Dragonfly Energy Holdings Corporation

Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) is a lithium battery technology company, specializing in cell manufacturing, battery pack assembly, and full system integration. It offers several lines of batteries across its two brands, namely Battle Born Batteries and Wakespeed. Through its Battle Born Batteries brand, the Company provides battery packs through original equipment manufacturers (OEMs) and a diverse retail customer base.

Key Business and Financial Updates:

• Financial Performance and Margin Improvement: In the second quarter of 2025, Dragonfly Energy Holdings Corp. reported a notable improvement in its financial performance, reflecting both operational efficiency and strategic execution. The company achieved net sales of approximately USD 16.2 million, representing a significant year-over-year increase driven primarily by robust growth in its Original Equipment Manufacturer (OEM) segment. Gross profit rose by over 45%, while gross margin expanded to 28.3%, benefiting from enhanced cost absorption, improved production efficiency, and disciplined expense management. Furthermore, the company succeeded in narrowing its net loss from USD 13.6 million in the prior-year period to approximately USD 7.0 million, marking a substantial improvement in profitability metrics. Operating expenses were also reduced, underscoring management’s ongoing commitment to cost control and structural optimization.
• Business Segment Performance and Market Drivers: Dragonfly Energy’s growth was predominantly fueled by the strong performance of its OEM business, which recorded over 50% year-over-year expansion. This was attributed to increasing adoption of the company’s energy storage systems across key partners and early integration of battery technology into customer product designs. In contrast, the direct-to-consumer (DTC) channel experienced modest weakness, reflecting broader macroeconomic caution and discretionary spending slowdowns. Nonetheless, the company highlighted continued engagement with OEM customers in sectors such as recreational vehicles, commercial fleets, and residential energy storage, all of which are expected to contribute meaningfully to long-term revenue growth. Domestic assembly operations also provided a competitive advantage by mitigating supply chain disruptions and tariff-related headwinds, reinforcing operational resilience.
• Strategic Initiatives and Capital Restructuring: During the quarter, Dragonfly Energy implemented several strategic initiatives aimed at strengthening its balance sheet and technological positioning. The company successfully simplified its capital structure by converting all remaining preferred shares into common equity, enhancing transparency and financial flexibility. It also completed a USD 5.5 million equity raise without warrant issuance, reinforcing liquidity for ongoing operational and R&D activities. On the technological front, management emphasized significant progress in intellectual property development, including advancements related to a nonflammable, all-solid-state battery material preparation process. This innovation is expected to support the company’s long-term vision of improving battery safety, performance, and scalability, thereby strengthening its competitive standing in the energy storage sector.
• Outlook, Guidance, and Forward Strategy: Looking ahead, Dragonfly Energy expressed optimism about its trajectory for the remainder of 2025, with expectations of continued sequential improvement in both revenue and profitability. The company issued guidance for the third quarter, projecting net sales of approximately USD 15.9 million and a narrowed adjusted EBITDA loss of about USD 2.7 million, signaling steady progress toward achieving operational break-even. Management acknowledged potential near-term challenges, including tariff pressures, supply chain dependencies, and delays in converting pilot projects into large-scale OEM contracts. However, the company remains confident in its growth outlook, driven by expanding OEM partnerships, advancements in proprietary battery technologies, and disciplined capital management. Overall, Dragonfly Energy’s Q2 2025 performance underscores a positive strategic shift toward sustainable growth, improved margins, and financial stabilization.

Technical Observation (on the daily chart):

• Trend Overview and Moving Averages Analysis: The daily chart for Dragonfly Energy Holdings Corp. (DFLI) reveals that the stock has been in a prolonged downtrend throughout late 2024 and early 2025, followed by a recent short-term recovery rally. The 50-day moving average (yellow line) is currently positioned around USD 0.42, while the 200-day moving average (blue line) stands near USD 1.02. The recent surge in price above the 50-day average indicates a possible trend reversal attempt after months of consolidation at lower levels. Sustained movement above the 200-day average will be essential to confirm a medium-term bullish breakout.
• Momentum Indicators and Market Strength: The Relative Strength Index (RSI 14) currently reads 68.19, reflecting strong bullish momentum following recent price appreciation. The RSI’s sustained position above 60 highlights that market sentiment has shifted positively, with increasing buying pressure after an extended period of weakness. The momentum build-up aligns with improving investor optimism, possibly supported by favorable earnings developments and corporate restructuring progress during recent quarters.
• Technical Outlook and Key Levels: From a technical standpoint, DFLI faces immediate resistance near USD 1.40–1.50, corresponding to the recent high zone, while support lies around USD 1.00—close to the 200-day moving average—and USD 0.80. A decisive breakout above USD 1.50 could open the path toward higher resistance levels near USD 2.00–2.20, whereas failure to hold above USD 0.80-USD1.00 may trigger a pullback toward the 50-day average. Overall, the stock’s technical posture indicates an early-stage recovery supported by improving momentum and volume activity, though confirmation of a sustained uptrend will depend on the stock’s ability to maintain price levels above its long-term moving average and stabilize momentum indicators without entering overbought conditions.

Dragonfly Energy Holdings Corp. (NASDAQ: DFLI), a lithium battery technology firm operating through its Battle Born Batteries and Wakespeed brands, reported a strong rebound in Q2 2025, with revenue rising 23% year-over-year to USD 16.2 million, driven by robust OEM demand and operational efficiencies. Gross margin improved to 28.3%, and net losses narrowed to about USD 7 million, reflecting effective cost control. The company strengthened its balance sheet through equity conversion and capital raising while advancing its proprietary solid-state battery technology. For Q3 2025, Dragonfly projects further revenue and margin gains despite potential supply chain and market headwinds. Technically, the stock shows early recovery momentum, trading above key moving averages, with support near USD 1.00–0.80 and resistance between USD 1.40–1.50, suggesting possible upside continuation if buying strength persists.

As per the above-mentioned price action, important support near USD 0.80-USD 1.00, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given for Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) at the current price of USD 1.33, as of October 08, 2025, at 09:10 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is October 08, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.