Dragonfly Energy Holdings Corp. (NASDAQ: DFLI)

Dragonfly Energy Holdings Corp. manufactures non-toxic, deep-cycle lithium iron phosphate (LFP) batteries and integrated energy storage systems for the recreational vehicle (RV), marine, industrial, and heavy-duty trucking markets. The company specializes in lithium-ion battery technology, offering products that replace traditional lead-acid batteries with safer, longer-lasting, and more efficient alternatives. Dragonfly Energy also develops proprietary solid-state battery technology and dry-electrode manufacturing processes, positioning itself at the forefront of next-generation energy storage solutions.

The company generates revenue primarily through the sale of LFP battery packs, integrated battery management systems, and complementary power system components under the Battle Born Batteries brand. Additional income streams include licensing agreements, contract manufacturing, and the sale of power management solutions such as inverters, chargers, and alternator regulators. In 2025, the company reported $58.6 million in revenue, driven by sales of 43,129 batteries, with original equipment manufacturers (OEMs) accounting for 63% of total revenue. Licensing and contract manufacturing agreements, such as the $30 million deal with Stryten Energy, further diversify its revenue base.

The company operates through the following segments:

• Battery Products: This segment includes the design, assembly, and sale of LFP battery packs for RVs, marine vessels, industrial applications, and heavy-duty trucks. Products feature advanced battery management systems, integrated heating for cold-weather performance, and Dragonfly IntelLigence technology for real-time monitoring. The segment also encompasses drop-in replacement batteries that fit existing lead-acid battery configurations, simplifying adoption for customers.

• Power System Components: This segment provides complementary products such as inverters, inverter/chargers, alternator regulators, and bi-directional converters under the Battle Born and Wakespeed brands. These components enable customers to deploy complete, integrated energy storage systems, supporting applications in mobile, off-grid, and industrial environments. The segment also includes auxiliary power units (APUs) for heavy-duty trucking, which reduce fuel consumption and emissions by powering onboard systems without engine idling.

• Licensing and Contract Manufacturing: This segment generates revenue through brand licensing and contract manufacturing agreements. For example, the company licenses the Battle Born brand to third parties like Stryten Energy for business-to-business (B2B) sales while also assembling battery packs for external partners. These agreements provide scalable, asset-light revenue streams and expand market reach without requiring additional production capacity.

• Research and Development: This segment focuses on advancing proprietary technologies, including dry-electrode manufacturing processes and solid-state battery development. The company holds 50 issued patents and 38 pending applications, covering innovations in battery chemistry, manufacturing, and system integration. While not a direct revenue generator, this segment underpins long-term competitiveness and potential future licensing opportunities.

Dragonfly Energy holds a leading position in the transition from lead-acid to lithium-based energy storage, particularly in niche markets such as RVs, marine vessels, and heavy-duty trucking. Its competitive advantages include proprietary LFP chemistry, a robust patent portfolio, and a vertically integrated manufacturing process in the United States. The company’s batteries offer superior cycle life (3,000 to 5,000 cycles), faster charging, and enhanced safety compared to traditional lead-acid and alternative lithium-ion chemistries. Key competitors include lead-acid battery manufacturers like East Penn and Trojan, as well as low-cost lithium battery importers. In solid-state technology, competitors such as QuantumScape and Solid Power focus on electric vehicle applications, while Dragonfly Energy targets power storage markets, differentiating itself through cost-effective, scalable solutions.

The company serves a diverse customer base, including OEMs, distributors, fleet operators, and end consumers. Notable OEM partners in the RV industry include Airstream, Tiffin Motorhomes, Forest River, Triple E RV, REV Group, Keystone RV Company, Ember, nuCamp RV, ATC, and THOR Industries. In the heavy-duty trucking sector, customers include Highway Transport, Stevens Transport, and Werner Enterprises. The company also supplies industrial and marine markets, with products used in off-grid power systems, telecommunications, and commercial vessels. For the year ended December 31, 2025, the top 10 customers accounted for 57.5% of revenue, with no single customer exceeding 10% of total sales.