NEW YORK, April 21, 2026 /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 third quarter and nine months of fiscal year 2026 ended December 31, 2025.
Third Quarter of Fiscal Year 2026 Financial Summary
- Net revenues were $2.6 million, compared to $5.7 million in the same period last year.
- Gross profit was $1.0 million, compared to $2.6 million in the same period last year.
- Gross margin was 39.6%, compared to 45.1% in the same period last year.
- Net loss was $1.9 million, compared to $0.7 million in the same period last year.
- Basic and diluted losses per share were $1.18, compared to $2.78 in the same period last year.
Mr. Zhou (Andy) Ou, Chief Executive Officer of Fly-E, commented, "During the third quarter of fiscal year 2026, we remained focused on executing our strategy and advancing initiatives to navigate a challenging environment with cautious consumer demand. We continued to strengthen our business mix and saw meaningful momentum in select areas. Net revenues were $2.6 million for the quarter. Wholesale revenue increased 153.4% to $1.8 million. Rental services revenue also increased 288.6% to $0.2 million, reflecting continued growth of our service offerings. Looking ahead, we remain committed to improving execution and governance, strengthening commercial relationships, and optimizing operations, with an aim to support long-term value creation. We appreciate the continued support of our shareholders, customers, and partners as we work through this period and position Fly-E for greater resilience over time."
Third Quarter of Fiscal Year 2026 Financial Results
Net Revenues
Net revenues were $2.6 million in the third quarter of fiscal year 2026, a decrease of 53.3% from $5.7 million in the same period last year. The decrease in net revenues was primarily driven by decrease in quantity of EVs sold which dropped by 87% and as a result of reductions in selling prices to reduce aged inventory for the third quarter of fiscal year 2026.
Retail sales revenue was $0.6 million in the third quarter of fiscal year 2026, a decrease of 86.8% from $4.9 million in the same period last year. Wholesale revenue was $1.8 million in the third quarter of fiscal year 2026, an increase of 153.4% from $0.7 million in the same period last year. Rental services revenue was $0.2 million in the third quarter of fiscal year 2026, an increase of 288.6% from $0.05 million in the same period last year. 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 third quarter of fiscal year 2026. The increase in wholesales revenue was driven primarily by revenue contribution from the dispositioned entities during the third 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 $1.6 million in the third quarter of fiscal year 2026, a decrease of 48.6% from $3.1 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 third quarter of fiscal year 2026, a decrease of 59.1% from $2.6 million in the same period last year. Gross margin was 39.6% in the third quarter of fiscal year 2026, decreased from 45.1% in the same period last year. The decrease in gross margin was mainly due to a combined effect of decrease in quantity of EV sold, which dropped by 87% as a result of decrease in number of retail stores during the nine months ended December 31, 2025 and the increased revenues from rental business with higher margin than the Company's other businesses. The rental business was launched in October 2024. Gross margin of rental business was 79.8% and 100.0% for the third quarter of fiscal year 2026 and 2025, respectively.
Operating Expenses
Total operating expenses were $2.6 million in the third quarter of fiscal year 2026, a decrease of 25.6% from $3.5 million in the same period last year.
- Selling expenses were $0.7 million in the third quarter of fiscal year 2026, a decrease of 62.3% from $1.9 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 $0.1 million in the third quarter of fiscal year 2026, compared to $0.9 million in the same period last year. Rent was $0.3 million in the third quarter of fiscal year 2026, compared to $0.7 million in the same period last year. Advertising expenses were $3,234 in the third quarter of fiscal year 2026, compared to $32,681 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 $1.9 million in the third quarter of fiscal year 2026, an increase of 20.3% from $1.6 million in the same period last year. Professional fees increased to $0.8 million in the third quarter of fiscal year 2026, compared to $0.4 million in the same period last year, primarily attributable to the increase in legal fee associated with the Company's litigations and ongoing reporting obligations. Payroll expenses decreased to $0.2 million in the third 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 decreased to $0.03 million in the third quarter of fiscal year 2026, compared to $0.05 million for the same period in prior year due to the closures and dispositions of retail stores. Impairment loss on property and equipment increased to $0.6 million for the third quarter of fiscal year 2026. The Company did not generate impairment loss on property and equipment for the third quarter of fiscal year 2025.
Net Loss
Net loss was $1.9 million in the third quarter of fiscal year 2026, an increase of 181.0% from $0.7 million in the same period last year.
Basic and Diluted Losses per Share
Basic and diluted losses per share were $1.18 in the third quarter of fiscal year 2026, compared to $2.78 in the same period last year.
EBITDA
EBITDA was negative $1.4 million in the third quarter of fiscal year 2026, compared to negative EBITDA of $0.8 million in the same period last year.
Nine Months Ended December 31, 2025 Financial Results
Net Revenues
Net revenues were $11.9 million in the nine months ended December 31, 2025, a decrease of 41.7% from $20.4 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 15,447 units, from 41,925 units for the nine months ended December 31, 2024 to 26,478 units for the nine months ended December 31, 2025, and as a result of lowering the selling prices to reduce aged inventory. From the nine months ended December 31, 2024 to the nine months ended December 31, 2025, 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 $6.4 million in the nine months ended December 31, 2025, a decrease of 63.6% from $17.7 million in the same period last year. Wholesale revenue was $5.0 million in the nine months ended December 31, 2025, an increase of 89.5% from $2.6 million in the same period last year. Rental services revenue was $0.5 million in the nine months ended December 31, 2025, an increase of 895.4% from $0.05 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 nine months ended December 31, 2025. The increase in wholesales revenue was driven primarily by contributions from the disposed entities during the nine months ended December 31, 2025. 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 $7.6 million in the nine months ended December 31, 2025, a decrease of 35.7% from $11.8 million in the same period last year. The decrease in cost of revenues was primarily attributable to a reduction in motorcycles and batteries sales volume.
Gross Profit
Gross profit was $4.3 million in the nine months ended December 31, 2025, a decrease of 50.0% from $8.6 million in the same period last year. Gross margin was 36.1% in the nine months ended December 31, 2025, decreased from 42.0% in the same period last year.
Operating Expenses
Total operating expenses were $8.4 million in the nine months ended December 31, 2025, a decrease of 22.1% from $10.8 million in the same period last year.
- Selling expenses were $3.1 million in the nine months ended December 31, 2025, a decrease of 45.0% from $5.6 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 $1.4 million in the nine months ended December 31, 2025, compared to $2.5 million in the same period last year. Rent expenses were $1.1 million in the nine months ended December 31, 2025, compared to $2.2 million in the same period last year. Utilities expenses were $0.1 million in the nine months ended December 31, 2025, compared to $0.2 million in the same period last year. Advertising expenses were $36,104 in the nine months ended December 31, 2025, 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 nine months ended December 31, 2025.
- General and administrative expenses were $5.3 million in the nine months ended December 31, 2025, an increase of 2.5% from $5.2 million in the same period last year. Professional fees increased to $2.7 million in the nine months ended December 31, 2025, compared to $1.7 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 litigations and ongoing reporting obligations. Payroll expenses decreased to $0.6 million in the nine months ended December 31, 2025, from $1.2 million in the same period last year primarily due to employees terminated in operation and accounting departments. Insurance expenses decreased to $0.3 million in the nine months ended December 31, 2025, compared to $0.8 million in the same period of prior year as a result of less insurance policies purchased for closed stores during the nine months ended December 31, 2025. Impairment loss on property and equipment increased to $0.6 million for the nine months ended December 31, 2025. The Company did not generate loss on property and equipment in the nine months ended December 31, 2024.
Net Loss
Net loss was $5.7 million in the nine months ended December 31, 2025, an increase of 184.4% from $2.0 million in the same period last year.
Basic and Diluted Losses per Share
Basic and diluted losses per share were $6.14 in the nine months ended December 31, 2025, compared to $8.38 in the same period last year.
EBITDA
EBITDA was negative $3.7 million in the nine months ended December 31, 2025, compared to negative EBITDA of $1.9 million in the same period last year.
Financial Condition
As of December 31, 2025, the Company had cash of $0.3 million, decreased 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: ir@flyebike.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
FLY-E GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars, except for the number of shares)
December March
31, 31,
2025 2025
ASSETS
Current Assets
Cash $
295,674 $
840,102
Accounts receivable, net 1,565,285 466,187
Accounts receivable, net - a related party 32,030 37,465
Inventories, net 5,077,072 6,397,274
Prepayments and other receivables 10,926,104 3,676,986
Prepayments and other receivables - related parties 161,560 120,000
Assets held for sale 2,610,261 2,462,502
Total Current Assets 20,667,986 14,000,516
Property and equipment, net 5,997,381 7,287,213
Security deposits 403,016 728,450
Deferred tax assets, net 94,983
Operating lease right-of-use assets 4,629,716 10,933,068
Intangible assets, net 458,236 525,865
Long-term prepayment for software development 1,800,000
Long-term prepayment for software development - a related party 136,580
Total Assets $
33,956,335 $
33,706,675
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $
337,481 $
1,272,305
Short-term loan payables 3,936,058 5,191,058
Current portion of long-term loan payables 138,550 100,835
Accrued expenses and other payables 241,322 1,366,968
Accrued expenses and other payables - a related party 225
Operating lease liabilities - current 1,454,771 2,617,762
Liabilities held for sale 1,186,237 2,152,447
Total Current Liabilities 7,294,644 12,701,375
Long-term loan payables 1,978,770 2,065,040
Operating lease liabilities - non-current 3,690,922 9,106,928
Total Liabilities 12,964,336 23,873,343
Commitment and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized and nil outstanding as
of December 31, 2025 and March 31, 2025*
Common stock, $0.01 par value, 300,000,000 shares authorized and 1,632,386 shares 16,324 2,459
outstanding as of December 31, 2025 and 300,000,000 shares authorized and
245,875 shares outstanding as of March 31, 2025*
Additional paid-in capital 27,826,643 10,987,440
Shares subscription receivable (219,998) (219,998)
Accumulated deficit (6,603,723) (895,510)
Accumulated other comprehensive loss (27,247) (41,059)
Total FLY-E Group, Inc. Stockholders' Equity 20,991,999 9,833,332
Total Liabilities and Stockholders' Equity $
33,956,335 $
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 For the Nine Months
Ended Ended
December 31, December 31,
2025 2024 2025 2024
Revenues $
2,649,141 $
5,678,010 $
11,886,201 $
20,375,842
Cost of Revenues 1,600,615 3,116,940 7,599,779 11,810,684
Gross Profit 1,048,526 2,561,070 4,286,422 8,565,158
Operating Expenses
Selling Expenses 731,935 1,943,633 3,080,878 5,597,563
General and Administrative Expenses 1,873,599 1,557,716 5,315,750 5,184,432
Total Operating Expenses 2,605,534 3,501,349 8,396,628 10,781,995
Loss from Operations (1,557,008) (940,279) (4,110,206) (2,216,837)
Other Expenses, net (55,903) (16,699) (211,954) (64,110)
Interest Expenses, net (460,359) (155,673) (1,546,130) (247,550)
Loss Before Income Taxes (2,073,270) (1,112,651) (5,868,290) (2,528,497)
Income Tax Benefit 149,830 428,164 160,077 521,654
Net Loss $
(1,923,440) $
(684,487) $
(5,708,213) $
(2,006,843)
Other Comprehensive (Loss) Income
Foreign currency translation adjustment 20,836 (22,516) 13,812 (19,542)
Total Comprehensive Loss $
(1,902,604) $
(707,003) $
(5,694,401) $
(2,026,385)
Losses per Share* $
(1.18) $
(2.78) $
(6.14) $
(8.38)
Weighted Average Number of Common Stock
- Basic and Diluted* 1,632,391 245,875 930,332 239,466
* 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 Nine Months
Ended December 31,
2025 2024
Cash flows from operating activities
Net loss $
(5,708,213) $
(2,006,843)
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)
Impairment loss on property and equipment 558,063
Expected credit losses on accounts receivable 77,393
Depreciation expense 582,599 310,910
Amortization expense 83,106 30,831
Deferred income taxes benefits (42,112) (860,007)
Amortization of operating lease right-of-use assets 4,094,243 2,404,092
Inventories impairment loss 630,254 678,157
Changes in operating assets and liabilities:
Accounts receivable (1,213,706) (92,353)
Accounts receivable - a related party 5,435 238,029
Inventories (954,071) (3,985,343)
Prepayments and other receivables (6,377,246) (1,772,605)
Prepayments for operation services to a related party 120,000 (105,000)
Security deposits 34,698 (70,413)
Accounts payable (934,824) 96,920
Accrued expenses and other payables (848,934) (492,920)
Accrued expenses and other payables - a related party 225
Operating lease liabilities (4,064,407) (2,257,028)
Taxes payable (17,279) (1,530,416)
Net cash used in operating activities (13,971,040) (9,413,989)
Cash flows from investing activities
Purchases of properties and equipment (69,846) (1,618,290)
Purchase of software from a related party (500,000)
Payments of property rights (15,477)
Prepayment for purchasing software from a related party (892,580)
Prepayment for purchasing software (1,800,000)
Cash released from disposal of entities (233,379)
Repayment from a related party 660,256
Advance to a related party (161,560) (486,057)
Net cash used in investing activities (2,280,262) (2,836,671)
Cash flows from financing activities
Proceeds from borrowings 1,917,100 7,086,099
Repayments of borrowings (3,076,045) (3,632,031)
Repayments on other payables - related parties (92,229)
Payments of offering cost (516,490) (282,403)
Net proceeds from issuance of common stock 17,369,558 9,154,500
Net cash provided by financing activities 15,694,123 12,233,936
Net changes in cash including cash classified within current assets held for sale (557,179) (16,724)
Effect of exchange rate changes on cash 13,812 (19,542)
Less: net decrease in cash classified within current assets held for sale (1,061)
Cash at beginning of the period 840,102 1,403,514
Cash at the end of the period $
295,674 $
1,367,248
Supplemental disclosure of cash flow information
Cash paid for interest expense $
1,546,130 $
227,679
Cash paid for income taxes $
42,640 $
1,940,778
Supplemental disclosure of non-cash investing and financing activities
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 $
2,085,000
Properties used for rental services $
49,811 $
54,572
Deferred IPO cost recognized as additional paid-in capital
$ $
65,618
Uncollected proceeds from disposal of subsidiaries $
871,007 $
502,198
Termination of operating lease right-of-use assets and operating lease liabilities $
3,187,864 $
(863,513)
Right-of-use assets obtained in exchange for operating lease liabilities
$ $
1,585,285
EBITDA
The following table sets forth the components of our EBITDA for the three months ended December 31, 2025 and 2024:
For the Three Months Ended December 31,
Percentage
2025 2024 Change Change
Net Loss $
(1,923,440) $
(684,487) $
(1,199,147) 181.0
%
Income Tax Benefit (149,830) (428,164) 278,334 (65.0)
%
Depreciation 165,341 124,588 40,753 32.7
%
Interest Expenses 460,359 155,673 304,686 195.7
%
Amortization 28,345 21,985 6,360 28.9
%
EBITDA $
(1,419,225) $
(810,405) $
(569,014) 75.1
%
Percentage of Revenue (53.6) (14.3) (39.3)
% % %
The following table sets forth the components of our EBITDA for the nine months ended December 31, 2025 and 2024:
For the Nine Months Ended December 31,
Percentage
2025 2024 Change Change
Net Loss $
(5,708,213) $
(2,006,843) $
(3,661,564) 184.4
%
Income Tax Benefit (160,077) (521,654) 361,577 (69.3)
%
Depreciation 582,599 310,910 271,689 87.4
%
Interest Expenses 1,546,130 247,550 1,298,580 524.6
%
Amortization 83,106 30,831 52,275 169.6
%
EBITDA $
(3,656,455) $
(1,939,206) $
(1,677,443) 88.6
%
Percentage of Revenue (30.8) (9.5) (21.2)
% % %
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SOURCE Fly-E Group, Inc.
