Fly-E Group (FLYE) Q3 2026 earnings summary

Executive summary

• Net revenues for the quarter ended December 31, 2025, declined 53.3% year-over-year to $2.6 million, primarily due to a sharp drop in retail sales and lower selling prices to clear aged inventory.

• Net loss for the quarter increased 181% year-over-year to $1.9 million, driven by lower revenues, higher interest expenses, and increased impairment losses; nine-month net loss rose to $5.7 million from $2.0 million.

• The company disposed of multiple subsidiaries and closed retail stores to streamline operations and improve administrative efficiency, with no strategic exit from key markets.

• Significant legal proceedings include a federal securities class action and consolidated shareholder derivative actions related to alleged misstatements and battery safety concerns.

• Retail sales revenue declined sharply due to lithium-battery incidents and retail store closures, while wholesale and rental revenues grew significantly.

Financial highlights

• Quarterly net revenues: $2.6 million (down from $5.7 million year-over-year); nine-month net revenues: $11.9 million (down 41.7%).

• Quarterly net loss: $1.9 million (up from $0.7 million year-over-year); nine-month net loss: $5.7 million (up from $2.0 million year-over-year).

• Gross margin for the quarter: 39.6% (down from 45.1% year-over-year); nine-month gross margin: 36.1% (down from 42.0%).

• EBITDA for the quarter: negative $1.4 million, with EBITDA margin at -53.6%; nine-month EBITDA: negative $3.7 million.

• Cash at period end was $0.3 million, down from $0.8 million at March 31, 2025.

Outlook and guidance

• Management plans to address going concern risks through further equity and debt financing and related party support, but there is no assurance of success.

• Payroll and operating expenses are expected to decrease as more retail stores are sold.

• The company is focused on expanding rental services and developing new software and app features.

• Management remains focused on execution, governance, and operational optimization to support long-term value creation.

• Cautious consumer demand and challenging environment expected to persist.