Surf Air 2025 Q2 Earnings Net Loss Narrows Despite Revenue Drop

Surf Air (SRFM) reported its fiscal 2025 Q2 earnings on Aug 12th, 2025, with revenue declining year-over-year and net losses narrowing. The company reaffirmed its full-year revenue guidance and outlined strategic initiatives to drive future profitability.

Revenue
Surf Air's total revenue declined by 15.2% year-over-year to $27.43 million in Q2 2025, with the scheduled segment contributing the largest portion of revenue. The scheduled business generated $21.41 million, representing the core of the company's operations, while the on-demand segment added $6.03 million to the total. The combined performance highlights a continued reliance on scheduled services, as both segments fell short of the prior year's figures.

Earnings/Net Income
Surf Air reduced its net loss per share to $1.34 in Q2 2025 from $2.31 in Q2 2024, reflecting a 42.0% improvement. However, the company's total net loss expanded to $-28 million in the quarter compared to $-26.98 million in the same period of 2024, indicating a 3.8% increase in the absolute value of the loss. Despite this reduction in per-share losses, the company has recorded losses for four consecutive years in the corresponding quarter, underscoring ongoing financial pressures.

Price Action
Following the earnings report, Surf Air’s stock experienced mixed performance in the short term. Shares edged up 0.72% on the latest trading day but declined 2.56% over the most recent full trading week. The stock has dropped significantly in the month-to-date period, losing 52.39% of its value.

Post-Earnings Price Action Review
A post-earnings investment strategy of buying shares after a revenue increase and holding for 30 days underperformed significantly, delivering a -74.27% return over the past three years. This contrasts sharply with a benchmark return of 36.23%. The strategy’s Sharpe ratio of -0.29 highlighted its inefficiency, while a maximum drawdown of 0% indicated that the backtest period avoided losses.

CEO Commentary
Deanna White, CEO and COO, highlighted the company’s progress in transitioning to a technology-led regional air mobility business. She emphasized improvements in operational metrics such as on-time performance and controllable completion factor, which supported airline profitability in Q2. The CEO also mentioned the successful relaunch of the on-demand business with new product offerings and strategic investments, such as the development of the SurfOS software platform powered by Palantir. The platform is already enhancing operational efficiency by replacing manual systems. White expressed optimism about the company's culture of focus and execution and stressed its position for growth through software commercialization and electrification partnerships.

Guidance
For Q3 2025, Surf Air expects revenue between $27 million and $28.5 million, with an adjusted EBITDA loss range of $8.5 million to $10 million. For the full year, the company reaffirmed its guidance for revenue exceeding $100 million and airline operations profitability defined as positive adjusted EBITDA. Oliver Reeves, CFO, noted that continued improvements in operational efficiency and the rollout of software tools will support progress toward these targets.

Additional News
Recent developments in the tech and automotive sectors highlight ongoing M&A activity and strategic leadership changes. Tesla's Model 3 long-range version was launched with an extended range of 830 kilometers, while Intel’s CEO emphasized efforts to streamline chip design and manufacturing. In the personal finance sector, new policies on personal and service industry loans offer interest subsidies to stimulate consumer spending. Additionally, a family-related legal case in Inner Mongolia involving a marital rape charge has drawn public attention.