Surf Air Mobility (NYSE:SRFM) used its fourth-quarter and full-year 2025 earnings call to outline a shift from a multi-year stabilization effort to a growth-focused strategy in 2026, anchored by improving operating performance, a larger role for its on-demand charter segment, and a planned commercial rollout of its SurfOS software platform.
Management says company is “pivoting to growth” in 2026
Chief Executive Officer Deanna White said the company entered 2025 “transforming…financially, operationally, and strategically,” with priorities centered on strengthening airline reliability and profitability, recalibrating its on-demand charter business, and developing SurfOS software. White said the company has now met or exceeded revenue and Adjusted EBITDA guidance for eight consecutive quarters.
White also highlighted capital structure actions taken in 2025, including raising over $100 million in equity, which she said reduced overall cost of capital and lowered net debt, providing flexibility to pursue growth initiatives.
Fourth-quarter results: lower scheduled revenue, higher charter revenue
Chief Financial Officer Oliver Reeves said fourth-quarter 2025 revenue was $26.4 million, within guidance of $25.5 million to $27.5 million. Reeves attributed the sequential decline from the third quarter (down 9%) to a 16% decrease in scheduled service revenue tied to exiting unprofitable routes, partially offset by an 8% increase in on-demand charter revenue.
On a year-over-year basis, Reeves said fourth-quarter revenue decreased 6%, driven by a 19% drop in scheduled service revenue, partially offset by a 36% increase in on-demand charter revenue.
Adjusted EBITDA for the fourth quarter was an Adjusted EBITDA loss of just under $8 million, within guidance of an $8 million to $6.5 million loss. Reeves said the loss improved 19% sequentially due to cost management, while the year-over-year loss increased by roughly $1.1 million due to a higher mix of corporate-level costs.
Full-year 2025: revenue of $106.6 million; improved operating metrics
For full-year 2025, Reeves reported revenue of $106.6 million, meeting previously raised guidance of revenue exceeding $105 million. Revenue was down 11% from 2024, which Reeves said reflected a 15% decline in scheduled service revenue, partially offset by a 3% increase in on-demand charter revenue.
Reeves reported a full-year 2025 Adjusted EBITDA loss of $41.7 million, a 5% improvement compared to a $44.1 million loss in 2024. He attributed the improvement to exiting unprofitable routes, operational performance gains, and better on-demand charter margins. He also said airline operations were profitable for the full year on an Adjusted EBITDA basis, consistent with management’s guidance.
Operationally, Reeves said the company delivered improvements in key metrics, including:
- Controllable completion factor of 98% in Q4 2025, up from 96% in Q3 2025 and 89% in Q4 2024
- On-time departures of 72% in Q4 2025, up from 62% in Q4 2024
- On-time arrivals of 81% in Q4 2025, up from 74% in Q4 2024
White also said these controllable completion and on-time metrics reached “all-time highs since becoming a public company,” which she attributed to stronger execution and increased digitalization of airline processes.
On-demand charter growth and new products: brokers, cargo, and “Powered by” program
Management positioned the on-demand charter segment as both a growth driver and a near-term beneficiary of its broader “platform” strategy. White said the company grew on-demand revenue in 2025 while expanding margins due to better sourcing discipline, a mix shift toward longer-haul trips with larger aircraft, and use of SurfOS technology.
White said the company integrated two charter supply deals into its platform during 2025, describing them as improving economics and control over aircraft inventory while guaranteeing distribution for the operating partner.
In the fourth quarter, Surf Air launched two initiatives within the on-demand business:
- Powered by Surf On Demand, a tech-enabled program that equips third-party brokers with BrokerOS and expands sales reach
- Surf On Demand Cargo, which expands into cargo services
White said these programs began generating profitable revenue in 2025. In response to analyst questions, White said adoption of the Powered by Surf On Demand program increased after its launch in December, with a pipeline of third-party brokers applying and being trained on the tools. She compared the model to a platform approach used in real estate, saying BrokerOS helps brokers close transactions more efficiently.
SurfOS and electrification: commercialization in 2026; BETA partnership details
White described SurfOS as a “significant investment priority,” noting internal deployments across scheduling, maintenance system integration, pilot mobile applications, and CRM tools for the on-demand team. She said the company has multiple letters of intent from external operators and brokers and remains on track to begin commercializing SurfOS in 2026.
During Q&A, White said the company’s go-to-market strategy starts with BrokerOS, continues with OperatorOS (with 17 operators invited to a closed beta), and includes an enterprise track enabled by a five-year teaming agreement with Palantir. She said most SurfOS commercialization revenue in 2026 is expected in the second half of the year, and that the company is in discussions with potential enterprise clients including operators and OEMs.
Reeves said Surf Air Mobility extended its partnership with Palantir via a “five-year exclusive agreement to develop software solutions for Part 135 stakeholders,” along with a teaming agreement to pursue larger enterprise opportunities.
On electrification, White said Hawaii is a strategic anchor market and that the company has committed to investing over $22 million into its Hawaii infrastructure, with new planes entering service in the second quarter of 2026, alongside lounge updates and process improvements.
White also detailed a partnership with BETA Technologies, including a firm order for 25 BETA electric aircraft with an option for 75 more, with flexibility across BETA’s product portfolio (cargo/passenger CTOL and VTOL variants). She said Surf Air Mobility anticipates improved unit economics leading to increased profitability over time and said the company entered into an agreement that would designate its planned maintenance repair and overhaul facility, once certified, as the exclusive factory-authorized service center for BETA electric aircraft in Hawaii, with potential expansion to other regions.
In response to a question on economics, White said the company anticipates a 30% improvement in operating costs, citing fuel and maintenance benefits. She also said a traditional Caravan requires 24 days out of service annually for routine inspections, compared with two days for the BETA electric aircraft, which she said could improve productivity.
White said certification is the main hurdle for commercial deployment, and she discussed the FAA’s eIPP program as a factor that could expedite certification timelines for selected OEMs. She said Surf Air Mobility and BETA intend to conduct demonstration flights in 2026, beginning with cargo using a CTOL aircraft, in anticipation of certification. She added the company would begin with cargo services generating revenue, then move to passenger operations using CTOL, followed by VTOL once certified.
Management also addressed its Caravan electrification efforts, stating it no longer intends to invest $50 million to $100 million into that program. Co-founder Sudhin Shahani said the company intends to continue exploring partnership opportunities and believes the assets created in the program have value, but does not plan to fund it internally.
For 2026, Reeves guided to revenue of $128 million to $138 million and an Adjusted EBITDA loss of $40 million to $50 million, reflecting investments in SurfOS and other strategic initiatives. For the first quarter of 2026, the company forecast revenue of $24 million to $26 million and an Adjusted EBITDA loss of $15.5 million to $13.5 million, with Reeves noting first-quarter revenue guidance does not include SurfOS contributions and that revenue growth is expected to be weighted toward the back half of the year.
About Surf Air Mobility (NYSE:SRFM)
Surf Air Mobility Inc operates as an electric aviation and air travel company in the United States. The company offers an air mobility platform with scheduled routes and on demand charter flights operated by third parties. Surf Air Mobility Inc is headquartered in Hawthorne, California.
