In This Article:
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Total Revenue Growth: Increased by 17% year-over-year.
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Net Sales: $12.2 million, driven by 61% growth in OEM sales.
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OEM Sales: Increased to $6.2 million from $3.9 million.
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DTC Sales: Decreased to $5.7 million from $6.6 million.
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Gross Profit: $2.5 million with a gross profit margin of 20.8%.
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Gross Margin Decline: 80 basis points due to higher material costs and a shift to lower margin OEM customers.
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Operating Expenses: $6.3 million, up from $5.4 million in the previous year.
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Net Loss: $9.8 million, or $1.39 per share.
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Adjusted EBITDA: Negative $2.3 million, compared to negative $1.8 million last year.
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First Quarter 2025 Outlook: Expected net sales of approximately $13.3 million and adjusted EBITDA of approximately negative $3.8 million.
Release Date: March 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dragonfly Energy Holdings Corp (NASDAQ:DFLI) successfully negotiated a debt restructuring, enhancing financial flexibility and extending debt maturity to October 2027.
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The company raised additional capital through a preferred stock offering, strengthening its balance sheet.
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A corporate optimization program was launched to focus on near-term revenue-generating opportunities, aiming to accelerate profitability.
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Total revenue grew by 17% in the fourth quarter, marking the first quarterly year-over-year revenue growth in two years.
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Significant progress was made in diversifying revenue streams beyond the RV sector, particularly in the trucking industry, with partnerships leading to fleetwide implementation of their batteries.
Negative Points
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Gross profit margin declined by 80 basis points year over year due to higher material costs and a shift to lower margin OEM customers.
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Operating expenses increased to $6.3 million from $5.4 million, driven by higher G&A and R&D costs.
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The company reported a net loss of $9.8 million, compared to a net income of $3.3 million in the previous year.
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Adjusted EBITDA was negative $2.3 million, worse than the negative $1.8 million reported last year.
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The DTC segment saw a decline in net sales from $6.6 million to $5.7 million, reflecting ongoing macroeconomic pressures.
Q & A Highlights
Q: Can you clarify your target for achieving EBITDA profitability by the fourth quarter? Does this include the entire quarter? A: We expect the entire fourth quarter to be adjusted EBITDA positive. This is based on our projections and the new opportunities we see in the trucking and industrial markets, as well as growth in the RV market.