Volato(SOAR) - 2025 Q1 - Quarterly Results

Overview of Q1 2025 Performance Volato achieved profitability in Q1 2025 with $0.5 million net income on $25.5 million revenue, significantly reducing liabilities by over $20 million Key Financial Metrics | Metric | Q1 2025 | | :--- | :--- | | Revenue | $25.5 million | | Net Income | $0.5 million | | Diluted EPS | $0.03 | - Total liabilities were significantly reduced by over $20 million, declining from $62.6 million at the end of 2024 to $39.2 million as of March 31, 2025[2] - The CEO, Matt Liotta, stated that the Q1 results, including profitability and major liability reductions, are signals that the company's strategy is working effectively[3] Capital Structure and Runway Extension Strategy Volato is extending its operating runway by raising $8.0 million in equity and managing convertible debt, with $4.5 million drawn from a $36.0 million facility - The company plans to raise approximately $8.0 million in outside capital to address short-term liabilities and secure a 12-month operating runway[3] - As of March 31, 2025, Volato had drawn $4.5 million from its $36.0 million convertible debt facility, with the drawn amount expected to convert to equity in Q2 2025[4] - The CFO, Mark Heinen, emphasized a focus on tight cash management and operational discipline to position the company for long-term financial sustainability[4] First Quarter 2025 Financial Highlights Q1 2025 saw a significant financial turnaround with $0.5 million net income and $2.7 million positive EBITDA, driven by $25.5 million revenue and $23.4 million liability reduction Q1 2025 Financial Performance Summary | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $25.5 million | N/A | - | | Gross Profit | $4.5 million | N/A | - | | Net Income (Loss) | $0.5 million | $(17.4) million | Positive Turnaround | | Net Income (Loss) per Diluted Share | $0.03 | $(14.93) | Positive Turnaround | | EBITDA | $2.7 million | $(4.2) million | Positive Turnaround | | Total Liabilities Reduction (QoQ) | $23.4 million | N/A | - | Outlook and Operational Momentum Volato anticipates profitability in Q2 and Q4 2025, with Vaunt achieving full-year profitability, supported by the recent delivery of a third Gulfstream G280 aircraft - The company projects profitability for Q2 and Q4 of 2025, with an expected loss in Q3 due to aircraft delivery timing[5] - The Vaunt platform is currently operating at breakeven and is anticipated to achieve full-year profitability in 2025[5][11] - In April, Volato received its third Gulfstream G280 aircraft, which is expected to support Q2 revenue, margin, and near-term profitability[6] Non-GAAP Financial Measures: EBITDA Reconciliation This section reconciles non-GAAP EBITDA to GAAP net income, showing Q1 2025 EBITDA of $2.7 million, a significant improvement from a $4.2 million loss in Q1 2024 EBITDA Reconciliation to Net Income (Loss) | Reconciliation Item (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $455 | $(17,390) | | Net income (loss) from discontinued operations, net of taxes | (95) | 11,689 | | Interest expense, net | 2,400 | 1,138 | | Provision for income tax expense | 98 | 6 | | Loss from change in fair value of financial instruments | 849 | 227 | | Depreciation and amortization | 85 | 65 | | Equity-based compensation expense | 46 | 83 | | Other income, net | (1,181) | (4) | | EBITDA | $2,657 | $(4,186) |