Surf Air Mobility — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue reached $36.5 million, a 25% year-over-year increase and 24% increase compared to Q2 2026, marking the highest quarterly revenue in company history.
• Surf On Demand revenue grew to a record $19 million, a 121% year-over-year increase and 57% increase compared to Q2 2026.
• Airline operations scheduled service revenue was $17.5 million, a 15% year-over-year decrease, primarily due to the exit of certain Essential Air Service routes.
• Net loss was $20.4 million for the quarter, a 25% improvement compared to $27.2 million in the prior year period.
• Adjusted EBITDA loss was $6.7 million, within guidance, representing a 32% year-over-year improvement and a 36% improvement compared to Q2 2026.
• Airline operations generated positive Adjusted EBITDA of $1.2 million for the quarter.
• Cash at quarter end was $10.7 million.
• Deferred revenue increased to $22.4 million as of September 30, 2026, from $17.9 million as of December 31, 2025.
• Total assets were $134.7 million as of September 30, 2026, compared to $131.7 million as of December 31, 2025.
• Total liabilities were $180.1 million as of September 30, 2026, compared to $186.5 million as of December 31, 2025.
• Shareholders' deficit was $(45.5) million as of September 30, 2026, compared to $(54.9) million as of December 31, 2025.
• The company completed the second $14 million tranche of its asset-backed loan in August, finalizing a $21.6 million facility.
• Current maturities of long-term debt increased to $24.6 million as of September 30, 2026, from $2.7 million as of December 31, 2025.
• Long-term debt increased to $34.3 million as of September 30, 2026, from $14.4 million as of December 31, 2025.

Guidance and Future Outlook

• Fourth Quarter 2026 revenue guidance is set at $36.4 million to $46.4 million.
• Fourth Quarter 2026 Adjusted EBITDA loss guidance is set at $5.4 million to $2.4 million.
• Full Year 2026 revenue guidance is reaffirmed at $128 million to $138 million.
• Full Year 2026 Adjusted EBITDA loss guidance is modified to $35 million to $32 million, revised from the previous range of $30 million to $25 million.
• The guidance modification for the full year is attributed to higher fuel prices and extended implementation periods for SurfOS.
• The company expects airline Adjusted EBITDA to improve further in the fourth quarter.

Business Segments and Product Lines

• SurfOS Software: Commercially launched OperatorOS for Part 91 and 135 operators, signing five contracts to date (three in Q3 2026, two post-quarter end).
• OperatorOS earns a percentage of revenue on each trip managed through the software.
• Received FAA authorization for OperatorOS as a system of record for the company's airline.
• Deployed the initial phase of Enterprise BrokerOS at Wheels Up under a contract worth up to $12 million over three years.
• Advanced discussions with an enterprise pipeline of large operators, brokerages, and aircraft manufacturers valued at tens of millions in annual revenue.
• Surf On Demand: Achieved record revenue and highest year-over-year growth since inception.
• Departures increased to a record 1,417, up 86% year-over-year.
• Average revenue per departure increased 17% year-over-year and 29% compared to Q2 2026.
• Gross margin improved more than 4 percentage points year-over-year and more than 10 percentage points compared to Q2 2026.
• Expanded to seven preferred operator partners.
• Airline Operations: Mokulele Airlines revenue increased 9% year-over-year, now serving 9 airports and 12 routes in Hawaii.
• Awarded a four-year, $19.4 million Essential Air Service contract to serve Lanai through August 2030.
• Achieved operational efficiencies including a 6% decrease in direct operating cost per block hour, 9% decrease in fuel burn, and 9% decrease in pilot cost per block hour.
• Labor productivity increased 15% year-over-year.
• Controllable completion factor improved to 98%, on-time arrivals increased to 87%, and on-time departures increased to 80%.
• Joined the FAA's SMART airspace program.
• Electrification: Completed an electric aircraft demonstration program with BETA Technologies involving 64 flights across four Hawaiian islands.
• Became the first Part 135 passenger operator to join the FAA's Center for Advanced Aviation Technologies Consortium.

Market and Competitive Landscape

• The company is shifting from an airline-centric model to a technology-powered air mobility platform.
• The company is in the "Expansion Phase" of its Transformation Plan, focusing on commercializing SurfOS, scaling Surf On Demand, and expanding airline profitability.
• Revenue growth in Surf On Demand reflects increased demand and increased revenue per departure.
• Airline operations revenue decline was partially offset by productivity improvements.

Risks and Challenges

• Full year Adjusted EBITDA guidance was lowered due to higher fuel prices and extended implementation periods for SurfOS.
• Forward-looking statements note risks including the ability to anticipate future market needs, liquidity dependence on operating performance and financing, and reliance on third-party partners for software development.
• Risks include potential interruptions, disagreements, or delays with partners, inability to execute growth strategies, customer payment issues, and access to capital markets.
• Risks also include legal proceedings, regulatory compliance, and general economic conditions.

Management Commentary and Tone

• CEO Deanna White stated Q3 was the highest revenue and best Adjusted EBITDA quarter in history, with results within guidance.
• Management highlighted progress on Transformation Plan priorities: commercializing SurfOS, scaling Surf On Demand, and expanding airline profitability.
• CFO Jason Secore emphasized maximizing long-term shareholder value by investing in profitable, fast-growing businesses while narrowing Adjusted EBITDA loss and improving free cash flow conversion.
• Management noted the results reflect growth in profitable revenue in Surf On Demand and expanding positive Adjusted EBITDA margins in airline operations.

Other Key Points

• Appointed Jason Secore as Chief Financial Officer, formerly CFO of Matternet.
• Appointed Barrett Brown as President of SurfOS, formerly Head of Asia at Palantir Technologies.
• Common shares issued and outstanding increased to 134.9 million as of September 30, 2026, from 73.1 million as of December 31, 2025.
• The company hosted a conference call on November 5, 2026, at 5:00 PM ET.
• The company is a leading air mobility platform listed on the NYSE under ticker SRFM.