Fly-E (NASDAQ:FLYE) reported its unaudited financial results for the second quarter (Q2) and first half (H1) of fiscal year 2026, showing a significant year-over-year decline in revenues, with Q2 net revenues dropping 42.7% to $3.9 million.
The company faced challenges in its retail segment, where lower unit prices and store closures weighed heavily on performance, while wholesale revenue saw a robust increase of 91.3%, reaching $1.7 million.
Despite these challenges, Fly-E was able to generate a gross profit of $1 million for Q2, yielding a gross margin of 25%.
However, the company reported a net loss of $1.8 million for the quarter, with a basic and diluted loss per share of $2.18.
Fly-E's operating expenses for the quarter were reduced by 51%, as the company focused on cost control amid the revenue decline.
In terms of strategic growth, Fly-E began generating rental revenue in Q2, reporting a 79.8% gross margin from this new stream.
While rental revenue remains in its early stages, this marks a promising development for the company as it diversifies its revenue base.
For the first half of fiscal 2026, Fly-E's total net revenues were $9.2 million, a decline of 37.2% compared to the previous year.
The company’s net loss for the first half amounted to $3.8 million.
As of September 30, 2025, Fly-E's cash position stood at $2.5 million.