#United States #New York #electric vehicles #e-bikes #Fly-E Group

Fly-E Group, Inc. Financial Report Overview

Fly-E Group, Inc. (Nasdaq: FLYE), a prominent player in the electric vehicle sector, particularly focused on smart electric motorcycles, bicycles, and scooters, has recently disclosed its financial performance for the first quarter of fiscal year 2026, covering the period ending June 30, 2025. The company faced notable challenges which reflected in varying revenue streams and profit margins.

Financial Summary

In the first quarter of FY 2026, Fly-E reported net revenues totaling $5.3 million, which marks a significant decrease of approximately 32.3% from the $7.9 million recorded in the same quarter of the previous year. Despite this downturn in revenues, the gross margin improved to 42.4%, up from 39.4%, fueled by the operations of its rental services, achieving an impressive gross margin of 79.8%. However, the overall net loss for the period climbed to $2 million, a staggering 1,019% increase compared to the previous year's loss of $200,000.

This fiscal quarter saw a decline in sales volume with 10,448 units sold, a drop of 6,432 units from the prior year. The decreased average sales price of electric vehicles, which fell by $93 to $960, contributed to the overall revenue decline. Mr. Zhou (Andy) Ou, the company's CEO, commented on the significance of the improved gross margin and the increase in wholesale revenue, which surged by 42.3% year-over-year. This growth was primarily fueled by the expansion of their dealer network.

Key Financial Details

• - Net Revenues: $5.3 million (Q1 FY 2026) vs. $7.9 million (Q1 FY 2025)
• - Gross Profit: $2.3 million (Q1 FY 2026) vs. $3.1 million (Q1 FY 2025)
• - Net Loss: $2 million (Q1 FY 2026) vs. $200,000 (Q1 FY 2025)
• - Basic and Diluted Losses per Share: $0.30 (Q1 FY 2026) vs. $0.04 (Q1 FY 2025)

Challenges Faced

The dramatic decrease in retail sales revenue, now at $3.8 million, a drop of 45.2% from the previous year's quarter, is largely attributed to the public's hesitance in purchasing E-Bikes and E-Scooters following several incidents related to lithium-ion battery failures, particularly in New York. This has pushed consumers back towards traditional, oil-powered vehicles, adversely affecting Fly-E's sales.

The company also faced declines in revenue due to significant retail store closures and rigorous cost-cutting measures. The major factors influencing a reduction in average sales price include shifts in product offerings and strategic promotional pricing during this quarter.

Operating Expenses and EBITDA

Total operating expenses saw an increase of 19.7% to $3.8 million compared to $3.1 million from the prior year due to rising depreciation costs and professional fees related to the company’s public offering.

Despite higher operating expenses, the operating loss more than doubled due to inflated interest expenses stemming from increased borrowing. Fly-E also reported an EBITDA of negative $1.3 million, in stark contrast to a positive $57,021 in Q1 FY 2025, showcasing the fiscal pressures facing the electric vehicle firm.

Strategic Outlook

In light of these financial challenges, Fly-E Group is focusing on enhancing its operational strategies. This includes expanding its geographic footprint, improving its product portfolio, and maintaining high safety standards amid recent industry scrutiny. CEO Zhou remains optimistic about the potential for sustainable growth in the eco-friendly mobility segment, underscoring the company’s commitment to quality and customer trust in their products.

With cash reserves currently at $2.3 million, an increase from $840,102 at the previous quarter end, Fly-E continues to explore new opportunities for revenue generation and an adaptable business strategy to thrive in a recovering market.

For more information about the company and its commitment to eco-friendly transportation solutions, visit Fly-E Group Investor Relations.