$SRFM
Key Points from Surf Air Mobility’s Q1 2026 Earnings (ended March 31, 2026):
Financial Results
•Revenue: $25.6 million (high end of $24–26M guidance), up 9% year-over-year.
◦Scheduled service: $15.5M (down 13% YoY due to exiting unprofitable routes).
◦Surf On Demand private charter: $10.1M (up 77% YoY).
•Net Loss: $20.3M (vs. $18.5M in Q1 2025), driven by R&D investment in SurfOS, stock-based compensation, and non-cash items.
•Adjusted EBITDA Loss: $12.3M (better than $15.5–13.5M guidance), thanks to stronger charter margins, cost controls, and SurfOS efficiencies.
Guidance Updates
•Full-year 2026 Revenue: Unchanged at $128–138M (20–30% growth over 2025).
•Full-year 2026 Adjusted EBITDA: Improved ~40% to a loss of $30–25M (from prior $50–40M loss).
•Q2 2026 Guidance: Revenue $27–30M; Adjusted EBITDA loss $10.5–8.5M (impacted by higher fuel costs and Hawaii weather).
Business Highlights
•Surf On Demand Private Charter — Record quarter: highest revenue and gross margin since inception. Revenue per flight +38%, with strong growth in long-haul (+149%), international (+87%), and large-cabin flights. BrokerOS boosted productivity; Powered by Surf On Demand program expanded with independent brokers. Achieved ARGUS certification (one of only 16 globally).
•Airline Operations (Southern Airways / Mokulele) — Carried 65,376 passengers on 12,503 departures. Improved on-time performance and 96% completion factor. Investing in Hawaii network (new aircraft, lounges) as electric aviation launch market. Completed Safety Management System (SMS) one year ahead of FAA mandate.
•SurfOS Technology — Generating revenue via BrokerOS take rates. AI + Palantir tools accelerating development and deployment. New tools launched for aircraft intelligence, pricing, sourcing, and CRM. OperatorOS preparing for H2 2026 commercial launch. Digitalization driving cost reductions.
•Electrification — Strategic partnership with BETA Technologies: firm order for 25 ALIA electric aircraft (+75 options). Surf Air as launch operator for passenger service. Cancelled ~$100M in prior Caravan electrification capex.
Capital & Subsequent Events
•Raised $30M in April 2026 ($15M non-dilutive debt + $15M equity), with insiders buying ~$5.3M in stock. Funds for SurfOS and electrification.
•Powered by Surf On Demand brokers grew to 29 (from 6 at quarter-end).
Overall Tone: Strong operational momentum in charter and technology, cost discipline, and improved profitability path despite ongoing investments. SurfOS and Palantir partnership are key value drivers.
