Fly E’s Financial Report Reveals Sharp Revenue Decline Amid Wholesale Growth

Fly E US3439271095

Fly E released its unaudited financial results for the second quarter and first half of fiscal year 2026, covering the period ending September 30, 2025, on December 18. The figures paint a challenging picture, marked by a significant drop in revenue and a widening net loss. This occurred despite a substantial surge in the company's wholesale operations. Subsequent market commentary pointed to a potential easing of concerns regarding its Nasdaq listing status. The central question for investors is whether the wholesale recovery possesses enough strength to offset broader losses.

The reported data underscores considerable pressure on the company's profitability.

• Reporting Date: December 18, 2025
• Period: Q2 and First Half of FY2026 (Ended September 30, 2025)
• Q2 Revenue: $3.9 million, representing a year-over-year decrease of 42.7%
• Q2 Gross Profit: $1.0 million, down 66.4% from the prior year; Gross Margin fell to 25.0% from 42.6%
• Q2 Net Loss: $1.8 million; Diluted loss per share was $2.18
• First-Half Revenue: $9.2 million (down 37.2% YoY); Net Loss for the six months reached $3.8 million
• Cash Position (as of Sept. 30, 2025): $2.5 million

Management attributed the margin compression to declining average selling prices in its retail segment and shifting customer preferences.

Diverging Segment Performance and Expenses

A breakdown by business unit reveals a stark contrast. Wholesale revenue climbed 91.3% to $1.7 million. In sharp opposition, retail sales collapsed by 65.8%, landing at $2.0 million. The company cited lower per-unit prices and reduced demand, partly influenced by safety incidents involving lithium batteries in e-bikes and e-scooters, as primary reasons for the retail downturn. A newly launched rental service generated $0.2 million in revenue during its inaugural quarter, achieving a gross margin of 79.8%. Overall operating expenses for the quarter were reduced by 51.0%.

Even with the impressive wholesale expansion, its current contribution is insufficient to counterbalance the steep revenue decline and deteriorating margins. The quarter's expanded net loss highlights persistent structural challenges related to pricing and sales volume.

Listing Status and Forward Perspective

Earlier in December, Fly E received a delinquency notice from the Nasdaq stock exchange for filing its Form 10-Q late. However, later reports indicated the stock reacted positively to the quarterly results, with some temporary relief regarding potential delisting risks emerging in the market.

Looking ahead, the sustainability of the wholesale gains and the higher-margin rental business will be critical to monitor. The company will likely need further strategies to stabilize retail pricing. Fly E is expected to publish its next quarterly report (for Q3 FY2026) between March 12 and 23, 2026. Should operational cash requirements increase, the firm may face a need for additional financing, especially with a reported cash balance of just $2.5 million as of the last reporting date.