Battery Technology Firm Dragonfly Energy to Execute 1-for-10 Stock Split on December 18

Dragonfly Energy Holdings Corp. (DFLI) disclosed plans to execute a 1-for-10 reverse stock split, with the restructuring taking effect on December 18, 2025. The strategic move represents a regulatory requirement aimed at sustaining the company's listing status on Nasdaq while preparing the organization for its upcoming expansion phase, according to Chief Executive Officer Denis Phares.

Market Performance and Context

The stock market has already reflected investor concerns ahead of this corporate action. On Monday's close, Dragonfly Energy shares traded at $0.7101, marking a significant 10.47% decline for the session. This price movement underscores the market's reaction to the company's capital structure adjustment.

Understanding the Reverse Split

A reverse stock split consolidates multiple existing shares into fewer shares of higher value. For Dragonfly Energy investors, every 10 shares will convert into 1 share following the December 18 implementation date. While the reverse split itself doesn't alter a shareholder's proportional ownership, it serves to increase the per-share price, which is essential for Nasdaq compliance thresholds.

Phares emphasized that this technical adjustment is not merely a procedural formality but rather a deliberate positioning strategy. By maintaining compliance standards and stabilizing the equity structure, Dragonfly Energy can redirect focus toward its battery technology development and market growth initiatives without the distraction of potential delisting concerns.