FLYE earnings analysis
What we found in FLYE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
The quarter showed a sequential revenue and free-cash-flow rebound, but revenue remained down 48.4% year over year, gross margin fell to 5.2%, and the company recorded a $3.9 million net loss. Liquidity is highly constrained, with only approximately $60,281 of cash and a $3.91 million credit-facility balance past its June 30, 2026 repayment deadline. Ongoing control weaknesses, Nasdaq filing-compliance risk, litigation, and the unresolved credit-facility default materially outweigh the sequential improvement.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue rebounded sequentially but fell sharply YoY
- Revenue was approximately $7.177 million, up from approximately $3 million in the prior quarter, but down 48.4% from the prior-year period. Retail revenue declined 84.3% year over year.
- Gross margin deteriorated to 5.2%
- Gross margin was 5.2%, down from 39.6% in the prior quarter and 25.0% in the immediately preceding quarter, indicating substantial margin pressure.
- Operating losses and EPS remain negative
- Operating margin was negative 32.4%, improving from negative 58.8% in the prior quarter but remaining deeply negative. Diluted EPS was negative $2.24 versus negative $1.18 in the prior quarter.
- Liquidity remains extremely constrained
- Cash was approximately $60,281 and working capital was approximately $8.1 million as of June 30, 2026. The company reported a net loss of approximately $3.9 million for the quarter.
- Free cash flow improved sequentially
- Free cash flow was approximately positive $2 million in the current quarter, compared with approximately negative $8 million in the prior quarter and negative $5 million in the first quarter of fiscal 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Credit facility default threatens assets
- The company had approximately $3,910,018 outstanding under its $5 million credit facility as of June 30, 2026. The repayment deadline expired June 30, 2026, the facility bears interest at 12.875%, and it is secured by substantially all company assets; the lender reserved rights to pursue acceleration and foreclosure.
- Material weaknesses remain unresolved
- Disclosure controls were ineffective as of June 30, 2026, due to insufficient accounting personnel, missing formal internal-control policies, and inadequate IT general controls. Management stated the material weaknesses had not been fully remediated as of June 30, 2026.
- Nasdaq compliance and delisting risk
- On September 1, 2026, Nasdaq notified the company of noncompliance with Listing Rule 5250(c)(1) for failing to timely file the quarterly report. Although the company filed the Form 10-Q on September 1, 2026, delisting remains possible if continued-listing requirements are not maintained.
- Multiple unresolved litigation matters
- The federal securities class action seeks monetary damages certified to exceed $150,000, and an amended complaint was filed May 22, 2026. The company also faces consolidated derivative litigation and stated that outcomes cannot currently be determined with certainty.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-2.24
- Gross margin
- 5.2%
- Operating margin
- -32.4%
- Segment
- Retail revenue decreased 84.3% year over year; the company reduced its store count from 36 to 4 since mid-2024.
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the filing; outlook was deferred to other company communications, if any.
The filing reads worse than the one before it.
What came before.
- 10-K · July 23, 2026
- Fly-E Group’s FY2026 results show a sharp contraction in its legacy retail business and a transition toward wholesale, rentals and a substantially smaller store footprint. Revenue declined 25.0% to $19.1 million, gross…
- 10-Q · April 21, 2026
- Fly‑E Group reported quarterly revenue of $2,649,141 and a GAAP net loss of $1,923,440 (loss per share $1.18) for the three months ended December 31, 2025. Liquidity improved via equity financings (net proceeds…
- 10-Q · December 18, 2025
- Fly-E Group reported Q2 revenue of $3,908,862 and a loss per share of $(2.18). Revenue and gross profit declined materially versus the prior year (revenue down from $6,824,406; gross profit down from $2,904,454), while…
- 10-K · July 15, 2025
- Fly-E Group positions itself as an early entrant and a leading provider of e-bikes for food delivery workers in New York City with 20 retail locations and a product portfolio of 101 SKUs across e-motorcycles, e-bikes…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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