Fly-E Group's Second-Quarter Revenue Falls 33.7% to $2.6 Million as Retail Stores Shrink to Four

Fly-E Group reported second-quarter net revenue of $2.6 million, down 33.7% from $3.9 million a year earlier, and a net loss of $1.7 million for the quarter ended September 30, 2026. The company announced the results in a PR Newswire release.

Fly-E's Retail and Wholesale Split

Fly E-Bike designs, installs, sells and rents smart electric motorcycles, electric bikes and electric scooters under the Fly E-Bike brand. The company said retail revenue fell 77.4% to $0.5 million, which it attributed to planned store reductions, promotional pricing in response to market competition, and softer consumer demand for e-bikes and e-scooters after industry-wide lithium-ion battery safety concerns in the New York market.

Wholesale revenue rose 21.4% to $2.1 million, which the company said was mainly due to ongoing product purchases from previous company-owned retail stores that transitioned to independent operations during the period. Unit sales were 7,392 in the quarter, compared with 18,564 a year earlier, and the company operated four direct retail stores as of September 30, 2026, compared with 11 a year earlier.

Gross margin was 8.1%, compared with 25.0% a year earlier, and total operating expenses were $1.8 million, down 9.8%. General and administrative expenses rose 56.6% to $1.5 million, which the company attributed to expected credit losses on prepayments and receivables and litigation-related legal fees.

Chief Executive Officer Zhou (Andy) Ou said, "During the second quarter, our operational network stabilized following the retail restructuring, with our top-line revenue holding steady sequentially." Ou said the company is "dedicated to preserving business stability while positioning Fly-E to explore strategic opportunities for long-term growth."

Fly-E's First-Half Loss and Cash Position

For the six months ended September 30, 2026, net revenue was $5.3 million, down 42.2% from $9.2 million, and the net loss was $5.6 million, compared with $3.8 million a year earlier, according to akta.pro company records. The same records show cash of $0.5 million as of September 30, 2026, compared with $0.3 million as of March 31, 2026. First-half unit sales were 14,950, compared with 29,012 a year earlier.

Fly-E's Nasdaq Filing History

Fly-E regained Nasdaq listing compliance after submitting its delayed Form 10-Q for the quarter ended June 30, 2026, Seeking Alpha reported. The company had received a Nasdaq notice on September 1, 2026, for the late filing and filed the form on September 3, 2026, with Nasdaq confirming compliance, Third News reported. In July 2026, Fly-E filed its annual report on Form 10-K after previously receiving a Nasdaq non-compliance notice, MarketScreener reported.

What Comes Next for Fly-E

The company said it plans to explore strategic opportunities for long-term growth. Fly-E's release lists its next scheduled financial update as its results for the third quarter of fiscal year 2027.