Dragonfly Energy shares slide after massive earnings miss
Q4 EPS loss of $14.74 misses estimates by 2,939%, despite revenue beat and cost-cutting initiatives
Dragonfly Energy Holdings Corp. shares fell more than 2% on Tuesday after the battery manufacturer reported a massive fourth-quarter earnings shortfall, underscoring the challenges facing the company as it works to achieve profitability.
The Reno, Nevada-based lithium-ion battery manufacturer posted a loss per share of $14.74 for the quarter, dramatically missing analyst expectations for a loss of $0.49—a shortfall of 2,939%. Revenue of $13.1 million narrowly beat the $12.9 million consensus estimate, representing a modest 0.9% beat, according to the company's preliminary results announcement.
The stock declined 2.3% to $2.92 in afternoon trading, extending what has been a volatile period for the shares. Dragonfly Energy has traded between $26.10 and $1.50 over the past 52 weeks, reflecting investor uncertainty about the company's path to commercial scale.
Guidance for the first quarter of 2026 signaled continued challenges, with the company projecting revenue of $9.5 million and an EBITDA loss of $4.6 million. The weak outlook contrasted with full-year 2025 results that showed progress on cost control—full-year EBITDA improved to a loss of $11.8 million from a loss of $18.5 million in the prior year.
Dragonfly Energy, which specializes in lithium iron phosphate (LFP) batteries and proprietary dry electrode manufacturing technology, announced an $8.9 million annualized cost savings initiative as part of its efforts to reach profitability. The company is targeting profitability at a $70 million revenue run rate, a milestone it is working toward through expense reduction and operational efficiency improvements.
Despite the earnings miss, there were bright spots in the full-year performance. Full-year 2025 revenue increased 16%, driven by 34% growth in OEM sales, according to the company's statement. The company's Battle Born Batteries® brand is used across recreational vehicles, marine vessels, solar systems, and other applications.
The company's proprietary dry electrode manufacturing process, which eliminates toxic solvents and reduces energy consumption, positions it competitively in the battery technology market. Dragonfly Energy was named "Battery Technology Company of the Year" in the 2025 CleanTech Breakthrough Awards, recognizing its innovations in manufacturing and battery monitoring technology.
Dragonfly Energy's Dragonfly IntelLigence® technology provides mesh network connectivity and real-time remote monitoring of battery banks, features that could help differentiate its products as the energy storage market expands.
The company's market capitalization stands at approximately $36 million, with analyst price targets averaging $18.75—well above current trading levels but reflecting optimism about the company's long-term potential if it can execute on its cost-cutting and growth strategies.
The battery storage sector faces intense competition and pricing pressure as companies scale production to meet growing demand for renewable energy storage solutions. Dragonfly Energy's focus on LFP chemistry, which offers greater stability and longer cycle life compared to other lithium-ion technologies, could provide advantages as safety and sustainability concerns grow among consumers and industrial users.
Investors will be watching closely for signs that the cost-saving initiatives are taking effect and whether the company can maintain the OEM sales growth that helped drive full-year revenue improvement. The path to $70 million in revenue—and profitability—remains the critical metric for the stock's performance in coming quarters.