Surf Air Mobility (SRFM) Q4 2024 earnings summary

Executive summary

• Achieved significant operational and financial progress in 2024, completing the transformation phase and entering 2025 with strong momentum.

• Raised a $50 million term loan in November 2024, improving capital structure and reducing cost of capital.

• Focused on optimizing operations, exiting unprofitable routes, and deploying new technology to drive profitability in 2025.

• Rolled out proprietary SurfOS software platform to beta users, targeting efficiency gains and future commercial launch.

• Advanced electrification initiatives, including supplier selection, system integration, and customer advisory board formation.

Financial highlights

• Q4 2024 revenue rose 5% year-over-year to $28.05 million, exceeding guidance.

• Full-year 2024 revenue increased 6% to $119.4 million; adjusted EBITDA loss improved by $6.8 million (13%) to $44.1 million.

• Q4 adjusted EBITDA loss improved by $11.5 million (63%) to $6.9 million, within guidance.

• Q4 net income was $1.3 million, a $112.3 million improvement year-over-year, aided by a $38.9 million reversal of unearned compensation and cost actions.

• On-demand service revenue grew 58% in Q4 and 28% for the year; scheduled service revenue was flat year-over-year.

Outlook and guidance

• 2025 guidance: profitability in airline operations (positive adjusted EBITDA), continued rollout of SurfOS, and further electrification progress.

• Q1 2025 revenue guidance: $21–$24 million; adjusted EBITDA loss: $12–$15 million.

• Full-year 2025 revenue expected to exceed $100 million.

• Commercial launch of SurfOS planned for 2026; electrified powertrain certification targeted for 2027.

• Company pursuing joint ventures to separately capitalize electrification and software initiatives.