Executive Summary
FlyE Group reported a challenging QQ1 2026, with revenue of $5.33 million and a gross margin of 42.4% but meaningful profitability headwinds. The company posted a net loss of $2.01 million and an EPS of -$1.50 for the quarter, driven by elevated operating expenses and negative operating leverage. Cash flow remained deeply negative, with operating cash flow of -$5.28 million and negative free cash flow of -$5.43 million, while the balance sheet shows a levered position with total debt of $17.996 million against $13.704 million of equity and a cash balance of $2.334 million at period-end. The resulting net debt stood at roughly $15.66 million. These dynamics imply liquidity risk in the near term absent improvements in revenue trajectory, gross margin expansion, or a meaningful reduction in cash burn.
Key Performance Indicators
QoQ: -6.16% | YoY:-34.79%
QoQ: -11.70% | YoY:-38.03%
QoQ: -60.03% | YoY:-223.91%
QoQ: -193.45% | YoY:-392.24%
QoQ: -4 900.00% | YoY:-5 457.14%
Key Insights
Revenue declined YoY by approximately 34.8% and QoQ by about 6.2%, from the prior period, underscoring weaker demand or mix challenges in FlyE’s core mobility offerings. Gross profit fell 38.0% YoY and 11.7% QoQ, reflecting pressure on cost of goods sold and product mix despite a relatively healthy gross margin basis of 42.4%. Operating income deteriorated by 223.9% YoY and 60.0% QoQ, signaling significant fixed-cost leverage and higher operating expenses relative to revenue. Net income declin...
Financial Highlights
Revenue declined YoY by approximately 34.8% and QoQ by about 6.2%, from the prior period, underscoring weaker demand or mix challenges in FlyE’s core mobility offerings. Gross profit fell 38.0% YoY and 11.7% QoQ, reflecting pressure on cost of goods sold and product mix despite a relatively healthy gross margin basis of 42.4%. Operating income deteriorated by 223.9% YoY and 60.0% QoQ, signaling significant fixed-cost leverage and higher operating expenses relative to revenue. Net income declined 392.2% YoY and 193.5% QoQ, resulting in a loss per share of -$1.50. EBITDA was negative at -$0.44 million, with an EBITDARatio of -0.083. Management commentary (where available) typically emphasizes cash burn reduction and strategic positioning; however, explicit forward guidance was not disclosed in the provided materials. The company carries a substantial debt load ($17.996 million total debt; long-term debt of $9.31 million and short-term debt of $8.69 million) and a negative free cash flow profile, highlighting liquidity risk unless operating performance improves.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.33M |
-34.79% |
-6.16% |
| Gross Profit |
2.26M |
-38.03% |
-11.70% |
| Operating Income |
-1.50M |
-223.91% |
-60.03% |
| Net Income |
-2.01M |
-392.24% |
-193.45% |
| EPS |
-1.50 |
-5 457.14% |
-4 900.00% |
Management Commentary
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Forward Guidance
There is no explicit forward-looking guidance in the provided materials. Given the QQ1 2026 results, the near-term trajectory for FlyE will likely hinge on three levers: (1) revenue growth and mix optimization in FlyE’s smart mobility portfolio (emobility devices, ebikes, escooters) to drive higher gross profit contribution; (2) operating expense discipline to reduce fixed-cost burn and improve operating leverage; and (3) working capital management and cash flow optimization to stabilize liquidity. An achievable near-term scenario would entail a modest Gross Margin expansion coupled with a reduction in cash burn if management executes cost controls and scales higher-margin products. Key factors investors should monitor include quarterly revenue progression, changes in gross margin, working capital dynamics, capex trajectory, and any refinancings or debt maturities.