Surf Air Mobility Inc.

What they do

Surf Air Mobility operates scheduled passenger service through Mokulele Airlines, provides on-demand private charter via its Surf On Demand segment, and develops SurfOS, a software platform for aviation operators. The company is headquartered in Hawthorne, CA and trades on the NYSE under SRFM.

Revenue drivers

• Scheduled service (Mokulele Airlines) — Q2 2026 revenue of $17.4M, down 19% year-over-year due to route network rationalization; Mokulele revenue grew ~7% YoY with over 10,000 departures in the quarter.
• Surf On Demand private charter — Q2 2026 revenue of $12.1M, up 101% year-over-year, with departures up ~67% versus Q2 2025.
• SurfOS software — First enterprise contract with Wheels Up (Enterprise BrokerOS) worth up to $12M over three years; OperatorOS and OwnerOS planned for commercial launch in Q4 2026.

Recent performance

Total Q2 2026 revenue was $29.5M, at the high end of guidance and up 8% year-over-year and 15% sequentially. Net loss was $28.1M, roughly flat versus $28M in the prior year quarter. Adjusted EBITDA loss was $10.5M, within guidance, reflecting elevated fuel costs and weather-related cancellations in Hawaii. Full-year 2025 revenue was $106.6M with a net loss of $110.6M; the company had an accumulated deficit and negative shareholder equity of $42.5M as of June 30, 2026.

Strategy

Management has executed a 'Transformation Plan' focused on building SurfOS, lowering costs, rationalizing the route network, modernizing the fleet, and restructuring the balance sheet. The company is now entering an 'Expansion Phase' targeting revenue growth and improved profitability simultaneously. Key initiatives include launching OperatorOS and OwnerOS in Q4 2026, expanding the Palantir partnership, and reducing convertible note principal by 64% to lower monthly cash amortization.

Risks

• Going concern risk — The company has negative shareholder equity ($42.5M) and recurring operating losses, raising substantial doubt about its ability to continue as a going concern.
• Fuel cost volatility — Q2 2026 results were adversely impacted by elevated fuel costs, which the company cited as one of the most volatile fuel cost environments the industry has experienced.
• Route rationalization revenue decline — Scheduled service revenue fell 19% year-over-year in Q2 2026 as the company cut routes; continued rationalization could further pressure top-line growth.
• Liquidity and debt obligations — Cash and equivalents were only $18.4M as of June 30, 2026, against total liabilities of $183.2M, with long-term debt of $10.0M; the company noted future ability to pay contractual obligations depends on securing adequate financing.

Outlook

For full-year 2026, management reaffirmed its guidance and issued third-quarter guidance. They expect to launch OperatorOS and OwnerOS commercially in Q4 2026. The company is focused on pursuing revenue growth and improved profitability simultaneously in the Expansion Phase.