Surf Air 2025 Q3 Earnings Net Loss Widens 122.6% Despite Revenue Growth

Surf Air Mobility (SRFM) reported Q3 2025 results that exceeded revenue expectations while narrowing per-share losses. The company raised full-year revenue guidance to at least $105 million and reaffirmed airline operations profitability, though net losses persisted. Investors reacted cautiously, with shares down 47% month-to-date ahead of the earnings release.

Revenue

Third-quarter revenue grew 2.8% year-over-year to $29.17 million, driven by a 42% surge in on-demand services. Scheduled flights contributed $20.59 million, while on-demand revenue climbed to $8.59 million, reflecting a strategic shift to larger aircraft and international routes. This mix shift also boosted revenue per flight by 14%, underscoring operational efficiency gains.

Earnings/Net Income

Despite a 31.9% improvement in EPS to a loss of $0.64 per share, the net loss widened to $-27.21 million—a 122.6% increase from 2024. The company has posted losses for four consecutive years in the quarter, signaling unresolved financial challenges.

Post-Earnings Price Action Review

Following the earnings release, SRFM shares declined 0.37% in a single trading day, marking a 18.73% drop for the week and a 47.15% monthly slump. The underperformance reflects investor skepticism toward the company’s path to profitability, despite improved revenue and reduced per-share losses. Analysts attribute the sell-off to lingering doubts about the scalability of SurfOS and the pace of debt reduction.

CEO Commentary

Deanna White, CEO, emphasized progress in the four-phase transformation plan, highlighting $52 million in debt reduction and a $100 million strategic financing to accelerate SurfOS development. She underscored operational milestones, including a 40% on-demand revenue surge and 14% higher revenue per flight, while outlining 2026 commercialization goals for BrokerOS, OperatorOS, and OwnerOS.

Guidance

Surf Air raised 2025 full-year revenue guidance to $105 million and maintained positive adjusted EBITDA expectations for airline operations. For Q4, revenue is projected between $25.5 million and $27.5 million, with adjusted EBITDA losses estimated at $6.5–$8 million, reflecting route optimization and cost discipline.

Additional News

1. Strategic Financing: Surf Air closed a $100 million transaction in November 2025, comprising $26 million in new equity for SurfOS development and a $74 million convertible note to refinance debt. This move aims to reduce annual interest expenses and fund electrification initiatives.

2. Palantir Partnership Expansion: The company extended its five-year agreement with Palantir to develop AI-driven software solutions, granting exclusivity for products targeting charter brokers and operators.

3. Electra Aero Collaboration: Public demonstrations of Electra’s EL-9 Ultra Short aircraft showcased hybrid-electric propulsion, advancing Surf Air’s electrification roadmap. The partnership targets commercial deployment by 2029, with SurfOS integration planned to optimize operations.

Guidance Adjustments

Surf Air’s Q4 revenue forecast of $25.5–$27.5 million reflects ongoing route rationalization and a focus on high-margin on-demand services. The adjusted EBITDA loss range of $6.5–$8 million accounts for R&D investments in SurfOS and operational scaling.

Strategic Priorities

The company plans to launch three SurfOS platforms in 2026, leveraging Palantir’s AI tools to enhance fleet management and route optimization. Electrification pilots in Hawaii and four new Cessna Caravan deliveries for 2026 underscore its commitment to sustainable regional mobility.

Investor Sentiment

Analysts at Stonegate Capital Partners noted that the capital structure improvements and operational progress position SRFM for Phase 3 of its transformation plan, expected to begin in FY26. However, the stock’s 47% monthly decline highlights market caution around SurfOS commercialization timelines and debt management.