Dragonfly Energy revenue falls 23.8% to $12.174 million in third quarter
Key Facts
Dragonfly Energy reported net sales of $12.174 million in the third quarter of 2026, down 23.8% from $15.967 million in the same period a year earlier. The result came below the company’s prior guidance of about $13.5 million, according to an investor relations statement. Net loss attributable to common shareholders was $6.7 million, or $3.71 per diluted share. The third-quarter loss in 2025 was $11.1 million, or $16.45 per share. The per-share loss therefore improved year over year, alongside lower sales and a decline in gross margin.
Most sales came from the original equipment manufacturer segment, which recorded $7.122 million for the quarter, compared with $10.679 million a year earlier, a year-over-year decline of 33.3%. Direct-to-consumer sales were $4.802 million, versus $5.038 million in the year-earlier period, down 4.7%. The company said weakness in the recreational vehicle sector weighed on OEM sales, noting that wholesale shipments in the sector fell 13.7% year to date through September. It attributed the decline in direct-to-consumer sales to macroeconomic pressures. The contraction was therefore steeper in OEM sales, the larger of the two revenue channels broken out in the statement.
Gross profit fell to $3.3 million in the third quarter of 2026, from $4.7 million in the same period of 2025. Gross margin declined to 27.0% from 29.7%, with the company attributing the drop in profit and margin mainly to lower sales volumes. Operating expenses, meanwhile, fell to $7.3 million from $8.5 million a year earlier. The company said the lower expenses reflected progress on cost-cutting initiatives. But expense reductions did not prevent continued adjusted operating losses: adjusted earnings before interest, taxes, depreciation and amortization showed a loss of $2.3 million, compared with $2.1 million a year earlier and $1.6 million in the second quarter of 2026.
As activity declined in the core channels, heavy-duty truck revenue emerged as a growth area for the company. It exceeded $1.3 million in the third quarter, more than doubling from the second quarter, and the chief executive said this came as commercial transport fleets adopted the products more widely. The statement said growth in the business was in line with the company’s expectations announced in August. The company expects heavy-duty truck revenue to nearly double again sequentially in the fourth quarter. This expansion places the new business alongside OEM and direct-to-consumer sales, both of which recorded year-over-year declines during the quarter.
Liquidity data show a significant decline in available cash compared with the end of last year: cash and cash equivalents stood at $1.941 million on September 30, 2026, versus $18.270 million on December 31, 2025. For the outlook, the company is targeting total sales of about $12.5 million in the fourth quarter, with adjusted earnings before interest, taxes, depreciation and amortization near breakeven. The sales target is below analysts’ average forecast of $15.45 million for the quarter, according to Investing.com. Third-quarter revenue of $12.17 million was below the average estimate of $17.36 million, according to the same source. The company’s shares, which trade under the ticker DFLI, closed at $2.02 on November 11, 2026.
The company expects new inventory from Dakota Lithium to begin arriving near the end of the fourth quarter of 2026. It said wider product availability and a more significant revenue contribution would begin in the first quarter of 2027. It also said the acquisition would support adjusted earnings before interest, taxes, depreciation and amortization. These timelines follow the fourth-quarter outlook, which includes sales of about $12.5 million and adjusted performance near breakeven. The company therefore ties part of the larger revenue contribution to expanded availability of Dakota Lithium inventory in early 2027.