Wheels Up Experience (UP) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $185.5 million, down 4% year-over-year, primarily due to reduced flight revenue from discontinued members[6] - Net loss for the quarter was $83.7 million, or $(0.12) per share, compared to a net loss of $57.7 million in the prior year[12] - Revenue for Q3 2025 was $185,486,000, a decrease of 4% from $193,903,000 in Q3 2024[23] - For the nine months ended September 30, 2025, revenue was $552,653,000, down 6% from $587,289,000 in the same period of 2024[25] - Net loss attributable to Wheels Up Experience Inc. for Q3 2025 was $83,730,000, representing a 45% increase from a net loss of $57,731,000 in Q3 2024[23] - The company reported a net loss of $265,342,000 for the nine months ended September 30, 2025, compared to a net loss of $252,097,000 for the same period in 2024, a 5% increase[25] - Adjusted Contribution for Q3 2025 was $23,500 thousand, down from $28,758 thousand in Q3 2024, reflecting a decline of 18%[56] - Membership revenue decreased by 52% in Q3 2025 to $6,313 thousand compared to $13,231 thousand in Q3 2024[56] - Total revenue for the nine months ended September 30, 2025 was $552,653 thousand, a decline of 6% from $587,289 thousand in the same period of 2024[56] Operational Metrics - The company achieved a Completion Rate of 99% and On-Time Performance of 89%, reflecting operational improvements despite ongoing fleet modernization[7] - Total Gross Bookings increased to $266.6 million, up 5% year-over-year, driven by a 14% growth in on-demand charter offerings[6] - Total costs and expenses increased to $246,823,000 in Q3 2025, up 5% from $235,764,000 in Q3 2024[23] - Cash flows from operating activities resulted in a net cash used of $147,926 for the nine months ended September 30, 2025, compared to $115,814 for the same period in 2024, indicating a 27.7% increase in cash outflow[29] - The company’s utility metric measures the efficiency of operations, calculated as total revenue-generating flight hours divided by the average number of available aircraft[35] Cost Management and Savings - The company expects to achieve $70 million or more in annual run-rate cost savings by Q1 2026, an increase from the original $50 million goal[6] - Adjusted Contribution Margin decreased to 12.7%, down from 14.8% in the prior year, impacted by transitory inefficiencies from fleet migration[6] - Interest expense for Q3 2025 was $23,510,000, a 47% increase from $16,041,000 in Q3 2024[23] - Fleet modernization expenses for Q3 2025 amounted to $8,681 thousand, with total expenses for the nine months reaching $19,463 thousand[57] - Integration and transformation expenses in Q3 2025 were $2,523 thousand, compared to no expenses in Q3 2024[57] Capital and Investments - Wheels Up raised approximately $50 million in equity capital during the quarter to support fleet modernization and general corporate purposes[8] - The company sold three non-core services businesses for $21.5 million, further streamlining operations and focusing on fleet modernization[11] - Cash provided by investing activities was $43,384 for the nine months ended September 30, 2025, compared to $26,058 for the same period in 2024, indicating a 66.7% increase[29] - The company reported a significant impairment charge of $20.2 million related to right-of-use assets for the nine months ended September 30, 2025[47] Membership and Sales - Signature Membership sales represented nearly 20% of total block sales for September and October, indicating strong initial demand[7] - Corporate Membership Fund sales reached a record $62 million, up more than 15% year-over-year, with corporate membership being the fastest-growing segment[7] Asset and Liability Management - Cash and cash equivalents decreased to $125,327,000 as of September 30, 2025, down from $216,426,000 at the end of 2024[27] - Total assets decreased to $973,003,000 as of September 30, 2025, from $1,158,011,000 at the end of 2024[27] - Total liabilities remained relatively stable at $1,347,548,000 as of September 30, 2025, compared to $1,354,239,000 at the end of 2024[27] - The company’s accumulated deficit increased to $2,368,237,000 as of September 30, 2025, from $2,102,895,000 at the end of 2024[27]