TLDR
- Dragonfly Energy reported Q3 loss of ($0.20) per share, beating the ($0.71) consensus estimate by $0.51.
- Stock gained 4.9% to $0.81 with 43.7 million shares changing hands versus the 19 million average.
- OEM revenue jumped 44% to $10.7 million while gross margin expanded 710 basis points to 29.7%.
- Public offerings brought in $90 million and debt restructuring enhanced financial flexibility.
- Management forecasts Q4 sales of $13 million, up 7% from the prior year quarter.
Dragonfly Energy shares climbed Friday after the company reported third-quarter results that topped Wall Street forecasts. The stock rose 4.9% to $0.81 as investors reacted to better-than-expected earnings.
Dragonfly Energy Holdings Corp., DFLI
The lithium-ion battery maker posted a loss of $0.20 per share. Analysts had projected a much wider loss of $0.71 per share. The $0.51 beat represented one of the larger surprises of the earnings season.
Quarterly revenue came in at $15.97 million. The figure aligned perfectly with analyst estimates. Volume spiked to 43.7 million shares, well above the normal 19 million daily average.
Sales to original equipment manufacturers stole the spotlight. OEM revenue climbed 44% year-over-year to $10.7 million. More RV producers are choosing Dragonfly’s battery systems for factory installation.
Consumer sales dipped 2.2% to $5 million as economic uncertainty weighed on retail buyers. Licensing income rose nearly 50% during the three-month period.
Profitability Metrics Improve
Total net sales increased 25.5% from last year to $16 million. Gross profit jumped 65% to $4.7 million. The company’s gross margin expanded from 22.6% to 29.7%.
Higher unit sales and an improved product mix drove margin gains. Cost reduction programs also helped boost profitability. The 710 basis point margin expansion shows real operational progress.
Adjusted EBITDA reached negative $2.1 million. That’s a meaningful improvement from negative $5.5 million in the same quarter last year. The company continues losing money but the losses are shrinking.
Net loss grew to $11.1 million from $6.8 million a year earlier. Dragonfly is investing heavily in growth initiatives and research. Operating costs fell to $8.5 million from $8.9 million as R&D spending declined.
Balance Sheet Gets Boost
The company executed three public stock offerings this year. Combined, these deals generated roughly $90 million in gross proceeds. Dragonfly also reworked its debt structure.
These moves reduced debt levels and increased cash on hand. CEO Dr. Denis Phares called the capital actions essential for long-term success. The stronger balance sheet gives management room to pursue opportunities.
Analysts rate the stock “Moderate Buy” overall. The consensus price target stands at $1.50. Coverage ranges from strong buy to sell recommendations.
Looking ahead to Q4, management expects sales of around $13 million. That would mark 7% growth versus the fourth quarter of 2024. Adjusted EBITDA is projected at negative $3.3 million.
The stock trades at a market cap of $68.71 million. Over the past year, shares have ranged from $0.15 to $4.77. The 50-day moving average is $0.89 and the 200-day average sits at $0.52.
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