Stonegate Capital Partners Updates Coverage On Surf Air Mobility Inc. (SRFM) Q425

Core Insights - Surf Air Mobility Inc. (NYSE: SRFM) is showing signs of recovery post-restructuring, with FY25 results indicating a more stable operating base and a clearer growth trajectory [1][7] - The company achieved full-year revenue of $106.6 million, aligning with its raised outlook, while adjusted EBITDA loss improved to $41.7 million due to enhanced airline operations and a better charter mix [1][7] - Net debt decreased by 47% year-over-year to $74 million, aided by capital actions and convertible note conversion [1][7] Financial Performance - In Q4 FY25, Surf Air reported revenue of $26.4 million and an adjusted EBITDA loss of just under $8 million, both figures within guidance despite challenges from exiting unprofitable scheduled routes [1][7] - The overall quarterly performance reinforces the progress made in the company's transformation as it heads into 2026 [1][7] Operational Improvements - The airline's operational mix is improving, with On Demand revenue growing by 36% as the company shifts focus from unprofitable routes to a more favorable charter mix [1][7] - The introduction of SurfOS and the partnership with BETA are seen as potential growth levers, although successful execution in FY26 and growth in the latter half of the year will be critical [1][7]