Shares of Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) sank nearly 44% in pre-market trading on Tuesday after the battery technology company announced it will carry out a 1-for-10 reverse stock split in order to remain compliant with Nasdaq listing requirements.
The reverse split is scheduled to take effect on December 18, 2025, and will reduce the number of outstanding shares from roughly 120.8 million to about 12.1 million. Dragonfly’s common stock will continue to trade under the ticker symbol “DFLI,” though it will be assigned a new CUSIP number.
Chief Executive Officer Dr. Denis Phares characterized the action as “a technical step to maintain Nasdaq compliance and position the Company for its next phase of growth.” He added that recent capital raises and debt restructuring efforts have “materially strengthened our balance sheet and improved liquidity.”
Shareholders approved the reverse split at the company’s annual meeting on October 15, 2025, granting the board authority to implement a consolidation ratio ranging from 1-for-2 to 1-for-50. On December 2, the board selected the 1-for-10 ratio.
While the reverse split will not change investors’ proportional ownership in the company, it will apply to all outstanding common shares, warrants, and stock options. Fractional shares will not be issued, with shareholders instead receiving cash payments in lieu of fractional holdings.
Dragonfly Energy, which focuses on energy storage and battery solutions, said that following these balance sheet actions it is “focused on scaling revenue, deepening strategic partnerships, and investing in differentiated battery technologies.”