Surf Air Mobility Reports Fourth Quarter and Full Year 2025 Results, Unveils Aggressive 2026 Growth Guidance

Key Highlights and Investor-Impacting Developments

LOS ANGELES, March 12, 2026 – Surf Air Mobility Inc. (NYSE: SRFM), a leading air mobility platform, announced its financial results for the fourth quarter and full year ended December 31, 2025, and issued forward-looking guidance for 2026. The company outlined significant operational improvements, strategic partnerships, and a clear path to growth in the coming year.

Financial Performance Highlights

• Q4 2025 Revenue: \$26.4 million, within guidance of \$25.5–\$27.5 million, but a 6% decrease year-over-year.
• Q4 2025 Adjusted EBITDA Loss: Just under \$8 million, in line with guidance (\$8–\$6.5 million loss).
• Full Year 2025 Revenue: \$106.6 million, achieving the previously raised guidance of exceeding \$105 million, but down 10.8% from \$119.4 million in 2024.
• Full Year 2025 Adjusted EBITDA Loss: \$41.7 million, an improvement from \$44.1 million in 2024, reflecting operational enhancements and the exit of unprofitable routes.
• Net Loss for 2025: \$110.6 million (vs. \$74.9 million in 2024), impacted by R&D, stock-based compensation, transaction costs, and non-recurring items.
• Q4 Net Loss: \$36.9 million (vs. net income of \$1.3 million in Q4 2024, which included a \$38.9 million reversal of unearned compensation).

Operational Transformation and Strategic Milestones

• Capital Structure Optimization: Net debt reduced by 47% to \$74 million at year-end, down from \$139 million in 2024, aided by the conversion of \$48 million in convertible notes (including interest).
• Operational Improvements:
  • Controllable completion rate improved to 98% in Q4 2025 (from 89% in Q4 2024).
  • On-time departures up to 72% (+10.5 percentage points YoY), and on-time arrivals up to 81% (+7 percentage points YoY).
  • Consolidation of fleet to Cessna Caravan aircraft, simplifying operations and improving cost efficiency.
• On Demand Charter Business:
  • Q4 On Demand revenue up 36% YoY, driven by larger aircraft, international flights, and BrokerOS software adoption.
  • Full-year On Demand revenue up 3.1% YoY, despite scheduled service revenue decline.
  • Launched “Powered by Surf On Demand” program and “Surf On Demand Cargo” division; signed two exclusive wholesale agreements to expand capacity and margins.
• SurfOS Platform Development:
  • \$26 million invested in SurfOS for development and go-to-market execution, aiming for commercialization in 2026.
  • Beta agreements secured with multiple Part 135 charter operators.
  • Internal deployment of BrokerOS and introduction of flagship products: BrokerOS, OperatorOS, and OwnerOS.
  • Expanded operational tools including a pilot mobile app, maintenance management system, and aircraft/crew scheduling (powered by Palantir).
• Strategic Partnership with BETA Technologies:
  • Order of 25 electric aircraft (with options for 75 more), covering cargo and passenger CTOL and VTOL models.
  • Surf Air designated as launch operator for BETA’s passenger aircraft, aiming to pioneer electric passenger flights in Hawaii.
  • Surf Air named as factory-authorized BETA service center for Hawaii, with potential for exclusivity in other regions.
  • Joint marketing agreement to promote BETA aircraft and Surf Air’s software/operating capabilities.
• Investment in Mokulele Airlines and Hawaii Infrastructure: \$22.4 million committed for upgrades to aircraft, airports, lounges, loyalty programs, network capacity, and leadership.

2026 Financial Guidance and Outlook

• Q1 2026 Revenue: \$24–26 million, with growth driven by On Demand charter and higher load factors, offset by continued exit of unprofitable routes. No SurfOS revenue expected in Q1.
• Q1 2026 Adjusted EBITDA Loss: \$15.5–13.5 million, reflecting ongoing investment in SurfOS and strategic initiatives.
• Full Year 2026 Revenue: \$128–138 million, representing a 20–30% YoY increase, with growth heavily weighted to the second half as SurfOS commercialization ramps up.
• Full Year 2026 Adjusted EBITDA Loss: \$50–40 million, reflecting significant investment in growth and technology, but expected quarterly improvements as margins and revenues improve.

Balance Sheet Details (as of December 31, 2025)

• Total Assets: \$131.7 million (up from \$124.1 million in 2024).
• Cash: \$12.7 million (\$21.1 million in 2024).
• Total Liabilities: \$186.5 million (\$244.1 million in 2024).
• Shareholders’ Deficit: \$(54.9) million (improved from \$(120.0) million in 2024), with a significant increase in additional paid-in capital (\$733.1 million vs. \$557.4 million).
• Common Shares Outstanding: 73,082,025 (vs. 16,933,692 in 2024).

Important Investor Considerations and Potential Price-Sensitive Developments

• Growth Pivot: Management signals an end to the reset phase and a pivot to growth, underpinned by operational improvements, technology investments, and strategic partnerships. Guidance for 20–30% revenue growth in 2026 is a bold signal of confidence in Surf Air’s platform strategy.
• SurfOS Commercialization: The go-to-market launch of SurfOS in 2026, including beta deployments, is a major catalyst; successful adoption could materially enhance revenue and profitability.
• BETA Technologies Partnership: The electric aircraft order and service center agreement position Surf Air as a potential first-mover in electric aviation, especially in Hawaii, and could attract market attention as milestones are met.
• Ongoing Losses and Cash Burn: Despite improvements, the company continues to post significant net and adjusted EBITDA losses, with cash balances decreasing year-over-year. Execution risk remains, especially if revenue growth or capital raising falls short.
• Balance Sheet Improvement: The reduction in net debt and conversion of convertible notes strengthens the company’s financial position but does not eliminate risk from ongoing deficits.
• Share Dilution: Significant increase in shares outstanding may impact per-share metrics and investor returns.

Conference Call Information

Surf Air Mobility will host a conference call today at 5:00 pm ET.
Dial-in: North America toll-free: (800) 715-9871 | International: (646) 307-1963
Conference ID: 4775356
Webcast: https://events.q4inc.com/attendee/759250854

About Surf Air Mobility

Surf Air Mobility is a Los Angeles-based air mobility platform integrating AI-enabled SurfOS software and electrification programs to modernize air operations, with a focus on supporting next-generation aircraft adoption. The company operates one of the largest commuter airlines in the U.S. by scheduled departures, providing the operational scale and real-world data to validate and deploy its technology.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Investors should review Surf Air Mobility’s SEC filings for a full discussion of risk factors and not rely solely on this summary when making investment decisions.

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