Surf Air Mobility (SRFM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $28.4 million, exceeding guidance and rising 29% year-over-year, driven by operational improvements, higher scheduled passenger volumes, and Southern Airways integration.

• Net loss for Q3 2024 improved to $12.2 million from $74.6 million in Q3 2023, reflecting cost controls, reduced non-recurring costs, and transformation efforts.

• Adjusted EBITDA loss was $8.9 million, outperforming guidance of $10–$13 million loss due to operational improvements and cost reductions.

• Closed a $50 million term loan in November 2024, strengthening liquidity and supporting operational improvements.

• Transformation plan underway, focusing on capital structure, management, and operational synergies, with new technology and electrification initiatives advancing.

Financial highlights

• Q3 2024 revenue was $28.4 million, up from $22.0 million in Q3 2023 and exceeding guidance of $25–$28 million.

• Net loss for Q3 2024 was $12.2 million, compared to $74.6 million in Q3 2023; net loss per share was $0.94.

• Adjusted EBITDA loss was $8.9 million, outperforming expectations and unchanged from prior year pro forma.

• Operating expenses for Q3 2024 decreased 56% year-over-year, mainly due to lower stock-based compensation and transaction costs.

• Cash and restricted cash at September 30, 2024 totaled $1.1 million, down from $6.8 million at year-end 2023.

Outlook and guidance

• Q4 2024 revenue expected between $25 million and $28 million; Adjusted EBITDA loss projected at $5–$8 million.

• Profitability targeted for 2025 and beyond, with ongoing operational improvements and cost controls.

• Revenue may decrease as unprofitable routes are exited, but profitability and cash flow are expected to improve.

• Future capital needs are significant, with plans to expand the aircraft fleet and invest in electrified powertrain technology.