Dragonfly Energy Holdings Corp

Hello, everyone. Thank you for joining us and welcome to Dragonfly Energy's first quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Simon Saravetsky. Please go ahead.

Thank you, Operator. We appreciate you joining us for today's call. Joining me here today, 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 action results to differ materially from those expressed or applied by such forward-looking statements. Action results may differ due to factors noted in the press release and in periodic SEC filings. Management will reference some non-GAAP management measures. Recompensations to the nearest corresponding GAAP measure can be found on today's release on the company's website. Please note, those comparisons will be discussed today on a year-over-year basis unless otherwise noted. I'll now turn the call over to Dennis.

Thank you, Simon, and thank you everyone for joining us today. First quarter results came in above guidance on both net sales and adjusted EBITDA and reflected a softer RV environment as expected. The RV market continues to navigate meaningful headwinds with industry shipments and recent retail sales data down year over year. While the broader market remains soft, we continue to see healthy adoption trends within our OEM partnerships. driven by both expanded integration across additional model lineups and increased energy storage content within existing platforms. We are encouraged by signs of stabilization in the RV market as we move into the second quarter, as well as the strong momentum we are seeing in our heavy duty trucking business. After several years of building our presence in trucking, we are now beginning to see that work translate into meaningful revenue. Following our quarter end, Stevens Transport One of the largest temperature-controlled freight carriers in North America placed our largest trucking purchase order to date, valued at over $3 million, covering nearly 500 trucks. Deliveries are expected to begin in the second quarter and continue to ramp through 2026. Stevens has been a partner since 2024 when we began deploying our all-electric APU across a portion of their fleet for validation testing. We believe the results of that pilot program gave Stevens the confidence to commit to transitioning their entire fleet of 2,500 trucks to our platform, and this purchase order marks the beginning of that broader commitment. Importantly, the order spans our full heavy-duty trucking product portfolio, reflecting the expansion of our relationship beyond the initial deployment, a trend we are seeing more broadly as fleets transition from pilots to fleet-wide multi-system implementation. Wade will discuss the heavy duty trucking environment in more detail, but I would note that the backdrop for our trucking business has shifted meaningfully over the past several months, and we believe we are well positioned to build on this momentum throughout the year. Turning to our cost structure, as we noted on our fourth quarter call, we implemented a series of decisive actions to align our cost structure with key growth opportunities, while also ensuring that incentives across the organization remain closely aligned with long-term shareholder values. This included reductions in marketing spend, primarily in DTC-focused channels, targeted workforce reductions, and compensation adjustments at the leadership level, where members of the executive team and board agreed to reduce cash compensation by approximately 20%, with that portion converted to equity-based incentives. Again, with the goal of directly aligning the interests of our leadership team with those of long-term shareholders. Since implementing these actions in March, we have realized approximately $4.5 million in annualized expense reduction on an adjusted basis. We also expect an additional $4 million in annualized expense reduction from the consolidation of rental space, which is expected to be finalized in the second quarter. Collectively, these actions are expected to drive an annualized adjusted EBITDA improvement of approximately $9 million. Following these actions, we believe Dragonfly is now appropriately sized while still retaining the resources necessary to support growth as our business continues to scale. Moving on to the technology and IP side, in April, we received our first patent allowance from the Japan Patent Office for our powderized solid-state electrolyte and electroactive materials application. This milestone strengthens our global intellectual property portfolio, which includes nearly 90 issued or pending patents. across battery technology, system integration capabilities, and proprietary software. While our top priority remains getting back to profitability, we continue to advance our dry electrode and solid state programs, which we believe represent a significant long-term opportunity for DragonFly. We have developed a significant amount of valuable IP over the years that we look to appropriately leverage through organic development, partnerships, joint ventures, and similar structures. Alongside this progress, we continue to invest in our domestic manufacturing capabilities. Earlier this month, we were selected for a second round of Nevada Tech Hub funding, a $527,000 non-diluted award that will support the expansion of our in-house cylindrical cell prototyping and testing capabilities. The project is expected to run through Q2 2027, and receiving this award for a second consecutive cycle reflects the program's confidence in our domestic battery manufacturing roadmap. With that, I'd like to turn the call over to Wade to discuss our commercial markets in more detail.