DALLAS, TX -- August 13th, 2025 -- Surf Air Mobility Inc. (NYSE: SRFM): Stonegate Capital Partners updates their coverage on Surf Air Mobility Inc. (NYSE: SRFM). SRFM reported revenue, Adj. EBITDA, and Adj. EPS of $27.4M, ($9.5)M, and ($1.34), respectively, exceeding both revenue and EBITDA guidance for the quarter. This performance reflects a clear inflection point for the Company, driven by improved airline operations, continued optimization of the On Demand segment, and growing momentum in its SurfOS software platform. Notably, airline operations were profitable in the quarter on an Adj. EBITDA basis, supported by sequential improvement in controllable completion factors to 95% and better margins in On Demand services. The quarter was further marked by strategic capital actions, including $44.7M in equity capital raised and subsequent deleveraging through the equitization of $29.9M of convertible notes in July. We also highlight the Company’s expanded partnership with Palantir, securing a five-year exclusive agreement for the configuration and sale of software.
Company Updates:
Air Mobility: Air mobility saw notable operational gains in 2Q25, with on-time departure and on-time arrival metrics each improving by over 20% y/y, the highest levels since January 2023. The Company also renewed an Essential Air Service contracts in Hawaii—Waimea ($4.2M over four years). SRFM also invested in fleet refurbishment to further enhance customer experience. These operational and commercial wins underscore management’s focus on network reliability and strategic partnerships as foundational to sustainable growth.
Software: SRFM gave further clarity on the SurfOS platform. The suite includes, BrokerOS, OperatorOS, and OwnerOS—built on Palantir’s Foundry platform. BrokerOS streamlines charter sourcing, pricing, and booking; OperatorOS optimizes aircraft and crew scheduling with a companion mobile Crew App; and OwnerOS delivers utilization transparency and asset optimization tools for owners. In the quarter, SRFM signed six new LOI agreements with charter brokers and operators, expanding its SurfOS beta user base. Feature rollouts included a flight and crew scheduling module, new data integrations for pricing and availability accuracy, and the launch of FlightDocs for maintenance process streamlining.
Electrification: SRFM remains at the forefront of aviation electrification with its proprietary electric powertrain program for the Cessna Caravan, targeting FAA certification by 2027. Management continues to explore JV structures to advance electrification efforts while maintaining capital efficiency.
Outlook: It was notable in the quarter that management does not believe that tariffs will have a significant impact on results in FY25. We believe this is reasonable and gives us confidence that SRFM will reach its full year targeted revenue of $100.0M, and positive Adj. EBTIDA by year end. For 3Q25 the Company has outlined revenue guidance in the range of $27.0M to $28.5M and an Adj. EBITDA loss of $10.0M to $8.5M.
Guidance and Valuation: We are using an EV/Revenue framework to inform our SRFM valuation. Currently SRFM is trading at a FY26 EV/Revenue of 1.7x compared to comps at an median of 3.3x. We are using our F26 expected Revenue, and an EV/Revenue range of 2.0x to 3.0x with a midpoint of 2.5x. This arrives at a valuation range of $5.50 to $8.90 with a mid-point of $7.20.
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