NEW YORK, July 23, 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 fiscal year ended March 31, 2026.

Fiscal Year 2026 Financial Summary

Net revenues were $19.1 million in fiscal year 2026, compared to $25.4 million in fiscal year 2025.
Gross profit was $4.7 million in fiscal year 2026, compared to $10.5 million in fiscal year 2025.
Gross margin was 24.4% in fiscal year 2026, compared to 41.1% in fiscal year 2025.
Net Loss was $9.3 million in fiscal year 2026, compared to $5.3 million in fiscal year 2025.
Basic and diluted losses per share were $8.38 in fiscal year 2026, compared to $21.95 in fiscal year 2025.

"Fiscal year 2026 represents a pivotal transition for Fly-E, as we initiated targeted measures to optimize our retail footprint, simplify our corporate structure, and enhance administrative efficiency," commented Mr. Zhou (Andy) Ou, Chief Executive Officer of Fly-E. "While a challenging consumer retail environment and proactive pricing adjustments to clear aged inventory directly impacted our top-line performance and compressed our near-term margin profile, we believe these operational adjustments are fundamentally beneficial for Fly-E's long-term trajectory. We are seeing an encouraging shift in our revenue mix this year, highlighted by the increased demand from our wholesale channel as we evolved our distribution model, alongside steady traction within our rental services, with both business lines demonstrating strong year-over-year growth."

Mr. Ou continued, "Moving forward, we remain committed to rebuilding trust through enhanced product safety, continuing to innovate with solutions like our battery swap system and Go Fly app, growing our service portfolio through our rental program, and expanding our online retail presence. Together, these strategic pillars form a more resilient, efficient foundation for sustainable value creation over time."

Fiscal Year 2026 Financial Results

Net Revenues

Net revenues were $19.1 million in fiscal year 2026, a decrease of 25.0% from $25.4 million in fiscal year 2025. The decrease was primarily driven by a lower sales volume of 42,101 units in fiscal year 2026 compared to 58,765 units in fiscal year 2025, as well as promotional pricing adjustments implemented to clear aged inventory.

Retail sales revenue was $6.9 million in fiscal year 2026, a decrease of 68.1% from $21.7 million in fiscal year 2025. The decline was primarily attributable to softened consumer demand for E-Bikes and E-Scooters following industry-wide lithium-ion battery safety concerns in the New York market, which prompted temporary shifts in consumer preferences. The decrease was also partially driven by the planned closure and disposal of certain retail stores during the fiscal year.
Wholesale revenue was $11.6 million in fiscal year 2026, a robust increase of 227.5% from $3.5 million in fiscal year 2025. This growth was primarily driven by sustained product demand and ongoing purchases from the retail stores that were streamlined and transitioned to independent operations during the period.
Rental services sales revenue was $0.6 million in fiscal year 2026, an increase of 237.5% from $0.2 million in fiscal year 2025, reflecting early traction in the expansion of the Company's service portfolio.

Cost of Revenues

Cost of revenues was $14.4 million in fiscal year 2026, a decrease of 3.8% from $15.0 million in fiscal year 2025. The decrease was primarily aligned with the lower sales volume resulting from the downsizing of the Company's retail store network.

Gross Profit and Margin

Gross profit was $4.7 million in fiscal year 2026, compared to $10.5 million in fiscal year 2025. Gross margin was 24.4% in fiscal year 2026, compared to 41.1% in fiscal year 2025. The decrease in gross margin was primarily attributable to lower average selling prices of our EVs implemented to clear aged inventory and an increase in procurement costs driven by upstream price movements, as well as a shift in sales channel mix following the disposal of certain retail stores, which resulted in a higher proportion of wholesale sales and a lower proportion of retail sales — the latter of which typically generates higher margins. These headwinds were partially offset by an increased contribution from the higher-margin rental services business line.

Total Operating Expenses

Total operating expenses were $11.1 million in fiscal year 2026, a decrease of 26.1% from $15.0 million in fiscal year 2025. The reduction reflects the impacts of our cost-optimization measures, including lower payroll and rental expenses achieved through the streamlining of retail store operations. This decrease was partially offset by increases in warehouse maintenance costs, impairment losses on equipment, and inventory clearance losses as the Company downsized its retail footprint.

Selling expenses were $3.5 million in fiscal year 2026, a decrease of 53.0% from $7.4 million in fiscal year 2025, primarily driven by the streamlining of retail stores which lowered associated payroll, rental and utility expenses.
General and administrative expenses were $7.6 million in fiscal year 2026, remaining stable compared to $7.6 million in fiscal year 2025. Driven by the Company's structural downsizing, the decreases in payroll, travel, and entertainment expenses were offset by increases in non-cash impairment losses on property and equipment, inventory clearance adjustments, and repair and maintenance costs.

Net Loss

Net loss was $9.3 million in fiscal year 2026, compared to $5.3 million in fiscal year 2025.

Basic and Diluted Earnings (Losses) per Share

Basic and diluted losses per share were $8.38 in fiscal year 2026, compared to $21.95 in fiscal year 2025.

EBITDA

EBITDA was negative $6.3 million in fiscal year 2026, compared to negative EBITDA of $3.9 million in fiscal year 2025.

Financial Condition and Cash Flows

As of March 31, 2026, the Company had cash of $0.3 million, compared to $0.8 million as of March 31, 2025.

Net cash used in operating activities was $13.8 million in fiscal year 2026, compared to $10.1 million in fiscal year 2025.

Net cash used in investing activities was $2.5 million in fiscal year 2026, compared to $2.9 million in fiscal year 2025.

Net cash provided by financing activities was $15.7 million in fiscal year 2026, compared to $12.5 million in fiscal year 2025.

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 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 March 31, 2026		As of March 31, 2025
ASSETS
Current Assets
Cash	$	265,236	$	840,102
Accounts receivable, net		7,049,592		466,187
Accounts receivable, net – a related party		32,030		37,465
Inventories, net		2,334,484		6,397,274
Prepayments and other receivables		6,967,596		3,676,986
Prepayments and other receivables – related parties		161,560		120,000
Assets held for sale		—		2,462,502
Total Current Assets		16,810,498		14,000,516
Property and equipment, net		5,792,915		7,287,213
Security deposits		369,249		728,450
Deferred tax assets, net		—		94,983
Operating lease right-of-use assets		4,289,237		10,933,068
Intangible assets, net		431,193		525,865
Long-term prepayment for software development		1,800,000		—
Long-term prepayment for software development – a related party		—		136,580
Total Assets	$	29,493,092	$	33,706,675

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	433,188	$	1,272,305
Short-term loan payables		3,936,058		5,191,058
Current portion of long-term loan payables		93,980		100,835
Accrued expenses and other payables		680,200		1,366,968
Accrued expenses and other payables – a related party		225		—
Operating lease liabilities – current		1,507,340		2,617,762
Taxes payable		151,930		—
Liabilities held for sale		—		2,152,447
Total Current Liabilities		6,802,921		12,701,375
Long-term loan payables		1,945,442		2,065,040
Operating lease liabilities – non-current		3,302,325		9,106,928
Total Liabilities		12,050,688		23,873,343

Commitment and Contingencies

Stockholders' Equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized and nil outstanding as of March 31, 2026 and 2025*		—		—
Common stock, $0.01 par value, 300,000,000 shares authorized and 1,632,386 shares outstanding as of March 31, 2026 and 300,000,000 shares authorized and 245,875 shares outstanding as of March 31, 2025*		16,324		2,459
Additional paid-in capital		27,826,643		10,987,440
Shares subscription receivable		(219,998)		(219,998)
Accumulated deficit		(10,153,318)		(895,510)
Accumulated other comprehensive loss		(27,247)		(41,059)
Total FLY-E Group, Inc. Stockholders' Equity		17,442,404		9,833,332
Total Liabilities and Stockholders' Equity	$	29,493,092	$	33,706,675

*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 Years Ended
	March 31,
	2026		2025
Revenues	$	19,063,357	$	25,427,163
Cost of Revenues		14,404,283		14,976,266
Gross Profit		4,659,074		10,450,897

Operating Expenses
Selling Expenses		3,478,740		7,403,374
General and Administrative Expenses		7,618,603		7,607,489
Total Operating Expenses		11,097,343		15,010,863
Loss from Operations		(6,438,269)		(4,559,966)

Other (Income) Expenses, net		(684,775)		10,588
Interest Expenses, net		(1,806,085)		(405,615)
Loss Before Income Taxes		(8,929,129)		(4,954,993)
Income Tax Expenses		(328,679)		(336,166)
Net Loss	$	(9,257,808)	$	(5,291,159)

Other Comprehensive (Loss) Income
Foreign currency translation adjustment		13,812		(27,230)
Total Comprehensive Loss	$	(9,243,996)	$	(5,318,389)

Losses per Share*	$	(8.38)	$	(21.95)
Weighted Average Number of Common Stock
– Basic and Diluted*		1,104,494		241,050

*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 Years Ended March 31,
	2026		2025
Cash flows from operating activities
Net loss	$	(9,257,808)	$	(5,291,159)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of property and equipment		13,058		108,593
Gain on termination of operating lease		—		(111,564)
Gain on sales and liquidations of subsidiaries		(1,587,439)		(84,302)
Impairment loss on property and equipment		558,063		—
Expected credit losses on accounts receivable		176,379		116,746
Depreciation expense		719,383		631,280
Amortization expense		110,149		65,091
Deferred income taxes benefits		(42,112)		(64,829)
Amortization of operating lease right-of-use assets		1,932,762		5,084,535
Inventories reserve		478,019		870,589
Changes in operating assets and liabilities:
Accounts receivable		(6,843,808)		(329,029)
Accounts receivable – a related party		5,435		248,349
Inventories		1,940,751		(2,736,241)
Prepayments and other receivables		628,903		(2,677,904)
Prepayments for operation services to a related party		120,000		(60,000)
Security deposits		66,550		(84,605)
Accounts payable		(839,117)		91,509
Accrued expenses and other payables		(472,870)		460,364
Accrued expenses and other payables – a related party		225		—
Operating lease liabilities		(1,674,854)		(4,771,518)
Taxes payable		118,417		(1,525,371)
Net cash used in operating activities		(13,849,914)		(10,059,466)

Cash flows from investing activities
Purchases of properties and equipment		(74,609)		(1,634,174)
Payments of property rights		(15,477)		—
Proceeds from disposal of properties and equipment		13,133		—
Prepayment for purchasing software from a related party		—		(1,392,580)
Prepayment for purchasing software		(1,800,000)		—
Cash released from disposal of entities		(447,279)		(54,774)
Repayment from a related party		—		660,256
Advance to a related party		(161,560)		(480,000)
Net cash used in investing activities		(2,485,792)		(2,901,272)

Cash flows from financing activities
Proceeds from borrowings		1,959,846		7,367,795
Repayments of borrowings		(3,127,434)		(3,661,559)
Repayments on other payables - related parties		—		(92,229)
Payments of offering cost		(516,490)		(282,403)
Net proceeds from issuance of common stock		17,369,558		9,154,500
Net cash provided by financing activities		15,685,480		12,486,104
Net changes in cash including cash classified within current assets held for sale		(650,226)		(474,634)
Effect of exchange rate changes on cash		13,812		(27,230)
Less: net change in cash classified within current assets held for sale		61,548		(61,548)
Cash at beginning of the period		840,102		1,403,514
Cash at the end of the period	$	265,236	$	840,102

Supplemental disclosure of cash flow information
Cash paid for interest expense	$	1,806,085	$	405,615
Cash paid for income taxes	$	42,640	$	1,957,867

Supplemental disclosure of non-cash investing and financing activities
Purchase of vehicle funded by loan	$	—	$	224,638
Purchase of office funded by loan	$	—	$	1,800,000
Purchase of software and office by using previous prepayments	$	136,580	$	1,729,000
Purchase of property rights by using previous prepayments	$	—	$	54,572
Properties used for rental services	$	49,811	$	193,964
Deferred IPO cost recognized as additional paid-in capital	$	—	$	502,198
Uncollected proceeds from disposal of subsidiaries	$	2,704,973	$	635,193
Termination of operating lease right-of-use assets and operating lease liabilities	$	320,077	$	(2,473,686)
Right-of-use assets obtained in exchange for operating lease liabilities	$	—	$	2,490,547

EBITDA

The following table sets forth the components of our EBITDA for the years ended March 31, 2026 and 2025:

	For the Years Ended March 31,
									Percentage
	2026			2025			Change		Change
Net Loss	$	(9,257,808)		$	(5,291,159)		$	(3,966,649)		75.0	%
Income Tax Provision		328,679			336,166			(7,487)		(2.2)	%
Depreciation		719,383			631,280			88,103		14.0	%
Interest Expenses		1,806,085			405,615			1,400,470		345.3	%
Amortization		110,149			65,091			45,058		69.2	%
EBITDA	$	(6,293,512)		$	(3,853,007)		$	(2,440,505)		63.3	%
Percentage of Revenue		(33.0)	%		(15.2)	%				(17.8)	%

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SOURCE FLY-E GROUP, INC.