Key Highlights

  • Third quarter 2026 net sales were $12.2 million, with OEM net sales of $7.1 million.
  • Gross Margin was 27.0% for the quarter.
  • Net loss attributable to common stockholders was $6.7 million, or $3.71 per diluted share.
  • The company guided to approximately breakeven adjusted EBITDA for the fourth quarter of 2026.

Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) reported third quarter 2026 results on November 12, 2026. The Reno, Nevada company makes lithium battery systems for recreational vehicles, commercial trucks and other applications. Trucking Revenue more than doubled from the second quarter, while sales in the recreational vehicle market fell below expectations. The company also completed its Acquisition of the Dakota Lithium Brand at the end of July.

Sales, Margins and Losses

Net sales were $12.2 million for the quarter, of which $7.1 million came from original equipment manufacturer customers. Gross margin was 27.0%. The company reported a net loss of $5.5 million and a net loss attributable to common stockholders of $6.7 million, or $3.71 per diluted share. Adjusted EBITDA was a loss of $2.3 million.

Chief Executive Denis Phares said heavy-duty trucking revenue reached $1.3 million, more than doubling from the prior quarter and in line with the company's August outlook. He said fleets are now ordering directly for commercial deployment without a pilot phase, and that high diesel prices are increasing fleets' interest in lithium systems that can reduce fuel costs.

Recreational Vehicle Market and Acquisition

Management described conditions in the recreational vehicle market as challenging, and said those conditions drove net sales below its expectations. It added that its premium OEM partnerships remain healthy as customers standardize lithium systems and increase energy storage content in their product lines.

The Dakota Lithium acquisition, completed at the end of July, expands Dragonfly's product portfolio and reach into new markets. The company said it has been rebuilding inventory and re-engaging the brand's dealer and distribution network since the deal closed, and the release does not break out the acquired brand's contribution to the quarter.

The company's net loss per share is affected by the number of shares outstanding over the period, and the release reports the attributable loss separately from the total net loss. Readers should note that the attributable figure is the one used for per-share results.

Sector Context

Lithium battery makers serving vehicles and power storage often face swings in end-market Demand tied to consumer spending, interest rates and fuel costs. Recreational vehicle sales in particular tend to be cyclical, which makes Diversification into commercial fleets and energy storage a common strategy for companies in this segment.

Dragonfly's trucking growth places it in a market where operators look for ways to offset fuel expenses. Its results will reflect how fast that shift can offset softness in its legacy vehicle market, which the company described as the main drag on quarterly sales.

Dragonfly's trucking strategy also depends on the wider transition in commercial fleets toward electrified or lithium-based systems. The company cited fleets moving straight into commercial deployment, a signal that buyers are moving past pilot programs. Whether that interest converts into repeat orders across a broader group of fleet customers will shape how the trucking line develops over the coming year.

Risks and What Lies Ahead

The company's guidance for approximately breakeven adjusted EBITDA in the fourth quarter depends on continued trucking growth. Management said it expects trucking revenue to nearly double again sequentially in the fourth quarter based on its current order book, which means the forecast carries execution risk if orders slip or deliveries are delayed.

Investors should also watch gross margin, inventory levels after the Dakota Lithium integration and the balance between OEM and direct sales. The release does not give an explicit full-year revenue figure, and the trajectory of the RV market remains an open question.

Final Word

The third quarter shows Dragonfly building a trucking Business that more than doubled sequentially, while its RV-linked sales fell short of expectations and its losses per share were material. The company has guided to breakeven adjusted EBITDA in the fourth quarter, which depends on its trucking order book and the integration of Dakota Lithium. Those two factors will be the main items to track in the coming report.