Earnings call transcript: Surf Air Mobility Q3 2025 misses revenue forecast

Surf Air Mobility reported its Q3 2025 earnings, revealing a revenue of $29.2 million, which fell short of the forecasted $53 million. The company also reported an earnings per share (EPS) of -$0.64. Following the announcement, Surf Air's stock price decreased by 3.29% during regular trading hours, closing at $3.04, although it saw a slight uptick of 1.64% in after-hours trading.

Key Takeaways

• Surf Air Mobility's Q3 revenue of $29.2 million missed the forecast by 44.91%.
• The company achieved profitability in airline operations for the second consecutive quarter.
• Surf Air raised its full-year revenue guidance to at least $105 million.
• The stock price decreased by 3.29% but gained 1.64% in after-hours trading.

Company Performance

Surf Air Mobility reported a 6% sequential growth and a 3% year-over-year increase in revenue, reaching $29.2 million for Q3 2025. Despite missing revenue forecasts, the company managed to achieve profitability in its airline operations for the second consecutive quarter. This performance reflects a strategic focus on operational efficiency and route optimization, including the exit from unprofitable routes.

Financial Highlights

• Revenue: $29.2 million, 6% sequential growth, 3% year-over-year increase.
• Adjusted EBITDA loss: $9.9 million, within the guidance range.
• Full-year revenue guidance raised to at least $105 million.

Earnings vs. Forecast

Surf Air Mobility's Q3 revenue of $29.2 million was significantly below the forecast of $53 million, resulting in a revenue surprise of -44.91%. The EPS of -$0.64 did not meet market expectations, continuing the trend of negative earnings.

Market Reaction

Following the earnings announcement, Surf Air's stock price decreased by 3.29% during regular trading, closing at $3.04. However, the stock saw a slight recovery in after-hours trading, rising by 1.64% to $3.09. The stock remains well below its 52-week high of $9.91, reflecting investor concerns over the company's financial performance.

Outlook & Guidance

Surf Air Mobility has raised its full-year revenue guidance to at least $105 million, indicating confidence in its strategic initiatives. The company is targeting a revenue range of $25.5 million to $27.5 million for Q4 2025, with an expected adjusted EBITDA loss between $6.5 million and $8 million. Surf Air plans to commercialize its Surf OS platform in 2026 and is exploring new route expansions.

Executive Commentary

Deanna White, CEO of Surf Air Mobility, stated, "We are executing and demonstrating improvements in all areas of the business, financially, operationally, and strategically." Co-Founder Sudan Shahani added, "What we're building is a vertical AI product where we're solving specific high-value problems for businesses using domain-specific data."

Risks and Challenges

• Revenue shortfalls could impact investor confidence and stock performance.
• The company's path to profitability remains uncertain amid ongoing EPS losses.
• Market conditions and competition in the regional air mobility sector could pose challenges.
• The successful development and commercialization of Surf OS are critical to future growth.
• Economic factors and potential regulatory changes could affect operations.

Q&A

During the earnings call, analysts inquired about the impact of a potential government shutdown, with executives confirming no significant effects. Discussions also covered potential partnerships with electric aircraft manufacturers and the company's commitment to becoming debt-free by 2028.

Full transcript - Surf Air Mobility Inc (SRFM) Q3 2025:

Tina, Conference Operator: Good evening. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Serv Air Mobility Third Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Thank you. I will now pass the call over to Sam Levinson. Please go ahead.

Sam Levinson, Unspecified Executive, Surf Air Mobility: Thank you, operator, and good afternoon, everyone. Welcome to Surf Air Mobility's third quarter twenty twenty five earnings call. I'm joined today by Deanna White, Chief Executive Officer and Oliver Reeves, Chief Financial Officer. Our earnings release can be found on the SEC EDGAR website and on our Surf Air Mobility Investor Relations page at investors.surfair.com. During this call, we will discuss our outlook and expectations for future performance.

These forward looking statements may be preceded by words such as we expect, we believe, we anticipate or other similar statements. These statements are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Some of those risks have been set forth in our earnings release and in our periodic reports filed with the SEC. During today's call, we will present both GAAP and non GAAP measures. Additional disclosures regarding non GAAP measures, including a reconciliation of GAAP to non GAAP measures, are included in the earnings release we issued today, posted on the Surfer Mobility Investor Relations website and in our filings with the SEC.

I'll now turn the call over to SURFair Mobility's CEO, Deanna White. Deanna?

Deanna White, Chief Executive Officer, Surf Air Mobility: Thank you, Sam, and thank you to everyone who has joined our call today. One year ago, we announced a four phase transformation plan to reset the financial and operational trajectory of SURFAIR Mobility. Each phase was designed as a building block to execute on our core mission to build the air mobility platform that will transform flying. Our goal is to fly people using technology that generates long term value for our shareholders. The plan was crafted to first strengthen the financial position of the company, then leverage our many strengths into catalysts for the adoption of software and electrification technology.

Our transformation plan is proving to be reality and not just theory. We are executing and demonstrating improvements in all areas of the business, financially, operationally and strategically. Financially, over the past year, we have improved our capital structure and deleveraged our balance sheet through a series of debt and equity transactions. During the twelve months ended 09/30/2025, we secured a $50,000,000 credit facility and raised $50,000,000 of additional capital through equity issuances. Furthermore, we reduced our debt by 52,000,000 through pay downs and conversions to equity.

Subsequent to the end of the third quarter, we announced a pivotal $100,000,000 strategic financing that will accelerate growth and further strengthen our balance sheet. This financing includes $26,000,000 of new capital to drive development and commercialization of Surf OS. The remaining 74,000,000 structured as a zero coupon convertible note will be used to refinance debt, reducing cash interest expense and allowing for further deleveraging of the balance sheet. We will continue to look for opportunities to strengthen our balance sheet and unlock catalysts for our shareholders. Turning to our third quarter results, this quarter marks the seventh consecutive quarter that we have met or exceeded our revenue and adjusted EBITDA guidance.

Third quarter revenue of $29,200,000 exceeded the company's guidance of 27,000,000 to $28,500,000 and rose 6% sequentially versus the second quarter. Adjusted EBITDA loss of $9,900,000 was within our guidance range as the disciplined execution led by our experienced management team once again yielded expected results. With another quarter of improved financial results behind us, we have raised our 2025 revenue guidance to at least 105,000,000 and remain on track for a full year of profitability in our airline operations. Operationally, we have transformed our commuter airline, consistently producing strong results, which have translated into our second consecutive quarter of profitability in this business. I would like to recognize the achievements of the seasoned aviation team recruited at our Systems Operations Center, which was relocated to Dallas, Texas this past year.

This team has created a high functioning operation grounded in performance metrics that produces safe, reliable, and profitable results for the organization. Our operations position us to both become a preferred operator in new markets and to deploy new electrification technology coming to market in the near future. We produced exceptional sales results in our on demand business for the third quarter, generating an approximate 40% increase in revenue compared to both the second quarter and the same quarter of the prior year. Our on demand business is executing strongly against our key recalibration initiatives. Third quarter results benefited from a shift in the mix of flying from turboprop to jet aircraft and from domestic to international flights, which resulted in a 14% increase in revenue per flight.

At the same time, we reduced expenses of the on demand team 36% since adopting Surf OS, generating higher revenues for less cost. Additionally, the team implemented profitability enhancements by securing inventory through volume purchase agreements with operators who are also users of Surf OS. Our on demand business is well positioned for profitable growth. Surfboard mobility is at the epicenter of the air mobility market, not only as one of the largest commuter airlines in the country, having flown over 300,000 passengers in the past twelve months, but also as a result of our relationships with over 400 operators who serve our on demand operations and who are ideal customers of the ServoOS platform in the future. The Part 135 industry is made up of small businesses with unsophisticated tech stacks and fragmented data.

As an operator and broker, we have unique insight into the technology needs of this industry. Our exclusive partnership with Palantir allows us to leverage cutting edge AI tools and best in class data management expertise to build an all in one AI enabled software platform for this industry. During the third quarter, we entered a five year agreement with Palantir that expanded our relationship to include exclusivity for products developed for charter brokers and operators. We obtained the ability to team with Palantir on solutions designed for enterprise customers, aircraft manufacturers and the FAA. As part of the recent strategic transaction, we added resources from Palantir to further these efforts.

In our Surf OS business, we continue to make substantial progress on driving efficiencies in our own operations by adding incremental functionality and expanding our applications. We have successfully implemented multiple applications within our operations and are already seeing significant improvements in efficiency and profitability. In our scheduled operations, we launched an aircraft and crew scheduling tool in our Northeast and Hawaii networks that required parallel testing and FAA approvals. We anticipate that the entire network will be live on this tool by the end of the year. Our Surf OS team also launched additional features within the mobile crew app that increased pre post flight communications and reporting.

Lastly, robust CRM functionality was built into BrokerOS to streamline customer insights and promote sales efficiencies. During 2025, Surf OS has been in a beta test phase with eight users who have given us valuable insights. We have secured seven LOIs from brokers and operators extremely interested in purchasing OS once we commercialize this product. In October, the company hosted a private event at NDAA showcasing Surf OS and conducted 18 product demos for a select group of brokers, operators, aircraft manufacturers and enterprise clients. We are extremely pleased with the progress made in the last year and expect to exit 2025 with strong momentum as we enter the strategic phases of our transformation plan next year.

Strategically, Surf Air Mobility is well positioned to continue optimizing its businesses and begin pursuit of the expansion and acceleration phases of our transformation plan. First, we will commercialize Surf OS and begin full deployment to third parties in 2026. With the recently announced financing, we have secured funding for the continued development and commercialization of Surf OS. Surf OS is AI driven software powered by Palantir that organizes key stakeholder data into a single platform, actionable insights for a business. We intend to launch our three flagship Surf OS products in 2026, BrokerOS, OperatorOS, and OwnerOS.

BrokerOS manages end to end sales and sourcing and will empower charter brokers to automate processes. OperatorOS improves efficiency and the utilization of planes, pilots, and airport staff. OwnerRAS delivers transparency and optimization to private aircraft owners to generate better returns on their aviation assets. These products can be integrated into customized solutions for enterprise clients. We intend to announce our commercialization plan with milestones in the coming months.

Second, we are pursuing strategies to showcase new technology in our airline operations network and in new markets. We currently provide commuter service to approximately 200,000 interisland flyers annually within the state of Hawaii. The length of these flights ranging from 25 to 75 miles is the perfect testing ground for electrified aircraft coming online in the near future. We are working with aircraft manufacturers in the state of Hawaii to launch a pilot program within our existing network. Additionally, we intend to launch a part 145 maintenance program to service existing and new technology aircraft and our scouting potential locations within our network to invest.

The high functioning system operations center we have built positions SurveyMobility to become a preferred operator for companies looking to adopt new aircraft technology in their business models. Billions of dollars are being invested across the aviation industry in the development of new technologies focused on smaller aircraft flying shorter distances. With over a decade of operating both scheduled and on demand short haul flights, we have flown millions of passengers, millions of miles and work with hundreds of operators in this market. This uniquely positions us to deploy these new technologies across a variety of business models and partners. In the meantime, we will continue to add capacity to our network utilizing combustion engine caravans, of which we are taking four new deliveries in the 2026.

Our work on detailed launch plans continues for new routes we intend to unveil next year. Third, we intend to grow our on demand business and expand the number of operators in our network through a series of strategic initiatives directed at profitable revenue growth. We will continue our efforts to secure a supply advantage through operator partnerships that provide volume pricing benefits. To achieve our revenue aspirations, we plan to grow our sales team by acquiring seasoned broker talent and books of business. Currently, our on demand team is working towards the coveted ARGUS broker accreditation, which will equip our operations with a 100% operator vetting and strong compliance oversight.

Lastly,

Tina, Conference Operator: let me

Deanna White, Chief Executive Officer, Surf Air Mobility: update you on our electrification effort. We have targeted securing a supplemental type certificate for the electrified powertrain in 2027. As such, we have been working with key organizations within the industry supply chain and are evaluating partnership opportunities where we no longer bear the full cost of development. In addition to being the largest passenger operator of subsequent Grand Caravans, we have an exclusive agreement with Textron Aviation, the manufacturer of this aircraft for us to be the exclusive supplier of electric and hybrid electric powertrains and for Textron Aviation to provide global marketing, sales and distribution for these electrified aircraft. As our progress towards this initiative continues, we look forward to updating you as things unfold.

SureCare Mobility has never been positioned as strongly as we are today and we fully intend to leverage that strength to drive shareholder value over the coming years. With that, let me now turn the call over to Oliver to cover the recently announced strategic financing and our Q3 results and Q4 outlook in more detail. Oliver?

Oliver Reeves, Chief Financial Officer, Surf Air Mobility: Thank you, Deanna. In my remarks today, I will address the company's third quarter results and outlook for the fourth quarter and full year. But first, let me share details on our continued efforts to strengthen our balance sheet and secure capital for our technology initiatives that we believe will create significant shareholder value. On 11/10/2025, Surf Air Mobility announced a $100,000,000 strategic transaction that will continue to enable us to achieve our transformation plan. This transaction directs $26,000,000 from new equity issuances specifically to the development and commercialization of Surf OS, shifting this initiative from its beta phase into its commercial phase.

A new institutional investor and a Surf Air Mobility cofounder, together with a related party, each purchased 10,000,000 of this offering, which includes common stock and two year warrants exercisable at a purchase price of $3.32 per share. Finally, Palantir was issued 6,000,000 of new common equity as prepayment for software and additional services. This capital will be used to fund the continued development of Surf OS's three flagship products, broker OS, operator OS, and owner OS, and to enable the scaling of our engineering and sales capability. The proceeds will also be used to invest in the development of new modules and products to capture a larger share of the growing air mobility software market. In the coming months, we intend to publicly share more information about Surf OS products, the sizable and growing addressable market, our distribution and commercialization strategy, and the pricing and business models, which will set revenue expectations for 2026.

Concurrently with the equity raise, Sarte Mobility completed the sale of a $74,000,000 convertible note, yielding net cash proceeds to the company of $65,000,000 The company will use a portion of these proceeds to pay 51,000,000 due under the company's four year credit agreement with affiliates of Convest Partners and 8,000,000 outstanding under the company's secured convertible note with Partner for Growth Spyve LP. In aggregate, repayment of these liabilities represent a reduction in cash interest expense of approximately 5,500,000.0 on an annualized basis. Earlier in the quarter, a lender transferred $35,000,000 of the outstanding principal under their convertible note to a third party under terms identical to the original note. The new holder of the note converted the entire balance, inclusive of accrued interest, into 7,200,000.0 shares of the company's common stock. This resulted in the elimination of a $35,000,000 liability and a reduction of 3,500,000.0 in annualized cash interest expense.

Finally, during the quarter, the company elected to pay down 8,200,000.0 of the outstanding principal of the GEM mandatory convertible security. To summarize, we significantly reduced our liabilities in q three and have subsequently provided funding for the continued development and commercialization of SURF OS. As a result of the financing transaction, we now see a path for the company to be debt free. Now let me turn to the results of the third quarter and our outlook for the remainder of the year. As discussed in our earnings release, revenue from the quarter exceeded our guidance and adjusted EBITDA met our guidance.

Strong execution of our transformation plan has driven significant improvement in our key operating metrics in both our scheduled service and on demand operations, yielding significant and sustainable improvements in financial results. Third quarter revenue of $29,200,000 exceeded our guidance range of $27,000,000 to 28,500,000.0 and rose 6% sequentially over the second quarter, driven by a 42% increase in on demand revenue, partially offset by a 4% decrease in scheduled service revenue. On a year over year basis, revenue increased 3%, driven by a 40% increase in on demand revenue, partially offset by a 7% decrease in scheduled service revenue. The drivers of both sequential and year over year increases in revenue were primarily related to a shift in the mix to larger aircraft and international flights, which resulted in an increase in revenue per departure in our on demand business and the exiting of unprofitable routes offset by improved operational metrics in our scheduled service operation. Our adjusted EBITDA loss of $9,900,000 for the third quarter was within our guidance range of a loss of 10,000,000 to $8,500,000 Compared with the second quarter and the same quarter of the prior year, adjusted EBITDA loss was relatively flat.

Adjusted EBITDA loss continues to benefit from improvements in key operating metrics, including on time departure, on time arrival, and controllable completion factor, demonstrating the permanency of our transformation strategies. Our airline operations achieved a second consecutive quarter profitability defined as positive adjusted EBITDA. Now let's discuss our outlook for the fourth quarter and full year. For the fourth quarter, we expect revenue to be within a range of 25,500,000.0 to $27,500,000 and adjusted EBITDA loss to be within a range of 6,500,000.0 to $8,000,000 These ranges reflect the exit of unprofitable routes and continued efforts to improve profitability. For the full year, we are raising our revenue guidance to at least $105,000,000 and we are reaffirming our guidance for full year airline operations profitability to find this positive adjusted EBITDA.

With that, me turn the call back over to the operator for Q and A. Operator?

Tina, Conference Operator: Your first question comes from the line of Amit Dayal with H. C. Wainwright. Your line is open.

Amit Dayal, Analyst, H.C. Wainwright: Thank you. Good afternoon, everyone. Congrats on all the progress. So with this financing, what kind of cash runway do you have in terms of commercializing SURF OS?

Deanna White, Chief Executive Officer, Surf Air Mobility: Hi, Matt, and thank you for your interest in being on the call. I'll turn that over that question over to Oliver, the CFO, to answer.

Oliver Reeves, Chief Financial Officer, Surf Air Mobility: Hi, Amit. As you saw, there were really two uses for the financing. One is obviously the investment into SURF OS, and we believe that that will give us a runway of between eighteen and twenty four months.

Amit Dayal, Analyst, H.C. Wainwright: Okay. That's good to hear. Thank you for that. So you have some really interesting partnerships with Palantir, with Beta Technologies. Can you talk a little bit about what is happening with those efforts?

Especially in the context of Beta Technologies business went public, how are you potentially working with that company to commercialize software offering?

Deanna White, Chief Executive Officer, Surf Air Mobility: Amit, I think we announced in the second quarter working with Elektra and that we had an Elektra aircraft order for their future CTOL. But obviously, there are there is a lot of really interesting electrification technology coming from folks like Beta, Archer, Joby, that are coming in the near future. And obviously, we, as a company, are well positioned to be able to partner with all of these folks that are bringing on this new technology. Why is that? It's because we fly in the regional air mobility space, which these vehicles, because they're shorter haul distances, will be able to be perfect testing grounds for those.

And we're also in our SRF OS product, we're developing the platform in which all of these types of products can play within our platform, whether they're in our network or if they're deployed in other operators' network. They can be within our Surf OS commercial platform and be where our platform is an ecosystem for all of these new products that are coming online in the very near future.

Amit Dayal, Analyst, H.C. Wainwright: Okay. Thank you for that. Apologies if I got the beta technology thing wrong. And then from just an operating perspective, as you are exiting some of these unprofitable routes, are there opportunities to lower operating costs over the next twelve to eighteen months?

Deanna White, Chief Executive Officer, Surf Air Mobility: Absolutely, Amit. We are still optimizing our airline operations. We are we don't have all the capabilities of Surf OS fully capable in our organization's operations. There are still more benefits to receive once we do have all those tools in place, and we have the ability to use the optimization. So we can still hit those really great operational metrics that we are today consistently.

But in the future, we're using technology. We should be able to do it more efficiency with more efficiency and more optimization, which would require obviously less resources and less cost in the system. So we do plan and we do see the opportunity for increased levels of profitability and even operational performance in the future.

Amit Dayal, Analyst, H.C. Wainwright: Understood. I'll take my other questions offline. And again, congrats on all the execution.

Deanna White, Chief Executive Officer, Surf Air Mobility: Yes. Thank you very much, Yvette.

Tina, Conference Operator: Your next question comes from the line of Austin Moeller with Canaccord Genuity. Your line is open.

Austin Moeller, Analyst, Canaccord Genuity: Hi. Good afternoon. Just my first question here. Are there any features of Surf OS that you plan to make exclusive for your on demand or scheduled business? Or will all of your beta testers and customers have access to all of the

Sudan Shahani, Co-Founder, Surf Air Mobility: features of the stack?

Deanna White, Chief Executive Officer, Surf Air Mobility: Our intention is to have all the features available to third parties. We represent a great staging ground and testing ground because we are we have the unique ability to be both because we're both a broker and an operator, we bring insights into what is needed. So when you're working hand in hand with the tech team and Palantir to bring insights into the product requirements, we're able to make an amazing state of art tool that we are using in our own space. And we want that product to be deployed to other folks in the space and bring those people into the commercial platform and the ecosystem that, that software develops for the industry.

Austin Moeller, Analyst, Canaccord Genuity: Okay. And on the scheduled business, so revenue was a little lower year over year. How many more routes might you expect to remove from the scheduled business before adding some of the new Tier one routes? And where geographically are you looking to add the new routes?

Deanna White, Chief Executive Officer, Surf Air Mobility: So we have a few more couple more exits in the fourth quarter. That's why our outlook for the fourth quarter in revenue dropped a bit. But we that will be the end of it, and all of the exiting of unprofitable routes will be complete by the end of this year, unless, of course, one of those routes tries to hold us in longer before they can get the new carrier in. As far as the announcement of any specifics on the 2026 launch of a new route, that's we don't want to do that too soon to give away that competitive advantage of exactly where we're going. But the team is busy developing and has a full business plan on exactly how that will have to come to play.

And obviously, we're using a lot of really good data that we have on where the demand is, where are people traveling, that we can take them out of their cars and put them into the air using our service. And we have used that to make our decisions and then down select where we're going to go.

Austin Moeller, Analyst, Canaccord Genuity: Great. Thanks for the insights there. Thanks.

Tina, Conference Operator: Your next question comes from the line of David Storms with Stonegate. Your line is open.

David Storms, Analyst, Stonegate: Good evening and thank you for taking my calls. Did want to start, Oliver, you had a comment in your prepared remarks that you see a path for the company to be debt free. I was just hoping you could speak a little more to maybe some of the variables that you would see impacting that and any sense of a timeline there?

Oliver Reeves, Chief Financial Officer, Surf Air Mobility: Well, as you see, the convertible was designed with features that would allow us to gradually delever our balance sheet. So we feel that over time, this is a much better path for us rather than facing high interest or high cash interest debt and then bullet payments. So we feel pretty good about that across the duration of the convert, which, as you see, has a maturity of 10/31/2028. So as that converts and as we succeed, hopefully before then, we have a great path to becoming debt free.

David Storms, Analyst, Stonegate: Understood. I appreciate that. And then I also did want to circle back to the comment around Surf OS reaching commercialization, hopefully within the next eighteen to twenty four months. The logistics around that, would you expect some sort of soft launch in the twelve to eighteen months range that would maybe start generating revenue? Or I guess maybe what are your thoughts around that as we get closer to getting Surf OS on its feet?

Deanna White, Chief Executive Officer, Surf Air Mobility: Yes. So thanks, David. We our plans, we have a commercial plan we'll unveil in the coming months, but we do plan in the 2026 to start generating revenue with that product. And we do so we will have revenue guidance that we give out and further discussion of the business model and the commercialization plan for 2026 and beyond. But we are starting commercialization.

We're out of the beta phase, and we're doing everything. And this recent financing that we got for the strategic transaction we just announced is the catalyst to be able to full commercialization.

David Storms, Analyst, Stonegate: Understood. That's great. And then one more for me, if I could. Just any commentary around the recent government shutdown. Has that impacted your business model in the first half of Q4 here?

And I'll turn it over. Yes.

Deanna White, Chief Executive Officer, Surf Air Mobility: So our company's business is impacted in two ways from the government shutdown. I'll speak to the first because it's most on top of people's mind is the traffic reductions that were recently announced by the FAA. None of those traffic reductions targeted us or any of our operations or any of the regional flying. They were more directed at larger hubs in the major airports. So we did not have any capacity reductions that we continued on operating and carrying our customers without any disruptions.

The second area that we are can be impacted from is we do participate in the Essential Air Service Program. We do routes in the rural areas under that program. That program includes subsidies to the companies who operate those flights. The DOT did, during the shutdown period, notify those carriers and say that they would potentially be a suspension of those fundings. That has not happened.

But even if it was, we would continue to operate until the government came back up. We want to support all the communities in our essential air service program, and we committed to doing that. Right now, the current letter from the DOT talks about a suspension starting November 18, but hopefully the government can get back in this week and not be affected by that at all. So those are the two areas that we would have been affected, and so far we haven't. We've gotten all our EIS subsidies that we have billed and haven't had any flight cancellations.

Tina, Conference Operator: I will now hand the call back to Deanna White for further response.

Deanna White, Chief Executive Officer, Surf Air Mobility: Hi, everyone. For the first time during this earnings release, we have launched a new retail investor Q and A forum called Say Media. So we had a number of investors who submitted questions, and I appreciate everyone who submitted questions to that. We selected a handful of the top ones that were voted on by the folks to address and answer. So I'll start with the first one.

Given the current market skepticism and volatility, what is your plan to gain investor confidence and prove Surferior can execute its vision better than competitors? So at Surferior Mobility, we are hyper focused on shareholder value, And we've come a very long way in the last year. Over a year ago, we launched the transformation plan. So that is the plan that we are executing on to make sure that we can gain investor confidence in our company. The plan over the last year, like I have spoke of, has been very effective.

We have hit all of our milestones. We have improved and stabilized our operations. We've done a lot of work to stabilize our balance sheet and address our capital structure. And with this recent announcement, we are allocating funds to the higher growth areas of SURF OS, and we have delivered on the development milestones within SURF OS for the last year. You see us proving and performing against that plan as we've achieved our seventh consecutive quarter of meeting or exceeding our guidance.

What investors are noticing, in the last six months, we've seen 10 times the amount of shareholders in our stock, and it's been great to see that many people interested and investing in our company. The second question was, with all the volatility over valuations and pullback from investors in regards to AI, can we expect true and realistic numbers coming from your company? So I'll turn this question over to Sudan Shahani, our Co Founder, to address.

Sudan Shahani, Co-Founder, Surf Air Mobility: Thank you, Deanna. I think as you commented on earlier, we're going to comment on the numbers of the software, subOS business for 2026 later on. And our 2026 are here to start commercializing, but I'm going to address a couple of key points around our approach and positioning in the AI space. What we're building is a vertical AI product where we're solving specific high value problems for businesses using domain specific data in an industry we consider ourselves an expert. We're not investing in foundational models, and we have a capital efficient approach here, building core applications and leveraging data infrastructure for Palantir.

And I would make a point that there are clear examples of companies in the space providing business solutions and applying AI with high degrees of profitability in situations. Our partner, Palantir,

Oliver Reeves, Chief Financial Officer, Surf Air Mobility: is actually a perfect example of that.

Deanna White, Chief Executive Officer, Surf Air Mobility: Thank you, Sidney. The next question is very pertinent because we are talking to you from the Hawthorne Airport, where we have our corporate headquarters for this call. There was a recent last week, Archer Aviation announced their acquisition of the Hawthorne Airport. Considering the Surf Air corporate headquarters is there, what changes do you expect to emerge from this? Are these plans to work with Are there plans to work with Archer, considering they're also a Palantir partner?

Interesting enough, we have been talking and highlighting for our industry the underutilized and underinvested airports that exist throughout the country. There's five public use airports, just like Hawthorne, that can be used for the future of aviation through advanced air mobility. So we've been ahead of the curve because we play in this space, and we've been talking about this for a while. Interesting enough, the industry and the investment in the aviation industry is moving from investment in R and D with the OEMs that are making these aircraft and starting to move into infrastructure investments. This is bringing a mass going to bring a mass investment cycle change because you've got to now go in and make all the investment to have all the infrastructure needed for all these vehicles that are coming in the near future.

So it makes sense that a party and a player like Archer Aviation would purchase such a thing from the as far as Hawthorne Airport. And as far as partnering with these types of players, we're someone who flies today in those spaces in the shorter haul miles. And we're developing a software platform for that industry. And so we'll likely work with many of these best in class next generation manufacturers to help bring their vehicles into the ecosystem and to our customers. And our last question is, what would be the main goal of the company to achieve by 2026, so in the next year?

We want to continue to deliver execution on our transformation plan. Our transformation plan has four phases. We're in the second phase, moving into the third phase. We will continue to demonstrate stable, permanent operational performance, improving and optimizing our business through the adoption of software and the technologies that we ourselves are developing. The big thing in the next year is going to be our commercial rollout, our Surf OS that we have planned.

And we have secured the funding for that with the recent strategic transaction that we announced earlier this week. So that concludes our Q and A. Thank you, everyone, for tuning in, listening to us and the continued support of our company. And hope to looking forward to talking to you in our next quarter or installation when we start talking more about 2026 and we're able to provide more insight into the commercialization details and the plans we have for 2026.

David Storms, Analyst, Stonegate: This

Tina, Conference Operator: concludes today's conference call. You may now disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.