Jet.AI Inc. Reports First Quarter 2025 Financial Results

Core Insights - Jet.AI Inc. is transitioning to a pure-play AI data center company, focusing on AI-driven infrastructure and has signed a letter of intent with Consensus Core to develop two large-scale data center campuses in Canada [3][4][10] Financial Performance - For Q1 2025, revenues were $3.5 million, a decrease from $3.8 million in the same period last year, primarily due to reduced software app and charter revenue [6][10] - Software App and Cirrus Charter revenue decreased to $1.8 million from $2.4 million, attributed to lower marketing efforts and a decline in private jet travel demand [7] - Management and Other Services revenue increased by 60% to $1.3 million, driven by a new management agreement and an additional managed aircraft [8] - Jet Card and Fractional Programs revenue fell to $0.3 million from $0.7 million, impacted by a challenging economic environment and a revised pricing strategy [9] - Cost of revenues decreased to $3.6 million from $4.0 million, leading to a gross loss of approximately $116,000, an improvement from a loss of $124,000 in the previous year [10] - Operating expenses totaled $3.1 million, slightly up from $3.0 million, with an operating loss of $3.2 million compared to a loss of $3.1 million in the same period last year [11] Cash Position - As of March 31, 2025, the company had a cash balance of $12.2 million and no debt, showing a significant increase from $5.9 million at the end of 2024 [12][16] Strategic Initiatives - The company is moving towards a definitive agreement with Consensus Core for the joint development of data centers, which are expected to have a capacity of 1.5 gigawatts [5][10] - A definitive agreement has been entered into with flyExclusive to divest the jet card and fractional aviation business in a spin-merge transaction expected to close in Q2 2025 [10] Company Overview - Jet.AI, founded in 2018, is based in Las Vegas and is transitioning to focus solely on AI data center operations, leveraging expertise in data center development and AI technologies [13]