Dragonfly Energy Holdings Corp ( (DFLI) ) has released its Q3 earnings. Here is a breakdown of the information Dragonfly Energy Holdings Corp presented to its investors.
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Dragonfly Energy Holdings Corp. is a prominent company in the lithium battery technology sector, specializing in cell manufacturing, battery pack assembly, and system integration, known for its Battle Born Batteries® brand. In its third quarter of 2024, Dragonfly Energy posted net sales of $12.7 million, which is a decrease from $15.9 million in the same period the previous year. The company reported a gross profit of $2.9 million and a net loss of $6.8 million, improving from a $10 million loss in Q3 2023. The EBITDA stood at a negative $0.8 million, showing a significant improvement from the previous year’s negative $5.7 million.
The third quarter also saw Dragonfly Energy making strides in operational achievements, such as launching the Dragonfly IntelLigence smart battery technology aimed at the heavy-duty trucking industry and completing a pilot demonstration of methane reduction solutions for the oil and gas sector. Despite a drop in direct-to-consumer sales due to higher interest rates and inflation, the company experienced a rise in OEM sales, driven by a recovering RV market and entry into the heavy-duty trucking market.
The company reduced its operating expenses to $8.9 million from $10.5 million in the previous year, primarily due to reduced headcount and lower shipping and legal costs. Additionally, Dragonfly Energy’s cash reserves increased to $8 million by the end of Q3 2024, with a largely unutilized $150 million equity line of credit. The company remains optimistic about its ability to manage liquidity and leverage opportunities in new markets.
Looking ahead, Dragonfly Energy projects net sales between $13.5 million and $14 million in Q4 2024, with gross margins expected to be in the range of 22% to 25%. The company anticipates ongoing recovery in the RV market and continued growth in the heavy-duty trucking sector, positioning itself for future success through strategic market penetration and innovative technology advancements.
