Fly-E Group, Inc. Announces First Quarter of Fiscal Year 2026 Financial Results

Rhea-AI Summary

Fly-E Group (NASDAQ:FLYE), an electric vehicle company specializing in electric motorcycles, bikes, and scooters, reported challenging Q1 FY2026 financial results. Net revenues decreased 32.3% to $5.3 million from $7.9 million year-over-year, while net loss widened significantly to $2.0 million ($0.30 per share) from $0.2 million ($0.04 per share).

The company's retail sales dropped 45.2% to $3.8 million, primarily due to safety concerns following lithium-battery accidents. However, wholesale revenue grew 42.3% to $1.4 million, driven by dealer network expansion. Gross margin improved to 42.4% from 39.4%, supported by the new rental services business which achieved a 79.8% margin.

Operating expenses increased 19.7% to $3.8 million, while cash position strengthened to $2.3 million as of June 30, 2025.

Positive

• None.

Negative

• Net revenues declined 32.3% year-over-year to $5.3 million
• Net loss increased 1,019% to $2.0 million from $0.2 million year-over-year
• Retail sales dropped 45.2% due to lithium-battery safety concerns
• Operating expenses increased 19.7% to $3.8 million
• Sales volume decreased by 6,432 units (38.1%) year-over-year
• Average sales price per EV decreased by $93 to $960
• EBITDA turned negative at -$1.3 million from positive $57,021 year-over-year

Insights

Financial Analyst

Fly-E faces significant challenges with 32.3% revenue drop and 10x higher net loss amid safety concerns in the e-mobility market.

Fly-E's Q1 FY2026 results reveal concerning financial deterioration across key metrics. Net revenue plummeted 32.3% year-over-year to $5.3 million, driven by both reduced unit sales (10,448 vs 16,880) and lower average selling prices ($960 vs $1,053). Most troubling is the 1,019% increase in net loss to $2.0 million, with losses per share ballooning to $0.30 from $0.04.

The company's EBITDA swung sharply negative to -$1.3 million from a positive $57,021 last year, signaling significant operational challenges. While gross margin improved to 42.4% from 39.4%, this silver lining is insufficient to offset broader concerns.

The core retail business is deteriorating rapidly, with retail sales falling 45.2% to $3.8 million. Management specifically cites lithium-battery safety incidents in New York causing customers to avoid e-bikes altogether. This represents an existential threat to Fly-E's business model that could persist if consumer confidence isn't restored.

Meanwhile, operating expenses increased 19.7% to $3.8 million, with professional fees more than tripling to $1.5 million from $0.4 million, creating negative operating leverage. The cash position improved to $2.3 million, but the accelerating cash burn rate raises sustainability questions.

The 42.3% growth in wholesale revenue to $1.4 million and the new rental business with its 79.8% gross margin show potential pivot opportunities, but they remain too small to offset the core business decline. These strategic shifts will need to accelerate substantially to reverse Fly-E's deteriorating financial trajectory.

NEW YORK, Aug. 19, 2025 /PRNewswire/ -- Fly-E Group, Inc. (Nasdaq: FLYE) ("Fly-E" or the "Company"), an electric vehicle company engaged in designing, installing, selling, and renting smart electric motorcycles, electric bikes, and electric scooters, today announced its unaudited financial results for the first quarter of fiscal year 2026 ended June 30, 2025.

First Quarter of Fiscal Year 2026 Financial Summary

• Net revenues were $5.3 million, compared to $7.9 million in the same period last year.
• Gross profit was $2.3 million, compared to $3.1 million in the same period last year.
• Gross margin was 42.4%, increased from 39.4% in the same period last year.
• Net loss was $2.0 million, compared to $0.20 million in the same period last year.
• Basic and diluted losses per share were $0.30, compared to $0.04 in the same period last year.

Mr. Zhou (Andy) Ou, Chairman and Chief Executive Officer of Fly-E, commented, "In the first quarter of fiscal year 2026, we achieved meaningful progress in areas that support our long-term growth. Our wholesale revenue grew by 42.3% year-over-year, driven by the expansion of our dealer network, and our gross margin improved to 42.4%, supported by our rental services business, which achieved a gross margin of 79.8%. We believe our continuous optimization of our product and service portfolio, along with unwavering dedication to quality and safety, will help us navigate the challenging market environment as the industry responds to recent safety concerns. We plan to continue to focus on expanding our geographic presence, enhancing our product and service offerings, and upholding rigorous product safety standards, while pursuing opportunities to meet growing demand for eco-friendly mobility solutions. We are confident that these initiatives will lay a solid foundation for sustainable growth."

First Quarter of Fiscal Year 2026 Financial Results

Net Revenues

Net revenues were $5.3 million in the first quarter of fiscal year 2026, a decrease of 32.3% from $7.9 million in the same period last year. The decrease in net revenues was primarily driven by a decrease in sales volume by 6,432 units, from 16,880 units in the first quarter of fiscal year 2025 to 10,448 units for the three months ended June 30, 2025 and the decreased average sales price of EV, which decreased by $93 per EV, from $1,053 in the three months ended June 30, 2024 to $960 in the three months ended June 30, 2025.

Retail sales revenue was $3.8 million in the first quarter of fiscal year 2026, a decrease of 45.2% from $6.9 million in the same period last year. Wholesale revenue was $1.4 million in the first quarter of fiscal year 2026, an increase of 42.3% from $1.0 million in the same period last year. Rental services revenue was $0.1 million in the first quarter of fiscal year 2026. The Company did not generate revenue from rental services in the first quarter of fiscal year 2025. The decrease in retail sales revenue is mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters. With an increasing number of lithium-battery explosion incidents in New York, customers are less inclined to purchase E-Bikes. Consequently, sales have declined as customers opt for oil-powered vehicles over electric vehicles. The decrease in retail sales also attributed in part to the closures and dispositions of the Company's retail stores during the three months ended June 30, 2025. The decrease in average sales price was primarily attributable to changes in product mix and promotional pricing strategies implemented during the three months ended June 30, 2025. The increase in wholesales revenue was driven primarily by the increase of number of our dealers in the first quarter of fiscal year 2026.

Cost of Revenues

Cost of revenues was $3.1 million in the first quarter of fiscal year 2026, a decrease of 35.8% from $4.8 million in the same period last year. The decrease in cost of revenues was primarily attributable to more favorable pricing obtained from the Company's suppliers, particularly for batteries, as well as a reduction in sales volume, as discussed previously. These factors collectively contributed to the overall decrease in cost of revenues.

Gross Profit

Gross profit was $2.3 million in the first quarter of fiscal year 2026, a decrease of 27.0% from $3.1 million in the same period last year. Gross margin was 42.4% in the first quarter of fiscal year 2026, increased from 39.4% in the same period last year. The increase in gross margin was mainly because of the increased revenues from rental business with higher margin than other businesses. Gross margin of rental business was 79.8% in the first quarter of fiscal year 2026. The Company did not generate profit from rental services in the first quarter of fiscal year 2025.

Operating Expenses

Total operating expenses were $3.8 million in the first quarter of fiscal year 2026, an increase of 19.7% from $3.1 million in the same period last year. The increase in operating expenses was attributable to the increase in the depreciation expense, professional fees, and product and software development expenses.

• Selling expenses were $1.3 million in the first quarter of fiscal year 2026, a decrease of 18.1% from $1.6 million in the same period last year. Selling expenses primarily consist of payroll expenses, rent, and advertising expenses of retail stores. Total payroll expenses were $0.6 million in the first quarter of fiscal year 2026, compared to $0.6 million in the same period last year. Rent was $0.4 million in the first quarter of fiscal year 2026, compared to $0.7 million in the same period last year. Advertising expenses were $17,413 in the first quarter of fiscal year 2026, compared to $68,519 in the same period last year. The decrease in rental expenses was primarily due to the closures and dispositions of retail stores during this quarter.
• General and administrative expenses were $2.4 million in the first quarter of fiscal year 2026, an increase of 59.5% from $1.5 million in the same period last year. Professional fees increased to $1.5 million in the first quarter of fiscal year 2026, compared to $0.4 million in the same period last year, primarily attributable to the increase in audit fee, consulting fee, legal fee and IR expenses associated with the Company's follow-on public offering and ongoing reporting obligations. Payroll expenses decreased to $0.2 million in the first quarter of fiscal year 2026 from $0.4 million in the same period last year primarily due to decrease in headcount of office assistants. Depreciation expense increased to $0.6 million in the first quarter of fiscal year 2026, compared to $0.2 million for the same period in prior year due to the increasing cost basis of fixed assets.

Net Loss

Net loss was $2.0 million in the first quarter of fiscal year 2026, an increase of 1,019.0% from $0.2 million in the same period last year, which was mainly attributable to the reasons discussed above.

Basic and Diluted Losses per Share

Basic and diluted losses per share were $0.30 in the first quarter of fiscal year 2026, compared to $0.04 in the same period last year.

EBITDA

EBITDA was negative $1.3 million in the first quarter of fiscal year 2026, compared to positive EBITDA of $57,021 in the same period last year.

Financial Condition

As of June 30, 2025, the Company had cash of $2.3 million, increased from $0.8 million as of March 31, 2025.

About Fly-E Group, Inc.

Fly-E Group, Inc. is an electric vehicle company that is principally engaged in designing, installing, selling, and renting smart electric motorcycles, electric bikes and electric under the brand "Fly E-Bike." The Company's commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles, ultimately contributing towards building a more environmentally friendly future. For more information, please visit the Company's website: https://investors.flyebike.com.

Non-GAAP Financial Measures

To supplement the Company's financial information presented in accordance with the generally accepted accounting principles in the United States (the "U.S. GAAP"), management periodically uses certain "non-GAAP financial measures," as such term is defined under the rules of the SEC, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. For example, non-GAAP measures may exclude the impact of certain items such as acquisitions, divestitures, gains, losses and impairments, or items outside of management's control. Management believes that the following non-GAAP financial measure provides investors and analysts useful insight into its financial position and operating performance. Any non-GAAP measure provided should be viewed in addition to, and not as an alternative to, the most directly comparable measure determined in accordance with U.S. GAAP. Further, the calculation of these non-GAAP financial measures may differ from the calculation of similarly titled financial measures presented by other companies and therefore may not be comparable among companies.

The Company uses EBITDA (earnings before interest, taxes, depreciation, and amortization) to evaluate its operating performance. The Company believes EBITDA provides additional insight into its underlying, ongoing operating performance and facilitates year-to-year comparisons by excluding the earnings impact of interest, tax, depreciation and amortization and that presenting EBITDA is more representative of its operational performance and may be more useful for investors.

The Company reconciles its non-GAAP financial measure to its net income, which is its most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. EBITDA includes adjustments for provision for income taxes, as applicable, interest income and expense, depreciation, and amortization. EBITDA does not represent and should not be considered an alternative to net income as determined by U.S. GAAP, and its calculations thereof may not be comparable to those reported by other companies. The Company believes EBITDA is an important measure of operating performance and provides useful information to investors because it highlights trends in its business that may not otherwise be apparent when relying solely on U.S. GAAP measures and because it eliminates items that have less bearing on its operating performance. EBITDA, as presented herein, is a supplemental measure of its performance that is not required by, or presented in accordance with, U.S. GAAP. The Company uses non-GAAP financial measures as supplements to its U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting its business. EBITDA is a measure of operating performance that is not defined by U.S. GAAP and should not be considered a substitute for net (loss) income as determined in accordance with U.S. GAAP.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. The Company cautions investors that actual results may differ materially from the anticipated results, and that the forward-looking statements contained in this press release are subject to the risks set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the section under "Risk Factors" of its most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the SEC on July 15, 2025. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

For investor and media inquiries, please contact:

Fly-E Group, Inc.
Investor Relations Department
Email: ir@flyebike.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FLY-E GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars, except for the number of shares)
		June 30, 2025				March 31, 2025
ASSETS
Current Assets
Cash		$	2,334,288			$	840,102
Accounts receivable, net			1,071,622				466,187
Accounts receivable, net – a related party			37,465				37,465
Inventories, net			5,943,790				6,397,274
Prepayments and other receivables			6,250,792				3,676,986
Prepayments and other receivables – related parties			222,288				120,000
Assets held for sale			897,293				2,462,502
Total Current Assets			16,757,538				14,000,516
Property and equipment, net			7,126,245				7,287,213
Security deposits			638,115				728,450
Deferred tax assets, net			153,087				94,983
Operating lease right-of-use assets			8,584,684				10,933,068
Intangible assets, net			498,550				525,865
Long-term prepayment for software development – a related party			—				136,580
Total Assets		$	33,758,219			$	33,706,675
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable		$	419,128			$	1,272,305
Short-term loan payables			6,317,712				5,191,058
Current portion of long-term loan payables			262,069				100,835
Accrued expenses and other payables			977,120				1,366,968
Operating lease liabilities – current			2,106,614				2,617,762
Liabilities held for sale			662,446				2,152,447
Total Current Liabilities			10,745,089				12,701,375
Long-term loan payables			2,092,257				2,065,040
Operating lease liabilities – non-current			7,217,325				9,106,928
Total Liabilities			20,054,671				23,873,343
Commitment and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized and nil outstanding   as of June 30, 2025 and March 31, 2025*			—				—
Common stock, $0.01 par value, 300,000,000 shares authorized and   10,636,611 shares outstanding as of June 30, 2025 and 300,000,000 shares   authorized and 4,917,500 shares outstanding as of March 31, 2025*			106,366				49,175
Additional paid-in capital			16,740,043				10,940,724
Shares subscription receivable			(219,998)				(219,998)
Accumulated deficit			(2,904,158)				(895,510)
Accumulated other comprehensive loss			(18,705)				(41,059)
Total FLY-E Group, Inc. Stockholders' Equity			13,703,548				9,833,332
Total Liabilities and Stockholders' Equity		$	33,758,219			$	33,706,675
*Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split completed on July 3, 2025.

 

 

FLY-E GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Expressed in U.S. dollars, except for the number of shares)
		For the Three Months Ended June 30,
		2025				2024
Revenues		$	5,328,198			$	7,873,426
Cost of Revenues			3,066,823				4,773,792
Gross Profit			2,261,375				3,099,634
Operating Expenses
Selling Expenses			1,321,217				1,612,495
General and Administrative Expenses			2,444,933				1,532,638
Total Operating Expenses			3,766,150				3,145,133
Loss from Operations			(1,504,775)				(45,499)
Other Income (Expenses), net			(7,898)				6,518
Interest Expenses			(546,234)				(68,082)
Loss Before Income Taxes			(2,058,907)				(107,063)
Income Tax Benefit (Expense)			50,259				(72,445)
Net Loss		$	(2,008,648)			$	(179,508)
Other Comprehensive Income (Loss)
Foreign currency translation adjustment			22,354				(1,324)
Total Comprehensive Loss		$	(1,986,294)			$	(180,832)
Losses per Share*		$	(0.30)			$	(0.04)
Weighted Average Number of Common Stock
– Basic and Diluted*			6,696,779				4,527,250
*Shares and per share data are presented on a retroactive basis to reflect the 1-for-110,000 stock split completed on April 2, 2024 and the 1-for-5 reverse stock split completed on July 3, 2025.

 

 

FLY-E GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. dollars, except for the number of shares)
		For the Three Months Ended June 30,
		2025				2024
Cash flows from operating activities
Net loss		$	(2,008,648)			$	(179,508)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of property and equipment			68,188				—
Depreciation expense			212,792				95,051
Amortization expense			27,315				951
Deferred income taxes benefits			(42,861)				(59,099)
Amortization of operating lease right-of-use assets			828,458				798,044
Inventories reserve			229,780				176,072
Changes in operating assets and liabilities:
Accounts receivable			(605,435)				(159,112)
Accounts receivable – a related party			—				279,172
Inventories			(63,902)				(901,095)
Prepayments and other receivables			(1,974,220)				(2,065,536)
Prepayments for operation services to a related party			45,000				(180,000)
Security deposits			2,148				(23,854)
Accounts payable			(853,177)				(774,347)
Accrued expenses and other payables			(345,649)				(503,291)
Operating lease liabilities			(803,823)				(626,205)
Taxes payable			—				(399,407)
Net cash used in operating activities			(5,284,034)				(4,522,164)
Cash flows from investing activities
Purchases of properties and equipment			(141,624)				(351,524)
Cash released from disposal of entities			(119,720)				—
Repayment from a related party			—				180,256
Advance to a related party			(147,288)				(162)
Prepayments for property			—				(775,000)
Payments of property rights			—				(119,700)
Net cash used in investing activities			(408,632)				(1,066,130)
Cash flows from financing activities
Proceeds from borrowings			1,917,100				247,500
Repayments of borrowings			(601,995)				(375,625)
Repayments on other payables - related parties			—				(90,000)
Payments of offering cost			(516,490)				(282,403)
Net proceeds from issuance of common stock			6,373,000				9,154,500
Net cash provided by financing activities			7,171,615				8,653,972
Net changes in cash including cash classified within current assets held for sale			1,478,949				3,065,678
Effect of exchange rate changes on cash			22,354				(1,324)
Less: net increase in cash classified within current assets held for sale			(7,117)				—
Cash at beginning of the period			840,102				1,403,514
Cash at the end of the period		$	2,334,288			$	4,467,868
Supplemental disclosure of cash flow information
Cash paid for interest expense		$	546,234			$	68,082
Cash paid for income taxes		$	42,640			$	481,929
Supplemental disclosure of non-cash investing and financing activities
Purchase software by using previous prepayments		$	136,580			$	—
Properties used for rental services		$	49,811			$	—
Deferred IPO cost recognized as additional paid-in capital		$	—			$	502,198
Uncollected proceeds from disposal of subsidiaries		$	526,779			$	—
Termination of operating lease right-of-use assets and operating lease liabilities		$	3,089,912			$	(2,962)
Right-of-use assets obtained in exchange for operating lease liabilities		$	—			$	557,643

 

The following table sets forth the components of our EBITDA for the three months ended June 30, 2025 and 2024:

		For the Three Months Ended June 30,
		2025				2024				Change				Percentage Change
Net loss		$	(2,008,648)			$	(179,508)			$	(1,829,140)				1019.0	%
Income Tax provision (benefit)			(50,259)				72,445				(122,704)				(169.4)	%
Depreciation			212,792				95,051				117,741				123.9	%
Interest Expenses			546,234				68,082				478,152				702.3	%
Amortization			27,315				951				26,364				2,772.2	%
EBITDA		$	(1,272,566)			$	57,021			$	(1,329,587)				(2,331.7)	%
Percentage of Revenue			(23.9)	%			0.7	%							(24.6)	%

 

 

View original content:https://www.prnewswire.com/news-releases/fly-e-group-inc-announces-first-quarter-of-fiscal-year-2026-financial-results-302534066.html

SOURCE Fly-E Group, Inc.

FAQ

What were Fly-E Group's (FLYE) Q1 FY2026 earnings results?

Fly-E reported net revenues of $5.3 million, down 32.3% year-over-year, with a net loss of $2.0 million ($0.30 per share) compared to $0.2 million loss in the previous year.

Why did Fly-E's retail sales decline in Q1 FY2026?

Retail sales dropped 45.2% primarily due to customer concerns over lithium-battery safety following explosion incidents in New York, causing customers to prefer oil-powered vehicles over electric ones.

How did Fly-E's wholesale business perform in Q1 FY2026?

Fly-E's wholesale revenue grew 42.3% to $1.4 million year-over-year, driven by an expansion in the company's dealer network.

What was Fly-E's gross margin in Q1 FY2026?

Fly-E's overall gross margin improved to 42.4% from 39.4% year-over-year, with the new rental services business achieving a 79.8% gross margin.

How much cash does Fly-E (FLYE) have as of June 2025?

As of June 30, 2025, Fly-E had $2.3 million in cash, an increase from $0.8 million as of March 31, 2025.