Core Insights - Surf Air Mobility Inc. (SRFM) reported Q1 2025 revenue of $23.5 million, achieving the high end of its guidance range, with adjusted EBITDA of ($14.4) million and adjusted EPS of ($1.09) [1][5] - The company is transitioning from the Transformation Phase to the Optimization Phase, aiming to improve profitability through strategic cost reductions and optimizations, with significant growth expected in the latter half of FY25 [1][5] - SRFM has entered into its first interline agreement with Japan Airlines, which is expected to enhance end-user experience alongside the launch of a new Jet Card [1][5] Financial Performance - Q1 2025 revenue was $23.5 million, aligning with the high end of the guidance range [5] - Adjusted EBITDA for the quarter was reported at ($14.4) million [1] - Adjusted EPS for the quarter was ($1.09) [1] Strategic Developments - The company is focusing on charter profitability, which has led to a decrease in OnDemand services revenue [1] - The interline agreement with Japan Airlines marks a significant milestone for SRFM, indicating a strategic partnership with an international airline [1][5] - The launch of the new Jet Card emphasizes the company's commitment to enhancing the end-user experience [1][5]

Financial Data and Key Metrics Changes - First quarter revenue was $23,500,000, at the high end of the expected range of $21,000,000 to $24,000,000, keeping the company on track to meet the full year expectation of over $100,000,000 in revenue [8][26] - Adjusted EBITDA loss in Q1 was $14,400,000, within the expected range provided in the last earnings release [8][27] - Scheduled service revenue decreased by 23% year over year, primarily due to the elimination of unprofitable routes and a brief interruption of service in January [27] - On-demand service revenue decreased by 25% year over year, driven by lower sales and flight completions [27] Business Line Data and Key Metrics Changes - The Essential Air Service (EAS) Program represents approximately 40% of revenue, with long-term subsidized contracts providing connectivity to underserved domestic markets [21] - The company is focusing on profitability in the on-demand business and has exited several unprofitable charter products [13][27] - The company returned five older aircraft to lessors during Q1, simplifying the fleet to focus on the operationally efficient Cessna Grand Caravan [10] Market Data and Key Metrics Changes - The company operates almost exclusively in the U.S., primarily flying aircraft manufactured domestically, which mitigates the impact of tariffs [4][20] - The current economic environment has benefited the company, particularly with lower fuel costs [22] Company Strategy and Development Direction - The company aims to become a premier regional air mobility platform, focusing on three growth vectors: expansion of air mobility operations, commercial rollout of the regional air mobility software platform, and sale of electrified powertrains for the Cessna Caravan [29] - The company is in late-stage discussions with key partners to advance its electrification initiative [18][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging economic, regulatory, and funding environment but emphasizes proactive management of operations and cost structure [29] - The company expects to achieve positive adjusted EBITDA in airline operations by 2025 [19][28] Other Important Information - The company raised an incremental $5,000,000 in funding subsequent to the end of Q1 [9] - The interline agreement with Japan Airlines allows for expanded access to over 435 million customers [12] Q&A Session Summary Question: Impact of changes to the essential air service budget - Management believes that being a low-cost operator provides a competitive advantage, especially if higher-cost operators face subsidy reductions [33][36] Question: Core versus non-core scheduled and charter flights - Hawaii is identified as a core area, with a focus on profitability and operational efficiency in route selection [37][38] Question: Adding new profitable routes - The company is currently focused on exiting unprofitable routes and plans to enter new tier one routes next year [41] Question: Progress on Surf OS product - The company is integrating feedback from beta users and plans a full commercial rollout of Surf OS in 2026 [44][46] Question: Service interruption details - The service interruption in January was unplanned and related to maintenance issues, which have since been resolved [48] Question: Future partnerships and geographic targets - The company is open to expanding partnerships beyond the U.S., following the successful agreement with Japan Airlines [50]

Financial Data and Key Metrics Changes - First quarter revenue was $23,500,000, at the high end of the expected range of $21,000,000 to $24,000,000, keeping the company on track to meet the full year expectation of over $100,000,000 in revenue [7][25] - Adjusted EBITDA loss in Q1 was $14,400,000, within the expected range provided in the last earnings release [7][26] - Scheduled service revenue decreased by 23% year over year, primarily due to the elimination of unprofitable routes and a brief interruption of service in January [26] - On-demand service revenue decreased by 25% year over year, driven by lower sales and flight completions [26] Business Line Data and Key Metrics Changes - The Essential Air Service (EAS) Program represents approximately 40% of revenue, with the company being the lowest cost provider on routes below 500 miles [5][21] - The company returned five older aircraft to lessors during Q1, focusing on operationally efficient Cessna Grand Caravan [10] - Flight completion factors improved to above 92% in the first six weeks of Q2, with a goal to return to 96% prior to route expansion [12] Market Data and Key Metrics Changes - The company operates almost exclusively in the US, with minimal impact from tariffs due to domestic operations and aircraft manufacturing [4][20] - The current economic environment has benefited the company, particularly with lower fuel costs [22] Company Strategy and Development Direction - The company is focused on three growth vectors: expanding air mobility operations, commercial rollout of the regional air mobility software platform, and marketing electrified powertrains for the Cessna Caravan [28] - The transformation plan includes an optimization phase, with a goal to achieve positive adjusted EBITDA in airline operations in 2025 [19][24] Management's Comments on Operating Environment and Future Outlook - Management noted substantial changes in the economic, regulatory, and political environment, but expressed confidence in the company's competitive advantage as a low-cost provider [4][5] - The company anticipates minimal impacts from potential tariffs and is actively managing operations to improve cost structure and efficiencies [20][28] Other Important Information - The company raised an incremental $5,000,000 in funding after the end of Q1 [8] - An interline agreement with Japan Airlines was announced, expanding access to over 435 million customers [12][48] Q&A Session Summary Question: Thoughts on changes to the essential air service budget - Management acknowledged the potential budget cuts but emphasized their competitive advantage as a low-cost operator [31][34] Question: Discussion on core versus non-core scheduled and charter flights - Management identified Hawaii as a core area and discussed the importance of profitability in route selection [35][36] Question: Plans for adding new profitable routes - Management indicated that while they have targeted drafts to exit, some routes are being held longer than planned due to additional subsidies [38] Question: Service interruption details - Management clarified that the service interruption in January was unplanned and related to maintenance issues [47] Question: Potential for more interline agreements - Management expressed excitement about the Japan Airlines partnership and indicated interest in expanding to other carriers globally [48]

Core Insights - Stonegate Capital Partners has initiated coverage on Surf Air Mobility Inc. (NYSE: SRFM) [1] - Surf Air Mobility reported revenue of $28.0 million, adjusted EBITDA of ($6.9) million, and adjusted EPS of $1.27 for the quarter and full year [1] - The company exceeded both revenue and EBITDA guidance, driven by a 39% increase in On Demand service revenue over 4Q23 and a 28% increase for FY24 compared to FY23 [1][5] - Surf Air Mobility is transitioning from the Transformation Phase to the Optimization Phase, with expectations of improved profitability through strategic cost reductions and optimizations, particularly in the latter half of FY25 [1] Financial Performance - Revenue for the quarter and full year stood at $28.0 million [1] - Adjusted EBITDA was reported at ($6.9) million [1] - Adjusted EPS was $1.27 [1] Growth Indicators - On Demand service revenue increased by 39% compared to 4Q23 and 28% for FY24 compared to FY23 [1][5] - The company signed MOUs with seven customers to upgrade approximately 100 aircraft [5] - In 4Q24, Surf Air Mobility secured a $50.0 million term loan in addition to extending the maturity of its secured debt [5]

Financial Data and Key Metrics Changes - Revenues for Q4 2024 reached $28,050,000, exceeding the upper end of guidance [5][22] - Adjusted EBITDA loss improved by $11,500,000 or 63% to $6,900,000 for Q4 2024 [6][22] - Full year revenue rose by $6,500,000 or 6% year over year to $119,400,000 [6][23] - Full year adjusted EBITDA loss improved by $6,800,000 or 13% to $44,100,000 [6][23] Business Line Data and Key Metrics Changes - Scheduled service revenue decreased by 6% due to the elimination of unprofitable routes [22] - On-demand service revenue increased by 58% driven by higher sales and flight completions [22] - Full year on-demand service revenue increased by 28% primarily due to improved charter sales [23] Market Data and Key Metrics Changes - The company has exited several unprofitable routes, focusing on profitable operations [9][24] - The Essential Air Service (EAS) business is expected to benefit from the FAA Reauthorization Act, enhancing competitive positioning [9] Company Strategy and Development Direction - The transformation plan consists of four phases: transformation, optimization, expansion, and acceleration, with the transformation phase completed in 2024 [7][8] - The company aims for profitable airline operations defined as positive adjusted EBITDA for the full year of 2025 [8][20] - The relocation of the operations center to Dallas, Texas is intended to attract talent and reduce costs [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in airline operations for 2025, driven by process improvements and exiting unprofitable routes [20][25] - The company anticipates achieving at least $100,000,000 in revenue and profitability in airline operations for the full year 2025 [26] - Management highlighted strong momentum entering 2025 with a focus on executing the transformation plan and electrification initiatives [33] Other Important Information - A $50,000,000 term loan was secured in November 2024 to support the transformation plan [5][25] - The company has reduced liabilities by over $42,000,000, exceeding the targeted reduction [25] Q&A Session Summary Question: Does a full year continuing resolution being passed by Congress impact when you can receive new contracts or renewals on the essential air service flights? - Management indicated that the DOT has several awards and bids pending, which could positively impact revenue through higher subsidy rates [34][36] Question: Do you plan to shift more of the fleet's airframes over to flying on-demand flights from scheduled air service? - Management clarified that the current fleet is primarily used for scheduled service, with operators servicing most on-demand business [37] Question: Could you provide additional color on the recently announced SurfOS customers and monetization? - Management stated that the offerings are currently in pre-revenue testing with beta customers [41] Question: Should we assume operating costs will be roughly flat in 2025 compared to 2024? - Management confirmed a focus on reducing operating costs to achieve profitability in airline operations [44] Question: Are you comfortable with the balance sheet to execute this plan and initiate growth strategies in 2025 and 2026? - Management expressed intent to be strategic with capital raises to create shareholder value [45] Question: Any early feedback on the SurfOS beta launch? - Management reported positive early feedback from beta customers regarding the unique offerings of SurfOS [50][51] Question: Is there any runway or cadence for addressing the maintenance backlog? - Management indicated that a substantial amount of the maintenance backlog is expected to be resolved in the first quarter [54]

Core Viewpoint - Surf Air Mobility Inc. is positioned for a significant turnaround due to a revamped management team and transformation of its regional air business, with a Buy rating and a price forecast of $12 from H.C. Wainwright analyst Amit Dayal [1][2]. Company Overview - The company has a unique approach to electric aviation, differentiating itself from eVTOLs, and is strategically focused on consolidating technology and services in the regional air travel industry [2]. - Surf Air Mobility is expected to become a leading player in the U.S. regional air mobility (RAM) market, with improving financials that position its aviation segment for profitability by 2025 [2]. Financial Projections - Revenue projections for Surf Air Mobility include $99.7 million in 2025 and $112 million in 2026 [3]. - The company is expected to announce its fourth-quarter results on March 18, 2025 [4]. Strategic Partnerships - A strategic partnership with Palantir Technologies Inc., which holds a 19.9% stake, is anticipated to help bridge the technology gap in the industry [3]. Market Positioning - The company is leading in electrifying conventional take-off and landing aircraft, positioning itself to sustainably meet the growing demand in the RAM market [3].

Core Insights - Surf Air Mobility Inc. reported a quarterly loss of $0.94 per share, better than the Zacks Consensus Estimate of a loss of $1.05, and a significant improvement from a loss of $6.44 per share a year ago, indicating a 85.4% year-over-year improvement [1] - The company achieved revenues of $28.39 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 8.30% and showing a 29.1% increase from $21.97 million in the same quarter last year [2] - The stock has underperformed significantly, losing about 83.1% since the beginning of the year, while the S&P 500 has gained 25.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.19 on revenues of $32.71 million, and for the current fiscal year, it is -$7.07 on revenues of $121.9 million [7] - The estimate revisions trend for Surf Air Mobility Inc. is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Transportation - Airline industry, to which Surf Air Mobility Inc. belongs, is currently ranked in the top 6% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of industries [8] - Copa Holdings, another company in the same industry, is expected to report quarterly earnings of $3.48 per share, reflecting a year-over-year decline of 20.7%, with revenues anticipated to be $860.34 million, down 0.9% from the previous year [9][10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [Mark One] ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-41759 Surf Air Mobility Inc. (Exact Name of Registrant as Specified in Its Charter) (Primary Stan ...

Surf Air Mobility Inc. (SRFM) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to loss of $3.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -40%. A quarter ago, it was expected that this company would post a loss of $0.19 per share when it actually produced a loss of $0.26, delivering a surprise of -36.84%. Over the last four quarters, the company has ...

N Y S E S R F M Q 2 2 0 2 4 P E R F O R M A N C E Transforming regional flying through electrification SURFAIR SURFAIR MOBILITY Q 2 R E V E N U E $32.4M 1 2 Q 2 A D J U S T E D E B I T D A $(11.8)M Exceeded guidance Exceeded guidance 13.2% YoY growth t O N D E M A N D 18,057 S C H E D U L E D D E P A R T U R E S O N D E M A N D 996 F L I G H T S 17,591 S C H E D U L E D F L I G H T H O U R S H E A D C O U N T 91,738 S C H E D U L E D P A S S E N G E R S 786 E M P L O Y E E S H A W A I I Adjusted EBITDA is a ...