Dragonfly Energy Posts 16% Revenue Gain, Targets $8.9 Million Cost Savings
Dragonfly Energy’s full-year 2025 net sales rose 15.8% to $58.6 million, led by a 33.8% jump in OEM revenue to $36.9 million while DTC sales slipped 8.5%. The company launched a strategic cost realignment targeting $8.9 million in annual savings through executive cuts, workforce reductions, and facility consolidation.
1. Financial Results for Q4 and Full Year 2025
Dragonfly Energy reported Q4 net sales of $13.1 million, up 6.9% year-over-year, driven by OEM sales of $8.1 million (+30.1%) and DTC sales of $4.7 million (-18%). Full-year net sales reached $58.6 million (+15.8%), with gross margins of 26.7% for the year and adjusted EBITDA of -$11.8 million.
2. OEM Growth and DTC Performance
OEM revenues climbed 33.8% to $36.9 million in 2025, reflecting expanded partnerships in RV and heavy-duty trucking channels. Direct-to-consumer sales declined 8.5% to $20.7 million due to macroeconomic headwinds and a strategic shift away from DTC marketing.
3. Strategic Cost Realignment Initiative
In March 2026, the company enacted measures expected to yield $8.9 million in annualized savings, including 20% cash compensation cuts for executives and board members in favor of equity, a 20% payroll expense reduction, lower discretionary spending, and facility consolidation saving $4 million.
4. Path to Sustainable Profitability
Dragonfly Energy plans to refocus on commercial markets, expand OEM relationships, and improve operational efficiency in Q2 2026, aiming to strengthen its financial foundation and achieve positive adjusted EBITDA as revenue approaches a $70 million annual run rate.