Energy storage supplier Dragonfly Energy Holdings Corp. recently reported financial and operational results for the fourth quarter and full year 2025. The company said 2025 saw a 16% increase in revenue and 34% growth in OEM sales.
Dragonfly CEO Dr. Denis Phares said OEM net sales were $8.1 million in the fourth quarter and $36.9 million over the course of the year.
“The fourth quarter capped a year of meaningful progress for Dragonfly Energy,” Phares said. “In 2025, we strengthened our balance sheet through decisive capital actions, expanded key RV and heavy-duty trucking partnerships and delivered solid year-over-year revenue growth despite continued market headwinds.”
Phares said the company implemented a series of actions in March to improve cost structure.
Each member of Dragonfly’s executive leadership team and Board of Directors agreed to reduce their cash compensation by approximately 20% for the remainder of fiscal 2026. The company said in lieu of cash compensation, those impacted received equity-based incentives.
Dragonfly also implemented a 20% reduction in total payroll expense through a combination of targeted workforce and salary reductions. The company said non-executive employees having their salaries reduced received equity-based compensation.
Additionally, the company reduced its discretionary spending and consolidated rental space.
“We believe these steps position Dragonfly Energy to operate more efficiently,” Phares said, “while aligning the organization with the areas where we are seeing the strongest long-term demand.”
Dragonfly’s gross margin in the fourth quarter was 18.2% and 26.7% for the full year.
“In 2025, we took important steps to strengthen the business, substantially improving our balance sheet while expanding our customer base and product portfolio,” Phares said. “Together with our ongoing operational initiatives, newly implemented cost realignment and enhanced focus on commercial revenues, we believe Dragonfly Energy is positioned to achieve profitability and deliver long-term value for shareholders.”
For the first quarter of 2026, the company anticipates $9.5 million in revenue.
“First quarter results are expected to reflect softer than anticipated conditions in the RV market, particularly in January,” Phares said. “Activity has shown signs of stabilizing, and we expect operating leverage to improve as the year progresses.”
As Dragonfly heads into the second quarter of 2026, Phares said the company is focused on expanding OEM relationships and improving operational efficiency.
“[Dragonfly is focused on] strengthening our financial foundation,” Phares said, “to support our path to sustainable profitability.”
