0001193125-26-104468
SEC filingSurf Air Mobility Inc. reported a net loss of $110.6 million for FY 2025, compared to a net loss of $74.9 million in FY 2024, representing a significant increase in losses. Revenue declined to $106.6 million from $119.4 million in the prior year. The company's operating loss widened to $76.9 million from $60.3 million, driven by high operating expenses of $183.4 million, which exceeded revenue. Cash flow from operations was negative $64.2 million, while financing activities provided $71.0 million, primarily from convertible notes and equity issuances. The company's financial statements include a going concern qualification, noting substantial doubt about its ability to continue as a going concern due to losses, negative cash flows, and a working capital deficit.
Surf Air Mobility Inc. reported deteriorating financial performance for FY 2025, with revenue declining 10.8% to $106.6 million from $119.4 million in FY 2024. The net loss significantly increased to $110.6 million from $74.9 million in the prior year, representing a 47.6% worsening. Operating loss expanded to $76.9 million from $60.3 million, driven by total operating expenses of $183.4 million that substantially exceeded revenue. The company's financial statements include a going concern qualification from its auditor, noting substantial doubt about the company's ability to continue as a going concern due to recurring losses, negative cash flows from operations, and a working capital deficit.
Revenue decreased to $106.6 million in FY 2025 from $119.4 million in FY 2024. The company operates in two revenue categories: Scheduled Air Service and On-Demand. Scheduled Air Service revenue declined 15.1% to $77.0 million from $90.7 million in the prior year, while On-Demand revenue increased 3.1% to $29.6 million from $28.7 million. The United States Department of Transportation accounted for 38% of consolidated revenues in FY 2025 (39% in FY 2024), primarily through the Essential Air Service program. Revenue recognition occurs when flights are completed or when tickets expire, with deferred revenue representing tickets sold for future travel.
Gross margin declined to 3.9% in FY 2025 from 7.9% in FY 2024, with cost of revenue at $102.4 million representing 96.1% of revenue. Operating margin was negative 72.1%, reflecting the significant operating loss. The company's cost structure includes technology and development expenses of $10.3 million, sales and marketing of $8.2 million, and general and administrative expenses of $53.3 million. Depreciation and amortization totaled $9.3 million. Other expenses included interest expense of $13.2 million and changes in fair value of financial instruments of negative $8.6 million, contributing to the total other expense of $34.1 million.
Cash flow from operating activities was negative $64.2 million for FY 2025, an increase from negative $54.3 million in the prior year. Investing activities used $5.7 million primarily for property and equipment purchases. Financing activities provided $71.0 million, mainly from $65.0 million in convertible note proceeds and $51.4 million from common stock issuances. The balance sheet shows total assets of $131.7 million, with current assets of $30.9 million including $12.7 million in cash. Total liabilities were $186.5 million, including $133.6 million in current liabilities, resulting in shareholders' deficit of $54.9 million. The company had $10.1 million in restricted cash.
The company's financial statements include substantial doubt about its ability to continue as a going concern. Management plans include implementing operational improvements, stringent expense management, and seeking additional financing through equity sales, debt issuances, or other arrangements. The company has access to up to $97.5 million under its Share Purchase Agreement with GEM, subject to daily volume limitations. Strategic priorities include advancing technology initiatives, including software platforms and electrification programs. Risk factors include the need for additional financing, history of losses, default on certain tax and debt obligations, and intense competition in the regional air mobility industry.