Fly-E Group, Inc. reported a significant decline in financial performance for the fiscal year ending March 31, 2026, with net revenues of approximately $19.1 million, a decrease of 25% from $25.4 million in the previous year. The decline was primarily attributed to a drop in retail sales, which fell by 68.1% to $6.9 million, driven by reduced consumer demand and safety concerns related to lithium-ion batteries. In contrast, wholesale revenue increased by 227.5% to $11.6 million, reflecting continued purchases from entities that were disposed of during the year. The company's net loss widened to $9.3 million, up 75% from a loss of $5.3 million in the prior year.
In terms of operational changes, Fly-E Group has streamlined its business by closing and disposing of several retail stores, resulting in a reduction of its employee headcount to 12 as of July 23, 2026. The company now operates four retail locations in the U.S. and has launched a rental program for e-bikes in New York City and Los Angeles. Additionally, Fly-E Group is developing a mobile app to enhance customer engagement and streamline operations. The company has also engaged third-party consultants to improve its internal controls and financial reporting processes, addressing previously identified material weaknesses.
Fly-E Group's strategic developments included a successful initial public offering (IPO) in June 2024, raising approximately $9.2 million in net proceeds. The company also entered into a loan agreement for a $5 million revolving credit facility to support operational needs and potential acquisitions. However, the company faces ongoing challenges, including a pending SEC investigation and a federal securities class action lawsuit related to alleged misleading statements about revenue growth and product safety.
Looking ahead, Fly-E Group aims to enhance its market position by expanding its product offerings and geographic reach, particularly in international markets. The company plans to leverage its existing retail stores as logistics hubs for small package delivery and continue to innovate its product line. However, the outlook remains uncertain due to the competitive landscape, regulatory pressures, and the need for effective management of operational costs and supply chain risks. The company has expressed substantial doubt about its ability to continue as a going concern, emphasizing the importance of securing additional financing and improving operational efficiencies to sustain its business.
About Fly-E Group, Inc.
Fly-E Group, Inc. is an electric vehicle company specializing in smart electric motorcycles, bikes, and scooters under the Fly E-Bike brand. With a focus on eco-friendly urban mobility, it targets food delivery workers and urban commuters, capitalizing on a growing demand for sustainable transport solutions. The company operates 40 stores across North America and is expanding internationally, while continuously innovating its product offerings and enhancing customer experience through technology.
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