Dragonfly Energy (DFLI) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were $13.2 million, in line with guidance but down 19% year-over-year, with adjusted EBITDA of $(1.6) million, reflecting cost reduction actions and the first meaningful heavy-duty trucking revenue.

• Net loss for Q2 2026 was $4.4 million, an improvement from $7.0 million in Q2 2025, driven by lower interest expense and cost reductions.

• Acquisition of Dakota Lithium assets expands the product portfolio and customer base, expected to be accretive to adjusted EBITDA and contribute meaningful revenue in Q4.

• Recent leadership and board additions, along with new product launches, strengthen commercial and technical capabilities.

Financial highlights

• Q2 2026 net sales: $13.2 million (down 19% year-over-year); OEM: $8.4 million, DTC: $4.5 million.

• Gross profit: $4.3 million; gross margin improved to 33.0% from 28.3% year-over-year, aided by a $1.1 million tariff refund.

• Net loss attributable to common shareholders: $(4.4) million to $(5.5) million, improved from $(7.0) million year-over-year.

• Adjusted EBITDA: $(1.6) million, a $0.6 million year-over-year and $3.0 million sequential improvement.

• Cash and cash equivalents at quarter-end: $6.3 million; working capital: $19.9 million.

Outlook and guidance

• Q3 2026 net sales expected to grow to approximately $13.5 million, with heavy-duty trucking revenue expected to more than double sequentially.

• Adjusted EBITDA for Q3 expected to be approximately $(2.4) million, reflecting temporary timing factors.

• Dakota Lithium expected to contribute meaningful revenue and be accretive to adjusted EBITDA in Q4.

• Management expects to achieve profitability and positive cash flow within the next twelve months, targeting positive adjusted EBITDA at a $70 million annual net sales run rate.