#United States #New York #electric vehicles #Fiscal Year 2025 #Fly-E Group

Fly-E Group, Inc. Reports Financial Results for Q3 and Nine Months of FY 2025

Fly-E Group, Inc. (Nasdaq: FLYE), known for its innovative electric vehicles including smart electric motorcycles, bikes, and scooters, recently shared its unaudited financial results for the third quarter and first nine months of fiscal year 2025, concluded on December 31, 2024.

During this period, Fly-E reported revenues of $5.7 million, down 23.6% from $7.4 million in Q3 of FY 2024. Notably, the company faced a net loss of $0.7 million (or $0.03 per share) compared to a net income of $20,889 (or $0.001 per share) a year earlier. This downturn in performance is largely attributed to declining sales volume, which dropped from 13,500 units to 9,989 units, leading to reduced consumer confidence following recent lithium battery incidents involving e-bikes and scooters.

Chairman and CEO Andy Ou commented on the fluctuations experienced by the company, reflecting on the impact of these unfortunate battery accidents on consumer sentiment but expressed optimism regarding Fly-E's gross margin improvement, which increased to 45.1%, up from 39.0% the previous year.

Strategic Initiatives and Partnerships

In light of these challenges, Fly-E is actively pursuing strategic partnerships and innovations to enhance its product offerings and bolster brand visibility. In January 2025, the company participated in the New York City Department of Transportation's Trade-In Program, a $2 million initiative aimed at replacing unsafe e-bikes for food delivery workers with higher-quality, UL-certified models; the Fly-11 PRO is the chosen model for this endeavor.

Outlining future plans, Mr. Ou reiterated the commitment to diversification, technology integration, and safety enhancements across their product lines, aiming to foster both user satisfaction and safety.

Financial Breakdown

• - Retail Sales Revenue: Decreased to $4.9 million in Q3 FY 2025, down 21.9% from the previous year.
• - Wholesale Revenue: Fell to $0.7 million, a 36.4% drop compared to Q3 FY 2024.
• - Rental Services Revenue: The company generated $48,961 from rental services, a new revenue stream as it had generated none in Q3 FY 2024.

The decrease in both retail and wholesale revenue is attributed to declining consumer interest towards e-vehicles amidst rising safety concerns stemming from battery incidents. This led customers to prefer traditional oil-powered transport options.

Despite the revenue declines, cost of revenues was considerably reduced to $3.1 million in Q3 FY 2025, a 30% decrease compared to the same quarter in FY 2024, which is indicative of more favorable pricing on supplied components and a reduced sales volume.

Operating expenses showed a significant rise of 26%, now totaling $3.5 million, driven by increased payroll and marketing costs linked to business expansion and new hiring initiatives.

Looking Ahead

As the company shifts methodologies financially, they are optimistic about overcoming the present challenges. Fly-E plans to expand their product offering, invest in advanced technological applications, and enhance customer engagement through increased digital marketing initiatives.

The latest financial results highlight the volatile nature of the e-vehicle market, showcasing both the challenges posed by changing consumer sentiment and the strategic responses supplemented by government collaborations aimed at ensuring safer mobility solutions.

Summary

In summary, Fly-E Group, Inc. is navigating through a pivotal moment, focusing on long-term growth strategies while tackling present economic fluctuations and safety perceptions in the e-vehicle market. Investors and market observers alike will be keen to watch how these strategies unfold in the upcoming quarters.