Wheels Up Experience (UP) - 2025 Q2 - Quarterly Results

Wheels Up Second Quarter 2025 Results Wheels Up reports its second quarter 2025 results, highlighting improved profitability and strategic advancements despite a slight revenue decline Financial & Operational Highlights Wheels Up reported a 3% revenue decline to $189.6 million in Q2 2025, but achieved significant profitability improvements with gross profit turning positive and net loss narrowing by 15% Q2 2025 Key Financial Metrics (YoY, in millions) | Metric | Q2 2025 | Q2 2024 | YoY Change | YoY % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $189.6M | $196.3M | -$6.6M | -3% | | Gross Profit (Loss) | $2.2M | ($11.0M) | +$13.2M | n/m | | Adjusted Contribution | $23.1M | $15.3M | +$7.8M | +51% | | Adjusted Contribution Margin | 12.2% | 7.8% | +4.4 pp | n/a | | Net Loss | ($82.3M) | ($97.0M) | +$14.7M | +15% | | Adjusted EBITDA Loss | ($29.0M) | ($37.4M) | +$8.3M | +22% | Q2 2025 Key Operating Metrics (YoY) | Metric | Q2 2025 | Q2 2024 | YoY % Change | | :--- | :--- | :--- | :--- | | Total Gross Bookings (in millions) | $261.9M | $265.3M | -1% | | Live Flight Legs | 11,971 | 12,855 | -7% | | Private Jet Gross Bookings per Live Flight Leg | $17,403 | $16,868 | +3% | | Utility | 41.1 | 37.4 | +10% | Business Highlights & Strategic Initiatives The company advances strategic initiatives including fleet modernization and Delta partnership, driving improved profitability and productivity, with a new program targeting $50 million in annual cost savings - The company's focus on more profitable flying and fleet modernization has led to a ~$13 million YoY improvement in gross profit and a 4 percentage point increase in Adjusted Contribution Margin to 12.2%, achieved with 33 fewer active aircraft[8] - Progress on fleet modernization continues, with premium Phenom and Challenger jets now comprising about 20% of the controlled fleet, and 31 legacy aircraft retired or sold in H1 2025[8] - The strategic partnership with Delta is showing strong results, with corporate membership fund sales increasing by over 25% year-over-year in Q2[10] - Wheels Up is implementing initiatives expected to generate approximately $50 million in annual cash cost savings through efficiency and productivity improvements, with full impact anticipated by H2 2026[10] Consolidated Financial Statements The consolidated financial statements show a narrowed net loss for Q2 and H1 2025, with total assets decreasing to $1.01 billion and cash at $107.0 million as of June 30, 2025 Statements of Operations (Income Statement) Q2 2025 revenue decreased 3% to $189.6 million, with net loss improving 15% to $82.3 million, while H1 revenue fell 7% to $367.2 million with a 7% net loss improvement Q2 2025 Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $189,637 | $196,285 | -3% | | Cost of revenue | $173,955 | $191,690 | -9% | | Total costs and expenses | $249,237 | $275,339 | -9% | | Loss from operations | ($59,600) | ($79,054) | +25% | | Net loss | ($82,299) | ($96,973) | +15% | | Net loss per share | ($0.12) | ($0.14) | +14% | H1 2025 Statement of Operations Highlights (in thousands) | Line Item | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $367,167 | $393,386 | -7% | | Cost of revenue | $332,379 | $389,950 | -15% | | Total costs and expenses | $507,533 | $556,988 | -9% | | Loss from operations | ($140,366) | ($163,602) | +14% | | Net loss | ($181,612) | ($194,366) | +7% | | Net loss per share | ($0.26) | ($0.28) | +7% | Balance Sheets As of June 30, 2025, total assets were $1.01 billion, cash and cash equivalents $107.0 million, total liabilities $1.35 billion, and total equity a deficit of $347.8 million Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $107,000 | $216,426 | | Total current assets | $233,671 | $332,069 | | Total assets | $1,005,726 | $1,158,011 | | Deferred revenue, current | $727,099 | $749,432 | | Total liabilities | $1,353,477 | $1,354,239 | | Total equity | ($347,751) | ($202,109) | Statements of Cash Flows Net cash used in operating activities for H1 2025 increased to $110.8 million, with a net decrease in cash, cash equivalents, and restricted cash of $105.2 million Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($110,804) | ($98,956) | | Net cash provided by investing activities | $19,914 | $24,093 | | Net cash used in financing activities | ($17,560) | ($41,396) | | Net decrease in cash | ($105,226) | ($117,434) | Definitions and Reconciliations This section defines key operating metrics and non-GAAP financial measures, including Adjusted EBITDA and Adjusted Contribution, providing detailed reconciliations to comparable GAAP figures Definitions of Key Metrics and Non-GAAP Measures Key operating metrics like Total Gross Bookings and Utility, alongside non-GAAP measures such as Adjusted EBITDA and Adjusted Contribution, are defined to assess performance and efficiency - Key Operating Metrics: - Total Gross Bookings: Total gross spend by customers on all private jet, group charter, and cargo flight services[28][32] - Live Flight Legs: Number of completed one-way revenue-generating private jet flights[28][32] - Utility: Monthly average revenue-generating flight hours per available aircraft in the controlled fleet[34] - Non-GAAP Financial Measures: - Adjusted EBITDA: Net loss adjusted for interest, taxes, depreciation, amortization, equity-based compensation, and other non-operating items[38] - Adjusted Contribution: Gross profit excluding depreciation & amortization and adjusted for certain other items in Cost of Revenue[41] Non-GAAP Reconciliations Q2 2025 reconciliation details show Adjusted EBITDA loss of $29.0 million from a net loss of $82.3 million, and Adjusted Contribution of $23.1 million from a gross profit of $2.2 million Q2 2025 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Description | Amount | | :--- | :--- | | Net loss | ($82,299) | | Depreciation and amortization | $13,490 | | Interest expense, net | $21,248 | | Equity-based compensation expense | $8,295 | | Fleet modernization expense | $7,972 | | Other adjustments | $2,257 | | Adjusted EBITDA | ($29,037) | Q2 2025 Reconciliation of Gross Profit to Adjusted Contribution (in thousands) | Description | Amount | | :--- | :--- | | Gross profit | $2,192 | | Depreciation and amortization | $13,490 | | Fleet modernization expense in Cost of revenue | $7,725 | | Other adjustments | ($337) | | Adjusted Contribution | $23,070 | Supplemental Revenue and Expense Information Q2 2025 revenue breakdown shows a 53% decline in Membership revenue to $7.5 million, a 3% decrease in Flight revenue, and a 44% increase in Other revenue, with fleet modernization costs totaling $8.0 million Revenue by Type - Three Months Ended June 30 (in thousands) | Revenue Type | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Membership | $7,474 | $16,046 | -53% | | Flight | $158,330 | $163,684 | -3% | | Other | $23,833 | $16,555 | +44% | | Total | $189,637 | $196,285 | -3% | - For Q2 2025, key supplemental expenses included $8.3 million in equity-based compensation and $8.0 million in fleet modernization costs[57]