Fly-E Group Inc. Faces Financial Challenges Amidst Market Shifts

In a recent financial update, Fly-E Group Inc., a prominent player in the electric vehicle (EV) sector, has disclosed its fiscal year 2025 results, revealing a challenging financial landscape. The company, known for its diverse range of smart electric motorcycles, bikes, and scooters, reported a significant downturn in both revenue and profitability.

Financial Performance Overview

For the fiscal year ended March 31, 2025, Fly-E Group reported net revenues of $25.4 million, marking a 21.05% decrease from the $32.2 million recorded in the previous fiscal year. This decline in revenue is reflective of broader market challenges and increased competition within the EV industry. Gross profit also saw a reduction, falling to $10.5 million from $13.1 million in fiscal year 2024. Despite these setbacks, the company managed to improve its gross margin slightly, from 40.7% to 41.1%.

The financial strain was further evidenced by a net loss of $5.3 million for the fiscal year 2025, a stark contrast to the net income of $1.9 million reported in the prior year. This resulted in basic and diluted losses per share of $1.10, compared to earnings per share of $0.43 in fiscal year 2024.

Quarterly Insights

In the most recent quarterly report, Fly-E Group disclosed a loss of $0.70 per share, a significant downturn from the $0.14 per share generated in the same period the previous year. The company’s revenue for the quarter stood at $5.1 million, a 38.19% decrease from the $8.2 million reported in the corresponding quarter of the previous year.

Market Position and Outlook

Despite these financial challenges, Fly-E Group maintains a substantial market presence with approximately 36 stores across the United States and Canada, and a robust online platform. The company’s product portfolio, which includes 25 E-motorcycle products, 28 E-bike products, and 37 E-scooter products, continues to cater to diverse urban travel needs.

Chairman and CEO Mr. Zhou (Andy) Ou acknowledged the difficulties faced in fiscal year 2025, attributing them to market dynamics and operational challenges. However, he remains optimistic about the company’s strategic initiatives aimed at enhancing operational efficiency and expanding market reach.

Investor Considerations

Investors should note the company’s current price-to-earnings ratio of -16.66, reflecting the negative earnings per share. With a market capitalization of $46.8 million and a close price of $4.67 as of July 15, 2025, the stock has experienced significant volatility, with a 52-week high of $33.25 and a low of $1.645.

As Fly-E Group navigates these financial headwinds, the company’s ability to innovate and adapt will be crucial in regaining its footing in the competitive EV market. Investors and stakeholders will be closely monitoring the company’s strategic moves and financial performance in the coming quarters.