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Fly-E Group Financial Overview: Q2 and First Half of FY2026

Fly-E Group, Inc., a key player in the electric vehicle industry, released its unaudited financial results for the second quarter and the first half of fiscal year 2026, ending September 30, 2025. Despite facing a challenging retail environment, the company has shown resilience and strategic focus in navigating its operations.

Financial Performance in Q2 FY2026

In this quarter, Fly-E reported net revenues of $3.9 million, a significant decline from $6.8 million the previous year, primarily due to a 42.7% drop in revenues attributed to a significant decrease in the average unit price of electric vehicles. The company lowered prices to reduce aged inventory which resulted in an average unit price drop of 61% during this period. Retail sales accounted for $2.0 million, down 65.8% from the same quarter last year, while wholesale revenues surged to $1.7 million, representing a 91.3% increase.

The gross profit for the quarter was $1.0 million, reflecting a gross margin of 25%, a decrease from 42.6% compared to the previous year. The rental segment showcased a promising gross margin of 79.8%, indicating strong potential for profitability in the future.

Cost and Expenses Breakdown

The cost of revenues decreased to $2.9 million, attributable to lower sales volume and the company’s efforts in cutting down costs. Total operating expenses were down by 51.0%, amounting to $2.0 million, a notable reduction stemming from closures and disposals of retail stores. Selling expenses showed a decrease to $1.0 million, down from $2.0 million last year, further evidence of the company's ongoing cost optimization strategies.

Net Loss and Outlook

Fly-E reported a net loss of $1.8 million this quarter, a deterioration compared to the $1.1 million loss in the previous year. The basic and diluted loss per share stood at $2.18, better than the $4.65 from last year, suggesting an improvement in terms of shareholder value despite the overall losses.

Looking to the future, CEO Andy Ou expressed optimism, citing the strengthening of the wholesale business and the early success of the rental segment as key growth drivers. The firm aims to enhance its product and service portfolio while continuing to improve operational efficiency as it seeks sustainable long-term growth.

First Half FY2026 Financial Results

For the first half of the fiscal year 2026, Fly-E Group reported net revenues of $9.2 million, a decrease of 37.2% compared to $14.7 million in the same period last year. This downward trend was attributed to a decrease in total units sold, primarily in motorcycles and batteries which saw significant drops in sales volumes.

Operating expenses during this period totaled $5.8 million, showing a decrease of 20.5% from the previous year, reflecting ongoing efforts to streamline operations. The first half also saw a net loss of $3.8 million, escalated sharply compared to $1.3 million the year before, largely due to increased interest expenses and operational costs.

Conclusion

In summary, while Fly-E Group, Inc. encountered considerable challenges in the second quarter and first half of FY2026, their strategic pivots—especially towards wholesale and rental operations—exhibit potential pathways to rebound. In facing the current retail environment's volatility, Fly-E's commitment to eco-friendly transportation remains steadfast, aiming for sustainability and growth in the electric vehicle sector.