Dragonfly Energy Issues Year-End CEO Letter to Shareholders

Core Insights - Dragonfly Energy Holdings Corp. has achieved significant milestones in 2025, including improved financial stability, expanded OEM partnerships, and successful deployment in heavy-duty trucking, marking a return to year-over-year revenue growth [1][5]. Financial Performance - The company raised approximately $90 million through three common stock offerings and executed a debt restructuring, reducing total debt principal to $19 million with lower interest rates and extended covenant flexibility through 2026 [3][4]. - The restructuring allowed the company to regain compliance with Nasdaq listing standards, addressing market cap, stockholder's equity, and minimum bid price requirements [4]. Business Strategy - Dragonfly Energy aims to revolutionize energy storage through manufacturing innovations, focusing on Lithium-ion battery adoption and domestic production [2]. - The company emphasizes vertical integration, combining cell manufacturing with battery pack assembly and full system integration, positioning itself as a comprehensive power systems provider [7][8]. Market Position and Growth - The RV market has shown a 45% year-over-year increase in Dragonfly Energy's OEM business in Q3 2025, despite the overall industry being flat, indicating significant market share gains [9]. - Heavy-duty trucking is identified as a key growth opportunity, with the company collaborating with PACCAR to validate its technology for idle reduction solutions [11][12]. Product Development and Innovation - Dragonfly Energy's unique dry aerosol-based manufacturing process for battery electrodes allows for significant cost reductions and the production of all-solid-state batteries, supported by a growing patent portfolio of nearly 100 patents [6]. - The company has successfully expanded its systems into marine and rail sectors, reinforcing its reputation for reliability and innovation across multiple industries [15]. Future Outlook - Despite ongoing economic challenges, the company is optimistic about growth prospects in 2026, driven by momentum in RV, trucking, and adjacent markets [16][17].