Fly-E Group, Inc. Announces Second Quarter and First Half of Fiscal Year 2026 Financial Results | FLYE Stock News

, /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 SummaryNet revenues were $3.9 million, compared to $6.8 million in the same period last year.Gross profit was $1.0 million, compared to $2.9 million in the same period last year.Gross margin was 25.0%, compared to 42.6% in the same period last year.Net loss was $1.8 million, compared to $1.1 million in the same period last year.Basic and diluted losses per share were $2.18, compared to $4.65 in the same period last year.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 ResultsNet RevenuesNet 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 RevenuesCost 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 ProfitGross 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 ExpensesTotal 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.Selling expenses were $1.0 million in the second quarter of fiscal year 2026, a decrease of 49.7% from $2.0 million in the same period last year. Selling expenses primarily consist of payroll expenses, rent, and advertising expenses of retail stores. Total payroll expenses were $0.6 million in the second quarter of fiscal year 2026, compared to $0.9 million in the same period last year. Rent was $0.3 million in the second quarter of fiscal year 2026, compared to $0.8 million in the same period last year. Advertising expenses were $15,457 in the second quarter of fiscal year 2026, compared to $0.1 million in the same period last year. The decrease in these expenses was primarily due to the closures and dispositions of retail stores during this quarter.General and administrative expenses were $1.0 million in the second quarter of fiscal year 2026, a decrease of 52.4% from $2.1 million in the same period last year. Professional fees decreased to $0.5 million in the second quarter of fiscal year 2026, compared to $0.9 million in the same period last year, primarily attributable to the decrease in audit fee, consulting fee, legal fee and IR expenses associated with the Company's public offering and ongoing reporting obligations. Payroll expenses decreased to $0.1 million in the second quarter of fiscal year 2026 from $0.4 million in the same period last year primarily due to decrease in headcount of office assistants. Depreciation expense increased to $0.06 million in the second quarter of fiscal year 2026, compared to $0.04 million for the same period in prior year due to the increasing cost basis of fixed assets.Net LossNet 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 ShareBasic 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.EBITDAEBITDA 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 ResultsRevenueNet 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 RevenuesCost 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 ProfitGross 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 ExpensesTotal 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.Selling expenses were $2.3 million in the first half of fiscal year 2026, a decrease of 35.7% from $3.7 million in the same period last year. Selling expenses primarily consist of payroll expenses, rent, utilities expenses, and advertising expenses of retail stores. Total payroll expenses were $1.2 million in the first half of fiscal year 2026, compared to $1.5 million in the same period last year. Rent expenses were $0.7 million in the first half of fiscal year 2026, compared to $1.5 million in the same period last year. Utilities expenses were $81,468 in the first half of fiscal year 2026, compared to $0.1 million in the same period last year. Advertising expenses were $32,870 in the first half of fiscal year 2026, compared to $0.2 million in the same period last year. The decrease in these expenses was primarily due to the closures and dispositions of retail stores in the first half of fiscal year 2026.General and administrative expenses were $3.4 million for the first half of fiscal year 2026, a decrease of 5.1% from $3.6 million in the same period last year. Professional fees increased to $2.0 million in the first half of fiscal year 2026, compared to $1.3 million in the same period last year, primarily attributable to the increase in audit fee, consulting fee, legal fee and IR expenses associated with the Company's initial public offering and ongoing reporting obligations. Payroll expenses decreased to $0.4 million in the first half of fiscal year 2026, from $0.8 million in the same period las year primarily due to employees terminated in operation and accounting departments. Insurance expenses decreased to $0.3 million in the first half of fiscal year 2026, compared to $0.5 million in the same period of prior year as a result of less insurance policies purchased for closed stores during the first half of fiscal year 2026. Software development fee decreased to $0.27 million in the first half of fiscal year 2026, compared to $0.31 million in the same period last year as a result of less maintenance services required for Fly E-Bike app as a result of the closures and dispositions of retail stores during the first half of fiscal year 2026.Net LossNet 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 ShareBasic 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.EBITDAEBITDA 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 ConditionAs 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 MeasuresTo 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 StatementsCertain 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 DepartmentEmail: ir@flyebike.comAscent Investor Relations LLCTina XiaoPhone: +1-646-932-7242Email: investors@ascent-ir.comFLY-E GROUP, INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollars, except for the number of shares)September 30, 2025March 31, 2025ASSETSCurrent AssetsCash$2,538,076$840,102Accounts receivable, net1,474,637466,187Accounts receivable, net – a related party32,03037,465Inventories, net6,548,2876,397,274Prepayments and other receivables5,923,4963,676,986Prepayments and other receivables – related parties236,826120,000Assets held for sale—2,462,502Total Current Assets16,753,35214,000,516Property and equipment, net6,826,8157,287,213Security deposits518,908728,450Deferred tax assets, net152,21294,983Operating lease right-of-use assets6,891,88610,933,068Intangible assets, net486,581525,865Long-term prepayment for software development – a related party—136,580Total Assets$31,629,754$33,706,675LIABILITIES AND STOCKHOLDERS' EQUITYCurrent LiabilitiesAccounts payable$550,249$1,272,305Short-term loan payables5,532,2305,191,058Current portion of long-term loan payables222,479100,835Accrued expenses and other payables484,2361,366,968Accrued expenses and other payables – related parties225—Operating lease liabilities – current1,819,9112,617,762Liabilities held for sale—2,152,447Total Current Liabilities8,609,33012,701,375Long-term loan payables2,004,1232,065,040Operating lease liabilities – non-current5,718,2569,106,928Total Liabilities16,331,70923,873,343Commitment and ContingenciesStockholders' EquityPreferred 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*16,3242,459Additional paid-in capital27,826,64310,987,440Shares 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' Equity15,298,0459,833,332Total 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 ANDCOMPREHENSIVE LOSS(Expressed in U.S. dollars, except for the number of shares)For the Three Months Ended September 30,For the Six Months EndedSeptember 30,2025202420252024Revenues$3,908,862$6,824,406$9,237,060$14,697,832Cost of Revenues2,932,3413,919,9525,999,1648,693,744Gross Profit976,5212,904,4543,237,8966,004,088Operating ExpensesSelling Expenses1,027,7262,041,4352,348,9433,653,930General and Administrative Expenses997,2182,094,0783,442,1513,626,716Total Operating Expenses2,024,9444,135,5135,791,0947,280,646Loss from Operations(1,048,423)(1,231,059)(2,553,198)(1,276,558)Other Expenses, net(148,153)(53,929)(156,051)(47,411)Interest Expenses, net(539,537)(23,795)(1,085,771)(91,877)Loss Before Income Taxes(1,736,113)(1,308,783)(3,795,020)(1,415,846)Income Tax (Expense) Benefit(40,012)165,93510,24793,490Net Loss$(1,776,125)$(1,142,848)$(3,784,773)$(1,322,356)Other Comprehensive (Loss) IncomeForeign currency translation adjustment(29,378)4,298(7,024)2,974Total Comprehensive Loss$(1,805,503)$(1,138,550)$(3,791,797)$(1,319,382)Losses per Share*$(2.18)$(4.65)$(6.58)$(5.60)Weighted Average Number of Common Stock– Basic and Diluted*813,922245,875575,463236,226*Shares and per share data are presented on a retroactive basis to reflect the 1-for-110,000 stock split completed on April 2, 2024, the 1-for-5 reverse stock split completed on July 3, 2025 and the 1-for-20 reverse stock split completed on November 4, 2025.FLY-E GROUP, INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. dollars, except for the number of shares)For the Six Months EndedSeptember 30,20252024Cash flows from operating activitiesNet loss$(3,784,773)$(1,322,356)Adjustments to reconcile net loss to net cash used in operating activities:Loss on disposal of property and equipment68,188—Gain on disposal of subsidiaries(64,452)—Depreciation expense417,258180,910Amortization expense54,7618,846Deferred income taxes benefits(42,251)(462,740)Amortization of operating lease right-of-use assets2,699,6321,676,991Inventories impairment loss569,758330,823Changes in operating assets and liabilities:Accounts receivable(1,031,989)(154,034)Accounts receivable – a related party5,435235,029Inventories(1,107,359)(3,562,871)Prepayments and other receivables(1,371,452)(1,864,681)Prepayments for operation services to a related party45,000(180,000)Security deposits41,550(55,598)Accounts payable(722,056)(815,667)Accrued expenses and other payables(793,623)(380,183)Accrued expenses and other payables - related parties225—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 activitiesPurchases 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—510,381Advance to a related party(161,826)(477,933)Net cash used in investing activities(452,040)(2,845,468)Cash flows from financing activitiesProceeds from borrowings1,917,1003,737,500Repayments 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 stock9,773,0009,154,500Net cash provided by financing activities9,803,01912,126,060Net changes in cash including cash classified within current assets held for sale1,643,450(131,553)Effect of exchange rate changes on cash(7,024)2,974Less: net increase in cash classified within current assets held for sale61,548—Cash at beginning of the period840,1021,403,514Cash at the end of the period$2,538,076$1,274,935Supplemental disclosure of cash flow informationCash paid for interest expense$1,085,771$91,877Cash paid for income taxes$42,640$1,940,595Supplemental disclosure of non-cash investing and financing activitiesSubscription receivables from share placement$7,596,558$—Purchase of vehicle funded by loan$—$219,668Purchase of office funded by loan$—$1,800,000Purchase of software by using previous prepayments$136,580$1,975,000Properties used for rental services$49,811$—Deferred IPO cost recognized as additional paid-in capital$—$502,198Uncollected 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$—$1,394,682The following table sets forth the components of our EBITDA for the three months ended September 30, 2025 and 2024:For the Three Months Ended September 30,20252024ChangePercentage ChangeNet loss$(1,776,125)$(1,142,848)$(633,277)55.4%Income tax provision (benefit)40,012(165,935)205,947(124.1)%Depreciation204,46685,859118,607138.1%Interest Expenses539,53723,795515,7422,167.4%Amortization27,4467,89519,551247.6%EBITDA$(964,664)$(1,191,234)$226,570(19.0)%Percentage of Revenue(24.7)%(17.5)%(7.2)%The following table sets forth the components of our EBITDA for the six months ended September 30, 2025 and 2024:For the Six Months Ended September 30,20252024ChangePercentage ChangeLoss from Operations$(3,784,773)$(1,322,356)$(2,462,417)186.2%Income Tax Benefit(10,247)(93,490)83,243(89.0)%Depreciation417,258180,910236,348130.6%Interest Expenses1,085,77191,877993,8941081.8%Amortization54,7618,84645,915519.0%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.