Blade (BLDE) Q2 Revenue Jumps 10%

Core Insights - Blade Air Mobility reported Q2 2025 GAAP revenue of $70.8 million, exceeding analyst expectations by 10.5% [1][2] - The company plans to divest its Passenger division to Joby Aviation, transitioning to a specialized medical air mobility operator [1][8] - The medical segment showed significant year-over-year growth, while free cash flow turned negative due to increased maintenance costs [1][6] Financial Performance - Q2 2025 GAAP revenue was $70.8 million, up 4.3% from $67.9 million in Q2 2024 [2] - Adjusted EBITDA increased to $3.2 million, a 220% rise from $1.0 million in the previous year [2] - Free cash flow was negative at $(5.7) million, a decline of 191.9% from a positive $6.2 million in Q2 2024 [2] Business Focus and Strategy - Blade operates two main lines: on-demand passenger flights and MediMobility Organ Transport services [3] - The divestiture of the Passenger segment will allow Blade to focus on critical healthcare logistics and rebrand as Strata [3][8] - The company aims to optimize operations and prepare for the adoption of Electric Vertical Aircraft (eVTOL) technology [4][12] Segment Performance - The medical segment generated $45.1 million in revenue, a 17.6% increase year-over-year [5] - Medical Flight Margin (non-GAAP) decreased to 22.0% from 23.6% due to higher maintenance costs [6] - The Passenger segment's revenue fell 13.2% to $25.7 million, with a flight margin improvement to 30.5% [7] Future Outlook - Management expects the transition to a dedicated medical air mobility company to be neutral to Adjusted EBITDA and Free Cash Flow [9] - Full-year 2025 revenue is projected between $245 million and $265 million, with adjusted EBITDA in the double-digit millions [14] - Key factors for future success include execution of medical growth initiatives and integration of eVTOL aircraft [15]