Stonegate Capital Partners Updates Coverage On Surf Air Mobility Inc. (SRFM) 2025 Q2

Rhea-AI Summary

Surf Air Mobility (NYSE:SRFM) reported Q2 2025 results exceeding guidance, with revenue of $27.4M and Adjusted EBITDA loss of $9.5M. The company achieved a significant milestone with its airline operations turning profitable on an Adjusted EBITDA basis, supported by a 95% completion factor.

Key developments include raising $44.7M in equity capital, converting $29.9M of notes to equity, and securing a five-year exclusive software partnership with Palantir. The quarter also saw two EAS contract renewals and a new interline agreement with Japan Airlines, alongside six new LOI agreements.

Positive

• Revenue of $27.4M exceeded guidance expectations
• Airline operations achieved profitability on Adjusted EBITDA basis
• Improved operational reliability with 95% completion factor
• Successful capital raise of $44.7M and debt reduction through $29.9M note conversion
• Secured five-year exclusive partnership with Palantir
• Expanded network through Japan Airlines interline agreement and EAS contract renewals

Negative

• Overall Adjusted EBITDA remains negative at ($9.5M)
• Significant Adjusted EPS loss of ($1.34) per share

Dallas, Texas--(Newsfile Corp. - August 13, 2025) - Surf Air Mobility Inc. (NYSE: SRFM): Stonegate Capital Partners updates their coverage on Surf Air Mobility Inc. (NYSE: SRFM). SRFM reported revenue, Adj. EBITDA, and Adj. EPS of $27.4M, ($9.5)M, and ($1.34), respectively, exceeding both revenue and EBITDA guidance for the quarter. This performance reflects a clear inflection point for the Company, driven by improved airline operations, continued optimization of the On Demand segment, and growing momentum in its SurfOS software platform. Notably, airline operations were profitable in the quarter on an Adj. EBITDA basis, supported by sequential improvement in controllable completion factors to 95% and better margins in On Demand services. The quarter was further marked by strategic capital actions, including $44.7M in equity capital raised and subsequent deleveraging through the equitization of $29.9M of convertible notes in July. We also highlight the Company's expanded partnership with Palantir, securing a five-year exclusive agreement for the configuration and sale of software.

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

Key Takeaways:

• Revenue of $27.4M and Adj. EBITDA loss of $9.5M exceeded guidance, with airline operations achieving quarterly profitability.
• Record-high reliability metrics, two EAS contract renewals, and a new interline agreement with Japan Airlines strengthen network and revenue base.
• Six new LOI agreements, flagship product suite launch, and a five-year exclusive software partnership with Palantir expand growth potential.

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/262424

FAQ

What were Surf Air Mobility's (SRFM) Q2 2025 financial results?

SRFM reported revenue of $27.4M, Adjusted EBITDA loss of ($9.5M), and Adjusted EPS of ($1.34), exceeding both revenue and EBITDA guidance.

How much capital did SRFM raise in Q2 2025?

SRFM raised $44.7M in equity capital and converted $29.9M of convertible notes to equity in July 2025.

What operational improvements did Surf Air Mobility achieve in Q2 2025?

SRFM achieved 95% controllable completion factor and reached profitability in airline operations on an Adjusted EBITDA basis.

What strategic partnerships did SRFM secure in Q2 2025?

SRFM secured a five-year exclusive software partnership with Palantir and established a new interline agreement with Japan Airlines.

How did SRFM's airline operations perform in Q2 2025?

Airline operations achieved profitability on an Adjusted EBITDA basis, supported by improved completion factors and better margins in On Demand services.