Company Fly-E Group Publishes Q1 Results for Fiscal Year 2026
Fly-E Group, Inc. has recently released its financial results for the first quarter of fiscal year 2026. The company reported a mixed performance, with some areas showing growth and others experiencing declines.
Financial Highlights
The company's gross margin improved in the first quarter of fiscal year 2026, rising to 42.4%, up from 39.4% in the same period last year. However, the EBITDA was negative $1.3 million, a significant contrast to the positive EBITDA of $57,021 in the same period last year.
The net loss for the first quarter of fiscal year 2026 was $2.0 million, a substantial increase compared to $0.20 million in the same period last year. This resulted in basic and diluted losses per share of $0.30, up from $0.04 in the same period last year.
Despite the overall net revenue decrease of 32.3% to $5.3 million, there were some positive signs. Wholesale revenue increased by 42.3% to $1.4 million, and rental services revenue, which was nil in the same period last year, generated $0.1 million in the first quarter of fiscal year 2026.
Operating Expenses
General and administrative expenses saw a significant increase of 59.5% to $2.4 million in the first quarter of fiscal year 2026, compared to $1.5 million in the same period last year. The increase in operating expenses was primarily due to the increase in depreciation expense, professional fees, and product and software development expenses.
Professional fees, in particular, rose to $1.5 million, primarily due to the increase in audit fee, consulting fee, legal fee, and IR expenses associated with the Company's follow-on public offering and ongoing reporting obligations.
Selling expenses decreased by 18.1% to $1.3 million in the first quarter of fiscal year 2026, compared to $1.6 million in the same period last year.
Other Factors
The decrease in retail sales revenue was mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters. Additionally, the decrease in rental expenses was primarily due to the closures and dispositions of retail stores during this quarter.
As of June 30, 2025, the Company had cash of $2.3 million, an increase from $0.8 million as of March 31, 2025.
Regarding the new sales markets into which Fly-E Group, Inc. expanded in the first quarter of fiscal year 2026, the search results do not contain information about their names.
In conclusion, while Fly-E Group, Inc. faced challenges in certain areas, there were also signs of progress. The company will continue to work towards improving its financial performance and expanding its business in the coming quarters.
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