Press Release: Surf Air Mobility Reports Third Quarter 2025 Financial Results, Exceeding Revenue and Meeting Adjusted EBITDA Guidance

Third Quarter Revenue of $29.2 Million, Exceeding Guidance Range of $27 - $28.5 Million

Third Quarter Adjusted EBITDA Loss of $9.9 Million, Meeting Guidance Range of $10 - $8.5 Million Loss

Achieved Second Consecutive Quarter of Profitability in Airline Operations

Company Entered into a Five-Year Agreement with Palantir, Expanding Relationship to Include Exclusivity for the Part 135 Regional Air Mobility Market

Company Closed $100 Million Strategic Transaction in November to Fund SurfOS $(TM)$ and Strengthen Balance Sheet

Company Issues Fourth Quarter 2025 Guidance, Raises Full Year Revenue Guidance to at least $105 Million and Continues to Expect Full Year Profitability(1) in Airline Operations

LOS ANGELES--(BUSINESS WIRE)--November 12, 2025-- 

Surf Air Mobility Inc. (NYSE: SRFM) ("the Company", "Surf Air Mobility"), a leading regional air mobility platform, today reported financial results for the third quarter ended September 30, 2025.

Deanna White, Chief Executive Officer of Surf Air Mobility, said: "The financial and operating results of the third quarter demonstrate the effective implementation of our Transformation Plan strategies. The strong execution and stability in our airline operations drove a second consecutive quarter of profitability. In addition, the recent $100 million strategic transaction will fund the further development and commercialization of SurfOS and strengthen our financial position."

 
 
 (1) Defined as positive Adjusted EBITDA 
 

Third Quarter Financial Highlights(2) :

Revenue

   --  Revenue of $29.2 million for the third quarter of 2025 exceeded the 
      Company's expectation of $27 million - $28.5 million 
 
   --  As compared with the second quarter, revenue increased 6% driven by a 
      42% increase in On Demand revenue, partially offset by a 4% decrease in 
      Scheduled Service revenue 
 
   --  On a year-over-year basis, revenue increased 3% driven by a 40% 
      increase in On Demand revenue, partially offset by a 7% decrease in 
      Scheduled Service revenue 
 
   --  The drivers of both sequential and year-over-year increases in revenue 
      were primarily related to: 
 
          --  A shift in mix to larger aircraft and international flights, 
             resulted in an increase in revenue per departure in our On Demand 
             business, and 
 
          --  Exiting unprofitable routes, offset by improved operational 
             metrics in our Scheduled Service operation 
 
 

Net Loss

   --  For the third quarter of 2025, the Company generated a net loss of 
      $27.2 million 
 
   --  As compared with second quarter, net loss decreased 3% 
 
   --  On a year-over-year basis, the net loss increased $15 million, driven 
      primarily by a $7.6 million increase in non-cash stock-based compensation 
      expense, an increase of $6.2 million in non-cash changes in the fair 
      value of financial instruments, and an increase of $1.2 million in 
      interest expense reflecting the Company's higher debt balance 
 
 
 (2) Results are unaudited 
 

Adjusted EBITDA

   --  Adjusted EBITDA loss of $9.9 million for the third quarter of 2025 met 
      the Company's expectation of a $10 - $8.5 million loss 
 
   --  Year to date, Adjusted EBITDA loss continues to benefit from: 
 
          --  Improvements to operational metrics, the exiting of unprofitable 
             routes, and 
 
          --  Significant reduction in sales and administrative expenses in 
             our On Demand business since adopting SurfOS 
 
 
 
   --  Adjusted EBITDA loss excludes the impact of stock-based compensation, 
      changes in fair value of financial instruments, and other non-recurring 
      items 
 
   --  See the Adjusted EBITDA table for the reconciliation from Net Loss to 
      Adjusted EBITDA 

Key Developments and Progress Against the Transformation Plan

During and subsequent to the third quarter, the Company continued to make significant progress against its Transformation Plan.

Phase 1 -- Transformation

Milestone achieved on the Transformation phase of the Transformation Plan included:

   --  Closed a $100 million strategic transaction to fund SurfOS and 
      strengthen the Company's balance sheet 

Phase 2 -- Optimization (2025-2026)

Milestones achieved on the Optimization phase of the Transformation Plan included:

Optimizing Airline Operations

   --  Achieved second consecutive quarter of profitability in the Company's 
      airline operations, defined as positive Adjusted EBITDA 
 
   --  Continued improvement in key operating measures, including on-time 
      departure, on-time arrival, and controllable completion, demonstrating 
      the permanency of transformation strategies 

Recalibrating On Demand Business

   --  Third quarter revenue increased approximately 40% compared to both the 
      second quarter and the same quarter in the prior year driven by: 
 
          --  An increase in average revenue per departure of 14% 
 
          --  A shift in mix from turboprop to larger aircraft, and 
 
          --  A shift in mix from domestic to international flights 
 
 
 
   --  The results reflect our strategies to expand our client base from 
      turboprop to jet aircraft and pursue international markets 
 
   --  On Demand margins for the third quarter, while slightly lower than the 
      second quarter, represented significant improvement from the same quarter 
      of the prior year, benefiting from the successful execution of two volume 
      purchase agreements with operators who are also beta users of SurfOS 

Driving Efficiencies from SurfOS

   --  Addition of beta and LOI SurfOS agreements, totaling 15 agreements 
 
   --  BrokerOS developments: 
 
          --  Developed robust CRM functionality that allows for streamlined 
             customer insights and sales efficiencies, to include: 
 
                 --  A broker dashboard providing key metrics to manage 
                    flights and sales 
 
                 --  An activity feed consolidating all account interactions 
                    in a single timeline view 
 
                 --  Multimodal direct-to-operator communication via e-mail 
                    and SMS 
 
                 --  Account properties to track profiles and behaviors for 
                    better consumer insights and pipeline management 
 
 
 
 
 
   --  OperatorOS developments: 
 
          --  Expanded parallel testing of the Palantir-powered crew and 
             scheduling tool across our Hawaii network, on track to have the 
             entire network utilizing this tool by year end 
 
          --  Launched additional features within the mobile Crew App, 
             including: 
 
                 --  Aircraft airworthiness alert to allow direct 
                    communication between pilots and the Systems Operations 
                    Center to improve safety 
 
                 --  Digitized engine trend monitoring reports to improve 
                    maintenance predictability 
 
                 --  Pilot calendar overview for crew to have a comprehensive 
                    overlook of upcoming schedule and events, including 
                    proactive reminder notifications 
 
 
 
 

Recent Developments

In November, the Company closed a transformative $100 million strategic transaction. The transaction accelerates the development and commercialization of Surf Air Mobility's proprietary SurfOS software, strengthens the Company's balance sheet, and positions the Company for long-term profitable growth.

The transaction secured $26 million in funding from new equity issuances specifically for the development and commercialization of SurfOS, and will have the following potential benefits:

   --  Continue development of three SurfOS flagship products: BrokerOS, 
      OperatorOS, and OwnerOS 
 
   --  Scale engineering and sales capabilities in advance of commercial 
      rollout in 2026 
 
   --  Support go-to-market execution, customer adoption, and partnership 
      development 
 
   --  Develop customized enterprise services and solutions 
 
   --  Invest in the development of new SurfOS modules and products to capture 
      a larger share of the growing air mobility software market 

Concurrently with the $26 million equity raise, Surf Air Mobility completed the sale of a $74 million senior secured convertible note to High Trail Capital. The Company intends to use a portion of the net proceeds to repay $51 million outstanding under the Company's 4-year credit agreement with affiliates of Comvest Partners, and $8 million outstanding under the Company's secured convertible note with Partners For Growth V, L.P. ("PFG"). In aggregate, these repayments represent a reduction in cash interest expense of approximately $5.5 million on an annualized basis.

In the third quarter, $35 million of convertible notes were equitized deleveraging the Company's balance sheet. Additionally, the Company reduced $8.2 million of the GEM mandatory convertible security. As a result of the capital raises and conversion previously described, the Company had 52,266,051 shares of common stock, $0.0001 par value per share, outstanding as of November 7, 2025.

In the third quarter, the Company and Palantir entered into a five year software licensing agreement naming the Company as Palantir's exclusive partner with respect to the configuration and sale of software to the Part 135 industry. The Palantir agreement grants the Company the ability to sub-license certain of its rights to third-party clients. Additionally, the agreement contemplates the Company and Palantir will team to bid on software development projects for enterprise clients, aircraft manufacturers, and the FAA.

Financial Outlook

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