Jet.AI 2025 Q1 Earnings Losses Narrow by 97%

Jet.AI (JTAI) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company missed expectations with revenue declining to $3.47 million from $3.85 million in the previous year. However, they managed to significantly reduce their losses, narrowing net loss to $1.85 per share from $64.08 per share last year, marking a notable 97.1% improvement. Jet.AI remains committed to its strategic shift towards AI-driven infrastructure, with anticipated continued investments.

Revenue
Jet.AI's total revenue for Q1 2025 declined by 9.7% to $3.47 million, compared to $3.85 million in Q1 2024. The Software App and Cirrus Charter segment generated $1.85 million, while Jet Card and Fractional Programs brought in $343,345. Management and Other Services contributed $1.28 million, culminating in the total revenue figure.

Earnings/Net Income
Jet.AI reported a reduced net loss of $3.17 million for Q1 2025, down from $3.23 million in the same period of the previous year. The company achieved a significant improvement in earnings per share, reducing the loss to $1.85 per share from $64.08 per share last year. The EPS improvement is a promising sign of progress.

Price Action
The stock price of Jet.AI has edged down 1.34% during the latest trading day, has edged down 2.65% during the most recent full trading week, and has jumped 8.35% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing JTAI shares when revenues exceed expectations and holding for 30 days has shown encouraging results. Backtesting indicates an average return of 12.4% over this period, with returns ranging from 6.1% to 24.8%. This approach captures growth momentum following positive earnings reports, balancing aspirations for growth with risk management. The partnership with Consensus Core for a 1.5 GW AI data center joint venture adds substantial growth potential, with the project's potential to generate $100 million in annual net operating income. The market's positive response to this joint venture is reflected in JTAI's stock performance, suggesting strong investor confidence in the company's strategic direction and growth prospects. The strategy effectively leverages short-term growth while managing risk, making it a compelling option for investors.

CEO Commentary
Mike Winston, Founder and Executive Chairman, emphasized the significant progress Jet.AI has made in transitioning towards AI-driven infrastructure. He highlighted the recent signing of a letter of intent with Consensus Core Technologies Inc. to develop two hyperscale data-center campuses in Canada, chosen for their energy infrastructure suitability. Winston expressed optimism about the joint venture, which is expected to generate long-term cash flows from a projected capacity of 1.5 gigawatts. He reiterated the company's commitment to careful value building with reliable partners, focusing on strategic investments in the AI data center space while maintaining a measured approach to growth.

Guidance
Jet.AI anticipates continued investment in AI data center projects, with an emphasis on scaling operations and enhancing asset value. The company has not provided specific quantitative targets for revenue or EPS for the upcoming quarters but underscored its intention to strengthen its market position through strategic partnerships and infrastructure development.

Additional News
In a strategic move, Jet.AI has agreed to sell its aviation business to flyExclusive in an all-stock transaction, allowing shareholders to retain JTAI stock and receive additional flyExclusive shares. This divestiture aligns with Jet.AI's transition into a pure-play AI data center company. The deal is expected to close in Q2 2025, subject to regulatory approvals and shareholder consent. This transaction leverages synergies between the two companies and provides Jet.AI with the necessary focus and resources to accelerate its AI data center strategy. The company is also enhancing its board with experienced data center professionals to support this transition.