Fly-E Group Reports Significant Revenue and Profit Decline in Q1 FY2027
NEW YORK, Sept. 1, 2026 /CourierPR/ -- Fly-E Group, Inc., an electric vehicle company specializing in smart electric motorcycles, bikes, and scooters, reported its financial results for the first quarter of fiscal year 2027, ending June 30, 2026. The company experienced a significant decline in revenues and profitability, reflecting strategic changes in its business model.
Net revenues for the quarter amounted to $2.7 million, down 48.4% from $5.3 million in the same period last year. This decrease was primarily due to the reduction of its direct retail store count from 20 to four, leading to a drop in sales volume from 10,448 units to 7,558 units. Notably, retail sales revenue fell to $0.6 million, a 84.3% drop from $3.8 million in the previous year. Wholesale revenues, however, surged by 46.9% to $2.1 million, driven by increased product purchases from streamlined retail stores.
Gross profit decreased to $0.3 million from $2.3 million, with a gross margin of 10.9%, down from 42.4%. The decline in gross margin was attributed to the shift in sales mix towards lower-priced wholesale channels and competitive retail pricing. Cost of revenues, at $2.4 million, was 20.2% lower than the previous year, reflecting the reduction in sales volume.
Operating expenses remained flat at $3.8 million, but the cost structure shifted. Selling expenses, down 63.3% to $0.5 million, were reduced due to the scaling down of the retail store network. In contrast, general and administrative expenses increased by 37.0% to $3.4 million, despite cost savings in payroll, professional fees, insurance, travel, and entertainment. Higher software development fees and expected credit losses on prepayments and receivables contributed to this increase.
Net loss for the quarter was $3.9 million, compared to $2.0 million in the same period last year, leading to a basic and diluted loss per share of $2.41, compared to $6.00 in the previous year. EBITDA, a non-GAAP financial measure, showed a negative $3.5 million, compared to negative $1.3 million in the previous quarter.
As of June 30, 2026, the company held $60,000 in cash, down from $0.3 million as of March 31, 2026.
In a statement, Mr. Zhou (Andy) Ou, Fly-E’s Chief Executive Officer, commented, "We are actively realigning our business towards a leaner and asset-light operational model. While this has led to a contraction in our direct retail footprint and promotional pricing to clear inventory, we are pleased to see growth in our wholesale revenues. Our continued investment in technology and operational systems will position us for long-term growth."
Fly-E Group, Inc. remains committed to promoting eco-friendly transportation and aims to enhance user experiences through improved technology and service quality.