Wheels Up Experience Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP Revenue for the three months ended September 30, 2026, was $164.8 million, a decrease of 11% year-over-year; approximately 3% of this decline was attributable to the disposition of non-core services businesses in Q3 2025.
• Private Jet Flight revenue was $143.9 million, a 7% decline year-over-year, driven by a 120% increase in premium Phenom and Challenger fleet revenue offsetting a 44% decline in legacy fleet revenue.
• Total Gross Bookings were $225.4 million, down 15% year-over-year, primarily due to lower group charter, cargo, and on-demand charter volume.
• Gross profit improved by $16 million to $15.2 million compared to the prior year period, impacted by approximately $3 million of business transformation-related expenses.
• Net loss was $89.4 million, or $(2.48) per share, an increase of approximately $6 million versus the prior year period.
• Adjusted Contribution was $27.0 million, a 15% improvement year-over-year, with an Adjusted Contribution Margin of 16.4% compared to 12.7% in the prior year period.
• Adjusted EBITDAR loss was $13.2 million, a 44% improvement year-over-year, driven by a 31% increase in Utility and efficiency initiatives.
• For the nine months ended September 30, 2026, GAAP Revenue was $515.7 million, down 7% year-over-year.
• Net loss for the nine months ended September 30, 2026, was $279.6 million, or $(7.72) per share.
• Adjusted Contribution for the nine months ended September 30, 2026, was $64.4 million, a 7% decrease year-over-year, with an Adjusted Contribution Margin of 12.5%.
• Adjusted EBITDAR loss for the nine months ended September 30, 2026, was $53.9 million, a 29% improvement year-over-year.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $208.3 million, a 41% increase in cash usage compared to the prior year period.
• Cash and cash equivalents were $51.8 million as of September 30, 2026, down from $133.9 million as of December 31, 2025.
• Total liabilities were $1.55 billion as of September 30, 2026, compared to $1.36 billion as of December 31, 2025.
• Long-term debt, net, increased to $684.0 million as of September 30, 2026, from $316.4 million as of December 31, 2025.
• Deferred revenue, current, decreased to $595.2 million as of September 30, 2026, from $738.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Management aims to complete the full sunset of legacy membership programs in 2027.
• The company plans to continue scaling the Wheels Up Signature Membership and expanding high-quality revenue.
• Future focus includes improving productivity, maximizing value from the premium fleet, and deepening the strategic partnership with Delta Air Lines to support long-term profitable growth.
• A landmark order for six factory-new Embraer Phenom 300E aircraft was announced, with deliveries expected in the third and fourth quarters of 2027.

Business Segments and Product Lines:

• The Wheels Up Signature Membership program grew to more than 1,500 members, a 130% increase year-to-date through September 2026.
• Legacy memberships declined by 62% following the announced wind-down of legacy programs and fleet in April 2026.
• Premium Phenom and Challenger fleet revenue increased by 120%, supported by fleet growth from 24 to 43 aircraft year-over-year.
• Legacy fleet revenue declined by 44% as the company winds down legacy programs.
• Signature revenue and memberships surpassed legacy revenue and memberships for the first time in the quarter.
• The company launched a refreshed brand campaign, "The Right Way to Fly," in early October to reflect its differentiated value proposition.
• An enhanced Sustainable Aviation Fuel (SAF) program was announced in September, replacing the previous carbon offsetting program, leveraging a partnership with Delta for access to SAF supply.

Market and Competitive Landscape:

• Wheels Up achieved a Completion Rate of 99.3% (up ~1 point year-over-year) and On-Time Performance (A-30) of 86.4% (up nearly 4 points year-over-year).
• The company recorded 163 Brand Days (days with a perfect Completion Rate and no operational cancellations) through the end of September 2026.
• Wheels Up was ranked sixth among airlines in the United States in the 2026 Condé Nast Traveler Readers' Choice Awards.
• Utility for the controlled fleet increased by 31% in the third quarter of 2026 compared to the prior year period.

Risks and Challenges:

• The press release notes transitory inefficiencies from the ongoing business transformation contributed approximately 2 points of margin pressure year-over-year.
• The sale of non-core services businesses contributed approximately 1 point of margin pressure year-over-year.
• Forward-looking statements highlight risks related to the ability to execute the business transformation timeline, fund aircraft acquisitions, and achieve financial goals.
• Risks include general economic and geopolitical conditions, changes in interest rates, inflation, foreign currencies, and trade policies.

Management Commentary and Tone:

• CEO George Mattson stated that the third quarter marked an "important inflection point" where strategic actions began translating into stronger commercial and operational performance.
• Management highlighted significant improvement in Adjusted Contribution Margin despite headwinds from the wind-down of legacy programs.
• The tone emphasizes confidence in completing the fleet transition and scaling the Signature Membership to drive long-term profitable growth.

Other Key Points:

• Delta Air Lines committed an additional $100 million revolving credit facility to Wheels Up, reinforcing the strategic partnership.
• The company retired its legacy fleets from revenue service in April 2026.
• The company incurred $12.7 million in impairment on legacy fleet retirement for the nine months ended September 30, 2026.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $238.7 million, primarily driven by proceeds from long-term debt of $401.8 million.
• Proceeds from the sale of aircraft held for sale were $62.6 million for the nine months ended September 30, 2026.
• Equity-based compensation expense was $36.2 million for the nine months ended September 30, 2026.
• Payment-in-kind interest was $96.2 million for the nine months ended September 30, 2026.