Surf Air Mobility (SRFM) Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue: $25.6 million, at the high end of guidance ($24 million to $26 million), representing a 9% year-over-year increase.

Scheduled Service Revenue: $15.5 million, a 13% decrease year-over-year due to the intentional exit from unprofitable routes.

Surf On Demand Private Charter Revenue: $10.1 million, a 77% year-over-year increase, marking the highest revenue quarter since inception.

Net Loss: $20.3 million, compared to $18.5 million in the prior year.

Adjusted EBITDA Loss: $12.3 million, outperforming guidance of $15.5 million to $13.5 million, and an improvement of $1.1 million year-over-year.

2Strategic Updates and Business Highlights

Adjusted EBITDA Guidance: Revised to a loss of $25 million to $30 million for 2026, a 40% improvement from previous guidance.

SurfOS Development: Significant progress in operational efficiency through SurfOS, with improvements in crew scheduling and maintenance management.

Partnership with BETA Technologies: Firm order for 25 all-electric aircraft, with options for 75 more, and exclusivity as BETA's maintenance facility in Hawaii.

BrokerOS Growth: Increased from 29 to 100 independent brokers expected by year-end, with automated onboarding processes.

Safety Management System (SMS): Successfully implemented ahead of the FAA's 2027 mandate, enhancing safety protocols.

3Forward Guidance and Outlook

Q2 2026 Revenue Guidance: Expected in the range of $27 million to $30 million, with adjusted EBITDA loss projected between $10.5 million and $8.5 million.

Full Year 2026 Revenue Guidance: Maintained at $128 million to $138 million, indicating 20% to 30% growth year-over-year.

4Bad News, Challenges, or Points of Concern

Net Loss Increase: Year-over-year net loss widened, reflecting ongoing investments in R&D and technology initiatives.

Scheduled Service Revenue Decline: The intentional exit from unprofitable routes led to a decrease in scheduled service revenue, which may impact short-term growth.

External Headwinds: Rising fuel prices and weather-related cancellations in Hawaii are expected to affect revenue and unit costs.

Longer Conversion Cycles: Anticipated delays in monetizing enterprise solutions due to longer sales cycles for larger clients.

5Notable Q&A Insights

Broker Onboarding: The process for onboarding brokers is automated and efficient, with a focus on quality over quantity.

Operational Efficiencies: Continued enhancements in operational efficiency are expected as more SurfOS modules are implemented.

BETA Aircraft Trials: Upcoming cargo flights in Hawaii will serve as a critical test for the new aircraft, with potential for significant operational insights.

Revenue Mix Expectations: BrokerOS is projected to be the largest contributor to revenue growth in 2026, with enterprise solutions expected to gain traction in the longer term. Overall, Surf Air Mobility demonstrated strong operational execution in Q1 2026, with significant growth in its private charter business and strategic advancements in technology and partnerships, despite facing challenges related to net losses and external market pressures.