The company’s shift toward an asset-light model saw its retail presence drop from 20 stores to just four over the past year. CEO Zhou (Andy) Ou attributed the revenue decline to this deliberate contraction and competitive pricing strategies intended to clear existing inventory. These challenges were compounded by softened consumer demand for e-bikes and e-scooters, following widespread concerns regarding lithium-ion battery safety in the New York market.

While retail revenue fell sharply by 84.3%, the firm saw a 46.9% increase in wholesale revenue, totaling $2.1 million. This growth stems from the transition of previously company-owned stores to independent operations. Despite these structural changes, the company’s operating expenses remained flat at $3.8 million, as savings from store closures were offset by rising software development costs and increased credit loss provisions. Fly-E Group ended the quarter with $60,000 in cash, significantly lower than the $0.3 million reported at the end of March 2026.