Dragonfly Energy Holdings Corp. Q1 FY2025 earnings call

• Revenue growth of 6.8% in Q1, exceeding guidance and second consecutive quarter of year-over-year revenue growth. OEM customers saw 10.8% net sales growth due to broader integration at factory level. DTC customers had slight decline due to macroeconomic pressures. • Launched corporate optimization program to focus on near-term revenue-generating opportunities, reallocated resources to prioritize product development. Accelerated launch of Battle Born dual flow power pack for heavy-duty trucking. • Implemented manufacturing operations enhancements like increased automation, standardized user interfaces, new accountability frameworks. Consolidation into new 400,000 square foot facility. • Unique strategic position in U.S.-based production capabilities, advantage in tariff landscape, lithium supply agreement with Ioneer. • Wade discussed heavy-duty trucking market trends, Battle Born dual flow power pack gaining traction for idle reduction and cost control.

First quarter net sales were $13.4 million, up 6.8%. OEM net sales increased 10.8% to $8.1 million, representing about 60.4% of total revenue. DTC net sales saw a slight decline of approximately 3.6% to $5.0 million, accounting for around 37.3% of total revenue. First quarter gross profit increased 12.5% to $3.9 million and gross margin rose to 29.4%, primarily driven by higher volume.

• Expect net sales in Q2 to be approximately $14.8 million, representing 12% year-over-year growth. • Expect adjusted EBITDA loss of approximately $3.5 million in Q2.

• RV market headwinds. • Macro-economic pressures impacting DTC customers. • Uncertainty in tariff landscape affecting costs.

Q: Any updates on commercialization opportunities around dry electrode manufacturing technology?

A: Development is ongoing, working on scale up equipment, have interest from commercial partners, but focus has been on near-term revenue and profitability recently.

Q: Thoughts on cash balance and EBITDA guidance for Q2?

A: Just completed preferred equity deal, cash to get back to profitability by end of year. Q2 EBITDA loss due to continued investment in near-term product development and impact of tariffs.