Surf Air Mobility — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $36.5 million, a 25% year-over-year increase and the highest in company history, within guidance of $35.5 million to $37.5 million.
• Net loss was $20.4 million, a 25% improvement compared to $27.2 million in the prior year period.
• Adjusted EBITDA loss was $6.7 million, a 32% year-over-year improvement and the best in company history, within guidance of $4 million to $7 million.
• Surf On Demand revenue reached a record $19 million, a 121% year-over-year increase.
• Airline operations scheduled service revenue was $17.5 million, a 15% year-over-year decrease.
• Cash at quarter end was $10.7 million.
• Deferred revenue increased to $22.4 million from $17.9 million at year-end 2025.
• Total liabilities were $180.1 million, while total shareholders' deficit was $(45.5) million.
• Current maturities of long-term debt increased to $24.6 million from $2.7 million at year-end 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 $5.4 million to $2.4 million.
• Full Year 2026 revenue guidance remains $128 million to $138 million.
• Full Year 2026 Adjusted EBITDA loss guidance was modified to $35 million to $32 million, up from the previous range of $30 million to $25 million.
• The guidance modification 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:

• Surf On Demand achieved record revenue and year-over-year growth, with departures increasing 86% to 1,417 and average revenue per departure up 17% year-over-year.
• Gross margin for Surf On Demand improved more than 4 percentage points year-over-year.
• OperatorOS was commercially launched with five contracts signed to date, including three in Q3 2026.
• An initial phase of Enterprise BrokerOS was deployed at Wheels Up under a contract worth up to $12 million over three years.
• Airline operations generated positive Adjusted EBITDA of $1.2 million, with direct operating costs per block hour decreasing 6% and fuel burn decreasing 9%.
• Mokulele Airlines revenue increased 9% year-over-year, now serving 9 airports and 12 routes in Hawaii.
• The company was awarded a four-year, $19.4 million Essential Air Service contract to serve Lanai through August 2030.
• Electrification efforts included a completed electric aircraft demonstration program with BETA Technologies across four Hawaiian islands.

Market and Competitive Landscape:

• Surf Air Mobility became the first Part 135 passenger operator to join the FAA's Center for Advanced Aviation Technologies Consortium.
• The company joined the FAA's SMART airspace program as a participating airspace user.
• OperatorOS received FAA authorization as a system of record for the company's airline.
• The company is in advanced discussions with an active enterprise pipeline of large operators, brokerages, and aircraft manufacturers valued at tens of millions of dollars in annual revenue.

Risks and Challenges:

• Full-year Adjusted EBITDA guidance was modified due to higher fuel prices and extended implementation periods for SurfOS.
• Airline operations revenue decreased 15% year-over-year, primarily due to the exit of certain Essential Air Service routes.
• The press release notes general risks including dependence on third-party partners, ability to secure financing, and compliance with government regulations.

Management Commentary and Tone:

• CEO Deanna White stated the quarter represented the highest revenue and best Adjusted EBITDA in company history, marking the "Expansion Phase" of the Transformation Plan.
• CFO Jason Secore emphasized priorities to maximize long-term shareholder value, narrow the Adjusted EBITDA loss, improve free cash flow conversion, and fund growth from a stronger balance sheet.
• Management highlighted the strategic shift from an airline-centric company to a technology-powered air mobility platform.

Other Key Points:

• The company appointed Jason Secore as Chief Financial Officer, formerly CFO of Matternet.
• Barrett Brown was appointed President of SurfOS, formerly Head of Asia at Palantir Technologies.
• The second $14 million tranche of the asset-backed loan was funded in August, completing the $21.6 million facility.
• The company's common shares outstanding increased to 134.9 million from 73.1 million at year-end 2025.
• Restricted cash decreased to $287,000 from $10.1 million at year-end 2025.