Fly-E Group, Inc. Announces Second Quarter and First Half of Fiscal Year 2026 Financial Results
NEW YORK, Dec. 18, 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 second quarter and first half of fiscal year 2026 ended September 30, 2025.
Second Quarter of Fiscal Year 2026 Financial Summary
Mr. Zhou (Andy) Ou, Chairman and Chief Executive Officer of Fly-E, commented, "We navigated the second quarter of fiscal year 2026 with discipline and focus, despite a challenging retail environment. Our wholesale business continued to demonstrate strong momentum as we strategically shift our focus to this segment, with wholesale revenue increasing 91.3% year-over-year to $1.7 million. In addition, our rental business achieved a gross margin of 79.8%, demonstrating the potential to be a key profitability driver. At the same time, total operating expenses declined by 51.0% compared to the same period last year, reflecting the impact of our cost-optimization measures and our more efficient operations. While market conditions remain dynamic, particularly within the retail E-Bike segment, we are encouraged by the early traction of our rental business, our improving operational efficiency, and the resilience of our wholesale channel. Looking ahead, we will stay focused on enhancing profitability, strengthening our product and service portfolio, and improving operational efficiency as we position Fly-E for sustainable long-term growth."
Second Quarter of Fiscal Year 2026 Financial Results
Net Revenues
Net revenues were $3.9 million in the second quarter of fiscal year 2026, a decrease of 42.7% from $6.8 million in the same period last year. The decrease in net revenues was primarily driven by a decrease in average unit price of EVs, which dropped by 61% as a result of lowering the selling prices to reduce aged inventory for the second quarter of fiscal year 2026.
Retail sales revenue was $2.0 million in the second quarter of fiscal year 2026, a decrease of 65.8% from $5.9 million in the same period last year. Wholesale revenue was $1.7 million in the second quarter of fiscal year 2026, an increase of 91.3% from $0.9 million in the same period last year. Rental services revenue was $0.2 million in the second quarter of fiscal year 2026. The Company did not generate revenue from rental services in the second 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 disposition of the Company's retail stores during the second quarter of fiscal year 2026. The increase in wholesales revenue was driven primarily by revenue contribution from the disposed entities during the second quarter of fiscal year 2026. Although certain retail stores were sold, these stores continued to purchase products from the Company, which contributes an increase of wholesale revenue.
Cost of Revenues
Cost of revenues was $2.9 million in the second quarter of fiscal year 2026, a decrease of 25.2% from $3.9 million in the same period last year. The decrease in cost of revenues was primarily attributable to a reduction in sales volume.
Gross Profit
Gross profit was $1.0 million in the second quarter of fiscal year 2026, a decrease of 66.4% from $2.9 million in the same period last year. Gross margin was 25.0% in the second quarter of fiscal year 2026, decreased from 42.6% in the same period last year. The decrease in gross margin was mainly due to a combined effect of decrease in average unit price of EVs, which dropped by 61% for the second quarter of fiscal year 2026 and the increased revenues from rental business with higher margin than our other businesses. Gross margin of rental business was 79.8% in the second quarter of fiscal year 2026. The Company did not generate profit from rental services in the second quarter of fiscal year 2025.
Operating Expenses
Total operating expenses were $2.0 million in the second quarter of fiscal year 2026, a decrease of 51.0% from $4.1 million in the same period last year.
Net Loss
Net loss was $1.8 million in the second quarter of fiscal year 2026, an increase of 55.4% from $1.1 million in the same period last year.
Basic and Diluted Losses per Share
Basic and diluted losses per share were $2.18 in the second quarter of fiscal year 2026, compared to $4.65 in the same period last year.
EBITDA
EBITDA was negative $1.0 million in the second quarter of fiscal year 2026, compared to negative EBITDA of $1.2 million in the same period last year.
First Half of Fiscal Year 2026 Financial Results
Revenue
Net revenues were $9.2 million in the first half of fiscal year 2026, a decrease of 37.2%, from $14.7 million in the same period last year. The decrease in net revenues was driven primarily by a decrease in total units sold, which decreased by 2,924 units, from 31,936 units for first half of fiscal year 2025 to 29,012 units for the first half of fiscal year 2026, and as a result of lowering the selling prices to reduce aged inventory. From the first half of fiscal year 2025 to the first half of fiscal year 2026, while the number of units sold of certain other types of products increased, the quantities of motorcycles and batteries sold, which normally contribute significantly to revenues, decreased by 641 units and 5,332 units, respectively, thereby resulting in an overall decrease in the total number of units sold.
Retail sales revenue was $5.8 million in the first half of fiscal year 2026, a decrease of 54.7%, from $12.8 million in the same period last year. Wholesale revenue was $3.2 million in the first half of fiscal year 2026, an increase of 65.5% from $1.9 million in the same period last year. The decrease in retail sales revenue is mainly due to decrease in number of retail stores during the first half of fiscal year 2026. The increase in wholesales revenue was driven primarily by contributions from the disposed entities during the first half of fiscal year 2026. Although certain retail stores were sold, these stores continued to purchase products from the Company, which contributed to the increase of wholesale revenue.
Cost of Revenues
Cost of revenues was $6.0 million in the first half of fiscal year 2026, a decrease of 31.0%, from $8.7 million in the same period last year. The decrease in cost of revenues was primarily attributable to reduction in battery sales volume.
Gross Profit
Gross profit was $3.2 million in the first half of fiscal year 2026, a decrease of 46.1%, from $6.0 million in the same period last year. Gross margin was 35.1% in the first half of fiscal year 2026, decreased from 40.9% in the same period last year.
Operating Expenses
Total operating expenses were $5.8 million in the first half of fiscal year 2026, a decrease of 20.5%, from $7.3 million in the same period last year.
Net Loss
Net loss was $3.8 million in the first half of fiscal year 2026, an increase of 186.2% from $1.3 million in the same period last year.
Basic and Diluted Losses per Share
Basic and diluted losses per share were $6.58 in the first half of fiscal year 2026, compared to $5.60 in the same period last year.
EBITDA
EBITDA was negative $2.2 million in the first half of fiscal year 2026, compared to negative EBITDA of $1.1 million in the same period last year.
Financial Condition
As of September 30, 2025, the Company had cash of $2.5 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 scooters 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, as amended by the Company's subsequent filings, including updates to the Risk Factors. 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: [email protected]
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: [email protected]
FLY-E GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars, except for the number of shares)
September 30,
2025
March 31,
2025
ASSETS
Current Assets
Cash
$
2,538,076
$
840,102
Accounts receivable, net
1,474,637
466,187
Accounts receivable, net – a related party
32,030
37,465
Inventories, net
6,548,287
6,397,274
Prepayments and other receivables
5,923,496
3,676,986
Prepayments and other receivables – related parties
236,826
120,000
Assets held for sale
—
2,462,502
Total Current Assets
16,753,352
14,000,516
Property and equipment, net
6,826,815
7,287,213
Security deposits
518,908
728,450
Deferred tax assets, net
152,212
94,983
Operating lease right-of-use assets
6,891,886
10,933,068
Intangible assets, net
486,581
525,865
Long-term prepayment for software development – a related party
—
136,580
Total Assets
$
31,629,754
$
33,706,675
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable
$
550,249
$
1,272,305
Short-term loan payables
5,532,230
5,191,058
Current portion of long-term loan payables
222,479
100,835
Accrued expenses and other payables
484,236
1,366,968
Accrued expenses and other payables – related parties
225
—
Operating lease liabilities – current
1,819,911
2,617,762
Liabilities held for sale
—
2,152,447
Total Current Liabilities
8,609,330
12,701,375
Long-term loan payables
2,004,123
2,065,040
Operating lease liabilities – non-current
5,718,256
9,106,928
Total Liabilities
16,331,709
23,873,343
Commitment and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized and nil outstanding as of September 30, 2025 and March 31, 2025*
—
—
Common stock, $0.01 par value, 300,000,000 shares authorized and 1,632,351 shares outstanding as of September 30, 2025 and 300,000,000 shares authorized and 245,875 shares outstanding as of March 31, 2025*
16,324
2,459
Additional paid-in capital
27,826,643
10,987,440
Shares subscription receivable
(7,816,556)
(219,998)
Accumulated deficit
(4,680,283)
(895,510)
Accumulated other comprehensive loss
(48,083)
(41,059)
Total FLY-E Group, Inc. Stockholders' Equity
15,298,045
9,833,332
Total Liabilities and Stockholders' Equity
$
31,629,754
$
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 and the 1-for-20 reverse stock split completed on November 4, 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
September 30,
For the Six Months Ended
September 30,
2025
2024
2025
2024
Revenues
$
3,908,862
$
6,824,406
$
9,237,060
$
14,697,832
Cost of Revenues
2,932,341
3,919,952
5,999,164
8,693,744
Gross Profit
976,521
2,904,454
3,237,896
6,004,088
Operating Expenses
Selling Expenses
1,027,726
2,041,435
2,348,943
3,653,930
General and Administrative Expenses
997,218
2,094,078
3,442,151
3,626,716
Total Operating Expenses
2,024,944
4,135,513
5,791,094
7,280,646
Loss from Operations
(1,048,423)
(1,231,059)
(2,553,198)
(1,276,558)
Other Expenses, net
(148,153)
(53,929)
(156,051)
(47,411)
Interest Expenses, net
(539,537)
(23,795)
(1,085,771)
(91,877)
Loss Before Income Taxes
(1,736,113)
(1,308,783)
(3,795,020)
(1,415,846)
Income Tax (Expense) Benefit
(40,012)
165,935
10,247
93,490
Net Loss
$
(1,776,125)
$
(1,142,848)
$
(3,784,773)
$
(1,322,356)
Other Comprehensive (Loss) Income
Foreign currency translation adjustment
(29,378)
4,298
(7,024)
2,974
Total Comprehensive Loss
$
(1,805,503)
$
(1,138,550)
$
(3,791,797)
$
(1,319,382)
Losses per Share*
$
(2.18)
$
(4.65)
$
(6.58)
$
(5.60)
Weighted Average Number of Common Stock
– Basic and Diluted*
813,922
245,875
575,463
236,226
*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, the 1-for-5 reverse stock split completed on July 3, 2025 and the 1-for-20 reverse stock split completed on November 4, 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 Six Months Ended
September 30,
2025
2024
Cash flows from operating activities
Net loss
$
(3,784,773)
$
(1,322,356)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of property and equipment
68,188
—
Gain on disposal of subsidiaries
(64,452)
—
Depreciation expense
417,258
180,910
Amortization expense
54,761
8,846
Deferred income taxes benefits
(42,251)
(462,740)
Amortization of operating lease right-of-use assets
2,699,632
1,676,991
Inventories impairment loss
569,758
330,823
Changes in operating assets and liabilities:
Accounts receivable
(1,031,989)
(154,034)
Accounts receivable – a related party
5,435
235,029
Inventories
(1,107,359)
(3,562,871)
Prepayments and other receivables
(1,371,452)
(1,864,681)
Prepayments for operation services to a related party
45,000
(180,000)
Security deposits
41,550
(55,598)
Accounts payable
(722,056)
(815,667)
Accrued expenses and other payables
(793,623)
(380,183)
Accrued expenses and other payables - related parties
225
—
Operating lease liabilities
(2,676,403)
(1,516,198)
Taxes payable
(14,978)
(1,530,416)
Net cash used in operating activities
(7,707,529)
(9,412,145)
Cash flows from investing activities
Purchases of properties and equipment
(44,661)
(1,575,936)
Purchase of software from a related party
—
(500,000)
Payments of property rights
(15,477)
—
Prepayment for purchasing software from a related party
—
(801,980)
Cash released from disposal of entities
(230,076)
—
Repayment from a related party
—
510,381
Advance to a related party
(161,826)
(477,933)
Net cash used in investing activities
(452,040)
(2,845,468)
Cash flows from financing activities
Proceeds from borrowings
1,917,100
3,737,500
Repayments of borrowings
(1,370,591)
(391,308)
Repayments on other payables - related parties
—
(92,229)
Payments of offering cost
(516,490)
(282,403)
Net proceeds from issuance of common stock
9,773,000
9,154,500
Net cash provided by financing activities
9,803,019
12,126,060
Net changes in cash including cash classified within current assets held for sale
1,643,450
(131,553)
Effect of exchange rate changes on cash
(7,024)
2,974
Less: net increase in cash classified within current assets held for sale
61,548
—
Cash at beginning of the period
840,102
1,403,514
Cash at the end of the period
$
2,538,076
$
1,274,935
Supplemental disclosure of cash flow information
Cash paid for interest expense
$
1,085,771
$
91,877
Cash paid for income taxes
$
42,640
$
1,940,595
Supplemental disclosure of non-cash investing and financing activities
Subscription receivables from share placement
$
7,596,558
$
—
Purchase of vehicle funded by loan
$
—
$
219,668
Purchase of office funded by loan
$
—
$
1,800,000
Purchase of software by using previous prepayments
$
136,580
$
1,975,000
Properties used for rental services
$
49,811
$
—
Deferred IPO cost recognized as additional paid-in capital
$
—
$
502,198
Uncollected proceeds from disposal of subsidiaries
$
860,754
$
—
Termination of operating lease right-of-use assets and operating lease liabilities
$
3,187,864
$
(280,087)
Right-of-use assets obtained in exchange for operating lease liabilities
$
—
$
1,394,682
The following table sets forth the components of our EBITDA for the three months ended September 30, 2025 and 2024:
For the Three Months Ended September 30,
2025
2024
Change
Percentage
Change
Net loss
$
(1,776,125)
$
(1,142,848)
$
(633,277)
55.4
%
Income tax provision (benefit)
40,012
(165,935)
205,947
(124.1)
%
Depreciation
204,466
85,859
118,607
138.1
%
Interest Expenses
539,537
23,795
515,742
2,167.4
%
Amortization
27,446
7,895
19,551
247.6
%
EBITDA
$
(964,664)
$
(1,191,234)
$
226,570
(19.0)
%
Percentage of Revenue
(24.7)
%
(17.5)
%
(7.2)
%
The following table sets forth the components of our EBITDA for the six months ended September 30, 2025 and 2024:
For the Six Months Ended September 30,
2025
2024
Change
Percentage
Change
Loss from Operations
$
(3,784,773)
$
(1,322,356)
$
(2,462,417)
186.2
%
Income Tax Benefit
(10,247)
(93,490)
83,243
(89.0)
%
Depreciation
417,258
180,910
236,348
130.6
%
Interest Expenses
1,085,771
91,877
993,894
1081.8
%
Amortization
54,761
8,846
45,915
519.0
%
EBITDA
$
(2,237,230)
$
(1,134,213)
$
(1,103,017)
97.2
%
Percentage of Revenue
(24.2)
%
(7.7)
%
(16.5)
%
SOURCE Fly-E Group, Inc.