Dragonfly Energy (DFLI) investor relations material

Executive summary

• Q1 2026 net sales were $9.7 million, down 27% year-over-year, reflecting softer RV demand and a strategic focus on OEM and commercial opportunities.

• Gross margin declined to 17.6% from 29.4% year-over-year, mainly due to lower volumes and higher material costs.

• Net loss attributable to common shareholders was $7.7 million ($0.64 per diluted share), with adjusted EBITDA at negative $4.6 million.

• Significant cost reductions were implemented, including workforce cuts, marketing reductions, and executive compensation shifted to equity, with $4.5 million annualized savings and an additional $4 million expected from rental space consolidation.

• Major post-quarter trucking order from Stevens Transport valued at over $3 million for nearly 500 trucks, marking a shift to fleet-wide adoption.

Financial highlights

• Q1 2026 net sales: $9.7 million (OEM: $5.8 million, DTC: $3.7 million, licensing: $0.25 million).

• Gross profit was $1.7 million, down from $3.9 million year-over-year.

• Operating expenses dropped to $7.4 million from $9.8 million year-over-year.

• Adjusted EBITDA was negative $4.6 million in Q1 2026.

• Cash and equivalents at March 31, 2026: $8.6 million; working capital: $23.4 million.

Outlook and guidance

• Q2 2026 net sales expected at $13.2 million, a 36% sequential increase as trucking revenue ramps.

• Adjusted EBITDA loss anticipated at $1.9 million for Q2, a $2.7 million sequential improvement.

• Targeting positive adjusted EBITDA at an annualized net sales run rate of $70 million.

• Cost of goods sold expected to rise with revenue and tariffs, partially offset by automation.

• G&A and selling/marketing expenses projected to decrease as a percentage of revenue due to cost reduction initiatives.