FLY E Group Battles UL Lawsuit and Reverse Split Amid 32% Q2 Revenue Slump
By ATTN Desk · Editorial oversight: Sean Han
Introduction to FLY E GROUP INC
FLY E GROUP INC, traded on the Nasdaq under the ticker FLYE, designs, installs, and sells electric motorcycles, bicycles, scooters, and related accessories under the Fly E-Bike brand. Founded in 2018 and headquartered in Flushing, New York, the company serves customers in the United States, Mexico, and Canada, with a focus on food-delivery workers and urban commuters seeking mobility solutions.
Corporate Structure
As of mid-2025, FLY E GROUP INC employs between 51 and 200 people across its Flushing headquarters, retail outlets, and distribution network. The company operates through several subsidiaries—Fly E-Bike, FlyBwy, and FlyCycle—and maintains relationships with third-party distributors and a transfer agent, VStock Transfer, LLC. Its governance includes an Investor Relations department reachable at .
Electric motorcycles by Harley-Davidson
Developments and News
- March 13, 2025 – UL Solutions Inc. filed a lawsuit against FLY E GROUP INC alleging unauthorized use of the UL Mark on its electric mobility products. The complaint seeks injunctive relief, statutory, and punitive damages.
- July 2, 2025 – The company announced a 1-for-5 reverse stock split, effective July 7, 2025, reducing outstanding shares from approximately 53.2 million to 10.6 million. The split adjusted warrants and incentive plans but preserved par value.
- August 14, 2025 – FLY E GROUP INC filed an NT 10-Q notifying investors of a delayed Form 10-Q, citing the need to finalize financial statements.
- August 19, 2025 – The company filed its Quarterly Report on Form 10-Q, reporting a 32.3% year-over-year revenue decline to $5.3 million, with unit sales down to 10,448 in the quarter ended June 30, 2025.
Financial and Strategic Analysis
On August 21, 2025, FLYE closed at $0.7640, up 26.28% for the day on a volume of approximately 4.99 million shares. Key metrics from Yahoo Finance include:
| Metric | Value |
|---|---|
| Market Capitalization (intraday) | $11.20 million |
| Price/Sales (TTM) | 0.15 |
| Price/Book (MRQ) | 1.47 |
| Profit Margin (TTM) | –20.81% |
| Return on Assets (TTM) | –9.09% |
| Return on Equity (TTM) | –63.69% |
| Revenue (TTM) | $25.43 million |
| Net Income (TTM) | –$5.29 million |
The reverse stock split was intended to help maintain compliance with Nasdaq listing requirements. The ongoing lawsuit and declining revenues highlight operational and reputational challenges.
Market Position and Industry Context
FLY E GROUP INC competes in the electric mobility market, supplying e-bikes, e-scooters, e-mopeds, and electric motorcycles primarily for last-mile delivery and urban transport. Its Fly E-Bike brand differentiates through a range of accessories and after-sales maintenance services. The sector is subject to regulatory scrutiny regarding safety standards, supply chain pressures for battery components, and competition from established automotive and startup firms.
tl;dr
A lawsuit filed by UL Solutions on March 13, 2025, and a 1-for-5 reverse stock split effective July 7, 2025, are notable recent developments for the company. Q2 2025 revenues fell 32.3% to $5.3 million, with unit sales at 10,448. The delayed Form 10-Q was filed on August 19, 2025. Trading at $0.7640 on August 21, 2025, with a market cap of $11.2 million, FLYE faces legal, regulatory, and operational challenges while pursuing compliance with Nasdaq requirements and adapting its strategy in the electric mobility market.