Dragonfly Energy DFLI Executes 1-for-10 Reverse Stock Split to Regain Nasdaq Standing

Battery technology firm Dragonfly Energy is making a decisive move to stabilize its market position. The company, trading under ticker DFLI, will execute a 1-for-10 reverse stock split effective December 18, 2025 – a strategic maneuver aimed at meeting Nasdaq’s continued listing requirements.

The timing comes as Dragonfly Energy shares faced pressure, closing Monday’s session at $0.7101, representing a 10.47% decline. This stock price action underscores the urgency behind the announced restructuring.

What the Reverse Split Means

A reverse stock split consolidates existing shares, reducing the total number outstanding while proportionally increasing per-share value. For Dragonfly Energy investors, this technical adjustment is designed to push the stock price into compliance territory with Nasdaq’s minimum bid price thresholds – a critical requirement for maintaining exchange listing status.

Management’s Perspective

Denis Phares, Chief Executive Officer of Dragonfly Energy, framed the move as more than a compliance checkbox. According to Phares, the reverse split positions the company for its next growth phase, suggesting management views this restructuring as preparation for future operations rather than merely a defensive measure.

What Comes Next

For Dragonfly Energy shareholders, the December 18 effective date marks the official transition point. Those holding 10 existing shares will see them consolidated into 1 share post-split, with holdings adjusted proportionally across the investor base.

The reverse split reflects a common industry practice among companies working to restore exchange compliance while positioning themselves for renewed momentum in the competitive battery technology sector.