New York, November 13th / PRNewswire / -- Fly - E Group , Inc. (Nasdaq ticker: FLYE) (hereinafter referred to as “Fly-E” or “the Company”) is an electric vehicle company engaged in the design, installation, sales, and leasing of smart electric motorcycles, electric bicycles, and electric scooters. The Company today announced its unaudited financial results for the second quarter and the first half of the fiscal year 2027, which ended on September 30, 2026.

Financial Summary for the Second Fiscal Quarter of Fiscal Year 2027

• Net revenue was $2.6 million, compared to $3.9 million in the same period last year.
• Gross profit was $200,000, compared to $1 million in the same period last year.
• Gross profit margin is 8.1%, compared to 25.0% in the same period last year.
• The net loss was $1.7 million, compared to $1.8 million in the same period last year.
• The basic and diluted loss per share was $1.07, compared to $2.18 in the same period last year.

Fly-E CEO Zhou ( Andy ) Ou stated: "In the second fiscal quarter, as the retail reorganization was completed, our operational network became more stable, and revenue remained relatively flat compared to the previous quarter. Our wholesale revenue increased by 21.4% year-on-year and accounted for a significant proportion of our total revenue. This changing revenue structure, combined with promotional pricing in the retail business, naturally affected the overall profit margin for this quarter. At the same time, we continued to control costs at the store level and handled company affairs carefully to strengthen the foundation for the company's future development. By maintaining our operational network and strict cost management, we are committed to keeping the business stable while preparing for strategic opportunities for long-term growth with Fly-E."

Financial Results for the Second Fiscal Quarter of Fiscal Year 2027

(For the three months ending September 30, 2026)

Net Revenue

In the second fiscal quarter of fiscal year 2027, net revenue was $2.6 million, a decrease of 33.7% compared to $3.9 million in the same period of the previous year. The decline was mainly due to a reduction in sales volume to 7,392 units, compared to 18,564 units in the same period of the previous year; as of September 30, 2026, the number of company-owned direct stores had decreased to 4, compared to 11 as of September 30, 2025.

• Retail sales revenue amounted to $500,000, a decrease of 77.4% compared to $2 million in the same period last year. The decline is mainly due to the planned reduction of stores, promotional pricing strategies adopted to compete in the market, and a weakening demand for electric bicycles and scooters in the New York market following industry-wide concerns about the safety of lithium-ion batteries.
• Wholesale revenue amounted to $2.1 million, representing a 21.4% increase from $1.7 million in the same period of the previous year. The growth was mainly due to the continuous product purchases by stores that were previously operated by the company itself but later became independently managed during this period.

Revenue Cost

Revenue costs for the second fiscal quarter of the 2027 fiscal year were $2.4 million, a decrease of 18.8% compared to $2.9 million in the same period of the previous year, which is mainly consistent with the decline in sales volume due to the reduction in the store network.

Gross Profit and Gross Margin

In the second fiscal quarter of fiscal year 2027, the gross profit was $200,000, compared to $1 million in the same period last year. The gross margin was 8.1%, whereas it was 25.0% in the same period last year. The decline in gross margin is mainly attributed to a shift in revenue structure from direct retail to lower-priced wholesale channels, as well as the impact of competitive retail pricing and inventory clearance discounts.

Total operating expenses

Total operating expenses for the second fiscal quarter of the 2027 fiscal year were $1.8 million, a decrease of 9.8% compared to $2 million in the same period of the previous year. The decline was mainly due to operational savings at the store level, but it was partially offset by expected credit losses and increased professional expenses.

• Sales expenses amounted to $300,000, a significant decrease of 74.3% compared to $1 million in the same period last year, mainly due to the reduction in retail stores, which led to a notable decline in related wages, rent, and utilities costs.
• General and administrative expenses amounted to $1.5 million, representing a 56.6% increase from $1 million in the same period of the previous year. The increase was mainly due to expected credit losses on advances and receivables, as well as increased legal costs related to litigation; this was partially offset by savings in salaries and software development expenses.

Net Loss

In the second fiscal quarter of fiscal year 2027, the net loss was $1.7 million, compared to $1.8 million in the same period of the previous year.

Basic and Diluted Earnings Per Share (Loss)

For the second fiscal quarter of fiscal year 2027, the basic and diluted loss per share was $1.07, compared to $2.18 in the same period of the previous year.

EBITDA

In the second fiscal quarter of fiscal year 2027, EBITDA recorded a loss of $1.3 million, compared to a loss of $1 million in the same period of the previous year.

Financial Results for the First Half of Fiscal Year 2027

(Six months as of September 30, 2026)

Net Revenue

In the first half of fiscal year 2027, net revenue was $5.3 million, a decrease of 42.2% compared to $9.2 million in the same period of the previous year. The decline was mainly due to a significant reduction in the number of direct-operated outlets, which resulted in sales volume falling to 14,950 units, whereas in the same period last year it was 29,012 units.

• Retail sales revenue amounted to $1 million, a decrease of 81.9% compared to $5.8 million in the same period last year. The decline was mainly due to a significant reduction in retail stores, adjustments to promotional pricing, and unfavorable factors regarding the safety of lithium-ion batteries in the New York market.
• Wholesale revenue amounted to $4.2 million, representing a 33.0% increase from $3.2 million in the same period of the previous year. The growth is mainly attributed to the continuous product purchases by retail stores that have been streamlined and are now operating independently during this period.

Revenue Cost

In the first half of fiscal year 2027, revenue costs amounted to $4.8 million, a decrease of 19.5% compared to $6 million in the same period of the previous year, mainly reflecting a decline in sales volume following the reduction of the store network.

Gross Profit and Gross Margin

In the first half of fiscal year 2027, the gross profit was 500,000 US dollars, compared to 3.2 million US dollars in the same period of the previous year. The gross margin was 9.5%, whereas it was 35.1% in the previous year. The decrease in gross margin is mainly attributed to the increased proportion of revenue from the wholesale channel, which has lower pricing. Additionally, adjustments to retail promotional pricing and discounts for clearing inventory also had an impact.

Total operating expenses

In the first half of fiscal year 2027, total operating expenses amounted to $5.7 million, a decrease of 2.2% compared to $5.8 million in the same period of the previous year. The reduction was mainly due to savings in operating costs resulting from the decrease in retail stores, but this was partially offset by expected credit losses and increased software development expenses.

• Sales expenses amounted to $800,000, a significant decrease of 68.1% compared to $2.3 million in the same period last year, mainly due to reduced wage and rent expenditures at the store level following the reduction of the retail network.
• General and administrative expenses were $4.8 million, a 42.7% increase from $3.4 million in the same period of the previous year. The increase was primarily due to anticipated credit losses on prepayments and receivables, as well as increased software development costs for ERP and the mobile application; it was partially offset by decreases in professional fees, salaries, and insurance costs.

Net Loss

In the first half of fiscal year 2027, the net loss was 5.6 million US dollars, compared to 3.8 million US dollars in the same period of the previous year.

Basic and Diluted Earnings Per Share (Loss)

In the first half of fiscal year 2027, the basic and diluted loss per share was $3.48, compared to $6.58 in the same period of the previous year.

EBITDA

In the first half of fiscal year 2027, EBITDA recorded a loss of $4.7 million, compared to a loss of $2.2 million in the same period of the previous year.

Financial Condition

As of September 30, 2026, the company held $500,000 in cash, whereas as of March 31, 2026, it was $300,000.

Regarding Fly - E Group, Inc.

Fly - E Group, Inc is an electric vehicle company that is mainly engaged in the design, installation, sales, and rental of smart electric motorcycles, electric bicycles, and electric scooters under the brand “Fly E - Bike”. The company's commitment is to encourage people to integrate environmentally friendly transportation into a positive lifestyle, with the ultimate goal of contributing to the construction of a more environmentally friendly future. For more information, please visit the company's website: https:// investors.flyebike.com.

Non-GAAP Financial Indicators

To complement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States (“U.S . GAAP”), management periodically uses certain “non-GAAP financial indicators” to clarify and enhance the understanding of past performance and future prospects. Generally speaking, non-GAAP financial indicators refer to values of a company’s operating performance, financial condition, or cash flow that are derived from the most directly comparable U.S . GAAP indicators, with certain items either excluded or included. For example, non-GAAP indicators may not take into account the effects of mergers and acquisitions, divestitures, gains, losses, impairments, or items that are not under management’s control. Management believes that the following non-GAAP financial indicators can provide investors and analysts with useful information regarding the company’s financial condition and operating performance. Any non-GAAP indicator should be considered a supplement to the most directly comparable U.S . GAAP indicators, rather than a substitute for them. Furthermore, the calculation methods for similar non-GAAP financial indicators may vary among different companies, and therefore may not be directly comparable.

The company uses EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to evaluate its operational performance. The company believes that EBITDA, by excluding the impact of interest, taxes, depreciation, and amortization, provides additional insights into the underlying, ongoing operational performance and facilitates annual comparisons; disclosing EBITDA better represents the company's operational performance and may also be more beneficial to investors.

The company adjusts non-GAAP financial indicators with the net profit calculated and presented in accordance with U.S and GAAP; the latter being the most directly comparable financial indicator. EBITDA includes adjustments for income tax provisions (where applicable), interest income and expenses, depreciation, and amortization. EBITDA does not represent, nor should it be considered, as a substitute for the net profit under U.S. Moreover, the company's calculation method may not be comparable to the indicators reported by other companies. The company believes that EBITDA is an important indicator of operational performance and can provide useful information to investors, as it highlights business trends that may not be apparent when relying solely on U.S and GAAP indicators, and it eliminates items that have a minor impact on operational performance. The EBITDA listed in this document are supplementary performance indicators and are not required by U.S or presented in accordance with GAAP and GAAP. The company uses non-GAAP financial indicators as a supplement to U.S performance in order to more comprehensively understand the factors and trends affecting the business. EBITDA is an operational performance indicator that is not defined by U.S and GAAP and should not be regarded as a substitute for the net (loss) income determined by U.S.

Forward-looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, based on the company's current expectations and forecasts regarding future events, which the company believes may affect its financial condition, operating results, business strategy, and capital needs. Investors can identify many (but not all) of these forward-looking statements through phrases such as "approximately," "believes," "hopes," "expects," "anticipates," "estimates," "predicts," "intends," "plans," "will," "shall," "may," etc. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot guarantee that they will necessarily be realized. The company reminds investors that actual results may differ significantly from expected results, and the forward-looking statements in this press release are subject to the risk factors listed in the documents submitted by the company to the U.S. Securities and Exchange Commission ("SEC"). These include the "Risk Factors" section of the company's annual report for the fiscal year ending March 31, 2026, filed as Form 10-K (Form), which was submitted to SEC on July 23, 2026, and has been subsequently revised and updated. Except as required by law, the company has no obligation to publicly update or revise any forward-looking statements due to subsequent events or changes in circumstances, or anticipated changes.

Contact Information for Investors and Media:

Fly - E Group, Inc.

Seaquant Consulting

EBITDA

The following table shows the composition of EBITDA for the three-month periods ending September 30, 2026, and September 30, 2025:

The following table shows the composition of EBITDA for the six-month periods ending September 30, 2026, and September 30, 2025: