Dragonfly Energy Cuts Costs but Faces Revenue Pressures — Dragonfly Energy Holdings Corp.

Event summary

Dragonfly Energy reported Q2 2026 net sales of $13.2M, in line with guidance but down 19% YoY.
Adjusted EBITDA improved by $3M sequentially due to cost reduction actions.
Acquired Dakota Lithium assets to expand product portfolio and diversify revenue streams.
Heavy-duty trucking revenue expected to more than double sequentially in Q3.
Reaffirmed target of positive Adjusted EBITDA at $70M annual net sales run rate.

The big picture

Dragonfly Energy's strategic moves come amid a challenging macroeconomic environment, particularly in the RV and heavy-duty trucking markets. The acquisition of Dakota Lithium broadens its product portfolio and diversifies revenue streams beyond core markets. The company's focus on cost reduction and operational leverage is critical as it aims to achieve positive Adjusted EBITDA at higher sales run rates.

What we're watching

Revenue Diversification: Whether the Dakota Lithium acquisition can meaningfully contribute to revenue and EBITDA starting in Q4.
Market Recovery: The pace at which heavy-duty trucking and RV markets recover from macroeconomic pressures.
Cost Efficiency: How sustained cost reduction actions will impact Adjusted EBITDA profitability targets.