Dragonfly Energy Holdings Corp (DFLI) AI Stock Analysis

• Market Cap: $24.40M
• Dividend Yield: N/A
• Average Volume (3M): 439.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: 18.24%
• EPS Growth: 24.49%
• Country: US
• Employees: 139
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -14.92
• Shares Outstanding: 12,078,713
• 10 Day Avg. Volume: 733,954
• 30 Day Avg. Volume: 439,965
• PEG Ratio: 2.78
• Price to Book (P/B): 274.26
• Price to Sales (P/S): 250.47
• P/FCF Ratio: -507.42
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: -0.89
• 1Y Price Target: $4.13
• Price Target Upside: 104.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.95
• Revenue Forecast (FY): $76.25M

• Rating: 42 Neutral
• Price Target: $2.00 ▼(-0.99% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held down primarily by weak financial quality—large, persistent losses and ongoing cash burn—despite some balance-sheet repair in 2025. Technicals also remain bearish with the stock below major moving averages and negative MACD. Offsetting these, the earnings update showed improved margins, better adjusted EBITDA trends, and capital actions/debt reduction, but guidance still implies continued near-term losses.

Positive Factors

Revenue growth and OEM traction

A clear revenue rebound and strong OEM growth demonstrate expanding commercial traction beyond direct-to-consumer channels. Durable OEM relationships can produce recurring, higher-volume orders and channel diversification, improving scale economics and reducing exposure to retail cyclicality over the medium term.

Sustained gross margin improvement

A ~710bp gross margin expansion to nearly 30% reflects operational improvements and a favorable product mix. Higher gross margins increase operating leverage so future sales growth converts to profit more efficiently, aiding the company's structural ability to move toward sustained profitability and reduced cash burn per revenue dollar.

Balance-sheet repair and liquidity extension

Significant capital raising plus debt restructuring materially improved the capital structure, restoring positive equity and lowering leverage. Improved liquidity and a smaller debt load provide a meaningful runway to invest in OEM expansion and margin initiatives without immediate refinancing, strengthening financial flexibility.

Negative Factors

Persistent negative cash flow

The company has generated negative operating and free cash flow each year 2021–2025, with 2025 showing material cash burn. Persistent cash deficits force ongoing external funding, constrain reinvestment, and elevate execution risk if capital access tightens, undermining long-term self-sufficiency.

Large, ongoing net losses and weak margins

The company shifted from prior profitability to sustained, large net losses and deeply negative margins. Continued operating losses and negative adjusted EBITDA guidance imply profitability remains distant, limiting internal funding for growth and increasing the risk of further balance-sheet strain if losses persist.

Reliance on equity financing / dilution risk

Repeated use of equity financings (ATM program and prior $90M raise) signals dependence on capital markets to fund operations and rebuild liquidity. Ongoing dilution pressure can erode shareholder value and leaves strategic execution exposed to market conditions and timing of future raises.

Dragonfly Energy Holdings Corp Business Overview & Revenue Model

Company Description

Dragonfly Energy Holdings Corp. manufactures and supplies deep cycle lithium-ion batteries for RVs, marine vessels, off-grid installations, and other storage applications. It also focuses on delivering an energy storage solution to enable a sustainable and reliable smart grid through the deployment of its solid-state cell technology. The company is headquartered in Reno, Nevada.

How the Company Makes Money

DFLI makes money primarily by selling lithium-ion battery products and related power/energy components. The core revenue stream is product sales of lithium battery packs (including drop-in replacement batteries and application-specific battery systems) and associated accessories (such as chargers, inverters, and power management components) through a mix of channels that typically include direct-to-consumer e-commerce, dealer/distributor networks, and OEM relationships where DFLI supplies batteries and power systems for integration into third-party products (e.g., RVs, marine vessels, and specialty vehicles). Revenue is recognized when products are delivered/accepted under customer contracts, with earnings influenced by unit volume, product mix (higher-capacity systems vs. smaller batteries), pricing, and manufacturing/supply chain costs for cells and electronics. Publicly available detail on specific revenue split by channel/customer type, recurring software/service revenue, or the material terms of significant partnerships is null.

Dragonfly Energy Holdings Corp Financial Statement Overview

Summary

Despite a sharp 2025 revenue rebound, results are dominated by persistent large losses and sustained negative operating/free cash flow through 2025. The balance sheet improved with equity returning positive and debt-to-equity normalizing after a stressed 2024, but ongoing cash burn and weak margins remain the primary financial risk.

Income Statement

Revenue has been volatile—down materially in 2022–2024 before rebounding strongly in 2025 (+146.6%). However, profitability has deteriorated sharply versus the early years: the company moved from positive operating profit and net income in 2020–2021 to persistent, large losses from 2022 onward, culminating in a very weak 2025 net margin (about -120%) and deeply negative operating/EBITDA margins. Gross margin remains positive but is well below 2020–2021 levels, suggesting pricing/production efficiency has not offset operating cost pressure.

Balance Sheet

Leverage and equity quality are mixed. Debt levels are meaningful, but the debt-to-equity position improved significantly in 2025 (debt-to-equity ~0.61) after a stressed 2024 where equity turned negative (a major red flag). Total assets are relatively stable, and equity recovered to a positive level in 2025, which helps. That said, returns to shareholders are poor given the large losses, and the prior swing into negative equity highlights balance-sheet volatility and recapitalization risk if losses persist.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are negative in every year from 2021 through 2025, with 2025 showing a large cash burn (operating cash flow about -$27.0M; free cash flow about -$28.9M). While free cash flow “growth” appears positive in 2025 (improving off a worse prior base), the business is still consuming cash and not self-funding operations. Overall, the cash profile increases reliance on external financing until profitability and working-capital dynamics improve.

Breakdown	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	58.63M	50.65M	64.39M	86.25M	78.00M
Gross Profit	15.65M	11.63M	15.45M	23.62M	29.63M
EBITDA	-17.60M	-15.51M	3.41M	-32.83M	7.08M
Net Income	-70.25M	-40.62M	-13.82M	-39.99M	4.34M
Balance Sheet
Total Assets	86.55M	75.21M	75.20M	89.11M	76.25M
Cash, Cash Equivalents and Short-Term Investments	18.27M	4.85M	12.71M	17.78M	25.59M
Total Debt	32.71M	55.27M	23.31M	24.02M	44.70M
Total Liabilities	33.01M	84.62M	47.29M	78.36M	62.19M
Stockholders Equity	53.54M	-9.40M	27.91M	10.74M	14.06M
Cash Flow
Free Cash Flow	-28.94M	-9.92M	-24.59M	-52.56M	-16.54M
Operating Cash Flow	-26.99M	-7.18M	-17.71M	-45.70M	-13.57M
Investing Cash Flow	-1.95M	-2.73M	-6.88M	-6.83M	-2.91M
Financing Cash Flow	41.80M	2.05M	19.52M	41.67M	38.91M

Dragonfly Energy Holdings Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DFLI, the sentiment is Negative. The current price of 2.02 is below the 20-day moving average (MA) of 2.56, below the 50-day MA of 2.98, and below the 200-day MA of 4.93, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 33.88 is Neutral, neither overbought nor oversold. The STOCH value of 4.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DFLI.

Dragonfly Energy Holdings Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULBI	64 Neutral	$107.05M	-16.14	-4.35%	―	12.94%	-81.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKYX	54 Neutral	$218.32M	-4.12	-703.65%	―	7.06%	12.25%
CBAT	48 Neutral	$73.85M	7.57	-5.40%	―	-22.02%	-156.65%
FLUX	46 Neutral	$25.82M	10.40	365.40%	―	2.14%	5.01%
GWH	45 Neutral	$33.42M	-0.43	-265.36%	―	-3.53%	24.37%
DFLI	42 Neutral	$24.40M	-209.02	9999.00%	―	18.24%	24.49%

Dragonfly Energy Holdings Corp Corporate Events

Dragonfly Energy Launches Cost-Cutting Initiative to Boost Profitability

On March 15, 2026, Dragonfly Energy announced a broad cost-reduction program that includes approximately 20% base salary cuts for its executive team and board, similar payroll reductions and workforce cuts across employees, and lower discretionary and marketing spend, partially offset by equity awards in lieu of cash; combined with facility consolidation, these measures are expected to deliver about $8.9 million in annualized savings and shift resources toward OEM, trucking and industrial customers. The company also reported preliminary results for the fourth quarter and full year 2025, with full-year net sales rising 15.8% to $58.6 million driven by 33.8% OEM growth, improved gross margin to 26.7%, but a wider net loss of $69.9 million, underscoring its ongoing push to improve its cost structure and move toward profitability after a year marked by capital actions and expanding commercial partnerships.

The most recent analyst rating on (DFLI) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Dragonfly Energy Holdings Corp stock, see the DFLI Stock Forecast page.

Dragonfly Energy Launches $50 Million At-The-Market Offering

On January 30, 2026, Dragonfly Energy Holdings Corp. entered into an Equity Distribution Agreement with Canaccord Genuity LLC, acting as lead agent on behalf of a syndicate of sales agents, allowing the company to offer and sell up to $50 million of its common stock from time to time in an at-the-market offering program. The arrangement, conducted under an existing SEC shelf registration, gives Dragonfly Energy a flexible mechanism to raise equity capital as needed, with the agents earning a 3% commission on gross proceeds and receiving customary indemnification and expense reimbursement, potentially supporting the company’s liquidity and funding options while diluting existing shareholders as new shares are issued.

The most recent analyst rating on (DFLI) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Dragonfly Energy Holdings Corp stock, see the DFLI Stock Forecast page.