Will the expansion increase capital expenditures and affect the company’s cash flow guidance?

Impact on Capex and Cash‑Flow Guidance

The Boston store represents a direct, incremental capital outlay—lease‑hold improvements, fixtures, inventory stocking and local marketing—so it will lift Fly‑E’s near‑term capital‑expenditure line‑item. Given the company’s “expansion” classification and the modest‑sized retail footprint, the added capex is unlikely to be material relative to FY‑2025‑2026 budgets, but it will still be reflected in the quarterly CAPEX roll‑forward. Because the new location is already operational, the incremental cash‑flow hit should be short‑lived; once sales ramp, the store will begin contributing positive operating cash flow that can partially offset the upfront spend. Analysts should therefore expect the management commentary on cash‑flow guidance to be slightly downward‑adjusted for the next quarter (to reflect the build‑out cost) with a quick rebound in the following periods as the Boston market matures.

Trading Implications

On the technical side, FLYE has been trading in a tight range near its 50‑day EMA, with the recent news pushing the price above the short‑term resistance at $9.20 and generating a modest bullish flag on the daily chart. The combination of a positive expansion narrative and an anticipated near‑term capex drag creates a classic “buy the dip” opportunity for risk‑tolerant investors: enter on a pull‑back to the $9.00–$9.10 support zone, target the $10.00 breakout level (the 200‑day EMA), and place a stop just below the $8.80 swing low. For more conservative holders, monitor the upcoming earnings call for any revisions to the cash‑flow outlook; a guidance cut would pressure the stock, while a reaffirmation (or upside revision) would validate the expansion’s quick pay‑off and support a short‑to‑mid‑term rally.