Wheels Up Experience 2025 Q1 Earnings Continued Losses as Net Income Declines 2%
Tuesday, May 6, 2025 3:08 am ET
26min read UP Trend
Revenue
The total revenue for Wheels Up Experience in Q1 2025 fell by 9.9% to $177.53 million, compared to $197.10 million in Q1 2024.
Earnings/Net Income
Wheels Up Experience recorded a stable EPS of $-0.14 for Q1 2025, consistent with Q1 2024. The net loss increased by 2%, suggesting financial challenges continue.
Price Action
The stock price of Wheels Up Experience has tumbled 10.92% during the latest trading day, has surged 24.69% during the most recent full trading week, and has jumped 13.76% month-to-date.
Post-Earnings Price Action Review
The recent earnings report for Wheels Up Experience (UP) has shown mixed effects on the stock price. Historical data suggests earnings releases typically lead to negative short-to-medium-term performance. Despite some variability following earnings announcements, the overall trend indicates continued underperformance, with a 3-Day win rate of 31.58% and a 10-Day win rate of 42.11%. Investors often express concerns about the company's financial health as evidenced by average returns of -2.92% over three days, -1.82% over ten days, and -8.18% over thirty days post-earnings. While there is a slight chance of recovery, as seen with a maximum return of 1.54%, gains remain modest. Therefore, investors might be cautious or disappointed with Wheels Up's financial performance, as shown by the general negative returns following earnings releases.
CEO Commentary
"Our results this quarter show the progress we are making in our business transformation and we are pleased to see continued commercial momentum in light of more uncertain economic conditions," said George Mattson, Chief Executive Officer of Wheels Up Experience. He highlighted a focus on improving profitability and expanding margins through fleet modernization and leveraging the partnership with Delta. Despite a 10% year-over-year decline in revenue to $177.5 million, the company achieved a gross loss improvement of $15.5 million. Mattson expressed optimism about the strategic direction, emphasizing a commitment to delivering premium solutions and solid liquidity as indicators of a stronger financial foundation.
Guidance
Wheels Up anticipates continued growth in Total Gross Bookings, which increased by 8% year-over-year to $241.9 million. The company expects to further improve its Adjusted Contribution Margin, which was reported at 12.6%, up 12 percentage points from the previous year. Additionally, management plans to accelerate investments in fleet modernization and operational efficiency to achieve sustainable profitability. The extension of the $100 million revolving credit facility through September 2026 reinforces their liquidity position, supporting ongoing strategic initiatives.
Additional News
Wheels Up Experience has been actively pursuing strategic initiatives to strengthen its financial position and operational capabilities. Recently, the company announced a $10 million open market share repurchase program, signaling confidence in its business transformation and commitment to driving shareholder value. Additionally, Wheels Up secured an agreement with Gogo to equip its fleet with high-speed satellite Wi-Fi, which is expected to begin installation this summer, enhancing the customer experience. In leadership changes, Wheels Up named John Verkamp as its Chief Financial Officer, bringing extensive financial expertise to support the company's strategic growth plans. These developments reflect Wheels Up's efforts to bolster its market presence and improve operational efficiency in a competitive private aviation sector.
