Surf Air Mobility Inc (NYSE:SRFM) Beats Q2 2025 Revenue and EBITDA Guidance Despite Net Loss

Surf Air Mobility Inc (NYSE:SRFM) reported its second-quarter 2025 financial results, surpassing both revenue and adjusted EBITDA guidance. The regional air mobility platform posted revenue of $27.4 million, exceeding its own expectations of $23.5 million to $26.5 million and beating analyst estimates of $25.8 million. Despite the revenue outperformance, the company reported a net loss of $28.0 million, or $0.93 per share, which was narrower than the anticipated $1.11 loss per share.

Key Financial Highlights

• Revenue Performance: Q2 revenue declined 15% year-over-year, as expected, due to the company's strategic exit from unprofitable scheduled routes. However, sequential quarterly revenue grew 17%, driven by a 20% increase in Scheduled Service revenue and a 5% rise in On Demand revenue.
• Profitability Milestones: The company achieved positive Adjusted EBITDA in its airline operations for the quarter, a significant step in its ongoing transformation plan. Adjusted EBITDA loss improved to $9.5 million, better than the projected $10.0 million to $13.0 million loss.
• Balance Sheet Strengthening: Surf Air raised $44.7 million in equity capital during the quarter and converted $29.9 million of convertible notes in July, improving its liquidity position.

Market Reaction

Following the earnings release, the stock saw a modest decline in after-hours trading, down approximately 3.1%. This reaction may reflect investor caution despite the earnings beat, given the company’s ongoing net losses and restructuring efforts. Over the past month, shares have declined nearly 30%, indicating broader market skepticism about the company’s path to sustained profitability.

Strategic Developments

• Operational Improvements: The company improved key performance metrics, including a controllable completion factor increase from 82% to 95%, contributing to airline profitability.
• Partnership with Palantir: A new five-year software licensing agreement positions Surf Air as Palantir’s exclusive partner for Part 135 operators and charter brokers, enhancing its software-driven efficiencies.
• Route Optimization: Continued focus on profitable routes led to margin improvements in both Scheduled Service and On Demand segments.

Outlook vs. Analyst Estimates

Management reaffirmed full-year 2025 guidance, expecting revenue to exceed $100 million and airline operations to achieve profitability. This aligns closely with analyst sales estimates of $103.9 million for the year. For Q3, the company forecasts revenue between $27.0 million and $28.5 million, slightly above the consensus estimate of $26.3 million.

Conclusion

While Surf Air Mobility demonstrated progress in operational efficiency and revenue growth, the market reaction suggests lingering concerns about its long-term financial sustainability. The company’s ability to execute its optimization phase and expand its software business will be critical in regaining investor confidence.

For more detailed earnings estimates and historical performance, visit Surf Air Mobility’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making financial decisions.