#United States #New York #Inc. #e-bikes #Fly-E Group #E-Motorcycles

Fly-E Group, Inc. Releases Financial Results for Fiscal Year 2025

On July 15, 2025, Fly-E Group, Inc. (Nasdaq: FLYE), a key player in the electric vehicle (EV) industry, revealed its financial results for the fiscal year ending March 31, 2025. Specializing in smart electric motorcycles, electric bikes, and scooters, the company has adopted a forward-thinking approach while navigating recent operational challenges.

Financial Overview

The company's net revenues for FY 2025 stood at $25.4 million, reflecting a substantial decrease of 21% from the previous year's $32.2 million. This decline was attributed mainly to a reduction in sales volume, which dropped significantly from 69,611 units in FY 2024 to 58,765 in FY 2025.

The gross profit also mirrored this trend, dropping from $13.1 million in FY 2024 to $10.5 million this year. However, the gross margin saw a slight improvement, reaching 41.1%, up from 40.7% in FY 2024. Notably, the company reported a net loss of $5.3 million compared to a net income of $1.9 million the previous year, with losses per share recorded at $1.10.

Causes of Revenue Decline

A significant factor contributing to this revenue decline has been the recent spate of accidents involving lithium-ion batteries, particularly affecting E-Bikes and E-Scooters. The increased safety concerns have led to a noticeable shift in consumer preference, with many potential customers opting for traditional gas-powered vehicles instead.

Moreover, operational challenges were compounded by the closures of certain retail outlets, which further impacted overall revenue. The wholesale revenue saw a staggering decline, dropping by nearly 39% from $5.8 million in FY 2024 to $3.5 million in FY 2025, largely due to the reduced store footprint of major suppliers.

Operating Expenses and Strategic Adjustments

Despite the revenue struggles, Fly-E Group adjusted its operating model to adapt to the market realities. The company's operating expenses rose by 52.5%, spiking from $9.8 million in FY 2024 to $15 million this year. This increase was mainly driven by higher payroll costs, increased rent, and intensified marketing efforts aimed at bolstering brand visibility.

Mr. Zhou (Andy) Ou, the Chairman and CEO, emphasized that despite these challenges, the company has made strides in improving its gross margins and reducing costs. “We have successfully improved our gross margins supported by cost reductions and favorable supplier agreements, especially with battery sourcing,” he noted.

Future Prospects and Innovations

Looking forward, Fly-E Group remains optimistic about its growth trajectory. With a diversified product lineup of over 100 models across various electric vehicle categories, including E-motorcycles and E-bikes, the company is positioning itself to capitalize on future market demands.

The company's rental services have also shown promise, with existing operations in major cities like New York, Toronto, and Los Angeles. Plans are underway to expand these services into Miami and additional markets. This growth aligns with the company's mission to promote eco-friendly transportation solutions, contributing to a sustainable future.

Mr. Ou expressed confidence that the recent capital raised through a successful public offering will support investments in inventory and production capabilities. Additionally, the company plans to enhance its digital presence with platforms like the Go Fly app, aiming to improve customer experiences and streamline operational effectiveness.

Conclusion

In summary, while FY 2025 posed significant challenges for Fly-E Group, it also opened doors for strategic improvements and innovation in the electric vehicle sector. The company's commitment to environmental sustainability and a diverse product offering remains steadfast, laying a robust foundation for future growth and stability. As the market evolves, Fly-E Group is set to adapt and thrive in the competitive landscape of electric mobility.