November 12, 2025. Leads & Copy — Surf Air Mobility Inc. (NYSE: SRFM) reported its financial results for the third quarter, which ended September 30, 2025, showcasing revenue of $29.2 million, exceeding company expectations of $27 million – $28.5 million. The regional air mobility platform’s financial performance reflects effective implementation of its Transformation Plan strategies, including strong execution and stability in airline operations, driving a second consecutive quarter of profitability.
The third quarter’s revenue increased 6% compared to the second quarter, propelled by a 42% increase in On Demand revenue, which was partially offset by a 4% decrease in Scheduled Service revenue. Year-over-year, revenue increased 3%, with On Demand revenue rising 40% and Scheduled Service revenue decreasing 7%. Key factors driving these increases include a shift towards larger aircraft and international flights, which boosted revenue per departure in the On Demand business, and the strategic decision to exit unprofitable routes, enhancing operational metrics in the Scheduled Service operation.
Despite these gains, the Company reported a net loss of $27.2 million for the third quarter of 2025, a 3% decrease compared to the second quarter. However, the net loss increased by $15 million year-over-year, primarily due to a $7.6 million increase in non-cash stock-based compensation expense, a $6.2 million increase in non-cash changes in the fair value of financial instruments, and a $1.2 million increase in interest expense due to a higher debt balance.
The Adjusted EBITDA loss for the third quarter of 2025 was $9.9 million, aligning with the Company’s expectation of a $10 – $8.5 million loss. The year-to-date Adjusted EBITDA loss was positively influenced by improvements in operational metrics, the removal of unprofitable routes, and a significant reduction in sales and administrative expenses in the On Demand business following the adoption of SurfOS. The Adjusted EBITDA loss excludes the impact of stock-based compensation, changes in fair value of financial instruments, and other non-recurring items.
During and following the third quarter, Surf Air Mobility made significant advancements in its Transformation Plan. A milestone was achieved in the Transformation phase with the closing of a $100 million strategic transaction, intended to fund SurfOS and strengthen the Company’s balance sheet. In the Optimization phase, the Company achieved its second consecutive quarter of profitability in airline operations, defined as positive Adjusted EBITDA, and demonstrated consistent improvement in key operating measures like on-time departure and arrival rates.
The On Demand business saw revenue rise by approximately 40% compared to both the second quarter and the same quarter of the previous year. This growth was driven by a 14% increase in average revenue per departure, a shift from turboprop to larger aircraft, and a move from domestic to international flights. On Demand margins for the third quarter showed substantial improvement year-over-year, supported by the execution of volume purchase agreements with operators who are also beta users of SurfOS. Surf Air Mobility also expanded its SurfOS agreements, with beta and LOI agreements now totaling 15.
Developments in BrokerOS include robust CRM functionality that allows for streamlined customer insights and sales efficiencies. OperatorOS developments include expanded parallel testing of the Palantir-powered crew and scheduling tool across our Hawaii network.
In November, Surf Air Mobility closed a transformative $100 million strategic transaction, accelerating the development and commercialization of its proprietary SurfOS software, strengthening its balance sheet, and positioning the Company for long-term profitable growth.
The fourth quarter revenue is projected to be between $25.5 million and $27.5 million. The Adjusted EBITDA loss is expected to range from $8 million to $6.5 million, excluding stock-based compensation, changes in fair value of financial instruments, and other non-recurring items. For the full year, revenue guidance has been raised to at least $105 million, with airline operations expected to achieve full year profitability in 2025.
Surf Air Mobility will host a conference call today at 5:00 pm ET. Interested parties can register in advance to listen to the webcast here or can find a link on the ‘Events & Presentations’ section of our investor relations website. Alternatively, listeners may dial into the call as follows: North America – Toll-Free (800) 715-9871; International (Toll) – (646) 307-1963; Conference ID: 4775356.
Surf Air Mobility is a Los Angeles-based regional air mobility platform and one of the largest commuter airlines in the U.S. by scheduled departures. It is also the largest U.S. passenger operator of Cessna Caravans.
Contact:
Investors
Email: ir@surfairmobility.com
Source: Surf Air Mobility
