Fly-E Group, Inc. Announces Second Quarter and First Half of Fiscal Year 2027 Financial Results

/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 unaudited financial results for the second quarter and first half of fiscal year 2027 ended September 30, 2026.

The Details

Second quarter of Fiscal Year 2027 Financial Summary

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Net revenues were $2.6 million, compared to $3.9 million in the same period last year.

Gross profit was $0.2 million, compared to $1.0 million in the same period last year.

Gross margin was 8.1%, compared to 25.0% in the same period last year.

Net Loss was $1.7 million, compared to $1.8 million in the same period last year.

Basic and diluted losses per share were $1.07, compared to $2.18 in the same period last year.

Mr. Zhou (Andy) Ou, Chief Executive Officer of Fly-E, commented, "During the second quarter, our operational network stabilized following the retail restructuring, with our top-line revenue holding steady sequentially. Our wholesale revenues grew 21.4% year-over-year and accounted for a significantly higher proportion of our total revenue. This evolving revenue mix, combined with promotional pricing in our retail business, naturally influenced our overall margin profile for the period. Meanwhile, we continued to control store-level costs and address corporate matters carefully to strengthen the Company's foundation for the future. By maintaining our operational network and disciplined cost management, we are dedicated to preserving business stability while positioning Fly-E to explore strategic opportunities for long-term growth."

• Second quarter of Fiscal Year 2027 Financial Results
• (Three Months Ended September 30, 2026)
• Net Revenues

Net revenues were $2.6 million in the second quarter of fiscal year 2027, a decrease of 33.7% from $3.9 million in the same period last year. The decrease was primarily driven by a lower sales volume of 7,392 units in the second quarter of fiscal year 2027, compared to 18,564 in the same period last year, resulting from the reduction in our direct retail store count to four stores as of September 30, 2026, compared to 11 stores as of September 30, 2025.

Retail sales revenue was $0.5 million in the second quarter of fiscal year 2027, a decrease of 77.4% from $2.0 million in the same period last year. The decline was primarily driven by planned store reductions, promotional pricing strategies in response to market competition, and softened consumer demand for E-Bikes and E-Scooters following industry-wide lithium-ion battery safety concerns in the New York market.

Wholesale revenue was $2.1 million in the second quarter of fiscal year 2027, an increase of 21.4% from $1.7 million in the same period last year. This growth was primarily due to ongoing product purchases from previous company-owned retail stores that transitioned to independent operations during the period.

Cost of Revenues

Cost of revenues was $2.4 million in the second quarter of fiscal year 2027, a decrease of 18.8% from $2.9 million in the same period last year, primarily aligning with lower sales volume driven by the downsizing of our retail store network.

Gross Profit and Margin

Gross profit was $0.2 million in the second quarter of fiscal year 2027, compared to $1.0 million in the same period last year. Gross margin was 8.1% in the second quarter of fiscal year 2027, compared to 25.0% in the same period last year. The decrease in gross margin was primarily attributable to a structural mix shift from direct retail toward lower-priced wholesale channels, further impacted by competitive retail pricing and inventory clearance discounts.

Total Operating Expenses

Total operating expenses were $1.8 million in the second quarter of fiscal year 2027, a decrease of 9.8% compared to $2.0 million in the same period last year. The decrease was primarily attributable to store-level operational savings, which were partially offset by increases in expected credit losses and professional fees.

Selling expenses were $0.3 million in the second quarter of fiscal year 2027, a significant decrease of 74.3% from $1.0 million in the same period last year, primarily driven by the reduction of retail stores which significantly lowered associated payroll, rental and utility expenses.

General and administrative expenses were $1.5 million in the second quarter of fiscal year 2027, an increase of 56.6% from $1.0 million in the same period last year. The increase was primarily attributable to expected credit losses on prepayments and receivables and litigation-related legal fees, which were partially offset by cost savings in payroll and software development expenses.

Net Loss

Net loss was $1.7 million in the second quarter of fiscal year 2027, compared to $1.8 million in the same period last year.

Basic and Diluted Earnings (Losses) per Share

Basic and diluted losses per share were $1.07 in the second quarter of fiscal year 2027, compared to $2.18 in the same period last year.

EBITDA was negative $1.3 million in the second quarter of fiscal year 2027, compared to negative EBITDA of $1.0 million in the same period last year.

• First Half of Fiscal Year 2027 Financial Results
• (Six Months Ended September 30, 2026)
• Net Revenues

Net revenues were $5.3 million in the first half of fiscal year 2027, a decrease of 42.2% from $9.2 million in the same period last year. The decrease was primarily driven by a significant reduction in direct retail store counts, resulting in a lower sales volume of 14,950 units in the first half of fiscal year 2027, compared to 29,012 in the same period last year.

Retail sales revenue was $1.0 million in the first half of fiscal year 2027, a decrease of 81.9% from $5.8 million in the same period last year. The decline was primarily due to significant retail store downsizing, promotional pricing adjustments, and lithium-ion battery safety headwinds in the New York market.

Wholesale revenue was $4.2 million in the first half of fiscal year 2027, an increase of 33.0% from $3.2 million in the same period last year. This increase was primarily attributable to ongoing product purchases from the retail stores that were streamlined and transitioned to independent operations during the period.

Cost of Revenues

Cost of revenues was $4.8 million in the first half of fiscal year 2027, a decrease of 19.5% from $6.0 million in the same period last year, primarily reflecting lower sales volume following the downsizing of our retail store network.

Gross Profit and Margin

Gross profit was $0.5 million in the first half of fiscal year 2027, compared to $3.2 million in the same period last year. Gross margin was 9.5% in the first half of fiscal year 2027, compared to 35.1% in the same period last year. The decrease in gross margin was primarily attributable to the greater revenue percentage of wholesale channels at lower-priced wholesale pricing, as well as promotional retail pricing adjustment and inventory clearance discounts.

Total Operating Expenses

Total operating expenses were $5.7 million in the first half of fiscal year 2027, a decrease of 2.2% compared to $5.8 million in the same period last year. The decrease was primarily attributable to operational cost savings from retail store reductions, which were offset by increases in expected credit losses and software development fees.

Selling expenses were $0.8 million in the first half of fiscal year 2027, a significant decrease of 68.1% from $2.3 million in the same period last year, primarily driven by the reductions in store-level payroll and rental expenses following retail store network downsizing.

General and administrative expenses were $4.8 million in the first h