Blade(BLDE) - 2025 Q2 - Quarterly Results

Financial Performance - Total revenue increased 4.2% to $70.8 million in Q2 2025 compared to $67.9 million in Q2 2024, driven by growth in the Medical segment[11] - Medical revenue rose 17.6% year-over-year to $45.1 million in Q2 2025, up from $38.3 million in Q2 2024[11] - Net loss improved by $7.6 million to $(3.7) million in Q2 2025, compared to $(11.3) million in Q2 2024[6] - Adjusted EBITDA increased by $2.2 million year-over-year to $3.2 million in Q2 2025, up from $1.0 million in Q2 2024[11] - Revenue for Q2 2025 was $70,801,000, representing a 2.5% increase from $67,945,000 in Q2 2024[29] - The company reported a net loss of $3.743 million for Q2 2025, an improvement from a net loss of $11.326 million in Q2 2024[32] - Adjusted EBITDA for Q2 2025 was $3.190 million, compared to $958,000 in Q2 2024, reflecting a significant improvement[38] - Free Cash Flow for Q2 2025 was $(5,728) million, compared to $(8,479) million in Q2 2024, indicating an improvement in cash management[53] Operational Metrics - Flight Profit increased 8.5% to $17.7 million in Q2 2025, compared to $16.4 million in Q2 2024[11] - Flight Margin improved to 25.1% in Q2 2025 from 24.1% in Q2 2024[11] - Total operating expenses for Q2 2025 were $75,755 million, down from $80,094 million in Q2 2024, with SG&A expenses at $22,691 million, a decrease from $28,503 million[49] - The number of seats flown in Q2 2025 was 22,730, down from 27,391 in Q2 2024, indicating a reduction in operational capacity[42] - Total flight profit for Q2 2025 was $17.737 million, compared to $16.354 million in Q2 2024, showing an increase in profitability[38] Cash and Investments - Cash and short-term investments at the end of Q2 2025 totaled $113.4 million[11] - Cash and cash equivalents rose significantly to $58,754,000 from $18,378,000[27] - Cash and cash equivalents at the end of Q2 2025 were $60.318 million, up from $28.366 million at the end of Q2 2024[32] - The company provided $28.680 million in net cash from investing activities in Q2 2025, a significant increase compared to a net cash outflow of $16.908 million in Q2 2024[32] Business Developments - Blade announced the sale of its Passenger division to Joby Aviation for up to $125 million, with the Medical division rebranding as Strata Critical Medical[6] - The divestiture is expected to be neutral to Adjusted EBITDA and Free Cash Flow on a go-forward basis, supported by approximately $7 million in estimated corporate cost efficiencies[8] - The company reaffirmed its 2025 revenue guidance of $245-265 million, with expectations of double-digit Adjusted EBITDA[17] - The company discontinued operations in Canada on August 31, 2024, impacting revenue comparisons[25] Risks and Challenges - Blade is facing known and unknown risks that could cause actual results to differ materially from forward-looking statements[59] - Significant losses continue to be incurred, and there is uncertainty regarding market growth for offerings[59] - The ability to effectively market air transportation as a substitute for conventional methods remains a challenge[60] - Blade's future success depends on entering new markets and launching new routes and services[60] - The company is exposed to competition and potential harm to its reputation and brand[60] - There are risks associated with international expansion, including increased costs and challenges[60] - Blade relies on third-party operators, which introduces risks related to their operations and insurance coverage[60] - The company must manage growth effectively and maintain internal controls over financial reporting[60] - New risks and uncertainties may arise, making it difficult to predict their impact on the company[60]