Stonegate Capital Partners Updates Coverage on Surf Air Mobility Inc. (SRFM) 2025 Q1

Rhea-AI Summary

Surf Air Mobility Inc. (NYSE: SRFM) reported Q1 2025 financial results with revenue of $23.5M, reaching the high end of guidance. The company posted an adjusted EBITDA of -$14.4M and adjusted EPS of -$1.09. Despite experiencing a brief unscheduled downtime and decreased OnDemand services revenue, SRFM met its guidance targets. The company is transitioning from its Transformation Phase to the Optimization Phase, focusing on improving profitability through strategic cost reductions. A significant highlight includes a new interline agreement with Japan Airlines (JAL), marking SRFM's first international airline partnership. The company also launched a new Jet Card program, demonstrating its commitment to enhancing customer experience.

Positive

• Revenue of $23.5M achieved high end of guidance range
• Strategic partnership established with Japan Airlines through interline agreement
• Transition to Optimization Phase focused on cost reduction and profitability
• Launch of new Jet Card program to enhance customer experience

Negative

• Negative adjusted EBITDA of -$14.4M
• Adjusted EPS loss of -$1.09
• Decrease in OnDemand services revenue
• Unscheduled downtime affected operations in early quarter

Dallas, Texas--(Newsfile Corp. - May 15, 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 $23.5M, ($14.4)M, and ($1.09), respectively. It is notable that the Company was well within both revenue and EBITDA guidance in the quarter, despite a short unscheduled downtime towards the beginning of the quarter and a decrease in OnDemand services revenue as the Company continues to focus on charter profitability. 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 expected towards the back half of FY25. We are very encouraged by the interline agreement that SRFM entered with Japan Airline, the Company's first interline agreement with an international airline. We note that this combined with the Company's launch of the new Jet Card shows the high priority of end-user experience.

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

Key Takeaways:

• First Quarter Revenue of $23.5 Million, achieving the High End of Guidance Range.
• Continued Strong Progress Against Transformation Plan.
• SRFM announced that Mokulele Airlines will launch a new interline agreement with Japan Airlines ("JAL"), a leading Japanese airline.

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/252251

FAQ

What were Surf Air Mobility's (SRFM) Q1 2025 financial results?

SRFM reported Q1 2025 revenue of $23.5M, adjusted EBITDA of -$14.4M, and adjusted EPS of -$1.09. The revenue achieved the high end of guidance range despite operational challenges.

What is the significance of SRFM's partnership with Japan Airlines?

The interline agreement with Japan Airlines represents SRFM's first international airline partnership, expanding their network reach and potentially enhancing service offerings for customers.

How is Surf Air Mobility (SRFM) planning to improve profitability?

SRFM is transitioning from Transformation Phase to Optimization Phase, focusing on strategic cost reductions and operational optimizations, with significant growth expected in the latter half of FY25.

What new customer initiatives has SRFM introduced in Q1 2025?

SRFM launched a new Jet Card program and established an interline agreement with Japan Airlines, both aimed at improving end-user experience.

What challenges did SRFM face in Q1 2025?

SRFM experienced a short unscheduled downtime early in the quarter and saw a decrease in OnDemand services revenue as they focused on charter profitability.