Stonegate Capital Partners Initiates Coverage on Surf Air Mobility Inc. (SRFM)

Rhea-AI Summary

Surf Air Mobility Inc. (NYSE: SRFM) has received coverage initiation from Stonegate Capital Partners. The company reported strong financial results with revenue of $28.0M, adjusted EBITDA of ($6.9M), and adjusted EPS of $1.27.

Notable achievements include exceeding both revenue and EBITDA guidance, driven by significant growth in On Demand service revenue, which increased 39% over Q4 2023 and 28% for FY24 compared to FY23. The company has transitioned from its Transformation Phase to the Optimization Phase, focusing on improving profitability through strategic cost reductions.

Additionally, SRFM secured a $50.0M term loan and extended its secured debt maturity. The company also obtained MOUs from seven customers for the upgrade of approximately 100 aircraft.

Positive

• Revenue and EBITDA exceeded guidance
• On Demand service revenue grew 39% YoY in Q4
• Secured $50M term loan financing
• Signed MOUs for ~100 aircraft upgrades with seven customers
• Positive adjusted EPS of $1.27

Negative

• Negative adjusted EBITDA of ($6.9M)
• Profitability improvements not expected until late FY25

Dallas, Texas--(Newsfile Corp. - March 24, 2025) - Surf Air Mobility Inc. (NYSE: SRFM): Stonegate Capital Partners initiates their coverage on Surf Air Mobility Inc. (NYSE: SRFM). SRFM reported revenue, adj EBITDA, and adj EPS of $28.0M, ($6.9)M, and $1.27, respectively. For the full year the Company reported revenue, adj EBITDA, and adj EPS of $28.0M, ($6.9)M, and $1.27, respectively. It is notable that the Company exceeded both revenue and EBITDA guidance in the quarter, in part thanks to strong growth in On Demand service revenue, which was up 39% over 4Q23 and 28% for FY24 compared to FY23. With the Company moving out of the Transformation Phase into the Optimization Phase we expect SRFM to improve profitability through strategic cost take outs and optimizations, with very noticeable growth showing towards the back half of FY25.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• On Demand service revenue, was up 39% over 4Q23 and 28% for FY24 compared to FY23.
• The Company signed MOUs from seven customers to upgrade ~100aircraft.
• In4Q24 SRFM secured a $50.0M term loan on top of the maturity extension for the Company's secured debt.

Click image above to view full announcement.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/245800

FAQ

What was Surf Air Mobility's (SRFM) revenue and EBITDA performance in the latest quarter?

SRFM reported revenue of $28.0M and adjusted EBITDA of ($6.9M), exceeding both revenue and EBITDA guidance.

How much did SRFM's On Demand service revenue grow in Q4 2024?

On Demand service revenue grew 39% compared to Q4 2023.

What new financing did Surf Air Mobility (SRFM) secure in Q4 2024?

SRFM secured a $50.0M term loan and extended the maturity of its secured debt.

How many aircraft upgrade MOUs did SRFM sign with customers?

SRFM signed MOUs with seven customers for the upgrade of approximately 100 aircraft.

What phase of business development is SRFM currently in?

SRFM has moved from the Transformation Phase to the Optimization Phase, focusing on improving profitability through strategic cost reductions.