SOAR · Volato Group, Inc.

Strategic Exit from Aircraft Operations

Q1 FY2026 marks the full operational effect of Volato’s strategic decision to cease aircraft delivery and sales activity. As confirmed in management commentary, the $25.0 million decrease in aircraft sales resulted from not taking delivery of any aircraft during the quarter — a planned outcome aligned with the September 2024 agreement to transfer fleet operations to flyExclusive. This action removed the dominant historical revenue driver and its associated cost of revenue, explaining the near-total collapse in top-line volume. Revenue fell to $997K, down from $25.5M in Q1 FY2025 — a 96.1% year-over-year decline. Critically, this was not a symptom of demand erosion or execution risk, but the intended consequence of an explicit strategic pivot.

Margin Resilience Amid Structural Shift

Operating and Cash Flow Transition

Operating income swung to a loss of $2.3M, reversing $2.5M of prior-year income. This reflects both the removal of aircraft-related operating income and the absence of offsetting scale in new revenue lines. Net income followed suit at -$2.6M (versus $455K YoY), with diluted EPS at -$0.18. Cash flow from operations used $2.6M — a meaningful increase from $312K used in Q1 FY2025 — consistent with working capital realignment around software services, including documented changes in member deposits and deferred revenue. Capital expenditures of $176K represent the first reported investment in proprietary technology infrastructure since exiting aircraft operations, signaling the beginning of intentional reinvestment behind the new growth vector. Management reaffirms its view that current cash position, future financing, and expense discipline support continued operations for at least one year from the filing date — a statement grounded in disclosed financial reality, not unsupported projections.