Fleet and Operations - As of March 31, 2025, the company had over 100 aircraft in its owned and leased fleet, including light, midsize, super-midsize, and large jets[243]. - The company began fleet modernization in Q4 2023, planning to sell older aircraft and replace them with newer models to enhance availability and efficiency[258]. - Aircraft contributing to revenues decreased to 80 in Q1 2025 from 86 in Q1 2024, indicating a 6.9% decline[271]. - Ending aircraft on certificate was 96 in Q1 2025, down from 100 in Q1 2024, reflecting a 4.0% reduction[271]. Revenue Generation - The jet club membership program generates revenue through flight operations and membership fees, with new members paying a deposit ranging from $0.1 million to $0.5 million[245]. - The fractional ownership program allows members to purchase a fractional interest in an aircraft for up to five years, with revenue generated from daily and hourly flight rates[246]. - Jet club and charter revenue rose by $2,574 thousand, or 3.5%, to $76,998 thousand in Q1 2025, with flight hours increasing by 0.4% and effective hourly rates up by 3.0%[299]. - Members contributing to revenues grew to 1,023 in Q1 2025, up from 791 in Q1 2024, representing a 29.3% increase[271]. - Fractional ownership revenue increased by $4.5 million for the three months ended March 31, 2025, compared to the same period in 2024, driven by fractional membership growth[300]. - Aircraft management services revenue rose by $0.8 million, or 100%, for the three months ended March 31, 2025, due to new services provided under the Volato Agreement[301]. Financial Performance - Adjusted EBITDA for Q1 2025 was $(6,356) thousand, an improvement from $(19,440) thousand in Q1 2024, reflecting a reduction in net loss by 67.3%[268]. - Total revenue for Q1 2025 increased by $8,153 thousand, or 10.2%, to $88,125 thousand compared to $79,972 thousand in Q1 2024[297]. - The company reported a net loss of $(23,047) thousand for Q1 2025, a decrease of 30.1% from $(32,990) thousand in Q1 2024[297]. - Total costs and expenses decreased by $4,536 thousand, or 4.2%, to $102,861 thousand in Q1 2025 compared to $107,397 thousand in Q1 2024[297]. Cash Flow and Financing - For the three months ended March 31, 2025, net cash used in operating activities was $10.5 million, compared to $26.0 million for the same period in 2024[344][345]. - Net cash provided by investing activities for the three months ended March 31, 2025 was $66.1 million, primarily from the sale of investments totaling $72.3 million[347]. - Net cash used in financing activities for the three months ended March 31, 2025 was $72.6 million, mainly due to debt repayment of $67.0 million[349]. - The company anticipates cash expenditures of approximately $125.8 million over the next 12 months, including accounts payable of $23.6 million and lease payments of $22.1 million[341]. - The company entered into a senior secured note in January 2024 to borrow up to $25.8 million, with a maturity date of January 26, 2026[329]. - The company issued $25 million of Series A Non-Convertible Redeemable Preferred Stock in March 2024, providing significant capital[333]. - The company issued a total of 25,510 shares of Series B Convertible Preferred Stock, raising approximately $25.5 million in gross proceeds[336]. Agreements and Partnerships - The company entered into an Aircraft Management Services Agreement with Volato Group, which includes a twelve-month term and the potential for a merger[249][251]. - The termination of the agreement with Wheels Up on June 30, 2023, resulted in a significant impact on revenue, with $15.7 million in receivables eliminated[256]. Accounting and Compliance - The company reported non-GAAP financial measures to provide supplemental information about its financial performance, which may not be directly comparable to other companies[264]. - The company has elected to use the extended transition period for complying with new accounting standards as an "emerging growth company" under the JOBS Act[364]. - The company is not required to provide an auditor's attestation report on internal control over financial reporting due to its status as an "emerging growth company"[365]. - The company may remain an "emerging growth company" until the end of the fiscal year following the fifth anniversary of its IPO, unless certain revenue or debt thresholds are met[365]. Market Risks - The principal market risks for the company are related to interest rates and aircraft fuel costs, with no material changes reported since the last annual report[367].
flyExclusive(FLYX) - 2025 Q1 - Quarterly Report