Surf Air Mobility (SRFM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $32.4 million, up 13.2% year-over-year on a pro forma basis, driven by the Southern Airways acquisition and growth in scheduled and on-demand flights, exceeding expectations.

• Adjusted EBITDA loss was $11.8 million, outperforming guidance and reflecting operational improvements.

• GAAP net loss narrowed to $27.0 million from $44.5 million in the prior year, reflecting higher revenue but also increased operating expenses.

• Regional airline operations achieved positive adjusted EBITDA for the first time, reversing a longstanding trend.

• Strategic partnership with Palantir Technologies announced to develop AI-powered software for air mobility, driving innovation and capital efficiency.

Financial highlights

• Q2 2024 revenue: $32.4 million, up 13.2% year-over-year pro forma and up from $6.2 million in Q2 2023.

• Scheduled service revenue grew 13.8%, and on-demand service revenue grew 11.7% year-over-year.

• Adjusted EBITDA loss: $11.8 million, better than expected; GAAP net loss: $27.0 million.

• Cash on hand at quarter end: $1.5 million, with access to $90 million in committed draws and up to $296 million in follow-on draws.

• Weighted average shares outstanding for Q2 2024: 81.9 million.

Outlook and guidance

• Q3 2024 revenue expected between $25 million and $28 million.

• Pro forma adjusted EBITDA loss for Q3 forecasted at $10–$13 million, excluding non-recurring items.

• Regional airline operations expected to be marginally unprofitable in Q3 due to unplanned aircraft maintenance, but full-year profitability targeted.

• Focus remains on electrification technology, operational improvements, and expanding the network footprint.

• Ability to draw further capital under the GEM Share Purchase Agreement is contingent on NYSE listing compliance.