DFLI

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Investor Relations - Szymon Serowiecki Chairman, President and Chief Executive Officer - Denis Phares Chief Commercial Officer - Wade Seaburg Operator: Good day, and thank you for standing by. Welcome to the Dragonfly Energy Holdings Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Szymon Serowiecki. Szymon Serowiecki: Thank you, operator. I appreciate you joining us for today's call. Joining me today are Denis Phares, Dragonfly Energy's Chairman, President and Chief Executive Officer; and Wade Seaburg, Chief Commercial Officer. Before I turn the call over to Denis, I'd like to make a brief statement regarding forward-looking remarks. During this call, the company will be making forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 based on current expectations. These forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Actual results may differ due to factors noted in the press release and in periodic SEC filings. Management will reference some non-GAAP financial measures. Reconciliations to the nearest corresponding GAAP measure can be found in today's release on the company's website. Please note all comparisons will be discussed today on a year-over-year basis unless otherwise noted. Now, I'll turn the call over to Denis. Denis Phares: Thank you, Szymon, and thank you, everyone, for joining us today. We are pleased to report solid second quarter results with net sales in line with our guidance. Adjusted EBITDA came in better than our expectations, improving $3 million from our prior quarter, reflecting the cost actions we implemented earlier this year. The quarter also marked our first meaningful revenue contribution from the heavy-duty trucking market. We have invested in this market over several years through pilot programs and product validation work, and we are pleased to see the foundation start to translate into financial results. I'll let Wade walk through our commercial markets in more detail shortly. But first, I'd like to briefly discuss our acquisition of Dakota Lithium's assets. Dakota brings an established brand, an existing customer base and distributor network and a complementary portfolio of products across marine, outdoor recreation, powersports, golf cart and other specialty markets. Dragonfly already has the commercial, operational, fulfillment and customer support infrastructure needed to support the business. By bringing Dakota's products and revenue through that existing platform, we believe we can restore availability, grow the brand and increase revenue with limited incremental operating expense. We believe this creates meaningful operating leverage and broadens the customers, markets and price points we can serve. Dakota generated approximately $12 million in net revenue in 2025 despite working capital and inventory constraints that drove performance materially below prior year levels. With an established customer base and demonstrated historical demand, we see a clear opportunity to recover and grow that revenue. The total purchase price was $4 million, consisting of $1 million in cash and $3 million in Dragonfly common stock issued at $2 per share and subject to a 12-month lockup. In connection with the transaction, we amended our term loan agreement and our lenders reduced our minimum cash covenant, allowed us to pay the next 2 quarters of interest in kind and deferred compliance with our senior leverage ratio and fixed charge coverage ratio covenants until September 2027. We believe these amendments preserve near-term liquidity and provide additional financial flexibility. We anticipate Dakota Lithium will begin contributing meaningful revenue and be accretive to adjusted EBITDA in the fourth quarter. Ultimately, this acquisition adds an established revenue-generating brand, materially expands our product and market reach and enhances operating leverage by placing a larger portfolio through infrastructure and relationships we already have with no distraction to our existing operations. These factors support our goal of achieving positive adjusted EBITDA at an annualized net sales run rate of approximately $70 million. Before I turn the call over to Wade, I also want to highlight 2 important recent additions to Dragonfly. First, we are pleased to welcome Robert Keller as our Director of National Fleet Sales. Robert brings nearly 4 decades of experience across fleet operations, commercial vehicle sales and transportation technology. Over his career, he has built relationships with many of the country's largest commercial fleets, and we believe that experience will be a real asset as we continue to expand national fleet adoption of our power systems. And in June, we welcomed Dr. Lukas Lutz to our Board of Directors. Lukas co-founded Sphere Energy, a technology company focused on applying advanced data science and artificial intelligence to battery engineering. Prior to joining our Board, Sphere Energy conducted an independent third-party evaluation of our dry electrode manufacturing process, giving Lukas a firsthand view of the technology and contributing to his confidence in its capabilities and long-term potential. His experience at the intersection of battery science and advanced data modeling aligns well with our focus on advancing dry electrode manufacturing and next-generation battery technologies, and we look forward to his contributions as we continue building on that foundation. Alongside these additions, we continue to strengthen our intellectual property position. Most recently, I'm pleased to announce that we received another Japanese patent allowance supporting our solid-state battery technology. It covers systems and methods for applying dry powder coating layers within an electrochemical cell, an important part of our unique dry electrode manufacturing approach. Together with our recent U.S. and European patent allowances, this expands the global protection surrounding our cell manufacturing technology and supports our work towards the scalable production of non-flammable, all solid-state battery cells. We look forward to sharing more about our progress in this area in the coming months. With that, I'll pass the call over to Wade. Wade Seaburg: Thank you, Denis. I'd like to walk through what we are seeing across our commercial markets, starting with heavy-duty trucking, where the work we have done over the past several years validating our technology and building credibility with fleets began to show up in our results. Heavy-duty trucking generated approximately $0.5 million in revenue in the second quarter. Based on current orders in hand, we expect that revenue to more than double to approximately $1.3 million in the third quarter and continue growing sequentially in the fourth quarter and beyond. This marks an important commercial inflection point for Dragonfly. After several years of pilot programs, field validation and customer development, we now have a proven foundation converting into ongoing fleet revenue. These initial deployments are with large fleet customers, each representing meaningful expansion potential as programs progress from initial orders to broader rollouts and larger follow-on orders. We believe the engine we have been building is now working, and we believe this foundation can support sustained growth as existing customers expand and additional fleets advance through our pipeline. During the quarter, we began shipping against the Stevens Transport purchase order. Those shipments include the complete set of products we offer, the Battle Born DualFlow Power Pack, all-electric APU and our inverter. This is the first phase of Stevens's plan to move their full fleet of 2,500 trucks onto our solutions, and we expect shipments to build through the remainder of the year. Beyond Stevens, our fleet pipeline continues to broaden. We are engaged with several additional carriers at various stages of evaluation and deployment, including Werner Enterprises, where we are working closely on implementation of its initial production order and seek meaningful potential for broader adoption over the coming quarters. Additional pilot programs are underway this summer. Successful results could support further expansion beginning in the fourth quarter and into 2027. The broader trucking environment is also improving. Fleets have spent several years operating through an extended freight recession that constrained capital spending. As conditions stabilize and equipment demand improves, the economic case for our systems remains compelling, particularly as fleets look to reduce idling, fuel consumption, maintenance and driver comfort challenges. The economic case for our solutions also continues to benefit from elevated diesel prices, which are further improving the payback of our solutions as well as the 2027 engine transition as fleets are prebuying 2026 trucks ahead of the more expensive NOx-compliant engines, which are also showing higher idle rates. Turning to the RV market. The overall environment remained soft in the second quarter. Through midyear, RVIA reported shipments down 14.2% from the prior year. Against that backdrop, we continue to strengthen our position with our OEM partners. We are being included across additional model lineups, and we continue to see increased energy storage content within existing models as OEMs look to deliver more capable power systems. The majority of our significant OEM customers continue to support our products and expand their work with us based on their own field experience. We are also seeing encouraging progress in industrial applications, including potential programs with large national customers. Although we are not including these opportunities in our current expectations, they represent another meaningful avenue for revenue diversification. Finally, from a commercial standpoint, I share Denis' enthusiasm for the Dakota Lithium acquisition. Dakota brings established customer and distributor relationships across markets that are highly complementary to our business. And our commercial and fulfillment teams are already focused on restoring product availability and reengaging those customers. We also see meaningful opportunity in leveraging these 2 complementary product portfolios. Dakota's lineup, including cranking, dual purpose and higher energy density batteries, expands the solutions our B2B customers can offer their customers. The multi-brand approach significantly expands the customers and price points we can serve. With that, I'll turn the call back to Denis. Denis Phares: Thank you, Wade. Turning now to our second quarter preliminary financial results. Net sales were $13.2 million, including $8.4 million in OEM net sales and $4.5 million in DTC net sales, reflecting continued healthy OEM adoption trends, offset by the softer RV market. Gross profit was $4.3 million with gross margin expanding 470 basis points to 33.0%, which included a $1.1 million benefit related to tariff refund payments recognized in cost of sales. Operating expenses totaled $7.2 million, down from $7.9 million, benefiting from our cost reduction actions. During the quarter, we also continued to advance the facility consolidation discussed on our prior call. While the process was not fully completed by quarter end, we expect to complete the principal remaining actions during the third quarter. Net loss attributable to common shareholders was $5.5 million or $0.43 per diluted share compared to a net loss of $7.0 million or $5.77 per share. Adjusted EBITDA was negative $1.6 million, a $0.6 million improvement year-over-year despite lower net sales and a $3.0 million sequential improvement from the first quarter, driven by our cost reduction actions flowing through the business. Looking ahead to the third quarter, we expect growth in net sales to approximately $13.5 million, driven by growth in the trucking sector and offset by weakness in the RV sector. Adjusted EBITDA is expected to be approximately negative $2.4 million. The sequential movement in adjusted EBITDA does not reflect a change in the underlying trajectory of the business or our path toward profitability. Rather, it primarily reflects 2 temporary timing factors. First, we decided not to adjust out the expense associated with the now vacated space while it is actively being marketed for sublease. Second, we expect to incur incremental operating costs to restore Dakota Lithium's commercial operations ahead of its meaningful revenue contribution. This does not change our expectation that Dakota Lithium will begin contributing meaningful revenue and be accretive through adjusted EBITDA in the fourth quarter. Taking a step back, the priorities we laid out at the beginning of the year are now coming into place. Our cost structure is rightsized, and the second quarter demonstrated the operating leverage it provides. Trucking revenue has begun to scale and is expected to ramp through year-end. And Dakota Lithium is expected to begin contributing meaningful revenue and to be accretive to adjusted EBITDA in the fourth quarter. Collectively, we believe these drivers support our target of positive adjusted EBITDA at an annualized net sales run rate of approximately $70 million, and we believe we are well positioned to reach this target and deliver long-term value for our shareholders. Operator, we would now like to open the call for questions. Operator: [Operator Instructions] Our first question comes from George Gianarikas, Canaccord Genuity. George Gianarikas: I'd like to focus a little bit on Dakota Lithium and just understand the metrics, the financial metrics around which you judged the acquisition and how we're supposed to think about your guidance. So the $70 million annualized run rate of revenue, I'm assuming, includes Dakota's revenue and costs that they're bringing along with them. Is that accurate? Denis Phares: Yes, it is, George. George Gianarikas: Okay. And in the press release around Dakota Lithium's performance, you mentioned that they had 12 -- I think it was $12 million in 2025 revenue. Any update as to how that's been trending over the last couple of quarters and maybe how much you expect them to contribute this year when it closes? Denis Phares: Yes. They declined pretty significantly going into 2025 as they ran into inventory constraints, as we mentioned. Those inventory constraints continued into this year, and they were pretty much flat going into the beginning of the year. At this time, we're focused on replenishing the inventory and restarting basically where they left off. George Gianarikas: So essentially, it's a sales channel for you. Is that fair to say? I mean you sort of alluded to that. Denis Phares: Yes, it's absolutely a sales channel. It's a very nice complementary suite of products. They have a much larger diversity of products, which is really nice. They've been addressing markets that we're not heavily -- we don't have a heavy presence in. So we see it as a highly complementary channel, and we're really excited about the fact that it is -- it doesn't take a lot of operating expense to really get it ramped up again. George Gianarikas: And how much operating expense will it bring on to the -- to core Dragonfly once it's fully closed on a quarterly basis? Denis Phares: I mean primarily, there's going to be an increase in a little bit of payroll and marketing expense, and we're going to basically absorb a lot of that infrastructure expense with what we have. George Gianarikas: Understood. So this sounds like it could get you to EBITDA breakeven a lot faster than you would have on a stand-alone basis, even with the marginal incremental operating expense. Denis Phares: That's the idea, yes. George Gianarikas: Great. And then lastly, any commentary on the RV market? What's broadly with rates going up and how you see the overall environment and when we should maybe expect a rebound in the overall activity? Denis Phares: Wade, I'll let you answer that question. Wade Seaburg: Yes, Denis. George, good question. There's still a general softness in the marketplace in talking to our OEM customers and participating in dealer meetings and talking to our dealerships that are selling Battle Born Batteries directly into the marketplace. There's still a general softness in the market. They think it's going to continue through the end of the year and into 2027. So it's being hammered really by macroeconomic factors. Discretionary spending is really difficult right now. The one thing I would say about the OEM. Yes. The one thing I'd add there, George, is that we are seeing a really positive take rate on our product at the OEM level and more standardization options. Operator: Our last question comes from Chip Moore at ROTH Capital Partners. Alfred Moore: Really good to see that inflection in the trucking market. Maybe, Wade, you can talk about the ramp there, the pipeline. How big could that opportunity or that pipeline be in 2027, 2028? Wade Seaburg: Yes, sure. It's difficult to say what the transition of these fleets, how long they're going to pilot, and then go to expanded pilot. But the fleets that are in the pilot phase or in even early discussion phases since onboarding our new Director of National Fleet Sales are the largest fleets that you could name, both public and private fleets. So for-hire fleets as well as private. It's a really exciting channel for us. We have -- I think you could expect to see very significant growth from us in 2027 there. It's hard to really put a number to it right now. Alfred Moore: Fair enough. But it would be nice to see that flywheel kept moving. And also, I think you called out some potential on the industrial side that you're seeing some things percolate there. Any more color? Wade Seaburg: Yes. That market has been interesting. We haven't really put a lot of resources into that marketplace. We've really been focused on the other 2 verticals. However, that market continues to show really green shoots. I'll highlight a couple of sectors there, the intelligent transportation systems. So if you think battery backup for traffic signals and that marketplace, that's turning out to -- those markets are really looking for a better energy storage solution. And then I would also highlight the cellular and telecom side of things. That's another niche market within what we call industrial solar that's really looks to be very profitable for us in the future. Alfred Moore: Interesting. Yes, nice markets. Okay. And for my follow-up, maybe back to Dakota, it seems to make a lot of strategic sense and opportunistic in terms of getting true accretion with scale. Would you look at similar type deals? Or is this sort of a one-off? Denis Phares: Our eyes are always open, Chip. Always looking for opportunities. Alfred Moore: Okay. And then just lastly, I think I saw right there was some exploration costs for a JV. Just I assume something to do with dry electrode, but any update there? Denis Phares: Yes. We'll be able to talk more about those activities in the coming quarters. But thanks for the question, Chip. Operator: This concludes the question-and-answer session. I would now like to turn it back to Denis for closing remarks. Denis Phares: Thank you, everyone, for joining us today. We look forward to sharing additional details with all of you in the coming quarters. Have a great day. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a commercial inflection point in heavy-duty trucking, generating $0.5 million in revenue following years of pilot programs and field validation. Acquired Dakota Lithium's assets for $4 million to broaden market reach into marine, powersports, and golf cart segments while leveraging existing fulfillment infrastructure. Improved adjusted EBITDA by $3 million sequentially through cost-reduction actions and facility consolidation, demonstrating increased operating leverage. Expanded intellectual property portfolio with a Japanese patent allowance for dry powder coating, supporting the global strategy for solid-state battery manufacturing. Navigated a soft RV market, which saw a 14.2% industry-wide shipment decline, by increasing product standardization and energy storage content per vehicle. Strengthened the balance sheet through loan amendments that deferred covenant compliance and allowed for interest payments in kind to preserve near-term liquidity. Expects trucking revenue to more than double to approximately $1.3 million in the third quarter, with sequential growth continuing into the fourth quarter. Anticipates Dakota Lithium will become accretive to adjusted EBITDA and contribute meaningful revenue starting in the fourth quarter of 2026. Targets positive adjusted EBITDA at an annualized net sales run rate of approximately $70 million, supported by rightsized costs and new revenue streams. Projects third-quarter net sales of approximately $13.5 million, with trucking growth expected to offset persistent weakness in the RV sector. Assumes the 2027 engine transition will drive a 'pre-buy' of 2026 trucks, increasing demand for the company's power systems to manage higher idle rates. Recognized a $1.1 million benefit in gross profit related to tariff refund payments during the second quarter. Incurred temporary timing headwinds in adjusted EBITDA due to the decision not to adjust out expenses for vacated space currently being marketed for sublease. Identified inventory and working capital constraints as the primary drivers for Dakota Lithium's revenue decline in 2025, which Dragonfly plans to rectify through its existing supply chain. Noted that while industrial applications in telecom and transportation show 'green shoots,' they are currently excluded from formal financial expectations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the $70 million revenue run rate target for EBITDA breakeven includes Dakota's contributions. The acquisition is viewed primarily as a sales channel play that requires minimal incremental operating expense beyond payroll and marketing. Dragonfly intends to restore the brand's revenue by solving the inventory constraints that previously hampered Dakota's performance. Management expects general softness in the RV market to persist through the end of 2026 and into 2027 due to macroeconomic pressures on discretionary spending. Despite market weakness, the company is seeing a positive 'take rate' and increased standardization of its products at the OEM level. The company anticipates significant growth in 2027 as large fleet customers transition from pilot phases to broader rollouts. New opportunities are emerging in 'intelligent transportation systems' (battery backups for traffic signals) and the cellular/telecom sector. Management hinted at ongoing exploration costs related to a potential joint venture, likely involving dry electrode technology, with more details expected in future quarters.

Second Quarter Net Sales In-Line With Guidance; Adjusted EBITDA Above GuidanceCost Reduction Actions Drive $3.0 Million Sequential Improvement in Adjusted EBITDA Announced Acquisition of Dakota Lithium Assets, Broadening Product Portfolio and Expanding Revenue Opportunity Across Key End Markets Provides Third Quarter 2026 Guidance and Reaffirms Target of Positive Adjusted EBITDA at $70M Annual Net Sales Run Rate Heavy-Duty Trucking Revenue Expected to More Than Double Sequentially in Q3 as Fleet Programs Expand Second Quarter 2026 Preliminary Financial Highlights Net sales were $13.2 million. OEM net sales were $8.4 million. Gross Margin was 33.0%. Net Loss Attributable to Common Shareholders was $(5.5) million. Adjusted EBITDA was $(1.6) million. RENO, Nev., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) (“Dragonfly Energy” or the “Company”), an industry leader in lithium battery technology, today reported its preliminary financial and operational results for the second quarter ended June 30, 2026. “Second-quarter net sales were in line with our guidance, while Adjusted EBITDA exceeded our expectations as the cost actions implemented earlier this year began to take effect,” commented Dr. Denis Phares, Chief Executive Officer. “Adjusted EBITDA improved $3.0 million as compared to the first quarter of 2026 and $0.6 million year over year despite lower net sales, demonstrating the operating leverage inherent in our improved cost structure.” “In the heavy-duty trucking market, the commercial ramp we have been building began to translate into meaningful revenue as deliveries under the Stevens Transport purchase order commenced during the quarter. As fleets expand deployments following initial pilot programs, we expect revenue from this market to more than double sequentially in the third quarter, with continued growth in the fourth quarter and beyond.” “Subsequent to quarter-end, we acquired the assets of the Dakota Lithium brand, representing a compelling strategic and financial opportunity for Dragonfly,” continued Dr. Phares. “Dakota Lithium is a recognized brand with established customer and distributor relationships across marine, outdoor recreation, powersports, golf cart and other specialty battery markets. The acquisition broadens our overall product portfolio and further diversifies our revenue base beyond our core RV and trucking markets. We expect Dakota to begin contributing meaningful revenue and to be accretive to Adjusted EBITDA starting in the fourth quarter.” "In connection with the transaction, existing lenders amended the Company's debt arrangements, including reducing the minimum cash covenant, converting the next two quarters of interest to paid-in-kind interest, and deferring the Senior Leverage Ratio and Fixed Charge Coverage Ratio covenant requirements until September 2027. Collectively, these amendments are expected to preserve approximately $1 million of near-term liquidity and provide the Company with meaningful additional financial flexibility.” Second Quarter 2026 Preliminary Financial and Operating Results Net sales were $13.2 million, including $8.4 million in OEM net sales and $4.5 million in DTC net sales. OEM net sales declined year over year against an industry backdrop in which RV shipments were down 14.2% through midyear, reflecting continued macroeconomic pressure on industry production volumes. Despite that environment, the Company continued to expand model placements and power system content across its existing OEM partnerships. DTC sales declined due to macroeconomic pressures on consumer demand, as well as negative third-party online commentary regarding certain of our products, which we believe has adversely affected customer sentiment. We have initiated legal proceedings to address this commentary. Gross profit was $4.3 million, with a gross margin of 33.0%, compared to gross profit of $4.6 million and gross margin of 28.3%. The decrease in gross profit was primarily due to lower unit volume of battery and accessory sales, with an offset from a $1.1 million benefit related to tariff refund recognized in cost of sales. Operating Expenses totaled $7.2 million, down from $7.9 million, benefiting from the Company’s cost reduction actions. The Company also continued to advance its previously announced facility consolidation during the second quarter. While the process was not fully completed by quarter-end, the Company expects to complete the principal remaining actions during the third quarter. The Company reported a Net Loss of $(4.4) million and a Net Loss Attributable to Common Shareholders of $(5.5) million, or $(0.43) per diluted share. This compares to a Net Loss and a Net Loss Attributable to Common Shareholders of $(7.0) million, or $(5.77) per share, respectively. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of our warrants, and other one-time expenses, was $(1.6) million, a $0.6 million improvement compared to a loss of $(2.2) million in the second quarter of 2025. Sequentially, Adjusted EBITDA improved $3.0 million from the $(4.6) million reported in the first quarter of 2026, driven by our cost reduction actions. The second quarter financial and operating results are preliminary and are subject to finalization and adjustment in connection with the review of the financial statements for the three months ended June 30, 2026 and the preparation of the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2026. The preliminary financial results included in this press release have been prepared by, and are the responsibility of, the Company’s management. During the course of the preparation of the Company’s financial statements and related notes as of and for the three months ended June 30, 2026, the Company may identify items that would require it to make material adjustments to the preliminary financial results presented herein. As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information. This preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP and reviewed by the Company’s independent registered public accounting firm. Summary and Outlook “Looking ahead to the third quarter, we expect continued growth in energy storage content and model integration across our OEM partnerships against a continued soft RV market, and trucking sales to ramp through the balance of the year. Our focus in the near term is on disciplined execution as we build on our expanding commercial foundation, integrate the Dakota Lithium brand, which we expect to begin contributing meaningful revenue in the fourth quarter, and drive operating leverage from our improved cost structure. We remain on track toward our target of Adjusted EBITDA profitability at an annualized net sales run rate of approximately $70 million,” concluded Dr. Phares. Q3 2026 Guidance Net Sales of approximately $13.5 million. Adjusted EBITDA of approximately $(2.4) million* * The Company cannot reconcile its expected adjusted operating EBITDA under “Q3 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. The third-quarter Adjusted EBITDA outlook reflects two temporary timing factors: continued expense associated with vacated facility space that is actively being marketed for sublease, and incremental operating costs to restore Dakota Lithium’s commercial operations ahead of its expected meaningful revenue contribution beginning in the fourth quarter. 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 second quarter 2026 financial and operational results this afternoon, August 6, 2026 at 4:30 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, preliminary results of operations and financial position for second quarter 2026, statements regarding the Company’s guidance for the third quarter of 2026, 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, 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: improved 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; the growth of the addressable markets that the Company intends to target; 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. Preliminary Results Second quarter 2026 financial and operating results are preliminary, as they are subject to finalization and adjustment in connection with the preparation of the Quarterly Report on Form 10-Q for the three months ended June 30, 2026 to be filed later this month. During the course of the preparation of these financial statements, Dragonfly may identify items that would require the Company to make material adjustments to the preliminary financial results. As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information. The preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP and reviewed by the Company’s independent registered public accounting firm. Financial Tables Investor Relations:Eric ProutySzymon SerowieckiAdvisIRy [email protected]

SiTime (SITM) came out with quarterly earnings of $2.34 per share, beating the Zacks Consensus Estimate of $1.93 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.24%. A quarter ago, it was expected that this company would post earnings of $1.14 per share when it actually produced earnings of $1.44, delivering a surprise of +26.32%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. SiTime, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $157.43 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.51%. This compares to year-ago revenues of $69.49 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SiTime shares have added about 65.1% since the beginning of the year versus the S&P 500's gain of 13%. While SiTime has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SiTime was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.09 on $162.31 million in revenues for the coming quarter and $7.68 on $595.35 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Dragonfly Energy Holdings Corp. (DFLI), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of +94.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Dragonfly Energy Holdings Corp.'s revenues are expected to be $13.18 million, down 18.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SiTime Corporation (SITM) : Free Stock Analysis Report Dragonfly Energy Holdings Corp. (DFLI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RENO, Nev., July 30, 2026 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) (“Dragonfly Energy” or the “Company”), an industry leader in energy storage and maker of Battle Born Batteries®, today announced that the Company will release its financial and operational results for the second quarter ended June 30, 2026 after market close on Thursday, August 6, 2026. The earnings press release will be followed by a conference call on Thursday, August 6, 2026, at 4:30 PM Eastern Time. Interested investors and other parties may access the live webcast via the link found 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 comprehensive lithium battery technology company, specializing in cell manufacturing, battery pack assembly, and full system integration. Through its renowned Battle Born Batteries® brand, Dragonfly Energy has established itself as a frontrunner in the lithium battery industry, with hundreds of thousands of reliable battery packs deployed in the field through top-tier OEMs and a diverse retail customer base. At the forefront of domestic lithium battery cell production, Dragonfly Energy’s patented dry electrode manufacturing process can deliver chemistry-agnostic power solutions for a broad spectrum of applications, including energy storage systems, electric vehicles, and consumer electronics. The Company’s overarching mission is the future deployment of its proprietary, nonflammable, all-solid-state battery cells. To learn more about Dragonfly Energy and its commitment to clean energy advancements, visit investors.dragonflyenergy.com. Forward-Looking StatementsThis 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 second quarter 2026 financial and operational results, the Company's future 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. Such factors include those set forth 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, 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. Investor Relations:Eric ProutySzymon SerowieckiAdvisIRy [email protected]

KLA (KLAC) came out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.00%. A quarter ago, it was expected that this maker of equipment for manufacturing semiconductors would post earnings of $0.92 per share when it actually produced earnings of $0.94, delivering a surprise of +2.17%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. KLA, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $3.66 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.32%. This compares to year-ago revenues of $3.17 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. KLA shares have added about 67.4% since the beginning of the year versus the S&P 500's gain of 8.3%. While KLA has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for KLA was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.13 on $3.94 billion in revenues for the coming quarter and $5.07 on $17.24 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Dragonfly Energy Holdings Corp. (DFLI), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of +94.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Dragonfly Energy Holdings Corp.'s revenues are expected to be $13.18 million, down 18.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report Dragonfly Energy Holdings Corp. (DFLI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It's been a mediocre week for Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) shareholders, with the stock dropping 11% to US$1.85 in the week since its latest first-quarter results. The results don't look great, especially considering that statutory losses grew 23% toUS$0.64 per share. Revenues of US$9.7m did beat expectations by 2.7%, but it looks like a bit of a cold comfort. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Taking into account the latest results, the consensus forecast from Dragonfly Energy Holdings' twin analysts is for revenues of US$60.0m in 2026. This reflects a decent 9.2% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 77% to US$1.35. Before this latest report, the consensus had been expecting revenues of US$57.4m and US$1.75 per share in losses. So it seems there's been a definite increase in optimism about Dragonfly Energy Holdings' future following the latest consensus numbers, with a considerable decrease in the loss per share forecasts in particular. Check out our latest analysis for Dragonfly Energy Holdings The consensus price target fell 78%, to US$4.13, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Dragonfly Energy Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 12% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 15% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 14% per year. So while Dragonfly Energy Holdings' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry. The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Dragonfly Energy Holdings' future valuation. With that in mind, we wouldn't be too quick to come to a conclusion on Dragonfly Energy Holdings. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here. Plus, you should also learn about the 4 warning signs we've spotted with Dragonfly Energy Holdings (including 2 which are significant) . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance in the first quarter was characterized by a softer RV environment, with retail sales down over 20% year-over-year, necessitating a strategic shift toward heavy-duty trucking. The heavy-duty trucking segment is transitioning from pilot programs to fleet-wide implementations, evidenced by a $3 million purchase order from Stevens Transport for nearly 500 trucks. Management implemented decisive cost-reduction actions in March, including a 20% reduction in executive cash compensation converted to equity to align leadership with long-term shareholder interests. Operational efficiency is being driven by the consolidation of rental space and targeted reductions in marketing spend, primarily within direct-to-consumer channels. Strategic positioning in the battery technology space was bolstered by a patent allowance from the Japan Patent Office for powderized solid-state electrolyte materials. The company is leveraging its domestic manufacturing roadmap to secure non-dilutive funding, such as the Nevada Tech Hub award, to expand cylindrical cell prototyping. Second quarter guidance assumes a 36% sequential revenue increase driven by the commencement of deliveries for the Stevens Transport trucking contract. Management targets positive adjusted EBITDA at an annualized net sales run rate of approximately $70 million, supported by $9 million in expected annualized expense improvements. The 2027 engine transition is expected to drive a 'pre-buy' cycle in 2026, as carriers seek to avoid more expensive, higher-idling NOx compliant engines. Future growth in the RV sector is predicated on increasing energy storage content per vehicle and expanding integration across additional OEM model lineups. Long-term strategy involves leveraging dry electrode and solid-state IP through capital-light structures such as partnerships and joint ventures. Realized approximately $4.5 million in annualized expense reductions since March, with an additional $4 million expected following the finalization of facility consolidations in Q2. The Stevens Transport commitment involves transitioning an entire fleet of 2,500 trucks, though the current purchase order covers the initial 500 units. Rising diesel prices have significantly compressed the ROI payback period for the dual-flow power pack to under 10 months, acting as a catalyst for fleet adoption. Management flagged the challenging environment for domestic battery manufacturing outside of China as a factor influencing their partnership-heavy development strategy. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that truck orders are up triple digits for the second straight month, indicating a recovery in fleet capital spending. The addressable market includes approximately 125,000 new sleeper cab trucks built annually that require driver comfort features. The Werner and Stevens orders are viewed as significant markers because they occurred during a period of constrained capital spending. The company is prioritizing revenue and profitability over heavy R&D spend, focusing on 'minimal spend' to maintain IP development. Management is actively developing supply chain partnerships and seeking interested parties for joint ventures to advance domestic battery technology. The goal is to announce meaningful partnerships in the future that leverage existing IP without requiring massive internal capital outlays.

Net Sales and Adjusted EBITDA Above Guidance Stevens Transport Purchase Order Valued at Over $3 Million, Spanning Nearly 500 Trucks Recent Cost Reduction Actions on Track and Expected to Benefit Results Starting Q2 2026 Guides to Q2 2026 Net Sales of $13.2 Million and Adj EBITDA of $(1.9 Million) First Quarter 2026 Financial Highlights Net sales were $9.7 million. OEM net sales were $5.8 million. Gross Margin was 17.6%. Net Loss Attributable to Common Shareholders was $(7.7) million. Adjusted EBITDA was $(4.6) million. RENO, Nev., May 14, 2026 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) (“Dragonfly Energy” or the “Company”), an industry leader in energy storage and battery technology and maker of Battle Born Batteries®, today reported its financial and operational results for the first quarter ended March 31, 2026. “First quarter results reflect a softer demand environment in the RV market, as expected,” commented Dr. Denis Phares, Chief Executive Officer. “While the broader RV market has not yet recovered, we have seen signs of stabilization since the end of the first quarter and remain encouraged by the continued adoption of our lithium battery solutions across key OEM partnerships, including expanded model integration and increased energy storage content within select existing platforms.” “In the heavy-duty trucking market, one of our key long-term growth opportunities, we continue to see strong momentum. Following quarter-end, Stevens Transport placed a significant purchase order valued at over $3 million, spanning nearly 500 trucks, marking one of the most comprehensive single-fleet adoptions of our heavy-duty trucking solutions to date. This order spans our full heavy-duty trucking product portfolio and reflects the successful progression from pilot programs to scaled fleet adoption, which we believe validates the real world operational and economic benefits of our technologies.” “During the first quarter, we also announced significant corporate actions that reduced our operating expenses, enhanced our focus on the OEM segment, and more closely aligned the Company with our shareholders. We believe we remain well-positioned to support growth as we scale and expect to realize the benefits of these initiatives starting in the second quarter.” First Quarter 2026 Financial and Operating Results Net sales were $9.7 million, including $5.8 million in OEM net sales and $3.7 million in DTC net sales, reflecting softer demand in the RV market, particularly in the Company’s core RV-related channels, as well as the Company’s ongoing focus on higher-value OEM and commercial opportunities. Gross profit was $1.7 million, with a gross margin of 17.6%, compared to gross profit of $3.9 million and gross margin of 29.4%. First quarter gross margin was impacted by lower unit volume of batteries and accessory sale. Operating Expenses totaled $7.4 million, compared to $9.8 million, primarily driven by the Company’s targeted cost reduction measures. The Company reported a Net Loss of $(6.6) million and a Net Loss Attributable to Common Shareholders of $(7.7) million, or $(0.64) per diluted share. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of our warrants, and other one-time expenses, was $(4.6) million. Summary and Outlook “Looking ahead, we remain focused on expanding OEM relationships, improving operational efficiency, and maintaining disciplined execution as we drive toward growth and profitability. We also continue to advance our long-term technology roadmap, supported by our recent selection for more than $500,000 in additional non-dilutive Nevada Tech Hub funding to expand our in-house battery development, testing, and validation capabilities. For the second quarter, we anticipate revenue of $13.2 million and adjusted EBITDA loss of $1.9 million. With commercial trucking momentum building and continued healthy adoption trends within our RV OEM partnerships, including expanded model integration and increased energy storage content within select existing platforms, we anticipate a sequential revenue increase of approximately 36% in the second quarter. We are also encouraged to see our cost savings initiatives starting to take effect, which we expect to drive a $2.7 million sequential improvement in Adjusted EBITDA loss, as we continue to advance toward out target of Adjusted EBITDA profitability at an annualized net sales run rate of $70 million,” concluded Dr. Phares. Q2 2026 Guidance Net Sales of approximately $13.2 million. Adjusted EBITDA of approximately $(1.9) million* * The Company cannot reconcile its expected adjusted operating EBITDA under "Q2 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 first quarter 2026 financial and operational results this afternoon, May 14, 2026 at 4:30 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. The call can also be accessed by dialing (833) 461-5787 (North America toll-free) or +1 (585) 542-9983 (International toll-free) and referencing conference ID: 797733227. 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 comprehensive lithium battery technology company, specializing in cell manufacturing, battery pack assembly, and full system integration. Through its renowned Battle Born Batteries® brand, Dragonfly Energy has established itself as a frontrunner in the lithium battery industry, with hundreds of thousands of reliable battery packs deployed in the field through top-tier OEMs and a diverse retail customer base. At the forefront of domestic lithium battery cell production, Dragonfly Energy’s patented dry electrode manufacturing process can deliver chemistry-agnostic power solutions for a broad spectrum of applications, including energy storage systems, electric vehicles, and consumer electronics. The Company's overarching mission is the future deployment of its proprietary, nonflammable, all-solid-state battery cells. 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 second quarter of 2026, 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: improved 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; the growth of the addressable markets that the Company intends to target; 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 Investor Relations: Eric Prouty Szymon Serowiecki AdvisIRy Partners [email protected]

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dragonfly Energy Holdings Corp (NASDAQ:DFLI) exceeded guidance on net sales and adjusted EBITDA despite a softer RV market. The company secured a significant purchase order from Stevens Transport, valued at over $3 million, marking the largest trucking order to date. Cost reduction measures have resulted in approximately $4.5 million in annualized expense savings, with an additional $4 million expected from rental space consolidation. Dragonfly Energy Holdings Corp (NASDAQ:DFLI) received a patent allowance from the Japan Patent Office, strengthening its global intellectual property portfolio. The company was awarded a $527,000 non-dilutive grant for expanding its domestic manufacturing capabilities, reflecting confidence in its battery manufacturing roadmap. The RV market remains soft, with industry shipments and retail sales data down year-over-year. Gross margin was 17.6%, reflecting lower volumes, though improvement is expected in the next quarter. Net loss attributable to common shareholders was $7.7 million, or $0.64 per diluted share. Adjusted EBITDA was negative $4.6 million, indicating ongoing financial challenges. The company continues to face a challenging economic environment with rising diesel prices impacting the ROI for fleet operators. Warning! GuruFocus has detected 5 Warning Signs with DFLI. Is DFLI fairly valued? Test your thesis with our free DCF calculator. Q: Can you expand on the commercial momentum in the trucking sector and the pipeline of opportunities similar to the recent order? A: Unidentified_4 (Chief Commercial Officer): The pipeline is strong. We've been aligning product solutions with OEMs and conducting fleet trials over the last three years. Truck orders are up significantly, indicating fleets are starting to order trucks again, incorporating technologies they've tested. The total addressable market is robust, with about 250,000 trucks built annually, half of which require driver comfort features. Q: Any updates on the dry electrode and solid-state technology, considering capital preservation? A: Unidentified_3 (CEO): Our priority is revenue and cost structure, but we continue minimal spending on developing dry electrode and solid-state technology. We are forming partnerships and developing the supply chain, aiming to announce meaningful developments in the future. Q: What are the financial expectations for the second quarter? A: Unidentified_3 (CEO): We expect net sales of approximately $13.2 million, a 36% sequential growth, and an adjusted EBITDA loss of about $1.9 million, reflecting a $2.7 million improvement due to higher revenue and cost actions from Q1. Q: How is the RV market performing, and what are the expectations moving forward? A: Unidentified_4 (Chief Commercial Officer): The RV market remains soft, with March retail sales down over 20% year-over-year. However, we see healthy adoption trends within OEM partnerships, with growth from broader inclusion across model lineups and increased energy storage content in existing models. Q: What measures have been taken to align the cost structure with growth opportunities? A: Unidentified_3 (CEO): We implemented cost reductions, including marketing spend cuts, workforce reductions, and compensation adjustments at the leadership level. These actions have resulted in approximately $4.5 million in annualized expense reduction, with an additional $4 million expected from rental space consolidation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.