Fly-E Group, Inc. Announces Second Quarter and First Half of Fiscal Year 2026 Financial Results

Core Viewpoint - Fly-E Group, Inc. reported a significant decline in net revenues for the second quarter and first half of fiscal year 2026, primarily due to reduced average unit prices and a challenging retail environment, while wholesale revenue showed strong growth. Financial Summary for Second Quarter of Fiscal Year 2026 - Net revenues were $3.9 million, a decrease of 42.7% from $6.8 million in the same period last year, driven by a 61% drop in average unit price of electric vehicles [3][4] - Retail sales revenue was $2.0 million, down 65.8% from $5.9 million, attributed to safety concerns over lithium-battery incidents and the closure of retail stores [4] - Wholesale revenue increased by 91.3% to $1.7 million from $0.9 million, supported by sales from disposed entities [4][15] - Rental services revenue was $0.2 million, with no revenue generated in the same period last year [4] - Total operating expenses decreased by 51.0% to $2.0 million from $4.1 million, reflecting cost-optimization measures [8] - Gross profit was $1.0 million, down 66.4% from $2.9 million, with a gross margin of 25.0%, down from 42.6% [6] - Net loss was $1.8 million, an increase of 55.4% from $1.1 million in the same period last year [9][10] Financial Results for First Half of Fiscal Year 2026 - Net revenues were $9.2 million, a decrease of 37.2% from $14.7 million, primarily due to a reduction in total units sold by 2,924 units [12] - Retail sales revenue was $5.8 million, down 54.7% from $12.8 million, largely due to a decrease in the number of retail stores [13] - Wholesale revenue increased by 65.5% to $3.2 million from $1.9 million, driven by contributions from disposed entities [13] - Total operating expenses were $5.8 million, a decrease of 20.5% from $7.3 million [18] - Net loss was $3.8 million, an increase of 186.2% from $1.3 million [19] - Basic and diluted losses per share were $6.58, compared to $5.60 in the same period last year [20] Operational Insights - The rental business achieved a gross margin of 79.8%, indicating its potential as a key profitability driver [7] - Selling expenses decreased significantly due to the closure of retail stores, with total selling expenses at $2.3 million, down 35.7% from $3.7 million [23] - General and administrative expenses were $3.4 million, a slight decrease of 5.1% from $3.6 million, with professional fees increasing due to ongoing reporting obligations [23] Cash Position - As of September 30, 2025, the company had cash of $2.5 million, up from $0.8 million as of March 31, 2025 [24]