Dragonfly Energy Slashes Costs, Targets Profitability Amid Mixed 2025 Results

Event summary

  • Dragonfly Energy reported $58.6M in full-year 2025 revenue, up 16% YoY, driven by 34% OEM sales growth.
  • The company implemented cost-cutting measures in March 2026, targeting $8.9M in annualized savings.
  • Q1 2026 guidance projects $9.5M in revenue and a $4.6M adjusted EBITDA loss.
  • Gross margin improved to 26.7% for 2025, but net loss widened to $69.9M.

The big picture

Dragonfly Energy's strategic realignment reflects a broader industry shift toward commercial and industrial battery applications, away from consumer-focused DTC sales. The company's focus on OEM partnerships and cost efficiency comes as the RV market faces macroeconomic pressures, highlighting the need for diversification in energy storage solutions. The $8.9M in targeted savings underscores the urgency of achieving profitability in a competitive sector.

What we're watching

Profitability Path
Whether Dragonfly Energy can achieve its target of positive adjusted EBITDA at a $70M annual revenue run rate amid continued market headwinds.
OEM Expansion
The pace at which Dragonfly Energy can expand its OEM relationships, particularly in the trucking and industrial sectors, to offset softness in the RV market.
Cost Realignment Impact
How the $8.9M in annualized savings from cost-cutting measures will affect operational efficiency and long-term shareholder value.

Related topics

EBITDA