Exchange: NASDAQ | Sector: Consumer Cyclical | Industry: Auto Manufacturers
Q1 2025
Published: Jun 30, 2024
Earnings Highlights
Revenue of $7.87M up 0.4% year-over-year
EPS of $-0.01 decreased by 143.4% from previous year
Gross margin of 39.4%
Net income of -179.51K
"N/A" -
FlyE Group Inc Common Stock (FLYE) QQ1 2025 Results Analysis — Revenue Modest Uptick Amid Persistent Margin Pressures; EBITDA Positive but Cash Burn Persists; Liquidity Supported by Equity Financing
Executive Summary
FlyE Group’s QQ1 2025 results show a near-flat top-line performance with revenue of USD 7.87 million, up 0.4% year over year, alongside a solid gross margin of 39.4%. However, the company remains unprofitable at the net level, delivering a net loss of USD 0.18 million and a negative operating income of USD 0.045 million. EBITDA was positive at USD 0.86 million, underscoring that non-cash charges and financing costs continue to exert pressure on net earnings. Operating cash flow remained negative at USD -4.52 million, driven largely by working capital dynamics (a USD -5.35 million change in working capital) and ongoing investments in inventory and SG&A programs. Free cash flow was deeply negative at USD -4.99 million, highlighting the ongoing cash burn despite EBITDA efficiency. Financing activity provided a meaningful USD 8.65 million inflow, largely reflecting the company’s equity issuance (common stock issued of USD 9.15 million), which helped lift cash at period end to USD 4.47 million from USD 1.40 million at the start of the quarter. The balance sheet demonstrates a relatively elevated debt load (total debt USD 18.27 million; net debt USD 13.80 million) and a sturdy current ratio (2.25) but a modest cash-to-debt dynamic. Valuation remains elevated (P/S 15.8, P/B 8.2) with negative earnings, signaling high-growth expectations priced into FlyE’s equity. Absent a clear management outlook or guidance in the data, investors should monitor operating margin stabilization, working capital normalization, and the sustainability of equity financing as key catalysts for the stock’s risk-reward trajectory.
Key Performance Indicators
Revenue
7.87M
QoQ: -3.65% | YoY:0.40%
Gross Profit
3.10M
39.37% margin
QoQ: -15.05% | YoY:13.84%
Operating Income
-45.50K
QoQ: -103.75% | YoY:-105.93%
Net Income
-179.51K
QoQ: -126.12% | YoY:-140.76%
EPS
-0.01
QoQ: -128.21% | YoY:-143.41%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 7,873.4; YoY +0.4%, QoQ -3.65%
Gross Profit: 3,099.6; Gross Margin 39.37%
Operating Income: -45.5; Operating Margin -0.58%
EBITDA: 855.1; EBITDA Margin 10.86%
Net Income: -179.5; Net Margin -2.28%
Financial Highlights
Performance snapshot (Q1 2025, USD in thousands except per-share data):
- Revenue: 7,873.4; YoY +0.4%, QoQ -3.65%
- Gross Profit: 3,099.6; Gross Margin 39.37%
- Operating Income: -45.5; Operating Margin -0.58%
- EBITDA: 855.1; EBITDA Margin 10.86%
- Net Income: -179.5; Net Margin -2.28%
- Earnings per Share (EPS): -0.0079; Diluted EPS: -0.0079
- Interest Expense: 68.1; Depreciation & Amortization: 894.0
- Weighted Avg Shares: 22,636.25k
- Cash from Ops: -4,522.2; CapEx: -471.2; Free Cash Flow: -4,993.4
- Cash at End of Period: 4,467.9; Cash at Beg.: 1,403.5
- Total Debt: 18,266.0; Net Debt: 13,798.2
- Total Assets: 41,321.2; Total Liabilities: 26,130.3; Total Equity: 15,190.9
- Current Ratio: 2.25; Quick Ratio: 0.97; Inventory Turnover: 0.60 days of inventory outstanding ~149.1; DSO: 4.8 days
- Valuation indicators (as of QQ1 2025): P/S 15.78; P/B 8.18; P/E negative; EV multiple 161.47
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.87M
0.40%
-3.65%
Gross Profit
3.10M
13.84%
-15.05%
Operating Income
-45.50K
-105.93%
-103.75%
Net Income
-179.51K
-140.76%
-126.12%
EPS
-0.01
-143.41%
-128.21%
Key Financial Ratios
currentRatio
2.25
grossProfitMargin
39.4%
operatingProfitMargin
-0.58%
netProfitMargin
-2.28%
returnOnAssets
-0.43%
returnOnEquity
-1.18%
debtEquityRatio
1.2
operatingCashFlowPerShare
$-0.2
freeCashFlowPerShare
$-0.22
priceToBookRatio
8.18
priceEarningsRatio
-173.07
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the dataset. As a result, management quotes and thematic highlights from the QQ1 2025 earnings call are not available in this analysis. If transcripts become available, we will extract themes around strategy, operations, market conditions, and guidance and re-integrate them with the quantitative results below.
N/A
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N/A
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Forward Guidance
No formal forward guidance is included in the provided data. Given the quarter’s cash burn from operations and the reliance on equity financing to fund liquidity, near-term visibility hinges on: 1) demand acceleration in FlyE’s smart e-mobility products (ebikes, escooters, and related accessories), 2) better working capital management (reducing days inventory outstanding and days payable outstanding while maintaining revenue momentum), and 3) additional financing options to deleverage and support capex. Investors should monitor any management commentary on revenue trajectory, unit economics, cost discipline, and potential partnerships or licensing deals that could meaningfully improve EBITDA and cash flow. Key factors to watch: gross margin stability around mid- to high-30s, SG&A as a percentage of sales normalization, slower cash burn, and any reduction in debt load or dilution risk from future equity raises.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
FLYE Focus
39.37%
-0.58%
-1.18%
-173.07%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ1 2025 results present a mixed-to-challenging investment backdrop. The company generated EBITDA of USD 0.86M on USD 7.87M revenue, but net profitability remains elusive, driven by depreciation, interest, and SG&A costs, alongside heavy working capital needs. The liquidity position is supported by a USD 9.15M equity infusion, but ongoing negative operating cash flow and a sizable debt load imply that near-term profitability hinges on improving unit economics and converting more of EBITDA into free cash flow. Absent explicit guidance, investors should adopt a cautious stance, focusing on: (1) stabilization of gross margin and reduction of SG&A as a percentage of revenue, (2) reduction of working capital intensity (especially inventory), (3) signs of operating leverage as revenue scales, and (4) the resilience of equity financing or alternative financing to sustain liquidity. In terms of market positioning, FlyE operates in a nascent but growing niche with favorable secular trends toward micro-mobility; the stock remains highly sensitive to funding conditions and execution on expansion and cost control. Given the lack of peers in the dataset and elevated valuation metrics, a wait-and-see approach with focus on tangible improvements in cash flow and debt leverage is prudent until management provides clearer forward guidance or a credible path to sustained profitability.
Key Investment Factors
Growth Potential
Long-run growth potential driven by secular adoption of micro-mobility and FlyE’s integrated FlyEBike ecosystem (motorcycles, e-bikes, scooters, and accessories) in the US/Canada. Potential catalysts include scale-driven improvements in gross margins, expanded retail footprint, and monetization of spare parts and upgrade components. High growth expectations are already priced into the equity (P/S ~15.8; P/B ~8.2), so near-term upside requires a path to sustained profitability and cash flow improvement.
Profitability Risk
Key risks include continued negative net income and cash burn, leverage constraints from total debt (USD 18.27M) and a high working capital requirement (inventory-heavy) leading to volatile free cash flow. The company’s reliance on equity financing to fund operations introduces dilution risk. Competitive pressure in micro-mobility, potential supply chain volatility, and regulatory or safety-related constraints could impact unit economics and sales growth.
Financial Position
Balance sheet shows a solid current ratio (2.25) but an elevated debt load (net debt ~ USD 13.80M) with ongoing negative free cash flow. Cash balance improved to USD 4.47M at quarter end due to equity issuance (common stock issued USD 9.15M) but operating cash flow remained negative. Equity base stands at USD 15.19M with intangible assets minimal; valuation multiples are elevated relative to earnings, implying a reliance on future profitability and cash flow recovery to justify current pricing.
SWOT Analysis
Strengths
Diversified FlyEBike ecosystem (electric motorcycles, e-bikes, scooters, accessories) with potential for cross-sell and aftermarket revenue.
Positive EBITDA output in QQ1 2025 (USD 0.86M) indicating some degree of unit economics resilience despite net losses.
Healthy liquidity signal on the balance sheet in the near term due to equity financing (cash ended USD 4.47M and stock issuance of USD 9.15M).
Strong current ratio (2.25) suggesting ability to cover short-term obligations.
Weaknesses
Net loss of USD 0.18M and negative operating income (USD -0.046M) for QQ1 2025; persistent profitability challenge.
Significant cash burn from operations (USD -4.52M) and negative free cash flow (USD -4.99M).
High working capital intensity (inventory days ~149) and modest cash conversion cycle (~146 days), tying up capital.
Elevated debt load (USD 18.27M total debt) with limited immediate debt reduction and reliance on equity financing.
Opportunities
Expansion opportunities in the North American market with increased retail presence and potential partnerships within the micro-mobility space.
Optimization of product mix and cost structure to improve gross margins from the 39.4% level toward mid-40s.
Growth in accessories and upgrade components revenue streams to bolster margins and drive recurring revenue.
Potential economies of scale from manufacturing and supply chain optimization as FlyE scales.
Threats
Intense competition in micro-mobility and alternative transportation modes with potential price and margin pressure.
Regulatory changes, safety standards, and import/export dynamics affecting inventory costs and go-to-market timing.
Macro headwinds and equity market conditions that could constrain ability to raise funds without diluting existing holders.
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