Fly-E Group, Inc. Announces First Quarter of Fiscal Year 2027 Financial Results
Rhea-AI Summary
Fly-E Group (Nasdaq: FLYE) reported first quarter fiscal 2027 results for the period ended June 30, 2026. Net revenues were $2.7 million, down 48.4% from $5.3 million a year earlier, as retail store count fell to four from 20 and unit sales declined to 7,558 from 10,448.
Retail revenue dropped 84.3% to $0.6 million, while wholesale revenue rose 46.9% to $2.1 million driven by purchases from transitioned independent stores. Gross profit fell to $0.3 million, with gross margin decreasing to 10.9% from 42.4% due to a mix shift toward lower-priced wholesale, competitive pricing, and inventory clearance discounts.
Total operating expenses were stable at $3.8 million, with selling expenses down 63.3% to $0.5 million and general and administrative expenses up 37.0% to $3.4 million, reflecting higher software development fees and expected credit losses. Net loss widened to $3.9 million versus $2.0 million, and EBITDA was negative $3.5 million compared with negative $1.3 million. Cash stood at $60 thousand on June 30, 2026, versus $0.3 million on March 31, 2026, while net cash used in operating activities improved to $0.19 million from $5.28 million in the prior-year quarter.
Positive
- Wholesale revenue +46.9% YoY to $2.1 million in Q1 FY2027
- Selling expenses -63.3% YoY to $0.5 million, reflecting retail downsizing
- Net cash used in operations improved to $0.19 million from $5.28 million
- Cost of revenues -20.2% YoY to $2.4 million, aligned with lower volumes
Negative
- Net revenues -48.4% YoY to $2.7 million in Q1 FY2027
- Gross margin fell to 10.9% from 42.4% year over year
- Net loss widened to $3.9 million from $2.0 million year over year
- Negative EBITDA deepened to $3.5 million from $1.3 million
- Cash balance declined to $60 thousand from $265 thousand quarter over quarter
- G&A expenses +37.0% YoY to $3.4 million, driven by software and credit loss costs
News Explained
At June 30, Fly-E reported $60,281 cash—28.8 days of recent operating cash use—and 1,632,386 common shares, with no reported quarter-end increase.
Fly-E Group reported first-quarter fiscal 2027 results for the three months ended
The balance sheet lists
The release presents per-share data retroactively for the 1-for-5 reverse split completed on
Accordingly, the reported
At the quarter-end cash balance, available liquidity equals 28.8 days of the last reported operating cash use at that rate.
The
Sources and calculations
- Fly-E Group first-quarter fiscal 2027 results release (2026-09-01)
- Reverse stock split definition (undated)
- Fly-E Group quarterly earnings report (2026-09-01)
- Available liquidity against the last reported quarterly operating outflow, in days at that rate $60,281 / ($190,160 / 91) = 28.8 days
Market reaction after 1Q27 earnings report: FLYE +10.84%
Following this news, FLYE has gained 10.84%, reflecting a significant positive market reaction. Argus tracked a trough of -2.1% from its starting point during tracking. Our momentum scanner has triggered 95 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $2.44. Trading volume is exceptionally heavy at 8540.6x the average, suggesting very strong buying interest.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 23 | Fiscal year results | Negative | +10.2% | Revenue and margin declined while losses widened and wholesale growth continued. |
| Apr 21 | Quarterly results | Negative | +1.9% | Revenue declined and net loss widened despite wholesale and rental business growth. |
| Dec 18 | Quarterly results | Negative | +1.8% | Revenue fell and losses continued despite wholesale growth and lower operating expenses. |
| Aug 19 | Quarterly results | Negative | -2.2% | Revenue declined and net loss widened despite improved gross margin and wholesale growth. |
| Jul 15 | Fiscal year results | Negative | +0.0% | Revenue and profitability declined while operating expenses increased and rental service expanded. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings events showed four divergences and one alignment, with three positive, one negative, and one flat 24-hour reaction despite predominantly negative operating updates.
Key Terms
ebitda financial
u.s. gaap financial
expected credit losses financial
operating lease right-of-use assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Quarter of Fiscal Year 2027 Financial Summary
- Net revenues were
$2.7 million $5.3 million - Gross profit was
$0.3 million $2.3 million - Gross margin was
10.9% , compared to42.4% in the same period last year. - Net Loss was
$3.9 million $2.0 million - Basic and diluted losses per share were
$2.41 $6.00
Mr. Zhou (Andy) Ou, Chief Executive Officer of Fly-E, commented, "In the first quarter, we continue to realign our business toward a leaner and asset-light operational model. While our revenue and margin profile reflect the deliberate contraction of our direct retail footprint alongside ongoing promotional pricing to clear inventory, we grew our wholesale revenues by
First Quarter of Fiscal Year 2027 Financial Results
(Three Months Ended June 30, 2026)
Net Revenues
Net revenues were
- Retail sales revenue was
$0.6 million 84.3% from$3.8 million New York market.
- Wholesale revenue was
$2.1 million 46.9% from$1.4 million
Cost of Revenues
Cost of revenues was
Gross Profit and Margin
Gross profit was
Total Operating Expenses
Total operating expenses were
- Selling expenses were
$0.5 million 63.3% from$1.3 million
- General and administrative expenses were
$3.4 million 37.0% from$2.4 million
Net Loss
Net loss was
Basic and Diluted Earnings (Losses) per Share
Basic and diluted losses per share were
EBITDA
EBITDA was negative
Financial Condition
As of June 30, 2026, the Company had cash of
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 our financial information presented in accordance with the generally accepted accounting principles in
We use EBITDA (earnings before interest, taxes, depreciation, and amortization) to evaluate our operating performance. We believe EBITDA provides additional insight into our 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 our operational performance and may be more useful for investors.
We reconcile our non-GAAP financial measure to our net income, which is our most directly comparable financial measure calculated and presented in accordance with
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, 2026, filed with the SEC on July 23, 2026, 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
Seaquant Consulting
Email: investors@sea-quant.com
CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
FLY-E GROUP, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Expressed in | ||||||||
As of | As of | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 60,281 | $ | 265,236 | ||||
Accounts receivable, net | 8,600,552 | 7,049,592 | ||||||
Accounts receivable, net – a related party | 32,030 | 32,030 | ||||||
Inventories, net | 2,018,179 | 2,334,484 | ||||||
Prepayments and other receivables | 5,205,648 | 6,967,596 | ||||||
Prepayments and other receivables – related parties | 171,335 | 161,560 | ||||||
Total Current Assets | 16,088,025 | 16,810,498 | ||||||
Property and equipment, net | 5,635,678 | 5,792,915 | ||||||
Security deposits | 329,872 | 369,249 | ||||||
Operating lease right-of-use assets | 3,700,499 | 4,289,237 | ||||||
Intangible assets, net | 403,491 | 431,193 | ||||||
Long-term prepayment for software development | — | 1,800,000 | ||||||
Total Assets | $ | 26,157,565 | $ | 29,493,092 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 1,089,291 | $ | 433,188 | ||||
Short-term loan payables | 3,936,058 | 3,936,058 | ||||||
Current portion of long-term loan payables | 88,227 | 93,980 | ||||||
Accrued expenses and other payables | 1,074,961 | 680,200 | ||||||
Accrued expenses and other payables – a related party | — | 225 | ||||||
Operating lease liabilities – current | 1,395,477 | 1,507,340 | ||||||
Taxes payable | 366,162 | 151,930 | ||||||
Liabilities held for sale | — | — | ||||||
Total Current Liabilities | 7,950,176 | 6,802,921 | ||||||
Long-term loan payables | 1,922,638 | 1,945,442 | ||||||
Operating lease liabilities – non-current | 2,781,430 | 3,302,325 | ||||||
Total Liabilities | 12,654,244 | 12,050,688 | ||||||
Commitment and Contingencies | ||||||||
Stockholders' Equity | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 16,324 | 16,324 | ||||||
Additional paid-in capital | 27,826,643 | 27,826,643 | ||||||
Shares subscription receivable | (219,998) | (219,998) | ||||||
Accumulated deficit | (14,092,401) | (10,153,318) | ||||||
Accumulated other comprehensive loss | (27,247) | (27,247) | ||||||
Total FLY-E Group, Inc. Stockholders' Equity | 13,503,321 | 17,442,404 | ||||||
Total Liabilities and Stockholders' Equity | $ | 26,157,565 | $ | 29,493,092 | ||||
* | Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split |
FLY-E GROUP, INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||||||||
COMPREHENSIVE LOSS | ||||||||
(Expressed in | ||||||||
For the Three Months | ||||||||
June 30, | ||||||||
2026 | 2025 | |||||||
Revenues | $ | 2,748,140 | $ | 5,328,198 | ||||
Cost of Revenues | 2,448,276 | 3,066,823 | ||||||
Gross Profit | 299,864 | 2,261,375 | ||||||
Operating Expenses | ||||||||
Selling Expenses | 485,464 | 1,321,217 | ||||||
General and Administrative Expenses | 3,350,671 | 2,444,933 | ||||||
Total Operating Expenses | 3,836,135 | 3,766,150 | ||||||
Loss from Operations | (3,536,271) | (1,504,775) | ||||||
Other Expenses, net | (122,395) | (7,898) | ||||||
Interest Expenses, net | (191,417) | (546,234) | ||||||
Loss Before Income Taxes | (3,850,083) | (2,058,907) | ||||||
Income Tax (Expenses) Benefit | (89,000) | 50,259 | ||||||
Net Loss | $ | (3,939,083) | $ | (2,008,648) | ||||
Other Comprehensive (Loss) Income | ||||||||
Foreign currency translation adjustment | — | 22,354 | ||||||
Total Comprehensive Loss | $ | (3,939,083) | $ | (1,986,294) | ||||
Losses per Share* | $ | (2.41) | $ | (6.0) | ||||
Weighted Average Number of Common Stock | ||||||||
– Basic and Diluted* | 1,632,351 | 334,839 | ||||||
* | Shares and per share data are presented on a retroactive basis to reflect the 1-for-110,000 stock split |
FLY-E GROUP, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in | ||||||||
For the Three Months Ended | ||||||||
2026 | 2025 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (3,939,083) | $ | (2,008,648) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Loss on disposal of property and equipment | — | 68,188 | ||||||
Gain on termination of operating lease | (28,084) | — | ||||||
Expected credit losses | 1,091,537 | — | ||||||
Depreciation expense | 159,442 | 212,792 | ||||||
Amortization expense | 27,702 | 27,315 | ||||||
Deferred income taxes benefits | — | (42,861) | ||||||
Amortization of operating lease right-of-use assets | 414,809 | 828,458 | ||||||
Inventories reserve | 254,041 | 229,780 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,603,064) | (605,435) | ||||||
Inventories | 62,264 | (63,902) | ||||||
Prepayments and other receivables | 722,515 | (1,974,220) | ||||||
Prepayments for operation services to a related party | — | 45,000 | ||||||
Security deposits | 39,377 | 2,148 | ||||||
Long-term prepayment for software development | 1,800,000 | — | ||||||
Accounts payable | 656,103 | (853,177) | ||||||
Accrued expenses and other payables | 369,019 | (345,649) | ||||||
Accrued expenses and other payables – a related party | (225) | — | ||||||
Operating lease liabilities | (430,745) | (803,823) | ||||||
Taxes payable | 214,232 | — | ||||||
Net cash used in operating activities | (190,160) | (5,284,034) | ||||||
Cash flows from investing activities | ||||||||
Purchases of properties and equipment | (2,205) | (141,624) | ||||||
Cash released from disposal of entities | — | (119,720) | ||||||
Repayment from a related party | — | — | ||||||
Advance to a related party | (9,775) | (147,288) | ||||||
Net cash used in investing activities | (11,980) | (408,632) | ||||||
Cash flows from financing activities | ||||||||
Proceeds from borrowings | — | 1,917,100 | ||||||
Repayments of borrowings | (2,815) | (601,995) | ||||||
Payments of offering cost | — | (516,490) | ||||||
Net proceeds from issuance of common stock | — | 6,373,000 | ||||||
Net cash provided by financing activities | (2,815) | 7,171,615 | ||||||
Net changes in cash including cash classified within current assets held for | (204,955) | 1,478,949 | ||||||
Effect of exchange rate changes on cash | — | 22,354 | ||||||
Less: net change in cash classified within current assets held for sale | — | (7,117) | ||||||
Cash at beginning of the period | 265,236 | 840,102 | ||||||
Cash at the end of the period | $ | 60,281 | $ | 2,334,288 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for interest expense | $ | 136,921 | $ | 546,234 | ||||
Cash paid for income taxes | $ | — | $ | 42,640 | ||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||
Purchase of software and office by using previous prepayments | $ | — | $ | 136,580 | ||||
Properties used for rental services | $ | — | $ | 49,811 | ||||
Uncollected proceeds from disposal of subsidiaries | $ | 1,946,648 | $ | 526,779 | ||||
Termination of operating lease right-of-use assets and operating lease | $ | 280,060 | $ | 3,089,912 | ||||
EBITDA
The following table sets forth the components of our EBITDA for the three months ended June 30, 2026 and 2025:
For the Three Months Ended June 30, | ||||||||||||||||
Percentage | ||||||||||||||||
2026 | 2025 | Change | Change | |||||||||||||
Net Loss | $ | (3,939,083) | $ | (2,008,648) | $ | (1,930,435) | 96.1 | % | ||||||||
Income Tax Provision/(Benefit) | 89,000 | (50,259) | 139,259 | (277.1) | % | |||||||||||
Depreciation | 159,442 | 212,792 | (53,350) | (25.1) | % | |||||||||||
Interest Expenses | 191,417 | 546,234 | (354,817) | (65.0) | % | |||||||||||
Amortization | 27,702 | 27,315 | 387 | 1.4 | % | |||||||||||
EBITDA | $ | (3,471,522) | $ | (1,272,566) | $ | (2,198,956) | 172.8 | % | ||||||||
Percentage of Revenue | (126.3) | % | (23.9) | % | 428.5 | % | ||||||||||
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SOURCE FLY-E GROUP, INC.