Core Viewpoint - Blade Air Mobility, Inc. has announced the sale of its passenger division to Joby Aviation for up to $125 million, allowing Blade to focus on its medical logistics business, which will rebrand as Strata Critical Medical [1][9][10]. Company Overview - Blade Air Mobility provides air transportation and logistics, primarily for hospitals in the U.S., and is one of the largest transporters of human organs for transplant [12]. - Joby Aviation is developing an all-electric vertical take-off and landing air taxi service, intending to operate and sell its aircraft globally [14]. Transaction Details - The sale price for the passenger division is up to $125 million, which may be paid in cash or Joby stock, including up to $35 million in performance-based earnouts [10]. - The transaction is expected to close in the coming weeks, with a new ticker for Strata to be announced later [11]. Strategic Focus Post-Transaction - Following the divestiture, Strata will concentrate on its medical logistics and services, leveraging its asset-light platform to enhance its offerings and pursue growth through acquisitions [2][8]. - The medical division represented approximately 84% of Blade's Segment Adjusted EBITDA and 59% of its revenue in 2024, indicating a strong focus on this profitable segment [8]. Leadership Changes - Rob Wiesenthal, the current CEO of Blade, will join Joby as CEO of Blade Air Mobility and serve as Chairman of Strata [5]. - Will Heyburn and Melissa Tomkiel will become Co-CEOs of Strata while retaining their existing roles [6]. Partnership and Future Opportunities - A long-term partnership between Joby and Strata will provide access to Joby aircraft for medical use, enhancing Strata's service capabilities [4][9]. - The expected operational efficiencies from the divestiture are estimated at approximately $7 million annually, making the financial impact neutral in terms of Adjusted EBITDA and Free Cash Flow [5][9].

Core Insights - Blade Air Mobility, Inc. reported a revenue increase of 5.4% year-over-year for Q1 2025, reaching $54.3 million, driven primarily by growth in the Passenger segment [7][10] - The company achieved a notable improvement in net loss, which decreased by $0.7 million to $(3.5) million compared to the previous year [7][10] - Adjusted EBITDA improved by $2.3 million year-over-year to $(1.2) million, marking the first profitable quarter in the Passenger Segment since going public [7][9] Financial Results - Total revenue for Q1 2025 was $54,306 thousand, up from $51,514 thousand in Q1 2024, reflecting a 5.4% increase [3][10] - Cost of revenue increased by 2.3% to $42,328 thousand, while total operating expenses rose slightly by 0.8% to $61,889 thousand [3][10] - Gross profit improved significantly by 38.3% to $8,093 thousand, resulting in a gross margin of 14.9%, up from 11.4% in the prior year [3][10] Segment Performance - The Passenger segment revenue surged by 42.0% year-over-year, excluding Canada, which the company exited in August 2024 [7][10] - Flight profit for Q1 2025 was $11,978 thousand, an 18.1% increase from $10,139 thousand in Q1 2024, with a flight margin improvement to 22.1% from 19.7% [10][37] - Medical segment revenue slightly decreased by 0.2% to $35,948 thousand, with a flight margin of 22.1%, down from 22.3% in the previous year [10][37] Operational Highlights - The company achieved a new monthly record for Medical trip volumes in April 2025, indicating strong operational performance [7][9] - Blade's exit from the Canadian market and cost rationalization initiatives contributed to improved profitability [9][10] - The company ended Q1 2025 with $120.0 million in cash and short-term investments, positioning it well for future growth [7][10] Future Outlook - Blade reaffirmed its guidance for 2025, expecting revenue between $245 million and $265 million, along with double-digit millions of Adjusted EBITDA [7][10] - The company anticipates ongoing improvements in both the Passenger and Medical segments, driven by new customer onboarding and restructuring efforts [9][10]