Surf Air Mobility (SRFM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $23.5M, at the high end of guidance, with net loss improving to $18.5M from $37.0M in Q1 2024 and adjusted EBITDA loss of $14.4M, all within expectations.

• Operational improvements included fleet optimization, leadership hires, and enhanced maintenance, resulting in flight completion factors above 92% in early Q2.

• Cost reductions in technology, sales, and G&A led to a 35% decrease in total operating expenses year-over-year.

• Strategic focus remains on profitability, exiting unprofitable routes, and leveraging technology, electrification, and partnerships for future growth.

• New interline agreement with Japan Airlines expands access to international travelers and strengthens the Hawaii market.

Financial highlights

• Q1 2025 revenue was $23.5M, down 23% year-over-year due to exiting unprofitable routes; scheduled service revenue declined 23% and on-demand revenue fell 25%.

• Net loss for Q1 2025 was $18.5M, a 50% improvement from $37.0M in Q1 2024; adjusted EBITDA loss was $14.4M, improved from $16.5M year-over-year.

• Operating loss for Q1 2025 was $18.6M, improved from $34.5M year-over-year.

• Net cash used in operating activities: $15.8M, up from $12.8M in Q1 2024.

• Post-Q1, $5M in new equity funding was raised via registered direct offering.

Outlook and guidance

• Q2 2025 revenue guidance: $23.5M–$26.5M; adjusted EBITDA loss: $10M–$13M.

• Full-year 2025 revenue expected to exceed $100M, with profitability targeted in airline operations and positive Adjusted EBITDA.

• Commercial rollout of Surf OS software platform planned for 2026.

• Management is implementing operational improvements and cost controls to improve profitability.

• Ability to draw on existing capital facilities is restricted by market cap compliance and daily volume limits.