NEW YORK, June 4, 2026, 15:04 EDT
Dragonfly Energy Holdings Corp. shares rose 5.6% to $2.09 in midafternoon Nasdaq trading on Thursday, extending a volatile week after the battery maker disclosed a trade-libel lawsuit tied to its Battle Born Batteries brand. The stock traded between $1.97 and $2.13, on volume of about 358,000 shares, giving the Reno, Nevada-based company a market value of roughly $25.3 million.
The move matters because the dispute goes straight at product reputation, customer trust and online reviews, a touchy mix for a small public battery company. It also lands while Dragonfly is trying to keep investor focus on original equipment manufacturer customers and heavy-duty trucking as the RV market remains soft.
Dragonfly’s common stock and warrants trade on the Nasdaq Capital Market. In a June 2 securities filing, the company said it sued William Errol Prowse IV, known online as Will Prowse, and Prowse Publications LLC in Nevada state court on June 1. Trade libel is a claim that false statements harmed a product or business reputation; Dragonfly said it is seeking damages and injunctive relief, meaning a court order to stop certain conduct.
The company alleged Prowse used monetized online content and altered or damaged batteries before testing them, creating what Dragonfly called an inaccurate view of real-world safety and performance. Wade Seaburg, Dragonfly’s chief commercial officer, said the case was “not about silencing criticism,” adding that customers “deserve an accurate record.” GlobeNewswire
Dragonfly also alleged Prowse received more than $200,000 in affiliate commissions, advertising fees and related benefits tied to Battle Born products over multiple years, and later used monetized platforms with affiliate links to competing products. The filing and company release state Dragonfly’s allegations; they do not decide the merits of the case.
The legal fight is not the only reason investors are watching. Dragonfly reported first-quarter net sales of $9.7 million, down 27.3% from a year earlier, gross margin of 17.6%, a net loss attributable to common shareholders of $7.7 million and an adjusted EBITDA loss of $4.6 million. Adjusted EBITDA is a non-GAAP operating measure that strips out interest, taxes, depreciation, amortization and selected other items; companies use it to show operating trends, but it is not a substitute for official GAAP results.
Chief Executive Denis Phares said the quarter reflected a “softer demand environment in the RV market,” even as the company pointed to “strong momentum” in heavy-duty trucking. Dragonfly said Stevens Transport placed a purchase order worth more than $3 million across nearly 500 trucks, and it guided for second-quarter net sales of about $13.2 million and an adjusted EBITDA loss of about $1.9 million.
The stock’s move looked more Dragonfly-specific than a clean battery-sector trade. Enovix rose 1.7%, Eos Energy fell 1.3% and Microvast slid 3.1% around the same time, giving no simple peer read-through.
But the bounce has risks. Dragonfly’s March-quarter filing showed cash and cash equivalents fell to $8.6 million from $18.3 million at the end of December, while operations used $8.8 million of cash; the company is also subject to a liquidity covenant requiring at least $5 million of cash and equivalents through Dec. 31, 2026. If RV demand stays weak or the trucking ramp slips, legal headlines may do less for the stock than cash preservation and orders.
For now, the market is treating the lawsuit as a fresh catalyst. The next proof point is less dramatic: whether Dragonfly can convert fleet and OEM interest into revenue before financing worries take back the story.
