Third Quarter of Fiscal Year 2026 Financial Summary
- Net revenues were
$2.6 million , compared to$5.7 million in the same period last year. - Gross profit was
$1.0 million , compared to$2.6 million in the same period last year. - Gross margin was 39.6%, compared to 45.1% in the same period last year.
- Net loss was
$1.9 million , compared to$0.7 million in the same period last year. - Basic and diluted losses per share were
$1.18 , compared to$2.78 in the same period last year.
Mr.
Third Quarter of Fiscal Year 2026 Financial Results
Net Revenues
Net revenues were
Retail sales revenue was
Cost of Revenues
Cost of revenues was
Gross Profit
Gross profit was
Operating Expenses
Total operating expenses were
- Selling expenses were
$0.7 million in the third quarter of fiscal year 2026, a decrease of 62.3% from$1.9 million in the same period last year. Selling expenses primarily consist of payroll expenses, rent, and advertising expenses of retail stores. Total payroll expenses were$0.1 million in the third quarter of fiscal year 2026, compared to$0.9 million in the same period last year. Rent was$0.3 million in the third quarter of fiscal year 2026, compared to$0.7 million in the same period last year. Advertising expenses were$3,234 in the third quarter of fiscal year 2026, compared to$32,681 in the same period last year. The decrease in these expenses was primarily due to the closures and dispositions of retail stores during this quarter.
- General and administrative expenses were
$1.9 million in the third quarter of fiscal year 2026, an increase of 20.3% from$1.6 million in the same period last year. Professional fees increased to$0.8 million in the third quarter of fiscal year 2026, compared to$0.4 million in the same period last year, primarily attributable to the increase in legal fee associated with the Company's litigations and ongoing reporting obligations. Payroll expenses decreased to$0.2 million in the third quarter of fiscal year 2026 from$0.4 million in the same period last year, primarily due to decrease in headcount of office assistants. Depreciation expense decreased to$0.03 million in the third quarter of fiscal year 2026, compared to$0.05 million for the same period in prior year due to the closures and dispositions of retail stores. Impairment loss on property and equipment increased to$0.6 million for the third quarter of fiscal year 2026. The Company did not generate impairment loss on property and equipment for the third quarter of fiscal year 2025.
Net Loss
Net loss was
Basic and Diluted Losses per Share
Basic and diluted losses per share were
EBITDA
EBITDA was negative
Nine Months Ended
Net Revenues
Net revenues were
Retail sales revenue was
Cost of Revenues
Cost of revenues was
Gross Profit
Gross profit was
Operating Expenses
Total operating expenses were
- Selling expenses were
$3.1 million in the nine months endedDecember 31, 2025 , a decrease of 45.0% from$5.6 million in the same period last year. Selling expenses primarily consist of payroll expenses, rent, utilities expenses, and advertising expenses of retail stores. Total payroll expenses were$1.4 million in the nine months endedDecember 31, 2025 , compared to$2.5 million in the same period last year. Rent expenses were$1.1 million in the nine months endedDecember 31, 2025 , compared to$2.2 million in the same period last year. Utilities expenses were$0.1 million in the nine months endedDecember 31, 2025 , compared to$0.2 million in the same period last year. Advertising expenses were$36,104 in the nine months endedDecember 31, 2025 , compared to$0.2 million in the same period last year. The decrease in these expenses was primarily due to the closures and dispositions of retail stores in the nine months endedDecember 31, 2025 .
- General and administrative expenses were
$5.3 million in the nine months endedDecember 31, 2025 , an increase of 2.5% from$5.2 million in the same period last year. Professional fees increased to$2.7 million in the nine months endedDecember 31, 2025 , compared to$1.7 million in the same period last year, primarily attributable to the increase in audit fee, consulting fee, legal fee and IR expenses associated with the litigations and ongoing reporting obligations. Payroll expenses decreased to$0.6 million in the nine months endedDecember 31, 2025 , from$1.2 million in the same period last year primarily due to employees terminated in operation and accounting departments. Insurance expenses decreased to$0.3 million in the nine months endedDecember 31, 2025 , compared to$0.8 million in the same period of prior year as a result of less insurance policies purchased for closed stores during the nine months endedDecember 31, 2025 . Impairment loss on property and equipment increased to$0.6 million for the nine months endedDecember 31, 2025 . The Company did not generate loss on property and equipment in the nine months endedDecember 31, 2024 .
Net Loss
Net loss was
Basic and Diluted Losses per Share
Basic and diluted losses per share were
EBITDA
EBITDA was negative
Financial Condition
As of
About
Non-GAAP Financial Measures
To supplement the Company's financial information presented in accordance with the generally accepted accounting principles in
The Company uses EBITDA (earnings before interest, taxes, depreciation, and amortization) to evaluate its operating performance. The Company believes EBITDA provides additional insight into its 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 its operational performance and may be more useful for investors.
The Company reconciles its non-GAAP financial measure to its net income, which is its most directly comparable financial measure calculated and presented in accordance with
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 "
For investor and media inquiries, please contact:
Investor Relations Department
Email: ir@flyebike.com
Ascent Investor Relations LLC
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
FLY-E GROUP, INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Expressed in | ||||||||
December | March | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 295,674 | $ | 840,102 | ||||
Accounts receivable, net | 1,565,285 | 466,187 | ||||||
Accounts receivable, net – a related party | 32,030 | 37,465 | ||||||
Inventories, net | 5,077,072 | 6,397,274 | ||||||
Prepayments and other receivables | 10,926,104 | 3,676,986 | ||||||
Prepayments and other receivables – related parties | 161,560 | 120,000 | ||||||
Assets held for sale | 2,610,261 | 2,462,502 | ||||||
Total Current Assets | 20,667,986 | 14,000,516 | ||||||
Property and equipment, net | 5,997,381 | 7,287,213 | ||||||
Security deposits | 403,016 | 728,450 | ||||||
Deferred tax assets, net | — | 94,983 | ||||||
Operating lease right-of-use assets | 4,629,716 | 10,933,068 | ||||||
Intangible assets, net | 458,236 | 525,865 | ||||||
Long-term prepayment for software development | 1,800,000 | — | ||||||
Long-term prepayment for software development – a related party | — | 136,580 | ||||||
Total Assets | $ | 33,956,335 | $ | 33,706,675 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 337,481 | $ | 1,272,305 | ||||
Short-term loan payables | 3,936,058 | 5,191,058 | ||||||
Current portion of long-term loan payables | 138,550 | 100,835 | ||||||
Accrued expenses and other payables | 241,322 | 1,366,968 | ||||||
Accrued expenses and other payables – a related party | 225 | — | ||||||
Operating lease liabilities – current | 1,454,771 | 2,617,762 | ||||||
Liabilities held for sale | 1,186,237 | 2,152,447 | ||||||
Total Current Liabilities | 7,294,644 | 12,701,375 | ||||||
Long-term loan payables | 1,978,770 | 2,065,040 | ||||||
Operating lease liabilities – non-current | 3,690,922 | 9,106,928 | ||||||
Total Liabilities | 12,964,336 | 23,873,343 | ||||||
Commitment and Contingencies | ||||||||
Stockholders' Equity | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 16,324 | 2,459 | ||||||
Additional paid-in capital | 27,826,643 | 10,987,440 | ||||||
Shares subscription receivable | (219,998) | (219,998) | ||||||
Accumulated deficit | (6,603,723) | (895,510) | ||||||
Accumulated other comprehensive loss | (27,247) | (41,059) | ||||||
20,991,999 | 9,833,332 | |||||||
Total Liabilities and Stockholders' Equity | $ | 33,956,335 | $ | 33,706,675 | ||||
* Shares and per share data are presented on a retroactive basis to reflect the 1-for-5 reverse stock split completed | ||||||||
FLY-E GROUP, INC. | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||||||||||||||||
COMPREHENSIVE LOSS | ||||||||||||||||
(Expressed in | ||||||||||||||||
For the Three Months | For the Nine Months | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenues | $ | 2,649,141 | $ | 5,678,010 | $ | 11,886,201 | $ | 20,375,842 | ||||||||
Cost of Revenues | 1,600,615 | 3,116,940 | 7,599,779 | 11,810,684 | ||||||||||||
Gross Profit | 1,048,526 | 2,561,070 | 4,286,422 | 8,565,158 | ||||||||||||
Operating Expenses | ||||||||||||||||
Selling Expenses | 731,935 | 1,943,633 | 3,080,878 | 5,597,563 | ||||||||||||
General and Administrative Expenses | 1,873,599 | 1,557,716 | 5,315,750 | 5,184,432 | ||||||||||||
Total Operating Expenses | 2,605,534 | 3,501,349 | 8,396,628 | 10,781,995 | ||||||||||||
Loss from Operations | (1,557,008) | (940,279) | (4,110,206) | (2,216,837) | ||||||||||||
Other Expenses, net | (55,903) | (16,699) | (211,954) | (64,110) | ||||||||||||
Interest Expenses, net | (460,359) | (155,673) | (1,546,130) | (247,550) | ||||||||||||
Loss Before Income Taxes | (2,073,270) | (1,112,651) | (5,868,290) | (2,528,497) | ||||||||||||
Income Tax Benefit | 149,830 | 428,164 | 160,077 | 521,654 | ||||||||||||
Net Loss | $ | (1,923,440) | $ | (684,487) | $ | (5,708,213) | $ | (2,006,843) | ||||||||
Other Comprehensive (Loss) Income | ||||||||||||||||
Foreign currency translation adjustment | 20,836 | (22,516) | 13,812 | (19,542) | ||||||||||||
Total Comprehensive Loss | $ | (1,902,604) | $ | (707,003) | $ | (5,694,401) | $ | (2,026,385) | ||||||||
Losses per Share* | $ | (1.18) | $ | (2.78) | $ | (6.14) | $ | (8.38) | ||||||||
Weighted Average Number of Common Stock | ||||||||||||||||
– Basic and Diluted* | 1,632,391 | 245,875 | 930,332 | 239,466 | ||||||||||||
* Shares and per share data are presented on a retroactive basis to reflect the 1-for-110,000 stock split completed | ||||||||||||||||
FLY-E GROUP, INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in | ||||||||
For the Nine Months | ||||||||
2025 | 2024 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (5,708,213) | $ | (2,006,843) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Loss on disposal of property and equipment | 68,188 | — | ||||||
Gain on disposal of subsidiaries | (64,452) | — | ||||||
Impairment loss on property and equipment | 558,063 | — | ||||||
Expected credit losses on accounts receivable | 77,393 | — | ||||||
Depreciation expense | 582,599 | 310,910 | ||||||
Amortization expense | 83,106 | 30,831 | ||||||
Deferred income taxes benefits | (42,112) | (860,007) | ||||||
Amortization of operating lease right-of-use assets | 4,094,243 | 2,404,092 | ||||||
Inventories impairment loss | 630,254 | 678,157 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,213,706) | (92,353) | ||||||
Accounts receivable – a related party | 5,435 | 238,029 | ||||||
Inventories | (954,071) | (3,985,343) | ||||||
Prepayments and other receivables | (6,377,246) | (1,772,605) | ||||||
Prepayments for operation services to a related party | 120,000 | (105,000) | ||||||
Security deposits | 34,698 | (70,413) | ||||||
Accounts payable | (934,824) | 96,920 | ||||||
Accrued expenses and other payables | (848,934) | (492,920) | ||||||
Accrued expenses and other payables – a related party | 225 | — | ||||||
Operating lease liabilities | (4,064,407) | (2,257,028) | ||||||
Taxes payable | (17,279) | (1,530,416) | ||||||
Net cash used in operating activities | (13,971,040) | (9,413,989) | ||||||
Cash flows from investing activities | ||||||||
Purchases of properties and equipment | (69,846) | (1,618,290) | ||||||
Purchase of software from a related party | — | (500,000) | ||||||
Payments of property rights | (15,477) | — | ||||||
Prepayment for purchasing software from a related party | — | (892,580) | ||||||
Prepayment for purchasing software | (1,800,000) | — | ||||||
Cash released from disposal of entities | (233,379) | — | ||||||
Repayment from a related party | — | 660,256 | ||||||
Advance to a related party | (161,560) | (486,057) | ||||||
Net cash used in investing activities | (2,280,262) | (2,836,671) | ||||||
Cash flows from financing activities | ||||||||
Proceeds from borrowings | 1,917,100 | 7,086,099 | ||||||
Repayments of borrowings | (3,076,045) | (3,632,031) | ||||||
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 | 15,694,123 | 12,233,936 | ||||||
Net changes in cash including cash classified within current assets held for sale | (557,179) | (16,724) | ||||||
Effect of exchange rate changes on cash | 13,812 | (19,542) | ||||||
Less: net decrease in cash classified within current assets held for sale | (1,061) | — | ||||||
Cash at beginning of the period | 840,102 | 1,403,514 | ||||||
Cash at the end of the period | $ | 295,674 | $ | 1,367,248 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for interest expense | $ | 1,546,130 | $ | 227,679 | ||||
Cash paid for income taxes | $ | 42,640 | $ | 1,940,778 | ||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||
Purchase of vehicle funded by loan | $ | — | $ | 219,668 | ||||
Purchase of office funded by loan | $ | — | $ | 1,800,000 | ||||
Purchase of software by using previous prepayments | $ | 136,580 | $ | 2,085,000 | ||||
Properties used for rental services | $ | 49,811 | $ | 54,572 | ||||
Deferred IPO cost recognized as additional paid-in capital | $ | — | $ | 65,618 | ||||
Uncollected proceeds from disposal of subsidiaries | $ | 871,007 | $ | 502,198 | ||||
Termination of operating lease right-of-use assets and operating lease liabilities | $ | 3,187,864 | $ | (863,513) | ||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | — | $ | 1,585,285 | ||||
EBITDA
The following table sets forth the components of our EBITDA for the three months ended
For the Three Months Ended | ||||||||||||||||
Percentage | ||||||||||||||||
2025 | 2024 | Change | Change | |||||||||||||
Net Loss | $ | (1,923,440) | $ | (684,487) | $ | (1,199,147) | 181.0 | % | ||||||||
Income Tax Benefit | (149,830) | (428,164) | 278,334 | (65.0) | % | |||||||||||
Depreciation | 165,341 | 124,588 | 40,753 | 32.7 | % | |||||||||||
Interest Expenses | 460,359 | 155,673 | 304,686 | 195.7 | % | |||||||||||
Amortization | 28,345 | 21,985 | 6,360 | 28.9 | % | |||||||||||
EBITDA | $ | (1,419,225) | $ | (810,405) | $ | (569,014) | 75.1 | % | ||||||||
Percentage of Revenue | (53.6) | % | (14.3) | % | (39.3) | % | ||||||||||
The following table sets forth the components of our EBITDA for the nine months ended
For the Nine Months Ended | ||||||||||||||||
Percentage | ||||||||||||||||
2025 | 2024 | Change | Change | |||||||||||||
Net Loss | $ | (5,708,213) | $ | (2,006,843) | $ | (3,661,564) | 184.4 | % | ||||||||
Income Tax Benefit | (160,077) | (521,654) | 361,577 | (69.3) | % | |||||||||||
Depreciation | 582,599 | 310,910 | 271,689 | 87.4 | % | |||||||||||
Interest Expenses | 1,546,130 | 247,550 | 1,298,580 | 524.6 | % | |||||||||||
Amortization | 83,106 | 30,831 | 52,275 | 169.6 | % | |||||||||||
EBITDA | $ | (3,656,455) | $ | (1,939,206) | $ | (1,677,443) | 88.6 | % | ||||||||
Percentage of Revenue | (30.8) | % | (9.5) | % | (21.2) | % | ||||||||||
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