A boost in charter revenue couldn’t offset deeper losses for Surf Air Mobility, although its CEO says its transformation plan has taken hold.
Surf Air Mobility is crediting a boost in in-demand charter revenues to improve Q3 2025 results.
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.
CEO Deanna White said, “The financial and operating results of the third quarter demonstrate the effective implementation of our Transformation Plan strategies.”
She added, “The strong execution and stability in our airline operations drove a second consecutive quarter of profitability.”
White continued, “In addition, the recent $100 million strategic transaction will fund the further development and commercialization of SurfOS and strengthen our financial position.”
Revenues for the quarter totaled $29.2 million.
Operating loss in the quarter increased to $16.5 million from $8.l6 million.
Net loss increased to $27.2 million from $12.2 million year-over-year.
However, it was a 3% improvement from Q2.
The biggest loss was “driven primarily by a $7.6 million increase in non-cash stock-based compensation expense, an increase of $6.2 million in non-cash changes in the fair value of financial instruments, and an increase of $1.2 million in interest expense reflecting the company’s higher debt balance.”
Adjusted EBITDA loss of $9.9 million for the third quarter of 2025 met the company’s expectation of a $10 million to $8.5 million loss.
Year-to-date revenues dipped to $80.1 million from $91.4 million.
Operating loss through three quarters narrowed to $50.1 million from $68.4 million in 2024.
Net loss was down slightly to $73.7 million from $76.2 million.
At the end of the quarter, Surf Air had $7.1 million in cash, cash equivalents, and restricted cash at the end of the period.
On-Demand revenue increased $2.4 million, or 40%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.
It posted $8.6 million in on-demand charter revenues in Q3 2025.
There were 761 flights.
The average on-demand segment was $11,300.
The increase in on-demand revenue was driven by a move away from turboprops.
Earlier this year, Surf Air relaunched its jet card product.
Earlier this week, the company announced it had closed on a $100 million strategic transaction.
Fourth-quarter revenue is expected to be in the range of $25.5 million to $27.5 million.
“These expectations reflect the exiting of unprofitable scheduled routes and a continued focus on larger cabin and international products for the on-demand business, per the company.
Adjusted EBITDA loss in the range of $8 million to $6.5 million is forecast.
That excludes the expected impact of stock-based compensation, changes in fair value of financial instruments, and other non-recurring items.
The Adjusted EBITDA loss range for the fourth quarter reflects consistent performance against key operating metrics in airline operations.
It also includes R&D investments.
The company has raised its full-year revenue guidance to at least $105 million.
It continues to expect that airline operations will achieve full-year profitability in 2025, defined as positive Adjusted EBITDA.
SRFM closed at $2.94.
Its 52-week range has been $1.50 to $9.91.
DOWNLOAD: Surf_Air_Q3_2025_Financials
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