Investment Thesis
Dragonfly Energy is in severe financial distress with negative stockholders' equity of -$21.6M, indicating the company is technically insolvent. The company is burning cash with -$13.1M free cash flow, negative operating income of -$13.0M, and only $3.8M in cash reserves against $97.1M in long-term debt, creating an imminent liquidity crisis.
Strengths
- Positive gross margin of 29.1% indicates viable core product economics
- Current ratio of 1.34x provides minimal near-term liquidity buffer
- Operating in renewable energy sector with structural tailwinds
Risks
- Negative stockholders' equity indicates technical insolvency and high bankruptcy risk
- Severe cash burn of -$13.1M FCF with only $3.8M cash available; unable to fund operations or service $97.1M debt
- Net margin of -54.6% and operating margin of -28.5% show company is deeply unprofitable despite revenue; loses $0.98 per share
- Liabilities exceed assets by $21.6M creating unsustainable balance sheet structure
- Quick ratio of 0.46x indicates potential difficulty meeting short-term obligations
Key Metrics to Watch
- Quarterly cash burn rate and runway to insolvency
- Debt covenant compliance and refinancing ability
- Path to operating profitability and EBITDA breakeven
Financial Metrics
Revenue
45.6M
Net Income
-24.9M
EPS (Diluted)
$-0.98
Free Cash Flow
-13.1M
Total Assets
73.8M
Cash
3.8M
Profitability Ratios
Gross Margin
29.1%
Operating Margin
-28.5%
Net Margin
-54.6%
ROE
N/A
ROA
-33.7%
FCF Margin
-28.6%
Balance Sheet & Liquidity
Current Ratio
1.34x
Quick Ratio
0.46x
Debt/Equity
N/A
Debt/Assets
129.2%
Interest Coverage
-2.73x
Long-term Debt
97.1M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-23T11:58:10.162460 |
Data as of: 2025-09-30 |
Powered by Claude AI