NEW YORK, Sept. 1, 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 financial results for the first quarter of fiscal year 2027 ended June 30, 2026.

First Quarter of Fiscal Year 2027 Financial Summary

Net revenues were $2.7 million, compared to $5.3 million in the same period last year.
Gross profit was $0.3 million, compared to $2.3 million in the same period last year.
Gross margin was 10.9%, compared to 42.4% in the same period last year.
Net Loss was $3.9 million, compared to $2.0 million in the same period last year.
Basic and diluted losses per share were $2.41, compared to $6.00 in the same period last year.

Mr. Zhou (Andy) Ou, Chief Executive Officer of Fly-E, commented, "In the first quarter, we continue to realign our business toward a leaner and asset-light operational model. While our revenue and margin profile reflect the deliberate contraction of our direct retail footprint alongside ongoing promotional pricing to clear inventory, we grew our wholesale revenues by 46.9% and made continued investments in technology advancement. By upgrading our operational systems and advancing our mobile applications, we are better positioned to drive efficiency and improve user experiences across our riding and rental services. Together with our focus on service quality and lean management, these efforts position Fly-E for long-term growth."

First Quarter of Fiscal Year 2027 Financial Results

(Three Months Ended June 30, 2026)

Net Revenues

Net revenues were $2.7 million in the first quarter of fiscal year 2027, a decrease of 48.4% from $5.3 million in the same period last year. The decrease was primarily driven by a reduction in direct retail store count to four stores as of June 30, 2026, compared to 20 stores as of June 30, 2025, resulting in a lower sales volume of 7,558 units in the first quarter of fiscal year 2027, compared to 10,448 in the same period last year.

Retail sales revenue was $0.6 million in the first quarter of fiscal year 2027, a decrease of 84.3% from $3.8 million in the same period last year. The decline was primarily attributable to a noticeable reduction in retail stores compared to the prior year period, alongside price adjustments made to address heightened market competition, as well as 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 first quarter of fiscal year 2027, an increase of 46.9% from $1.4 million in the same period last year. This growth was primarily due 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 $2.4 million in the first quarter of fiscal year 2027, a decrease of 20.2% from $3.1 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 $0.3 million in the first quarter of fiscal year 2027, compared to $2.3 million in the same period last year. Gross margin was 10.9% in the first quarter of fiscal year 2027, compared to 42.4% 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 $3.8 million in the first quarter of fiscal year 2027, remaining flat compared to $3.8 million in the same period last year. While the total amount remained steady, our expense structure shifted: operational cost savings from retail store streamlining were offset by increased software development fees and incurred expected credit losses.

Selling expenses were $0.5 million in the first quarter of fiscal year 2027, a decrease of 63.3% from $1.3 million in the same period last year, primarily driven by the retail store network downsizing which lowered associated payroll, rental, utility and depreciation expenses.

General and administrative expenses were $3.4 million in the first quarter of fiscal year 2027, an increase of 37.0% from $2.4 million in the same period last year. Cost savings achieved in payroll, professional fees, insurance, travel, and entertainment following the store scale-down were offset by higher software development fees for our ERP and mobile applications, as well as increased expected credit losses on prepayments and receivables.

Net Loss

Net loss was $3.9 million in the first quarter of fiscal year 2027, compared to $2.0 million in the same period last year.

Basic and Diluted Earnings (Losses) per Share

Basic and diluted losses per share were $2.41 in the first quarter of fiscal year 2027, compared to $6.00 in the same period last year.

EBITDA

EBITDA was negative $3.5 million in the first quarter of fiscal year 2027, compared to negative EBITDA of $1.3 million in the same period last year.

Financial Condition

As of June 30, 2026, the Company had cash of $60 thousand, 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 subsequent 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

CONSOLIDATED FINANCIAL STATEMENTS
FLY-E GROUP, INC.

CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars, except for the number of shares)

	As of June 30, 2026		As of March 31, 2026
ASSETS
Current Assets
Cash	$	60,281	$	265,236
Accounts receivable, net		8,600,552		7,049,592
Accounts receivable, net – a related party		32,030		32,030
Inventories, net		2,018,179		2,334,484
Prepayments and other receivables		5,205,648		6,967,596
Prepayments and other receivables – related parties		171,335		161,560
Total Current Assets		16,088,025		16,810,498
Property and equipment, net		5,635,678		5,792,915
Security deposits		329,872		369,249
Operating lease right-of-use assets		3,700,499		4,289,237
Intangible assets, net		403,491		431,193
Long-term prepayment for software development		—		1,800,000
Total Assets	$	26,157,565	$	29,493,092

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	1,089,291	$	433,188
Short-term loan payables		3,936,058		3,936,058
Current portion of long-term loan payables		88,227		93,980
Accrued expenses and other payables		1,074,961		680,200
Accrued expenses and other payables – a related party		—		225
Operating lease liabilities – current		1,395,477		1,507,340
Taxes payable		366,162		151,930
Liabilities held for sale		—		—
Total Current Liabilities		7,950,176		6,802,921
Long-term loan payables		1,922,638		1,945,442
Operating lease liabilities – non-current		2,781,430		3,302,325
Total Liabilities		12,654,244		12,050,688

Commitment and Contingencies

Stockholders' Equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized and nil outstanding as of June 30, 2026 and March 31, 2026*		—		—
Common stock, $0.01 par value, 300,000,000 shares authorized and 1,632,386 shares outstanding as of June 30, 2026 and March 31, 2026*		16,324		16,324
Additional paid-in capital		27,826,643		27,826,643
Shares subscription receivable		(219,998)		(219,998)
Accumulated deficit		(14,092,401)		(10,153,318)
Accumulated other comprehensive loss		(27,247)		(27,247)
Total FLY-E Group, Inc. Stockholders' Equity		13,503,321		17,442,404
Total Liabilities and Stockholders' Equity	$	26,157,565	$	29,493,092

*	Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split completed on July 3, 2025 and the 1-for-20 reverse stock split completed on November 4, 2025.

FLY-E GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Expressed in U.S. dollars, except for the number of shares)

	For the Three Months Ended
	June 30,
	2026		2025
Revenues	$	2,748,140	$	5,328,198
Cost of Revenues		2,448,276		3,066,823
Gross Profit		299,864		2,261,375

Operating Expenses
Selling Expenses		485,464		1,321,217
General and Administrative Expenses		3,350,671		2,444,933
Total Operating Expenses		3,836,135		3,766,150
Loss from Operations		(3,536,271)		(1,504,775)

Other Expenses, net		(122,395)		(7,898)
Interest Expenses, net		(191,417)		(546,234)
Loss Before Income Taxes		(3,850,083)		(2,058,907)
Income Tax (Expenses) Benefit		(89,000)		50,259
Net Loss	$	(3,939,083)	$	(2,008,648)

Other Comprehensive (Loss) Income
Foreign currency translation adjustment		—		22,354
Total Comprehensive Loss	$	(3,939,083)	$	(1,986,294)

Losses per Share*	$	(2.41)	$	(6.0)
Weighted Average Number of Common Stock
– Basic and Diluted*		1,632,351		334,839

*	Shares and per share data are presented on a retroactive basis to reflect the 1-for-110,000 stock split completed on April 2, 2024, the 1-for-5 reverse stock split completed on July 3, 2025 and the 1-for- 20 reverse stock split completed on November 4, 2025.

FLY-E GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. dollars, except for the number of shares)

	For the Three Months Ended June 30,
	2026		2025
Cash flows from operating activities
Net loss	$	(3,939,083)	$	(2,008,648)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of property and equipment		—		68,188
Gain on termination of operating lease		(28,084)		—
Expected credit losses		1,091,537		—
Depreciation expense		159,442		212,792
Amortization expense		27,702		27,315
Deferred income taxes benefits		—		(42,861)
Amortization of operating lease right-of-use assets		414,809		828,458
Inventories reserve		254,041		229,780
Changes in operating assets and liabilities:
Accounts receivable		(1,603,064)		(605,435)
Inventories		62,264		(63,902)
Prepayments and other receivables		722,515		(1,974,220)
Prepayments for operation services to a related party		—		45,000
Security deposits		39,377		2,148
Long-term prepayment for software development		1,800,000		—
Accounts payable		656,103		(853,177)
Accrued expenses and other payables		369,019		(345,649)
Accrued expenses and other payables – a related party		(225)		—
Operating lease liabilities		(430,745)		(803,823)
Taxes payable		214,232		—
Net cash used in operating activities		(190,160)		(5,284,034)

Cash flows from investing activities
Purchases of properties and equipment		(2,205)		(141,624)
Cash released from disposal of entities		—		(119,720)
Repayment from a related party		—		—
Advance to a related party		(9,775)		(147,288)
Net cash used in investing activities		(11,980)		(408,632)

Cash flows from financing activities
Proceeds from borrowings		—		1,917,100
Repayments of borrowings		(2,815)		(601,995)
Payments of offering cost		—		(516,490)
Net proceeds from issuance of common stock		—		6,373,000
Net cash provided by financing activities		(2,815)		7,171,615
Net changes in cash including cash classified within current assets held for sale		(204,955)		1,478,949
Effect of exchange rate changes on cash		—		22,354
Less: net change in cash classified within current assets held for sale		—		(7,117)
Cash at beginning of the period		265,236		840,102
Cash at the end of the period	$	60,281	$	2,334,288

Supplemental disclosure of cash flow information
Cash paid for interest expense	$	136,921	$	546,234
Cash paid for income taxes	$	—	$	42,640

Supplemental disclosure of non-cash investing and financing activities
Purchase of software and office by using previous prepayments	$	—	$	136,580
Properties used for rental services	$	—	$	49,811
Uncollected proceeds from disposal of subsidiaries	$	1,946,648	$	526,779
Termination of operating lease right-of-use assets and operating lease liabilities	$	280,060	$	3,089,912

EBITDA

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

	For the Three Months Ended June 30,
									Percentage
	2026			2025			Change		Change
Net Loss	$	(3,939,083)		$	(2,008,648)		$	(1,930,435)		96.1	%
Income Tax Provision/(Benefit)		89,000			(50,259)			139,259		(277.1)	%
Depreciation		159,442			212,792			(53,350)		(25.1)	%
Interest Expenses		191,417			546,234			(354,817)		(65.0)	%
Amortization		27,702			27,315			387		1.4	%
EBITDA	$	(3,471,522)		$	(1,272,566)		$	(2,198,956)		172.8	%
Percentage of Revenue		(126.3)	%		(23.9)	%				428.5	%

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SOURCE FLY-E GROUP, INC.