--- title: "Dragonfly Energy Earnings Call Highlights Trucking Pivot" type: "News" locale: "en" url: "https://longbridge.com/en/news/286625359.md" description: "Dragonfly Energy Holdings Corp's Q1 earnings call highlighted cautious optimism amid ongoing financial losses. The company reported Q1 net sales of $9.7 million, with a significant order from Stevens Transport valued over $3 million. Management anticipates Q2 revenue of $13.2 million, driven by trucking deployments. Despite a net loss of $7.7 million, cost reductions and improved payback dynamics for trucking solutions are expected to enhance profitability. The RV market slump continues to impact demand, emphasizing the need for successful execution in the trucking sector." datetime: "2026-05-16T00:19:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286625359.md) - [en](https://longbridge.com/en/news/286625359.md) - [zh-HK](https://longbridge.com/zh-HK/news/286625359.md) --- # Dragonfly Energy Earnings Call Highlights Trucking Pivot Dragonfly Energy Holdings Corp ((DFLI)) has held its Q1 earnings call. Read on for the main highlights of the call. ### Claim 55% Off TipRanks - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks Dragonfly Energy Holdings Corp.’s latest earnings call carried a tone of cautious optimism, as management balanced clear commercial wins in heavy‑duty trucking with ongoing financial losses and a still‑weak RV market. Executives pointed to accelerating trucking orders and aggressive cost cuts as creating a tangible path toward improved profitability, but emphasized that the near‑term outlook depends on flawless execution of the trucking ramp. ## Sales Rebound Led by Trucking Outlook Q1 net sales came in at $9.7 million, split between $5.8 million from OEM customers and $3.7 million from direct‑to‑consumer channels. For Q2, management guided to roughly $13.2 million in revenue, implying about 36% sequential growth as trucking deployments begin to scale and offset softness in other end markets. ## Stevens Transport Order Anchors Trucking Push A centerpiece of the call was a material commercial win in heavy‑duty trucking, with Stevens Transport placing the company’s largest order to date, valued at more than $3 million. The order covers nearly 500 trucks, with deliveries starting in Q2 and ramping into 2026, and is part of a broader plan to transition Stevens’ 2,500‑truck fleet to Dragonfly’s platform over time. ## Improving Payback Dynamics for Fleets Rising diesel prices are enhancing the economics of Dragonfly’s solutions for trucking customers, making the investment case more compelling. Management noted that payback on the dual flow power pack has improved from just over one year to under 10 months, with similar gains for the all‑electric APU, a key driver of future adoption. ## Cost Actions Bolster EBITDA Run Rate Dragonfly detailed meaningful cost reductions that have already delivered about $4.5 million in annualized adjusted expense savings since March. An additional roughly $4 million is expected from rental consolidation in Q2, and together these actions are projected to drive about $9 million of annualized adjusted EBITDA improvement. ## IP Portfolio and Manufacturing Support Advance On the technology front, the company reported progress in intellectual property and domestic manufacturing initiatives, including its first patent allowance from the Japan Patent Office for powderized solid state electrolyte materials. Dragonfly now holds nearly 90 issued or pending patents and secured $527,000 in nondilutive Nevada Tech Hub funding to support in‑house cylindrical cell prototyping and testing through mid‑2027. ## Operating Expenses Move Lower Operating expenses fell to $7.4 million in Q1 from $9.8 million in the prior period, a reduction of about 24.5%. Management attributed the decline to lower marketing spend, targeted workforce reductions, and leadership compensation adjustments that shifted roughly 20% of pay into equity‑based incentives. ## Path to Profitability Clarified Management reiterated a clear profitability framework, targeting positive adjusted EBITDA at an annualized net sales run rate of around $70 million. They also expect a significant near‑term step‑up, with adjusted EBITDA projected to improve from a loss of $4.6 million in Q1 to a loss of about $1.9 million in Q2, implying a $2.7 million sequential improvement. ## Losses Persist Amid Turnaround Effort Despite operational progress, Dragonfly remains in the red, with Q1 net loss attributable to common shareholders of $7.7 million, or $0.64 per share. Adjusted EBITDA was negative $4.6 million, underscoring that the company is still in the midst of a turnaround and reliant on scaling new commercial programs to close the gap. ## Margins Compressed by Lower Volumes Gross margin in Q1 was a modest 17.6%, pressured by lower volumes and mix challenges in legacy markets. Management signaled confidence that margins should rise as trucking revenue expands and fixed costs are absorbed over a higher sales base, but acknowledged that current profitability metrics remain weak. ## RV Market Slump Weighs on Demand The RV end market, historically a key demand driver, continues to drag on results, with March retail sales down more than 20% year over year and wholesale shipments also declining. This slump contributed to softer OEM and direct‑to‑consumer demand in the quarter and reinforces the strategic pivot toward commercial segments like heavy‑duty trucking. ## Recovery Hinges on Trucking Execution Management made clear that the near‑term recovery story is tightly linked to the success of the trucking ramp, with Q2 guidance assuming a meaningful contribution from that vertical. The business remains sensitive to the timing of fleet rollouts and OEM integrations, making the conversion of current trials and pilots into full production deployments a central risk and opportunity. ## Disciplined R&D in Tough Capital Markets In the current capital‑constrained battery landscape, Dragonfly is prioritizing cash conservation over aggressive R&D spending on dry electrode and solid‑state programs. Management described progress in these areas as measured and partnership‑driven, reflecting a cautious approach to longer‑dated innovation while near‑term profitability and liquidity take precedence. ## Refocusing Away from DTC Channels The company has scaled back marketing spend primarily in direct‑to‑consumer channels and implemented targeted workforce reductions in response to weaker retail demand. These moves are part of a broader effort to reallocate resources toward higher‑return commercial opportunities, particularly in trucking, where management sees stronger and more scalable economics. ## Guidance Points to Sequential Improvement Looking ahead, Dragonfly guided to Q2 net sales of about $13.2 million, up roughly 36% sequentially from Q1, with adjusted EBITDA expected to improve to a loss of approximately $1.9 million. Executives reaffirmed their goal of achieving positive adjusted EBITDA at a $70 million annualized sales run rate and highlighted the combined $9 million in annualized cost savings and the large Stevens Transport order as key contributors to that trajectory. Dragonfly’s earnings call painted the picture of a company in transition, leaning on a growing heavy‑duty trucking franchise and aggressive cost control to offset a sluggish RV backdrop and ongoing losses. For investors, the story now hinges on whether management can convert early trucking momentum into sustained growth and margin expansion, turning cautious optimism into durable financial performance. ### Related Stocks - [DFLI.US](https://longbridge.com/en/quote/DFLI.US.md) - [DFLIW.US](https://longbridge.com/en/quote/DFLIW.US.md) ## Related News & Research - [Supreme Court says man who lost leg can sue major logistics company over trucker crash](https://longbridge.com/en/news/286433469.md) - [3 energy stocks that are quietly becoming the trades of the year](https://longbridge.com/en/news/286790976.md) - [Einride and EASE logistics plan pilot project for autonomous trucks in Ohio](https://longbridge.com/en/news/286923286.md) - [High prices are making oil even 'sexier' for thieves — now Texas is wrangling with cloned trucks and exploding pipelines](https://longbridge.com/en/news/286671860.md) - [ZAWYA: Energy Development Oman raises $200mln via tap issue](https://longbridge.com/en/news/286773474.md)