Shares of Dragonfly Energy (DFLI) surged 9.5% to $1.26 ahead of the company's Q2 2026 earnings release on August 6, as traders bet that improving fundamentals and a flurry of recent catalysts might finally give this beaten-down lithium battery maker some traction. The stock, which once traded above $26 over the past year, now carries a market capitalization of roughly $15 million — a stark reminder of how far the company has fallen.
Trucking Revenue Finally Showed Up, and It Mattered
Dragonfly reported Q2 net sales of $13.2 million, including $8.4 million in OEM sales.
CEO Denis Phares said deliveries under the Stevens Transport purchase order — the company's largest trucking deal — commenced during the quarter, translating years of pilot programs into real revenue.
Adjusted EBITDA (a measure of operating profit before certain non-cash charges) improved $3.0 million sequentially despite lower year-over-year sales. That improvement matters because it signals cost cuts are working, though the company remains unprofitable.
A $4 Million Acquisition Doubles Down on Growth — With Dilution
Days before earnings, Dragonfly completed the $4 million acquisition of Dakota Lithium's assets, paying $1 million in cash and issuing 1.5 million shares at $2.00 per share.
Dakota Lithium generated roughly $12 million in revenue in 2025, even while hamstrung by inventory shortages.
Management expects the deal to start contributing revenue and be profitable on an adjusted basis by Q4 2026. For a company running at about $46 million in annualized sales, bolting on a $12 million brand cheaply is appealing — but it also means more shares outstanding for existing holders.
The Losses Are Still Deep
Net loss for Q2 was $5.5 million, or $0.43 per share , an improvement from Q1's $7.7 million loss.
The company says it needs roughly $70 million in annualized sales to break even on an adjusted EBITDA basis. At the current ~$53 million run rate, that target still looks distant. Lenders recently eased cash covenants and allowed two quarters of interest to be paid in stock rather than cash , buying time but highlighting balance-sheet fragility.
Solid-State Batteries Remain a Longer-Term Bet
In June 2026, Dragonfly secured a U.S. patent for its solid-state battery manufacturing process , adding to nearly 90 issued or pending patents globally. These next-generation batteries — which replace flammable liquid with solid material — could open enormous markets. But the CEO acknowledged the priority today is revenue and cost structure, with only minimal spending on solid-state R&D. Investors buying the stock at $1.26 are paying almost nothing for that technology upside, but they're also buying a company still burning cash at a meaningful clip.