TLDR
- Dragonfly Energy announces 1-for-10 reverse stock split for Nasdaq compliance.
- Stockholders approve reverse split to boost liquidity and financial health.
- Reverse stock split reduces outstanding shares, strengthens Dragonfly’s foundation.
- Dragonfly’s stock drops 39%, but the reverse split aims to secure future growth.
- Dragonfly Energy moves to stabilize finances with a 1-for-10 reverse stock split
Dragonfly Energy Holdings Corp. (DFLI) has announced a 1-for-10 reverse stock split, effective December 18, 2025. The company’s stock has dropped by 39.15%, with shares currently priced at $0.4321.
Dragonfly Energy Holdings Corp., DFLI
The reverse stock split is part of Dragonfly Energy’s strategy to strengthen its financial position and maintain compliance with Nasdaq listing requirements. The company’s stockholders approved the proposal in October 2025, and the board of directors set the ratio to 1-for-10 on December 2, 2025.
Reverse Stock Split: Technical Step for Nasdaq Compliance
Dragonfly Energy’s reverse stock split will reduce the total number of outstanding shares from approximately 120.8 million to 12.1 million. This move will not change the company’s total equity value, nor will it affect stockholders’ percentage interests. The par value of the company’s common stock remains unchanged at $0.0001 per share. However, Dragonfly Energy will compensate stockholders for any fractional shares resulting from the reverse split in cash.
The reverse stock split will apply to the company’s outstanding warrants and stock options, with adjustments made to their exercise prices. The company’s equity incentive plans will also be adjusted accordingly. While the reverse stock split affects all stockholders uniformly, it helps Dragonfly Energy maintain its listing on Nasdaq. According to CEO Dr. Denis Phares, the company’s improved liquidity from recent capital raises and debt restructuring strengthens its financial foundation.
Strategic Move for Future Growth and Financial Stability
Dragonfly Energy believes that the reverse stock split is a critical step in positioning the company for growth. Dr. Denis Phares emphasized the importance of this move, noting that it provides a more durable financial foundation. With a focus on expanding revenue and deepening strategic partnerships, Dragonfly Energy aims to invest in differentiated battery technologies. These efforts are expected to support long-term value creation for the company.
The company’s stockholders approved the reverse stock split at the Annual Meeting of Stockholders in October 2025. The proposal was set for a ratio of 1-for-2 to 1-for-50, with the final decision resting with the board of directors. The reverse stock split reflects Dragonfly Energy’s ongoing efforts to enhance its financial flexibility while keeping the company’s strategic goals intact.
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