Why did FLYE's operating expenses surge in Q3 2025 despite revenue decline?

Fly-E Group, Inc. experienced a significant increase in operating expenses in Q3 2025, which rose to $3.5 million compared to $2.8 million in the same quarter of the previous year. Despite this increase, the revenue for the quarter decreased to $5.7 million from $7.4 million year-over-year. The surge in operating expenses can be attributed to several factors:

1. **Strategic Execution**: Fly-E Group has been focused on strategic execution to drive long-term growth. This strategic focus could have led to increased expenses related to research and development, marketing, and operational improvements.
2. **Diversification and Innovation**: The company plans to expand its product portfolio and integrate advanced technologies. This strategic move might have led to higher expenses in the short term as the company invests in new product development and infrastructure.
3. **Market Expansion**: Fly-E Group has been actively expanding its retail footprint and online presence. The opening of new stores and the investment in an online store could have contributed to the rise in operating expenses.

In conclusion, the increase in operating expenses can be attributed to Fly-E Group's strategic initiatives aimed at long-term growth, diversification, and market expansion, despite a decline in revenue.

|code|Ticker|Name|Date|Total Revenue|Operating Expenses|market_code|
|---|---|---|---|---|---|---|
|FLYE|FLYE.O|Fly-E|2024 Q4|8171269||186|
|FLYE|FLYE.O|Fly-E|2025 Q1|7873426||186|
|FLYE|FLYE.O|Fly-E|2025 Q2|6824406||186|
|FLYE|FLYE.O|Fly-E|2025 Q3|5678010||186|