Fly-E Group Reports 42.7% Revenue Decline and Increased Net Loss in Latest Quarter

Fly-E Group, Inc. reported a significant decline in financial performance for the three and six months ended September 30, 2025, as detailed in its latest 10-Q filing. The company generated revenues of $3.9 million for the quarter, a decrease of 42.7% compared to $6.8 million in the same period last year. For the six-month period, revenues fell by 37.2% to $9.2 million from $14.7 million. The decline was attributed primarily to a 61% drop in average unit prices of electric vehicles (EVs) as the company reduced prices to clear aged inventory, alongside a decrease in total units sold.

The company's gross profit also suffered, dropping to $976,521 for the third quarter, down 66.4% from $2.9 million a year earlier. The gross margin fell to 25.0% from 42.6%, reflecting the impact of lower sales prices and increased revenues from the newly launched rental business, which has a higher margin. Operating expenses decreased by 51.0% to $2.0 million, driven by reduced selling and administrative costs, largely due to the closure and sale of several retail stores. Despite these reductions, the company reported a net loss of $1.8 million for the quarter, a 55.4% increase in losses compared to the previous year.

In terms of strategic developments, Fly-E Group has been restructuring its operations by selling off non-core subsidiaries to streamline its business model. During the six months ended September 30, 2025, the company disposed of 17 subsidiaries, generating approximately $0.9 million in cash. This move is part of a broader strategy to simplify its corporate structure and improve operational efficiency. As of September 30, 2025, the company operated 13 retail stores, including 12 in the U.S. and one in Canada, down from 22 stores a year prior.

Operationally, the company has seen a shift in its customer engagement metrics, with a focus on expanding its rental services through the Go Fly rental mobile app. The rental service is currently available in New York City and Los Angeles, with plans for further expansion. The company produced 1,146 E-motorcycles, 3,270 E-bikes, and 756 E-scooters in the latest quarter, indicating ongoing production efforts despite the challenges faced in sales.

Looking ahead, Fly-E Group faces substantial challenges, including a significant net loss and ongoing liquidity concerns. As of September 30, 2025, the company had cash reserves of $2.5 million and working capital of approximately $8.1 million. The company has entered into a forbearance agreement with Peapack-Gladstone Bank regarding a $4.9 million loan, which has been in default since August 31, 2025. Management plans to address these financial challenges through equity financing and other funding sources, although there is no guarantee that such financing will be available on favorable terms. The company’s ability to continue as a going concern remains uncertain, and it is actively working to improve its financial position and operational efficiency.