Fly-E Group Reports 21% Revenue Decline and $5.3 Million Net Loss for Fiscal Year Ending March 31, 2025

Fly-E Group, Inc., an electric vehicle company specializing in smart electric motorcycles, bikes, and scooters, reported a significant decline in financial performance for the fiscal year ending March 31, 2025. The company generated net revenues of approximately $25.4 million, a decrease of 21% from $32.2 million in the previous fiscal year. This decline was primarily attributed to a drop in sales volume, which fell by 10,846 units, from 69,611 units in 2024 to 58,765 units in 2025. The decrease in sales was linked to heightened consumer concerns over lithium battery safety following several accidents, leading customers to favor oil-powered vehicles.

In addition to the revenue decline, Fly-E Group reported a net loss of $5.3 million for the year, a stark contrast to the net income of $1.9 million recorded in the prior year. The company's operating expenses surged by 52.5% to $15 million, driven by increased payroll, rent, and professional fees associated with its initial public offering (IPO) and ongoing reporting obligations. Selling expenses rose by 25.2%, while general and administrative expenses saw a substantial increase of 93.5%, reflecting the costs of expanding operations and addressing compliance requirements as a public company.

Strategically, Fly-E Group has made several significant moves, including the launch of a rental program for e-bikes in major cities like New York, Toronto, and Los Angeles, and plans to expand into South America and Europe. The company also completed its IPO in June 2024, raising approximately $9.2 million in net proceeds, which it intends to use for working capital and operational needs. Furthermore, Fly-E Group has implemented a centralized vendor management system to streamline operations and enhance supplier relationships, which is crucial given that a significant portion of its components is sourced from China and the U.S.

As of July 15, 2025, Fly-E Group operated 20 retail stores, including 19 in the U.S. and one in Canada, and had a workforce of 64 employees. The company is also developing a mobile app to enhance customer engagement and streamline services. However, it faces challenges, including a substantial current portion of contractual obligations amounting to approximately $8.9 million and ongoing concerns regarding its ability to continue as a going concern due to its financial losses and cash flow issues.

Looking ahead, Fly-E Group aims to improve its financial position through equity financing and other funding sources while addressing operational challenges. The company is focused on enhancing its product offerings and expanding its market presence, but it acknowledges the risks associated with competition, regulatory changes, and consumer adoption of electric vehicles. The management's ability to navigate these challenges will be critical to the company's future success and sustainability in the rapidly evolving electric vehicle market.