flyExclusive(US:FLYX)2025-11-12 21:03Fleet Operations - As of September 30, 2025, the company operates a fleet of approximately 90 aircraft, including light, midsize, super-midsize, and large jets[267] - The company ended the period with 90 aircraft on certificate, an increase from 88 aircraft in 2024, while total aircraft operated decreased from 113 to 90[299] - Average aircraft on certificate decreased to 95 in 2025 from 104 in 2024, suggesting a shift in operational strategy[299] Revenue Generation - The jet club membership program generates revenue through flight operations and membership fees, with new members paying deposits ranging from $0.1 million to $0.5 million[269] - The company recognizes revenue from charter flights, MRO services, and management fees, with revenue fluctuations directly correlated to customer demand[310] - Revenue for the nine months ended September 30, 2025, increased by $35.7 million, or 15.1%, to $271.6 million compared to $235.9 million for the same period in 2024[327] - Jet club and charter revenue rose by $20.3 million, or 9.4%, to $236.8 million, with flight hours increasing by 7.5% and effective hourly rates up by 1.7%[328] - Fractional ownership revenue surged by $11.7 million, or 86.3%, primarily due to fractional membership growth[329] Financial Performance - For the nine months ended September 30, 2025, the company reported a net loss of $60,198 thousand, an improvement from a net loss of $84,980 thousand in the same period of 2024[295] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(13,545) thousand, compared to $(48,454) thousand for the same period in 2024, indicating improved operational performance[295] - Loss from operations improved by $31.8 million, or 45.3%, to a loss of $38.4 million compared to a loss of $70.2 million in the prior year[327] - Net loss attributable to flyExclusive, Inc. for the nine months ended September 30, 2025, was $14.4 million, a decrease of $2.8 million, or 16.5%, from the prior year[327] Cost Management - Total costs and expenses for the nine months ended September 30, 2025, increased by $3.9 million, or 1.3%, totaling $310.0 million[327] - Selling, general and administrative expenses decreased by $5.9 million, or 8.8%, reflecting efforts to optimize workforce and control costs[332] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, totaled $18.7 million, with additional capital raised through various financing activities[356] - The company has a working capital deficit, with current liabilities exceeding current assets, primarily due to deferred revenue related to prepaid flights[357] - The company anticipates cash requirements for the next 12 months to be approximately $144.9 million, including accounts payable of $33.3 million and non-cancellable lease payments of $21.5 million[382] - For the nine months ended September 30, 2025, net cash used in operating activities was $10.3 million, a significant improvement compared to $54.4 million for the same period in 2024[385][387] - Net cash provided by investing activities for the nine months ended September 30, 2025 was $78.5 million, up from $22.1 million in 2024, primarily due to proceeds from the sale of investments totaling $80.0 million[388][389] - Net cash used in financing activities for the nine months ended September 30, 2025 was $81.1 million, compared to a net cash provided of $39.4 million in 2024, mainly due to debt repayment of $84.1 million[390][391] Strategic Agreements and Partnerships - The company entered into an Aircraft Management Services Agreement with Volato Group, Inc. on September 2, 2024, which allows the company to retain excess revenue collected over expenses for services provided[273] - The Volato Agreement includes an option for a potential merger, with consideration based on the volume-weighted average price of Volato's common stock[275] Market Conditions and Risks - The company anticipates that economic conditions could adversely affect demand for private aviation services, impacting growth and membership renewals[278] - The company has experienced significant volatility in pilot attrition rates, which could materially affect operations and financial results[280] - The company continues to monitor market risks related to interest rates and aircraft fuel costs, with no material changes reported[407] Legal and Compliance - The company is involved in various litigation matters but believes that the outcomes will not materially affect its financial position[393] Future Outlook - Future capital requirements will depend on factors including revenue growth, demand for services, and overall economic conditions[383]