Dragonfly Energy makes lithium iron phosphate deep cycle batteries under the Battle Born brand, selling to recreational vehicle makers, fleet operators, and a shrinking direct-to-consumer base, and the current quarter shows what that mix does under stress. Revenue for the first half of 2026 came in at $22.9 million. That is a decline of 22.8% from the same period a year earlier. The drag came from weaker RV original equipment maker orders and from a direct-to-consumer channel bruised by online reviews, which the company is now fighting in court. The capital story has been the real event. In 2025 the company raised $90.9 million in net proceeds across multiple offerings. It also restructured its term loan. That restructure cut total debt from $93.1 million to roughly $19.4 million. It also swapped $25.0 million of principal into Series B preferred stock.
The trade-off is visible in the shares. The stock has fallen from a fifty-two week high of $26.10 to about $1.09. That leaves a market cap near $16.3 million. The business still burns roughly $11 million per half year at the operating level. Cash stood at $6.3 million at the end of the second quarter. Management says that balance, plus a $50.0 million at-the-market facility, funds operations into the second half of next year. The Dakota Lithium asset buyout, signed in late July, is the latest attempt to reposition the company toward retail and new end markets. The question is whether the brand, the trucking wins, and the cost cuts can outrun a debt structure. That structure still requires a $5.0 million minimum liquidity covenant. It also carries a $25.0 million preferred redemption coming due soon.