Executive Summary

Q1 FY2025 revenue was $7.87 million (+0.4% YoY), gross margin expanded 470 bps to 39.4%, but higher OpEx (store expansion, IPO-related costs) turned operating income to a small loss and EPS to $(0.01) .
Mix and pricing helped: ASP rose 4.6% to $1,053, offsetting a 7.9% unit decline to 10,300; battery procurement improved sharply (unit cost down ~56% YoY), supporting margins .
No formal guidance was issued; management emphasized retail footprint expansion, rental launch, and app development as growth levers; later quarters (Q2/Q3 FY2025) maintained 40%+ GM but saw softer topline and negative EPS amid elevated OpEx .
Street consensus was unavailable via S&P Global for Q1 FY2025 at time of request; use company-reported figures for performance assessment (see Estimates Context) .

What Went Well and What Went Wrong

What Went Well

Gross margin expanded to 39.4% (+470 bps YoY) on lower battery costs and higher ASPs; EBITDA remained positive at $57k despite OpEx pressure .
Retail channel strength: retail revenue grew 11.4% YoY to $6.9 million, supported by seven new stores added June 2023–June 2024 .
Management execution and pricing: “...increase in our average sales price per EV... continued cooperation with our suppliers... more favorable price... batteries,” underpinning margin resilience .

What Went Wrong

Units declined 7.9% YoY (10,300 vs. 11,188), with softness in e-bikes and batteries as consumers shifted toward e-motorcycles; wholesale revenue fell to $1.0 million from $1.7 million .
OpEx ramp (+61% YoY) from payroll, rent, marketing, professional fees, and development tied to store expansion and IPO readiness drove operating loss of $(45,499) .
Net income swung to a $(0.18) million loss (vs. $0.44 million profit in Q1 FY2024) as higher operating costs and interest expense more than offset gross profit gains .

Financial Results

YoY comparison (Q1 FY2024 → Q1 FY2025)

Metric	Q1 FY2024	Q1 FY2025	YoY Change
Revenue ($USD)	$7,842,346	$7,873,426	+0.4%
Gross Profit ($USD)	$2,722,715	$3,099,634	+13.8%
Gross Margin (%)	34.7%	39.4%	+470 bps
Operating Income ($USD)	$767,544	$(45,499)	−$813,043
Net Income ($USD)	$440,443	$(179,508)	−$619,951
Diluted EPS ($)	$0.02	$(0.01)	−$0.03
EBITDA ($USD)	$820,134	$57,021	−$763,113

Sequential/trend (FY2025 quarterly trajectory; oldest → newest)

Metric	Q1 FY2025	Q2 FY2025	Q3 FY2025
Revenue ($USD)	$7,873,426	$6,824,406	$5,678,010
Gross Profit ($USD)	$3,099,634	$2,904,454	$2,561,070
Gross Margin (%)	39.4%	42.6%	45.1%
Operating Income ($USD)	$(45,499)	$(1,231,059)	$(940,279)
Net Income ($USD)	$(179,508)	$(1,142,848)	$(684,487)
Diluted EPS ($)	$(0.01)	$(0.05)	$(0.03)
EBITDA ($USD)	$57,021	$(1,191,234)	$(804,993)

Segment/Channel Breakdown (Q1 FY2025)

Segment	Q1 FY2024	Q1 FY2025	YoY Change
Retail Revenue ($USD)	$6.2 million	$6.9 million	+11.4%
Wholesale Revenue ($USD)	$1.7 million	$1.0 million	−40.3%

KPIs (Q1 FY2025)

KPI	Q1 FY2024	Q1 FY2025	Notes
Units Sold (Total)	11,188	10,300	Shift toward e-motorcycles
ASP per EV ($)	$1,007	$1,053	+4.6% YoY
Battery Unit Cost ($)	$157	$69	−56% YoY
Cash ($)	$1,403,514 (Mar 31, 2024)	$4,467,868 (Jun 30, 2024)	IPO proceeds drove cash increase
CFO ($)	$820,035 (Q1 FY2024)	$(4,522,164) (Q1 FY2025)	Working capital outflows

Guidance Changes

No formal quantitative guidance was provided for revenue, margins, OpEx, OI&E, or tax rate in Q1 FY2025 materials. Management commentary focused on expansion, rental services, and app development without numeric targets .

Metric	Period	Previous Guidance	Current Guidance	Change
N/A	N/A	N/A	N/A	No formal guidance disclosed

Earnings Call Themes & Trends

Note: The company did not provide an earnings call transcript for Q1 FY2025. We use press releases for Q1, and for trend context we reference Q2 and Q3 FY2025 updates.

Topic	Previous Mentions (Q2 FY2025, Q3 FY2025)	Current Period (Q1 FY2025)	Trend
Safety/Regulatory & Battery Incidents	Management cited NYC lithium-battery incidents impacting demand; emphasized UL-certified offerings and Trade-in program involvement as of Q3 (NYC DOT selecting Fly-11 PRO) .	Launched UL-compliant rental program in NYC; GO FLY app in development; expansion planned to Miami, Toronto, LA .	Heightened focus on safety and regulatory alignment; rental offering and NYC program enhance positioning .
Pricing/Mix & ASP	Q2/Q3: demand headwinds but stable GM >40% supported by product mix; launched new e-motorcycle models; strong expo interest .	ASP up 4.6% YoY; shift toward e-motorcycles; retail channel growth .	Mix supports margin despite volume pressure .
Cost & Margin	Q2/Q3 GM 42.6%/45.1% despite revenue declines; cost control and supplier pricing benefits .	GM expanded to 39.4% on battery cost declines and ASP lift .	Margin trajectory improving through FY2025 despite softer volumes .
Retail Footprint Expansion	Q2/Q3: continuing store operations and presence building (NYC boroughs; events) .	+7 stores added YoY through June 2024; higher rent/payroll reflected in OpEx .	Expansion ongoing; OpEx leverage key to track .
New Businesses (Rental/App)	Q3: rental revenue began ($48,961); app development ongoing .	Rental launched in NYC; GO FLY app under development; plans to scale to new cities .	Early monetization in Q3; ecosystem build progressing .

Management Commentary

“Despite the inflationary pressure and intense competition, we have managed to sustain steady expansion with a gross profit increase of 13.8%... increase in our average sales price per EV... more favorable price... when purchasing batteries... witnessed significant increases in selling and general administrative expenses... necessary to support our continued growth” — CEO Zhou (Andy) Ou .
“In the second quarter... we held a stable gross margin above 40%, even as operating expenses increased with our efforts to add e-bike rental business... expanding into key markets like Miami, Los Angeles and Toronto...” — CEO .
“Our Fly-11 PRO was selected as the official model for [NYC DOT] $2 million [Trade-in] initiative, reinforcing our commitment to safety...” — CEO (Q3 FY2025) .

Q&A Highlights

No earnings call transcript was available for Q1 FY2025; no Q&A to summarize. Strategic updates and clarifications were provided via press releases (retail expansion, rental launch, app development, and safety positioning) .

Estimates Context

Wall Street consensus (S&P Global) for Q1 FY2025 EPS and revenue was unavailable at time of request (SPGI daily limit exceeded). As a result, beat/miss vs. consensus could not be assessed; the analysis relies on company-reported results .
If/when S&P Global estimates become available, key comparison points: revenue $7.87 million and EPS $(0.01); EBITDA $0.06 million; GM 39.4% .

Key Takeaways for Investors

Margin defense through mix and procurement: GM expanded to 39.4% on lower battery input costs and higher ASPs; subsequent quarters further improved margins to >40% despite revenue pressure .
Topline headwinds likely persist near-term: Units declined in Q1 and Q2/Q3 revenue trended lower amid NYC battery safety incidents; wholesale weakness from customer closures adds pressure .
OpEx intensity is the swing factor for profitability: Store expansion, payroll, rent, D&O insurance, and IPO-related professional fees drove losses in Q1–Q3; monitoring OpEx discipline and operating leverage is critical .
Channel strategy pivot: Retail is the growth engine (+11% YoY in Q1) while wholesale faces structural pressure; scaling rental and app ecosystem could diversify revenue and smooth seasonality .
Regulatory/safety positioning as a catalyst: Participation in NYC DOT’s Trade-in program (Fly-11 PRO selected) may drive brand trust and traffic; continued emphasis on UL-certified products aligns with policy trends .
Liquidity improved post-IPO, but cash generation dipped: Cash rose to $4.47 million by Q1 on IPO proceeds, while CFO was $(4.5) million due to working capital; subsequent nine-month cash roughly flat, underscoring need for cash discipline .
Watch narrative into FY2026: If safety initiatives and rental/app execution offset demand headwinds and OpEx normalizes, the path back to positive EBITDA is plausible as seen historically (FY2024 EBITDA $3.5 million) .

Appendix: Additional Data

FY2024 context: Revenue $32.2 million (+47.9% YoY), GM 40.7% (+260 bps), EPS $0.09, EBITDA $3.5 million; provides baseline for profitability potential once OpEx normalizes .
Q2 FY2025 snapshot: Revenue $6.82 million, GM 42.6%, EPS $(0.05), EBITDA $(1.19) million; demand impact from battery incidents and higher OpEx noted .
Q3 FY2025 snapshot: Revenue $5.68 million, GM 45.1%, EPS $(0.03), EBITDA $(0.80) million; rental revenue begins; safety program involvement highlighted .

Fly-E Group, Inc. (FLYE)·Q1 2025 Earnings Summary