SRFM · Surf Air Mobility Inc.

Surf Air Mobility’s Q1 2026 results reflect strong operational execution and strategic progress across its three business pillars—airline, Surf On Demand private charter, and SurfOS software—with Adjusted EBITDA significantly outperforming guidance and prompting a material upward revision to full-year expectations. Revenue of $25.6 million landed at the top of guidance and grew 9% year-over-year, driven almost entirely by a 77% surge in Surf On Demand revenue—its strongest quarter since inception—while scheduled service revenue declined 13% year-over-year as the company exited unprofitable routes. The $12.3 million Adjusted EBITDA loss beat guidance by up to $3.2 million, supported by improved private charter gross margins (+340 bps YoY), cost discipline in airline operations, and accelerated, AI-assisted SurfOS deployment enabled by Palantir’s platform. Management explicitly attributed the ~40% improvement in full-year Adjusted EBITDA guidance—from $50M–$40M to $30M–$25M loss—to four drivers: SurfOS digitalizing workflows (reducing airline and charter costs by 6% and 15%), corporate automation (32% lower staffing needs), capital-efficient growth via the Powered by Surf On Demand program, and reduced SurfOS development costs. Notably, the Company raised $30 million in April—including $15M in non-dilutive debt and $15M in equity—with insiders committing $5.3M, signaling confidence in the updated plan. While Q2 guidance reflects near-term headwinds (fuel inflation, Hawaii weather disruptions), management reaffirmed narrowing losses through H2 2026 and emphasized Surf On Demand’s expected role as the largest contributor to full-year revenue growth with expanding gross margins. The concurrent achievement of ARGUS certification and SMS implementation ahead of FAA mandate further validates operational rigor and regulatory readiness.