Significant Progress in 2025

In 2025, Dragonfly Energy made substantial improvements to its balance sheet, expanded its original equipment manufacturer (OEM) footprint, and achieved key validations in the heavy-duty trucking sector, including a major deployment with Werner Enterprises. These accomplishments have facilitated a return to year-over-year revenue growth, allowing the company to advance its vision established upon going public three years ago.

• Improved balance sheet and financial position
• Expanded OEM partnerships
• Successful deployment in heavy-duty trucking

Strategic Focus and Operational Adjustments

Dragonfly Energy's mission remains focused on advancing energy storage through manufacturing innovations that promote Lithium-ion battery adoption and domestic production. The company has realigned operational strategies to emphasize near-term revenue and cash management while enhancing commercial product development.

Significant capital restructuring occurred in the latter half of 2025, enabling the company to raise approximately $90 million through common stock offerings. This initiative included a notable $45 million cash prepayment and conversion of debt into equity, reducing total debt principal to just $19 million.

Compliance with Nasdaq Standards

In 2025, Dragonfly Energy faced compliance challenges with Nasdaq's listing standards. Following a review, the company successfully executed a series of corrective measures, including the conversion of preferred equity to common equity and a reverse stock split. As a result, the company regained compliance across all necessary standards, enhancing investor confidence and market position.

Innovative Technology and Patent Portfolio

Dragonfly Energy distinguishes itself through a strong focus on research and development, particularly in the manufacturing of battery electrodes using dry aerosol-based processes. This innovation reduces production costs for conventional Lithium-ion batteries and is supported by a growing patent portfolio of nearly 100 patents.

Strengthening Market Position

The RV market has shown signs of recovery post-COVID, and Dragonfly Energy has achieved a 45% year-over-year increase in its OEM business within this sector during Q3 2025. Key partnerships with major manufacturers like Thor, Forest River, and REV Group have solidified the company's market share amidst a flat industry backdrop.

• Key OEM partnerships with leading RV manufacturers
• Successful adoption of Lithium systems in RV energy solutions
• Ongoing supply chain optimization and support

Future Growth in the Heavy-Duty Trucking Sector

Looking ahead, Dragonfly Energy is strategically positioned for growth in the heavy-duty trucking market. A technical whitepaper co-authored with PACCAR validates the efficiency of Dragonfly's systems and highlights the health and comfort benefits for drivers. This expansion reflects the company’s adaptability and commitment to meeting diverse energy storage needs.