Dragonfly Energy Holdings Corp

Good afternoon and welcome to Dragonfly Energy's second quarter 2025 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. I'll now turn the call over to Simon Sierowiecki, Investor Relations. Please go ahead.

Thank you, operator. We appreciate you joining us for today's call. Joining me here are Dr. Dennis Fares, Dragonfly Energy's Chairman, President, and Chief Executive Officer, and Wade Seberg, Chief Commercial Officer. Before I turn the call over to Dennis, I'd like to make a brief statement regarding forward-looking remarks. During this call, the company will be making forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 based on current expectations. These forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Actual results may differ due to factors noted in the press release and in periodic SEC filings, management or reference to non-GAAP financial measures. Reconciliation to the nearest corresponding GAAP measure can be found today's release on the company's website. Please note, double comparisons will be discussed today on a -over-year basis unless otherwise noted. I'm not going to call over Dennis.

Thank you, Simon, and thank you everyone for joining us today. I am pleased to report strong results for the second quarter with net sales growing 23% to $16.2 million. This marks our third consecutive quarter of -over-year revenue growth. We believe this performance demonstrates the resilience of our partnerships in what continues to be a challenging macro environment. Our performance also reflects our continuing strategic focus on driving near-term revenue generating opportunities as part of our corporate optimization program. Net sales growth was driven by continued strength from our OEM partners, which saw net sales increase more than 50% -over-year. This significant growth underscores the momentum we are seeing as OEMs increasingly integrate our solutions at the factory level across an increasing number of model lineups. We are particularly encouraged by what appears to be an industry-wide shift back toward premium features and value-added offerings, a notable contrast from the cost reduction approach that characterized much of the last few years. Net sales in our DTC segment were $5.9 million, compared with $6.5 million as customers remain cautious due to ongoing macroeconomic uncertainty, as expected. As noted last quarter, we anticipate long-term growth will be primarily driven by expanding OEM partnerships, where we can leverage our engineering capabilities and deliver integrated solutions at scale. On the operational front, we continue to execute our corporate optimization initiatives as we remain steadfast in positioning DragonFly to capitalize on the near-term growth opportunities we see across our markets. The initiative is delivering measurable benefits. By strategically reallocating internal resources to immediate revenue generating opportunities, we have been able to accelerate product development without incremental investment. A great example of this approach is our partnership with Airstream, a leading RVOEM, in which we designed and manufactured a fully integrated energy storage system that will be a standard option across select 2026 models. This was made possible through the redeployment of existing personnel, as well as the targeted manufacturing enhancements we implemented in prior quarters, which streamlined our manufacturing process. We currently have similar programs underway with several RV and heavy-duty trucking OEMs, focused on developing unique solutions that address their specific operational needs. It is worth emphasizing that our domestic manufacturing capabilities remain a strategic advantage in today's volatile trade environment. With assembly completed at our Nevada facility, we maintain greater control over quality, cost management, and production timelines compared to companies relying on overseas production. This has proven particularly valuable as the tariff environment remains volatile. Ultimately, we believe our domestic production allows us to respond quickly to evolving customer needs and supports the broader trend we are seeing towards supply chain localization. Beyond these operational advantages, we believe a critical driver of our long-term success is our commitment to innovation and the continued expansion of our intellectual property portfolio. Recently, we were granted a patent advancing our non-flammable all-solid state battery program with materials that enhance safety, thermal stability, and scalability. With this patent, we reinforce our leadership in advanced battery technology and create a strategic advantage that can drive significant upside in the years ahead. From a capital structure perspective, we made meaningful progress this quarter through two strategic initiatives. First, we exchanged the remaining preferred shares to common stock, simplifying our capital structure and eliminating associated interest payments and share dilution. And second, we successfully completed a public offering of our common stock in the last year. We were very pleased that this latest raise was a straight common stock offering without warrants as opposed to past structured offerings. We were also encouraged by the strong participation from institutional investors. While the overall market environment remains uncertain, we are focused on positioning Dragonfly for the significant growth opportunities ahead. While driving towards profitability, we continue to take decisive strategic actions to lower costs and enhance our balance sheet as we maintain focus on deepening relationships with our existing partners, enhancing our product development capabilities to meet the evolving needs of our customers, and expanding into the heavy duty trucking market. We remain confident in our ability to deliver sustained growth. Now, I would like to pass the call to Wade, who will detail some of the trends we see in our OEM segment.