Surf Air Mobility Reports Q1 2025 Results with Strategic Progress Toward Profitability

Surf Air Mobility Inc. (NYSE: SRFM) reported first quarter 2025 financial results with revenue of $23.5 million, adjusted EBITDA of ($14.4) million, and adjusted EPS of ($1.09), meeting both revenue and EBITDA guidance despite operational challenges. The company's performance during the quarter reflects its successful transition from the Transformation Phase to the Optimization Phase, with strategic cost reductions and operational improvements expected to drive noticeable growth in the second half of fiscal year 2025.

The company's interline agreement with Japan Airlines, its first with an international carrier, combined with the launch of the new Jet Card program, demonstrates Surf Air Mobility's commitment to enhancing end-user experience and expanding its global reach. This strategic partnership represents a significant milestone in the company's growth trajectory and market expansion efforts.

In air mobility operations, Surf Air Mobility continues to advance regional air travel through network optimization, improved flight efficiency, and technology-driven operational streamlining. The company has refined its route structure by exiting unprofitable routes and aligning schedules with demand to enhance reliability and profitability. The relocation to the Dallas/Fort Worth area and hiring of senior aviation professionals has enabled the company to redesign pilot compensation, domicile arrangements, work rules, and resource planning, further reducing organizational costs.

The company's software division continues to advance the SurfOS platform, an AI-driven software solution designed to enhance safety, efficiency, and profitability in regional air travel. Currently in beta testing with six users, the system streamlines flight scheduling, pricing, and operational analytics. The recent addition of a Flight and Crew Scheduling module to SurfOS further drives operational efficiencies and improves decision-making capabilities for operators.

Surf Air Mobility maintains its leadership position in aviation electrification with proprietary electric powertrain technology for the Cessna Caravan, targeting FAA certification by 2027. The company continues to pursue joint venture opportunities to capitalize on its electrification efforts, positioning itself at the forefront of sustainable aviation technology development. Management has indicated that current tariffs are not expected to significantly impact fiscal year 2025 results, providing confidence in the company's ability to achieve its full-year revenue target of $100.0 million and positive adjusted EBITDA by year-end.

For the second quarter of 2025, the company has provided revenue guidance ranging from $23.5 million to $26.5 million with an adjusted EBITDA loss between $10.0 million and $13.0 million. Stonegate Capital Partners' valuation analysis using an EV/Revenue framework indicates Surf Air Mobility is currently trading at a fiscal year 2026 EV/Revenue multiple of 1.0x compared to comparable companies at a median of 2.5x, suggesting potential undervaluation relative to industry peers.