Fly-E Group, Inc. Announces Fiscal Year 2025 Financial Results

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NEW YORK, July 16, 2025 /PRNewswire/ -- Fly-E Group, Inc. (Nasdaq: FLYE) ("Fly-E" or the "Company"), an electric vehicle company engaged in designing, installing, selling, and renting smart electric motorcycles, electric bikes, and electric scooters, today announced its financial results for the fiscal year ended March 31, 2025.

Fiscal Year 2025 Financial Summary

Net revenues were $25.4 million in fiscal year 2025, compared to $32.2 million in fiscal year 2024. Gross profit was $10.5 million in fiscal year 2025, compared to $13.1 million in fiscal year 2024. Gross margin was 41.1% in fiscal year 2025, increased from 40.7% in fiscal year 2024. Net Loss was $5.3 million in fiscal year 2025, compared to net income of $1.9 million in fiscal year 2024. Basic and diluted losses per share were $1.10 in fiscal year 2025, compared to basic and diluted earnings per share of $0.43 in fiscal year 2024. Mr. Zhou (Andy) Ou, Chairman and Chief Executive Officer of Fly-E, remarked, "Fiscal year 2025 was a pivotal year for Fly-E as we navigated a complex and evolving market landscape. We achieved an improvement in gross margin to 41.1%, supported by cost reductions and more favorable pricing obtained from our suppliers, particularly in battery sourcing. We are positive about our growth prospects despite the dip in revenue caused by short-term external factors, as we have established solid reputation and continued to invest in marketing and product diversification. With a focus on innovation, we now offer a broad and growing product portfolio of over 100 models across E-motorcycles, E-bikes, and E-scooters. Our rental service, which is already active in New York City, Toronto, and Los Angeles, is gaining strong traction, and we are excited to extend it to Miami and other markets in the near future."

Mr. Ou added, "Following our successful registered direct public offering in June 2025, we believe we are well-capitalized to invest in inventory, vehicle production, and working capital. Looking forward, we remain focused on improving product safety, expanding our geographic reach, and investing in digital platforms such as the Go Fly app to enhance the customer experience and operational visibility. We believe our continued investment in safety, service, and innovation will prepare Fly-E for sustained long-term growth."

Fiscal Year 2025 Financial Results

Net Revenues

Net revenues were $25.4 million in fiscal year 2025, a decrease of 21.0% from $32.2 million in fiscal year 2024. The decrease was primarily driven by a decrease in sales volume by 10,846 units, from 69,611 units in fiscal year 2024, to 58,765 units in fiscal year 2025.

Retail sales revenue was $21.7 million in fiscal year 2025, a decrease of 17.7% from $26.4 million in fiscal year 2024. Wholesale revenue was $3.5 million in fiscal year 2025, a decrease of 39.3% from $5.8 million in fiscal year 2024. Rental services sales revenue was $0.2 million in fiscal year 2025. The Company did not generate revenue from rental services sales in fiscal year 2024. The decrease in retail sales revenue is mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters. With an increasing number of lithium-battery explosion incidents in New York, customers are less inclined to purchase E-Bikes. Consequently, sales have declined as customers opt for oil-powered vehicles over electric vehicles. The decrease in retail sales also attributed in part to the closures and disposition of the Company's retail stores during fiscal year 2025. The decrease in wholesales revenue was driven primarily by the closure of stores by the top two customers who closed their stores in December 2023 due to lack of profitability.

Cost of Revenues

Cost of revenues was $15.0 million in fiscal year 2025, a decrease of 21.6% from $19.1 million in fiscal year 2024. The decrease in cost of revenues was primarily attributable to more favorable pricing obtained from the Company's suppliers, particularly for batteries, as well as a reduction in sales volume. The unit cost for battery decreased by 11%, from $112 in fiscal year 2024, to $99 in fiscal year 2025.

Gross Profit

Gross profit was $10.5 million in fiscal year 2025, a decrease of 20.3% from $13.1 million in fiscal year 2024. Gross margin was 41.1% in fiscal year 2025, increased from 40.7% in fiscal year 2024.

Operating Expenses

Operating expenses were $15.0 million in fiscal year 2025, an increase of 52.5% from $9.8 million in fiscal year 2024. The increase was attributable to the increase in the payroll expenses, rent, professional fees, product and software development expenses and settlement payments.

Selling expenses were $7.4 million in fiscal year 2025, compared to $5.9 million in fiscal year 2024. Selling expenses primarily consist of payroll expenses, rent, and advertising expenses of retail stores. Total payroll expenses were $3.3 million in fiscal year 2025, compared to $1.6 million in fiscal year 2024. Rent expenses were $2.9 million in fiscal year 2025, compared to $2.4 million in fiscal year 2024. Advertising expenses were $0.3 million in fiscal year 2025, compared to $64,423 in fiscal year 2024. The increase in payroll expenses was primarily due to the increased number of new employees hired for business operations in the first three quarters of fiscal year 2025, despite a reduction in headcounts in the last quarter resulting from closures and dispositions of retail stores. The increase in rental expense was primarily due to the expansion of retail stores to support the Company's business growth and operational needs. The rise in advertising expense was mainly driven by intensified marketing campaigns and promotional activities aimed at enhancing brand visibility. Total commission expenses were $9,980 in fiscal year 2025, compared to $1.1 million in fiscal year 2024. The decrease in the commission expenses was primarily due to the Company's discontinuation of marketing referral expenses for promotions as of January 1, 2024.

General and administrative expenses were $7.6 million in fiscal year 2025, compared to $3.9 million in fiscal year 2024. Professional fees increased to $2.0 million in fiscal year 2025, compared to $1.0 million in fiscal year 2024, primarily attributable to the increase in audit fee, consulting fee, legal fee and IR expenses associated with the Company's initial public offering and ongoing reporting obligations. Payroll expenses increased to $1.5 million in fiscal year 2025 from $1.1 million in fiscal year 2024 primarily due to additional employees hired in operation and accounting departments. Insurance expenses increased to $1.1 million in fiscal year 2025, compared to $0.2 million for the same period of prior year as a result of increased general insurance of the stores and the purchase of directors and officers liability insurance after initial public offering in fiscal year 2025. Software development fee increased to $0.5 million in fiscal year 2025, compared to $0.3 million for the same period in prior year due to the increasing development fee of Fly E-Bike app and the increasing maintenance fee of Go Fly App. There were settlement payments of $1.0 million in fiscal year 2025 in connection with the settlement payments to UL LLC. Net Income (Loss)

Net loss was $5.3 million in fiscal year 2025, compared to net income of $1.9 million in fiscal year 2024, mainly attributable to the reasons discussed above.

Basic and Diluted Earnings (Losses) per Share

Basic and diluted losses per share were $1.10 in fiscal year 2025, compared to basic and diluted earnings per share of $0.43 in fiscal year 2024.

EBITDA

EBITDA was negative $3.9 million in fiscal year 2025, compared to positive EBITDA of $3.5 million in fiscal year 2024.

Financial Condition

As of March 31, 2025, the Company had cash of $0.8 million, decreased from $1.4 million as of March 31, 2024.

Net cash used in operating activities was $10.1 million in fiscal year 2025, compared to net cash provided by operating activities of $4.3 million in fiscal year 2024.

Net cash used in investing activities was $2.9 million in fiscal year 2025, compared to $3.2 million in fiscal year 2024.

Net cash provided by financing activities was $12.5 million in fiscal year 2025, compared to net cash used in financing activities of $0.05 million in fiscal year 2024.

About Fly-E Group, Inc.

Fly-E Group, Inc. is an electric vehicle company that is principally engaged in designing, installing, selling, and renting smart electric motorcycles, electric bikes and electric under the brand "Fly E-Bike." The Company's commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles, ultimately contributing towards building a more environmentally friendly future. For more information, please visit the Company's website: https://investors.flyebike.com.

Non-GAAP Financial Measures

To supplement the Company's financial information presented in accordance with the generally accepted accounting principles in the United States (the "U.S. GAAP"), management periodically uses certain "non-GAAP financial measures," as such term is defined under the rules of the SEC, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. For example, non-GAAP measures may exclude the impact of certain items such as acquisitions, divestitures, gains, losses and impairments, or items outside of management's control. Management believes that the following non-GAAP financial measure provides investors and analysts useful insight into its financial position and operating performance. Any non-GAAP measure provided should be viewed in addition to, and not as an alternative to, the most directly comparable measure determined in accordance with U.S. GAAP. Further, the calculation of these non-GAAP financial measures may differ from the calculation of similarly titled financial measures presented by other companies and therefore may not be comparable among companies.

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 U.S. GAAP. EBITDA includes adjustments for provision for income taxes, as applicable, interest income and expense, depreciation, and amortization. EBITDA does not represent and should not be considered an alternative to net income as determined by U.S. GAAP, and its calculations thereof may not be comparable to those reported by other companies. The Company believes EBITDA is an important measure of operating performance and provides useful information to investors because it highlights trends in its business that may not otherwise be apparent when relying solely on U.S. GAAP measures and because it eliminates items that have less bearing on its operating performance. EBITDA, as presented herein, is a supplemental measure of its performance that is not required by, or presented in accordance with, U.S. GAAP. The Company uses non-GAAP financial measures as supplements to its U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting its business. EBITDA is a measure of operating performance that is not defined by U.S. GAAP and should not be considered a substitute for net (loss) income as determined in accordance with U.S. GAAP.

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 "SEC"), including the section under "Risk Factors" of its most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the SEC on July 15, 2025. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

For investor and media inquiries, please contact:

Fly-E Group, Inc.

Investor Relations Department

Email: [email protected]

Ascent Investor Relations LLC

Tina Xiao

Phone: +1-646-932-7242

Email: [email protected]

CONSOLIDATED FINANCIAL STATEMENTS

FLY-E GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. dollars, except for the number of shares)

March 31,

2025

March 31,

2024

ASSETS

Current Assets

Cash

$

840,102

$

1,403,514

Accounts receivable

466,187

212,804

Accounts receivable, net - related parties

37,465

326,914

Inventories, net

6,397,274

5,364,060

Prepayments and other receivables

3,676,986

588,660

Prepayments and other receivables - related parties

120,000

240,256

Assets held for sale

2,462,502

-

Total Current Assets

14,000,516

8,136,208

Property and equipment, net

7,287,213

1,755,022

Security deposits

728,450

781,581

Deferred IPO costs

-

502,198

Deferred tax assets, net

94,983

35,199

Operating lease right-of-use assets

10,933,068

16,000,742

Intangible assets, net

525,865

36,384

Long-term prepayment for property

-

450,000

Long-term prepayment for software development- related parties

136,580

1,279,000

Total Assets

$

33,706,675

$

28,976,334

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable

$

1,272,305

$

1,180,796

Short-term loan payables

5,191,058

-

Current portion of long-term loan payables

100,835

1,213,242

Accrued expenses and other payables

1,366,968

925,389

Other payables - related parties

-

92,229

Operating lease liabilities - current

2,617,762

2,852,744

Taxes payable

-

1,530,416

Liabilities held for sale

2,152,447

-

Total Current Liabilities

12,701,375

7,794,816

Long-term loan payables

2,065,040

412,817

Operating lease liabilities - non-current

9,106,928

13,986,879

Total Liabilities

23,873,343

22,194,512

Commitment and Contingencies

Stockholders' Equity

Preferred stock, $0.01 par value, 10,000,000 shares authorized and nil

outstanding as of March 31, 2025 and March 31, 2024*

-

-

Common stock, $0.01 par value, 300,000,000 shares authorized and

4,917,500 shares outstanding as of March 31, 2025 and 100,000,000

shares authorized and 4,400,000 shares outstanding as of March 31,

2024*

49,175

44,000

Additional paid-in capital

10,940,724

2,576,000

Shares subscription receivable

(219,998)

(219,998)

(Accumulated deficit) Retained Earnings

(895,510)

4,395,649

Accumulated other comprehensive loss

(41,059)

(13,829)

Total FLY-E Group, Inc. Stockholders' Equity

9,833,332

6,781,822

Total Liabilities and Stockholders' Equity

$

33,706,675

$

28,976,334

*

Shares and per share data are presented on a retroactive basis to reflect the 1-for-110,000 stock split

completed on April 2, 2024 and the 1-for-5 reverse stock split completed on July 3, 2025.

FLY-E GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE (LOSS) INCOME

(Expressed in U.S. dollars, except for the number of shares)

For the Years Ended

March 31,

2025

2024

Revenues

$

25,427,163

$

32,205,666

Cost of Revenues

14,976,266

19,099,120

Gross Profit

10,450,897

13,106,546

Operating Expenses

Selling Expenses

7,403,374