Free cash flow remains deeply negative, with a -93.4% FCF margin in 2026Q1 highlighting the heavy capital intensity required to sustain operations.
| Cash from Operations | -30.24M | -25.97M | -7.18M | -17.71M | -45.7M | -13.57M | 6.64M |
| Operating CF Margin % | - | -44.29% | -14.18% | -27.5% | -52.98% | -17.4% | 14.07% |
| Operating CF Growth % | -798.28% | -261.57% | 59.44% | 61.25% | -236.67% | -304.41% | - |
| Net Income | -69.77M | -69.94M | -40.62M | -13.82M | -39.99M | 4.34M | 4.59M |
| Depreciation & Amortization | 4.27M | 4.71M | 3.6M | 2.42M | 891K | 617K | 198K |
| Stock-Based Compensation | 494K | 0 | 1.02M | 6.71M | 2.47M | 734K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -453K | 122K | 210K |
| Other Non-Cash Items | 45.69M | 49.55M | 11.56M | -22.35M | 4.55M | 380K | 2.64M |
| Working Capital Changes | -11.49M | -10.29M | 17.25M | 9.33M | -13.16M | -19.76M | -997K |
| Change in Receivables | 1.16M | -1.94M | -780K | -309K | -769K | 1.01M | -1.64M |
| Change in Inventory | -2.57M | -2.52M | 17.06M | 11.41M | -22.73M | -21.18M | -3.41M |
| Change in Payables | -5.13M | 1.15M | -5.37M | -3.53M | 4.43M | 8.9M | 2.16M |
| Cash from Investing | -1.45M | -1.95M | -2.73M | -6.88M | -6.83M | -2.91M | -1.41M |
| Capital Expenditures | -1.45M | -1.95M | -2.74M | -6.88M | -6.86M | -2.97M | -1.41M |
| CapEx % of Revenue | 2.64% | 3.32% | 5.4% | 10.69% | 7.96% | 3.81% | 2.99% |
| Acquisitions | 0 | 0 | 8K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 35K | 61K | 0 |
| Cash from Financing | 37.52M | 41.34M | 2.05M | 19.52M | 41.67M | 38.91M | 12K |
| Debt Issued (Net) | -49.33M | -49.55M | 0 | -5.28M | 30M | 45M | 0 |
| Equity Issued (Net) | 87.69M | 90.93M | 2.04M | 22.92M | 15M | 0 | 12K |
| Dividends Paid | -317K | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -512K | -47K | 4K | 1.88M | -3.33M | -6.09M | 0 |
| Net Change in Cash | 5.83M | 13.42M | -7.86M | -5.07M | -10.85M | 22.42M | 6.21M |
| Free Cash Flow | -31.69M | -27.92M | -9.92M | -24.59M | -52.56M | -16.54M | 5.23M |
| FCF Margin % | -57.64% | -47.62% | -19.59% | -38.19% | -60.94% | -21.21% | 11.08% |
| FCF Growth % | -188.2% | -181.45% | 59.66% | 53.21% | -217.71% | -416.31% | - |
| FCF per Share | -26.23 | -58.36 | -14.44 | -41.93 | -122.65 | -40.79 | 9.92 |
| FCF Conversion (FCF/Net Income) | 0.45x | 0.37x | 0.18x | 1.28x | 1.14x | -3.13x | 0.97x |
| Interest Paid | 2K | 0 | 0 | 9.1M | 2.25M | 313K | 0 |
| Taxes Paid | 2K | 0 | 0 | 238K | 773K | 2.39M | 0 |
Persistent Operational Cash Burn
According to the provided financial data, Dragonfly Energy's operating cash flow consistently trails net income, with the OCF/NI ratio reaching 1.33 in 2026Q1, suggesting that reported losses are being compounded by cash-consuming operational activities rather than being mitigated by non-cash accounting adjustments or efficient working capital management.
The persistent disconnect between net income and operating cash flow indicates that the company is struggling to convert its business model into a self-sustaining cash engine. Investors should monitor this trend closely, as the inability to generate positive cash flow from operations suggests that the current scale of the business remains insufficient to cover its underlying cost structure.
As reported in recent financial statements, Dragonfly Energy has maintained a negative free cash flow trajectory for nine of the last ten quarters, with FCF margins bottoming out at -113.8% in 2025Q4, highlighting the significant capital intensity required to sustain its current manufacturing and R&D operations.
The consistent negative FCF trajectory underscores the company's reliance on external financing to fund its ongoing operations and strategic initiatives. This pattern may indicate that the company is in a high-burn phase where capital expenditures and operating losses continue to outpace the cash generated from its core product sales.
Based on the reported figures, working capital changes have been highly erratic, swinging from a $9.1 million inflow in 2024Q3 to a $4.9 million outflow in 2025Q4, which suggests that the company's cash position is highly sensitive to fluctuations in inventory management and accounts receivable collection cycles.
Such volatility in working capital often points to challenges in balancing inventory levels with fluctuating demand from the cyclical RV market. This instability may force the company to maintain higher cash buffers, further straining its liquidity position during periods of lower sales volume.
As evidenced by the quarterly cash flow statements, Dragonfly Energy's capital expenditure has remained a consistent drain on resources, with CapEx/Revenue ratios peaking at 10.4% in 2024Q3, reflecting the heavy investment required to transition from a pack assembler to an in-house cell manufacturer.
The ongoing investment in manufacturing infrastructure appears to be a binary bet on the company's proprietary dry-electrode technology. While necessary for long-term differentiation, this capital intensity warrants further investigation into whether these assets will achieve the expected return on investment given the current competitive landscape.
Quick answers to the most common questions about buying DFLI stock.
Dragonfly Energy Holdings Corp. (DFLI) generated $-26.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Dragonfly Energy Holdings Corp. (DFLI) reported negative free cash flow of $27.9M in 2025, indicating capital requirements exceeded cash from operations.
Dragonfly Energy Holdings Corp. (DFLI) spent $1.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.