)  (11,070)
       
Income Tax (Benefit) Expense  -   - 
       
Net Loss $(5,539) $(11,070)
       
Less: Preferred Stock Dividends  (1,168)  - 
       
Net Loss Attributable to Common Stockholders $(6,707) $(11,070)
       
Loss Per Share- Basic & Diluted $(3.71) $(16.45)
Weighted Average Number of Shares- Basic & Diluted  1,807,571   673,112 
         


Dragonfly Energy Holdings Corp.
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
(U.S. Dollars in Thousands)
    Three Months Ended
    September 30, September 30,
     2026   2025 
EBITDA Calculation    
Net Loss Before Taxes $(6,707) $(11,070)
 Interest Expense  1,774   6,409 
 Depreciation and Amortization  486   460 
EBITDA $(4,447) $(4,201)
       
Adjustments to EBITDA    
 Stock - Based Compensation  243   168 
 Series B Preferred Stock Dividend  1,168   - 
 Preferred Stock Financing expenses  -   13 
 Prior year tariff estimate adjustment  -   - 
 Litigation Fees and loss on Settlement  313   - 
 Expenses related to Debt Restructure  88   354 
 Impairment of right-of-use asset and disposal of associated assets  611 
 At-the-Market (ATM) set up Expenses  13   - 
 Joint Venture Exploration  37   - 
 Severance  -   35 
 Expenses related to Dakota Lithium Asset Purchase Agreement 121   - 
 Change in fair market value of warrant liability  123   883 
Adjusted EBITDA $(2,341) $(2,137)
         


Dragonfly Energy Holdings Corp.
Unaudited Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30,
(U.S. Dollars in Thousands)
     2026   2025 
Cash flows from Operating Activities    
Net Loss $(16,550) $(24,901)
Adjustments to Reconcile Net Loss to Net Cash    
Used in Operating Activities    
 Stock based compensation  717   578 
 Amortization of debt discount  3,106   5,240 
 Change in fair market value of warrant liability  (370)  (4,624)
 Non-cash interest expense (paid-in-kind)  445   11,233 
 Provision for credit losses  (10)  87 
 Depreciation and amortization  1,733   1,810 
 Amortization of right of use assets  890   1,948 
 Loss on disposal of property and equipment  42   156 
 Loss on disposal of right-of-use assets    454 
Changes in Assets and Liabilities    
 Accounts receivable  11   (2,463)
 Inventories  5,137   (1,002)
 Prepaid expenses  436   (43)
 Prepaid inventory  (1,386)  125 
 Prepaid income tax  (6)  - 
 Other current assets  (1,346)  61 
 Other assets  10   (6)
 Income taxes payable  -   (4)
 Accounts payable and accrued expenses  (2,823)  3,780 
 Operating lease liabilities  (1,876)  (2,160)
 Accrued tariffs  (602)  (324)
 Accrued settlement  -   (375)
 Deferred revenue  (750)  (750)
 Customer deposits  121   (65)
Total Adjustments  3,479   13,656 
Net Cash Used in Operating Activities  (13,071)  (11,245)
       
Cash Flows From Investing Activities    
 Cash paid for acquisition of business  (1,000)  - 
 Purchase of intangibles  (131)  - 
 Purchase of property and equipment  (1,064)  (1,808)
Net Cash Used in Investing Activities  (2,195)  (1,808)
       
(Continued)    
Cash Flows From Financing Activities    
 Proceeds from public offering (ATM), net  1,031   63 
 Proceeds from preferred stock offering, net of fees  -   7,330 
 Proceeds from public offering, net  -   4,684 
 Payment of dividends  (1,327)  - 
 Repayment of note payable  (713)  - 
 Taxes paid related to net settlement of RSUs  -    - 
 Proceeds from the exercise of pre-funded warrants  1   - 
 Financing lease liabilities  (55)  (35)
Net Cash (Used in) Provided by Financing Activities  (1,063)   12,042  
       
Net Decrease in Cash and cash equivalents  (16,329)  (1,011)
Cash and cash equivalents - beginning of period  18,270   4,849 
Cash and cash equivalents - end of period $ 1,941   $ 3,838  
       
Supplemental Disclosures of Cash Flow Information:    
 Cash paid for income taxes  6   4 
 Cash paid for interest $1,938  $4 
Supplemental Non-Cash Items    
 Purchases of property, equipment and intangibles, not yet paid $460  $16 
 Recognition of machinery & equipment obtained in exchange for financing lease liability $86  $- 
 Recognition of right of use asset obtained in exchange for operating lease liability $-  $642 
 Conversion of preferred stock to common stock $-  $7,330 
 Recognition of warrant liability - Investor Warrants $-  $696 
 Declaration of dividends $1,530  $- 
 Noncash consideration transferred pursuant to the Asset Purchase Agreement $1,755  $- 
 Dividends paid in kind $382  $- 
 Accretion of preferred stock discount $1,482  $- 
 Settlement of accrued liability for employee stock purchase plan $26  $73 
 Reclassification of assets held for sale to machinery and equipment $-  $644 
 Cashless exercise of penny warrants $339  $- 
          

Investor Relations:
Eric Prouty
Szymon Serowiecki
AdvisIRy Partners
DragonflyIR@advisiry.com