Fly-E Group announces fiscal year 2026 financial results

NEW YORK, July 24, 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 financial results for the fiscal year ended March 31, 2026.

Fiscal Year 2026 Financial Summary

• Net revenues were $19.1 million in fiscal year 2026, compared to $25.4 million in fiscal year 2025.
• Gross profit was $4.7 million in fiscal year 2026, compared to $10.5 million in fiscal year 2025.
• Gross margin was 24.4% in fiscal year 2026, compared to 41.1% in fiscal year 2025.
• Net Loss was $9.3 million in fiscal year 2026, compared to $5.3 million in fiscal year 2025.
• Basic and diluted losses per share were $8.38 in fiscal year 2026, compared to $21.95 in fiscal year 2025.

"Fiscal year 2026 represents a pivotal transition for Fly-E, as we initiated targeted measures to optimize our retail footprint, simplify our corporate structure, and enhance administrative efficiency," commented Zhou (Andy) Ou, Chief Executive Officer of Fly-E. "While a challenging consumer retail environment and proactive pricing adjustments to clear aged inventory directly impacted our top-line performance and compressed our near-term margin profile, we believe these operational adjustments are fundamentally beneficial for Fly-E's long-term trajectory. We are seeing an encouraging shift in our revenue mix this year, highlighted by the increased demand from our wholesale channel as we evolved our distribution model, alongside steady traction within our rental services, with both business lines demonstrating strong year-over-year growth."

Ou continued, "Moving forward, we remain committed to rebuilding trust through enhanced product safety, continuing to innovate with solutions like our battery swap system and Go Fly app, growing our service portfolio through our rental program, and expanding our online retail presence. Together, these strategic pillars form a more resilient, efficient foundation for sustainable value creation over time."

Fiscal Year 2026 Financial Results

Net Revenues

Net revenues were $19.1 million in fiscal year 2026, a decrease of 25.0% from $25.4 million in fiscal year 2025. The decrease was primarily driven by a lower sales volume of 42,101 units in fiscal year 2026 compared to 58,765 units in fiscal year 2025, as well as promotional pricing adjustments implemented to clear aged inventory.

• Retail sales revenue was $6.9 million in fiscal year 2026, a decrease of 68.1% from $21.7 million in fiscal year 2025. The decline was primarily attributable to softened consumer demand for E-Bikes and E-Scooters following industry-wide lithium-ion battery safety concerns in the New York market, which prompted temporary shifts in consumer preferences. The decrease was also partially driven by the planned closure and disposal of certain retail stores during the fiscal year.
• Wholesale revenue was $11.6 million in fiscal year 2026, a robust increase of 227.5% from $3.5 million in fiscal year 2025. This growth was primarily driven by sustained product demand and ongoing purchases from the retail stores that were streamlined and transitioned to independent operations during the period.
• Rental services sales revenue was $0.6 million in fiscal year 2026, an increase of 237.5% from $0.2 million in fiscal year 2025, reflecting early traction in the expansion of the Company's service portfolio.

Cost of Revenues

Cost of revenues was $14.4 million in fiscal year 2026, a decrease of 3.8% from $15.0 million in fiscal year 2025. The decrease was primarily aligned with the lower sales volume resulting from the downsizing of the Company's retail store network.

Gross Profit and Margin

Gross profit was $4.7 million in fiscal year 2026, compared to $10.5 million in fiscal year 2025. Gross margin was 24.4% in fiscal year 2026, compared to 41.1% in fiscal year 2025. The decrease in gross margin was primarily attributable to lower average selling prices of our EVs implemented to clear aged inventory and an increase in procurement costs driven by upstream price movements, as well as a shift in sales channel mix following the disposal of certain retail stores, which resulted in a higher proportion of wholesale sales and a lower proportion of retail sales — the latter of which typically generates higher margins. These headwinds were partially offset by an increased contribution from the higher-margin rental services business line.

Total Operating Expenses

Total operating expenses were $11.1 million in fiscal year 2026, a decrease of 26.1% from $15.0 million in fiscal year 2025. The reduction reflects the impacts of our cost-optimization measures, including lower payroll and rental expenses achieved through the streamlining of retail store operations. This decrease was partially offset by increases in warehouse maintenance costs, impairment losses on equipment, and inventory clearance losses as the Company downsized its retail footprint.

• Selling expenses were $3.5 million in fiscal year 2026, a decrease of 53.0% from $7.4 million in fiscal year 2025, primarily driven by the streamlining of retail stores which lowered associated payroll, rental and utility expenses.
• General and administrative expenses were $7.6 million in fiscal year 2026, remaining stable compared to $7.6 million in fiscal year 2025. Driven by the Company's structural downsizing, the decreases in payroll, travel, and entertainment expenses were offset by increases in non-cash impairment losses on property and equipment, inventory clearance adjustments, and repair and maintenance costs.

Net Loss

Net loss was $9.3 million in fiscal year 2026, compared to $5.3 million in fiscal year 2025.

Basic and Diluted Earnings (Losses) per Share

Basic and diluted losses per share were $8.38 in fiscal year 2026, compared to $21.95 in fiscal year 2025.

EBITDA

EBITDA was negative $6.3 million in fiscal year 2026, compared to negative EBITDA of $3.9 million in fiscal year 2025.

Financial Condition and Cash Flows

As of March 31, 2026, the Company had cash of $0.3 million, compared to $0.8 million as of March 31, 2025.

Net cash used in operating activities was $13.8 million in fiscal year 2026, compared to $10.1 million in fiscal year 2025.

Net cash used in investing activities was $2.5 million in fiscal year 2026, compared to $2.9 million in fiscal year 2025.

Net cash provided by financing activities was $15.7 million in fiscal year 2026, compared to $12.5 million in fiscal year 2025.