Surf Air Mobility Inc. (NYSE: SRFM) reported third-quarter 2025 financial results that reflect continued progress on its Transformation Plan, driven by improved airline operations and strategic capital structure improvements. The company posted revenue of $29.2 million, an adjusted EBITDA loss of $9.9 million, and an adjusted EPS loss of $0.64. Operational reliability continued to improve, supported by a strengthened systems operations center and a more experienced aviation team.
Subsequent to the quarter, Surf Air Mobility made significant capital structure improvements, refinancing higher-cost debt and reducing annual cash interest. These actions, combined with operating improvements, position the company with a more sustainable capital structure and a clearer path toward scale. Management believes the company is now better positioned to begin Phase 3 of its transformation plan, which is expected to commence in fiscal year 2026.
In the air mobility segment, the company delivered another quarter of operational and commercial gains in Q3 2025, with revenue up modestly year-over-year and sequentially. Strong growth in On Demand flying more than offset planned reductions in unprofitable scheduled flying. On Demand benefited from higher utilization, a shift toward larger-cabin aircraft, and increased international activity. Scheduled Service saw a measured pullback as management prioritized routes with attractive unit economics. Airline operations were again profitable on an adjusted EBITDA basis, supported by higher on-time departure and arrival rates and better controllable completion factors.
On the software front, Surf Air Mobility continues to advance SurfOS, its cloud-based operating system built on Palantir’s Foundry platform. During Q3 2025, the company expanded internal deployment of SurfOS, rolling out aircraft and crew scheduling tools across key regions and enhancing the Crew App with capabilities that improve safety, maintenance visibility, and productivity. Externally, SurfOS beta usage broadened to a growing set of brokers and operators, supported by additional letters of intent that expand the future customer pipeline and validate product-market fit. A five-year agreement with Palantir further reinforces software as a core strategic pillar.
Regarding electrification, the company remains committed to its electric powertrain program for the Cessna Grand Caravan, with management reiterating a 2027 FAA supplemental type certificate target for the electrified propulsion system. Surf Air Mobility continues to evaluate partnership and joint venture structures that can share development risk while preserving upside, leveraging its scale as a leading Caravan operator and its exclusive agreement with Textron Aviation.
For the fourth quarter of 2025, the company expects revenue in the range of $25.5 million to $27.5 million and an adjusted EBITDA loss of $8.0 million to $6.5 million, reflecting the impact of exiting unprofitable scheduled routes and a continued mix shift toward higher-value On Demand flying. Management continues to anticipate full-year profitability in airline operations on an adjusted EBITDA basis, supported by operational improvements.
Stonegate Capital Partners uses an EV/Revenue framework to inform its valuation of Surf Air Mobility. Currently, SRFM is trading at a fiscal year 2026 EV/Revenue of 1.9x compared to peers at a median of 4.1x. Using FY26 expected revenue and an EV/Revenue range of 4.0x to 5.0x with a midpoint of 4.5x, Stonegate arrives at a valuation range of $6.11 to $7.99 per share, with a midpoint of $7.05.
