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

NEW YORK, Nov. 14, 2026 /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.

Second quarter of Fiscal Year 2027 Financial Summary

• 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

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 half of fiscal year 2027, an increase of 42.7% from $3.4 million in the same period last year. The increase was primarily attributable to expected credit losses on prepayments and receivables and software development fees for our ERP and mobile applications, which were partially offset by decreases in professional fees, payroll and insurance expenses.

Net Loss

Net loss was $5.6 million in the first half of fiscal year 2027, compared to $3.8 million in the same period last year.

Basic and Diluted Earnings (Losses) per Share

Basic and diluted losses per share were $3.48 in the first half of fiscal year 2027, compared to $6.58 in the same period last year.

EBITDA

EBITDA was negative $4.7 million in the first half of fiscal year 2027, compared to negative EBITDA of $2.2 million in the same period last year.

Financial Condition

As of September 30, 2026, the Company had cash of $0.5 million, compared to $0.3 million as of March 31, 2026.

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 the United States (the “U.S. GAAP”), management periodically uses certain “non-GAAP financial measures,” as such term is defined under the rules of the SEC, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. For example, non-GAAP measures may exclude the impact of certain items such as acquisitions, divestitures, gains, losses and impairments, or items outside of management’s control. Management believes that the following non-GAAP financial measure provides investors and analysts useful insight into our financial position and operating performance. Any non-GAAP measure provided should be viewed in addition to, and not as an alternative to, the most directly comparable measure determined in accordance with U.S. GAAP. Further, the calculation of these non-GAAP financial measures may differ from the calculation of similarly titled financial measures presented by other companies and therefore may not be comparable among companies.

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 U.S. GAAP. EBITDA includes adjustments for provision for income taxes, as applicable, interest income and expense, depreciation, and amortization. EBITDA does not represent and should not be considered an alternative to net income as determined by U.S. GAAP, and our calculations thereof may not be comparable to those reported by other companies. We believe EBITDA is an important measure of operating performance and provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on U.S. GAAP measures and because it eliminates items that have less bearing on our operating performance. EBITDA, as presented herein, is a supplemental measure of our performance that is not required by, or presented in accordance with, U.S. GAAP. We use non-GAAP financial measures as supplements to our U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. EBITDA is a measure of operating performance that is not defined by U.S. GAAP and should not be considered a substitute for net (loss) income as determined in accordance with U.S. GAAP.

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 subsequently 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

EBITDA

The following table sets forth the components of our EBITDA for the three months ended September 30, 2026 and 2025:

The following table sets forth the components of our EBITDA for the six months ended September 30, 2026 and 2025: