Blade(US:BLDE)2025-11-10 16:51Business Transactions - The Company completed the sale of its Passenger business for approximately $76.0 million, receiving net proceeds of $70.2 million after selling shares of Joby Aviation[153]. - The acquisition of Keystone Perfusion Services, LLC was finalized for $110.0 million, with potential earn-out payments of up to $23.0 million based on future performance[158]. Operational Model - Strata operates an asset-light logistics model, primarily utilizing third-party aircraft, which allows for predictable and flexible cost structures[160]. - In 2024, Strata acquired ten fixed-wing aircraft to improve service reliability and compete for contracts requiring asset ownership[162]. - The Company’s core services include air and ground logistics, surgical organ recovery, and normothermic regional perfusion, aimed at increasing successful organ transplants[148]. - Strata's technology enhances efficiency in staffing, training, and logistics, strengthening its position in the organ transportation industry[170]. - Strata's business model includes fixed pricing per flight hour with additional fuel surcharges, ensuring cost transparency for customers[159]. - The Company relies on contractual relationships with transplant centers and organ procurement organizations, emphasizing the importance of these partnerships for operational success[151]. Financial Performance - The Company reported continued net losses since inception, highlighting ongoing financial challenges[146]. - Revenue for the three months ended September 30, 2025, increased by $13.2 million, or 36.7%, to $49.3 million, driven by growth in flight hours and the acquisition of Keystone, which contributed approximately $2.8 million[197]. - For the nine months ended September 30, 2025, revenue increased by $19.9 million, or 18.0%, to $130.4 million, also driven by growth in flight hours and the inclusion of Keystone[198]. - Cost of revenue for the three months ended September 30, 2025, increased by $9.1 million, or 32.0%, to $37.7 million, primarily due to increased revenue[200]. - Cost of revenue as a percentage of revenue decreased from 79% in 2024 to 76% in 2025, driven by higher utilization of the owned fleet and enhanced operational leverage[201]. - The company reported a net loss from continuing operations of $9.7 million for the three months ended September 30, 2025[194]. - The net income from discontinued operations was $67.1 million for the three months ended September 30, 2025[194]. - Total net income from discontinued operations for the three months ended September 30, 2025, was $67.1 million, primarily from a gain on disposal of discontinued operations of $60.4 million[221]. - Net loss from continuing operations increased by $4.0 million for the three months ended September 30, 2025, from $(5.6) million in 2024 to $(9.7) million in 2025[229]. - Adjusted EBITDA improved by $4.1 million for the three months ended September 30, 2025, from $0.1 million in 2024 to $4.2 million in 2025[230]. - Gross profit increased by $4.1 million for the three months ended September 30, 2025, from $5.4 million in 2024 to $9.5 million in 2025[230]. - Flight profit increased by $4.1 million, or 54.7%, for the three months ended September 30, 2025, from $7.5 million in 2024 to $11.6 million in 2025[231]. - Net loss from continuing operations for the nine months ended September 30, 2025, was $(14.7) million, an increase of $5.9 million from $(8.7) million in 2024[233]. - Gross Profit increased by $3.6 million, from $19.6 million in the nine months ended September 30, 2024 to $23.2 million in 2025[235]. - Flight Profit rose by $4.9 million, or 19.9%, from $24.6 million in the nine months ended September 30, 2024 to $29.5 million in 2025, driven by an 18.0% increase in revenue[237]. - Adjusted EBITDA for the nine months ended September 30, 2025 was $7.1 million, compared to $2.7 million in 2024, representing an increase of 164.4%[241]. - Revenue for the nine months ended September 30, 2025 was $130.4 million, up from $110.4 million in 2024, reflecting an increase of 18.2%[241]. Cash Flow and Liquidity - Total liquidity as of September 30, 2025 was $75.9 million, down from $124.8 million as of December 31, 2024[249]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $40.6 million, compared to $0.8 million in 2024[256]. - The company anticipates sufficient funds to meet operational needs for at least the next 12 months[250]. - The company has commitments to purchase flights with minimum guarantees of $3.2 million for 2025 and 2026[252]. - For the nine months ended September 30, 2025, net cash provided by investing activities was $51.5 million, primarily from $70.2 million in proceeds from the sale of Buyer Shares related to the Passenger business[259]. - The cash used in investing activities for the nine months ended September 30, 2024, was $5.0 million, driven by $142.8 million in purchases of held-to-maturity investments and $26.3 million in property and equipment purchases[260]. - For the nine months ended September 30, 2025, net cash used in financing activities was $7.2 million, mainly due to $7.3 million in payroll tax payments on behalf of employees[262]. - In the nine months ended September 30, 2024, net cash used in financing activities was $1.9 million, reflecting $1.8 million in payroll tax payments and $0.2 million in stock repurchases[263]. - The company reported $203.0 million in proceeds from maturities of held-to-maturity investments, net of $146.3 million in purchases for the nine months ended September 30, 2025[259]. - The company made $7.9 million in purchases of property and equipment, primarily for a spare engine and aircraft maintenance costs, for the nine months ended September 30, 2025[259]. - The company incurred $2.2 million in consideration for the acquisition of CJK during the nine months ended September 30, 2024[260]. Market and Risk Factors - The market for clinical service offerings is highly competitive, with the company competing on the quality and reliability of its services[178]. - The company has responded to customer demand by introducing new services through the acquisition of Keystone and organic growth initiatives[176]. - There have been no material changes in market risk since the last annual report for the year ended December 31, 2024[266]. - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may affect reported amounts[264]. - There have been no material changes to the company's significant accounting policies and estimates as of September 30, 2025[265].