Dragonfly Energy Holdings Corp

Good afternoon, ladies and gentlemen, and welcome to the Dragonfly Energy fourth quarter 2025 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, March 16th of 2026. I would now like to turn the conference over to Simon Sierwiecki, Investor Relations. Please go ahead.

Thank you, Operator. I appreciate you joining us for today's call. Joining me here today, Dr. Dennis Ferris, Triumphal Energy's Chairman, President, and Chief Executive Officer, and Wade Seberg, Chief Commercial Officer. On the call today, we will be discussing fourth quarter and full year 2025 financial and operating results. These results are preliminary as they are subject to finalization and adjustment in connection with the preparation of our annual report on Form 10-K for fiscal 2025 to be filed later this month. More detail is provided in the press release. 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 remarks 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 ICC filings. Management will reference some non-GAAP grounds for measures. Representations of the nearest corresponding GAAP measure can be found in today's release on the company's website. Please note that all comparisons will be discussed today on a year-over-year basis unless otherwise noted. I'm going to call over to Dennis.

Thank you, Simon, and thank you, everyone, for joining us today. First, I'd like to take a moment to reflect on the meaningful progress Dragonfly Energy has made in 2025. Throughout the past year, we focused on strengthening our financial foundation, expanding our commercial footprint, and validating our technology across multiple industries. We believe these efforts have positioned Dragonfly Energy to capitalize on the opportunities we see ahead. A key priority was strengthening our balance sheet and capital structure. During 2025, we completed several capital raising transactions, including a significant debt restructuring that materially improved our liquidity position and simplified the balance sheet. Importantly, these actions provided the financial flexibility needed to focus on operational execution and support our commercial growth initiatives. For the full year, net sales increased 16% to $58.6 million. primarily driven by growth in our OEM channel, where revenue grew 34% year over year. This performance was driven by continued integration of our lithium power systems across a growing number of RV OEMs, despite ongoing pressure in the broader market. One of the most notable developments during the year was our progress in the heavy duty trucking industry. After an extended pilot program, Werner Enterprises, one of the largest fleets in North America, placed its first order of our Battle Born Dual Flow Power Pack in the fourth quarter. We believe the transition from pilot testing to a commercial order represents a meaningful validation of the technology and highlights the operational benefits our system can deliver to fleet operators. While this market has not yet contributed material revenue, the progress we have made positions us well to benefit as truck orders begin to normalize. At the same time, we continue to expand our reach into adjacent industries, including industrial, marine, and rail, while introducing new products that extend the Battle Born ecosystem. Wade will discuss these developments in more detail in a moment. Alongside this commercial progress, we also advanced our intellectual property portfolio, which now includes almost 90 issued or pending patents across battery technology, system integration capabilities, and proprietary software. This growing IP foundation supports the long-term development of our advanced battery technology and reinforces our position as a provider of integrated power solutions. As our customer base has continued to evolve toward OEM trucking and industrial markets, we felt it was important to also align the company's cost structure with these growth priorities while ensuring that incentives across the organization remain closely aligned with long-term shareholder value. Earlier this month, we implemented a series of actions to strategically realign our cost structure. The initiative includes several key elements. At the leadership level, members of Dragonfly's executive leadership team and board of directors have agreed to reduce their cash compensation by approximately 20% for the remainder of fiscal 2026, effective April 1, 2026. In lieu of cash compensation, they have received equity-based incentives directly aligning leadership compensation with long-term share price performance and reinforcing our commitment to creating value for shareholders. This action underscores the confidence we have in our ability to drive long-term shareholder value. We are also implementing targeted workforce and compensation adjustments designed to reduce overall payroll expense. These actions include a combination of selected workforce reductions and salary adjustments, which are expected to reduce our overall payroll expense by approximately 20%. Non-executive employees have received equity-based compensation, again, better aligning our employees with shareholders. Third, we are reducing discretionary spending across the organization as we shift resources toward OEM, trucking, and industrial markets, areas where we see the strongest commercial opportunities. This includes a reduction in VTC-focused marketing spend. Taken together, These actions are expected to generate annualized cost savings of approximately $4.9 million. We also expect an additional expense reduction of $4.0 million through consolidation of rental space. Collectively, this results in an annual increase in adjusted EBITDA of $8.9 million. Importantly, we believe the organization is now appropriately sized while still retaining the resources needed to support disciplined growth as the business scales. As outlined in our release, we believe these changes help position the company to reach positive adjusted EBITDA, which we expect to achieve as the business approaches an annual revenue run rate of approximately $70 million. Ultimately, the actions we have taken, including strengthening the balance sheet, expanding our commercial partnerships, and aligning our cost structure, are intended to support our path toward achieving positive adjusted EBITDA as the business continues to scale. while also aligning the entire organization with shareholders of our company. With that, I'll turn the call over to Wade.