Surf Air Mobility Inc. (SRFM) Earnings
Surf Air Mobility Inc. is expected to report next earnings on November 11, 2026 (in NaN days), with a consensus EPS estimate of $-0.13. SRFM has beaten EPS estimates in 5 of its last 10 reported quarters (average surprise +0.7% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 10, 2026 | $-0.17 | $-0.29 | -74.7% | $30M | +4.5% |
| May 11, 2026 | $-0.39 | $-0.28 | +28.2% | $26M | +0.3% |
| Mar 12, 2026 | $-0.35 | $-0.16 | +54.3% | $26M | -3.1% |
| Nov 12, 2025 | $-0.61 | $-0.64 | -4.9% | $29M | +11.3% |
| Aug 12, 2025 | $-1.09 | $-0.93 | +14.7% | $27M | +8.0% |
| Mar 18, 2025 | $-1.19 | $0.59 | +149.6% | $28M | +4.7% |
| Nov 14, 2024 | $-1.05 | $-0.94 | +10.5% | $28M | +7.9% |
| Aug 14, 2024 | $-1.40 | $-1.96 | -40.0% | $32M | +10.0% |
| Nov 14, 2023 | $-1.40 | $-6.44 | -360.0% | $22M | -24.3% |
| Aug 29, 2023 | $-4.62 | $-21.97 | -375.5% | $6M | -78.3% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 10, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Strategic Transformation Update - The foundational phase of the company's multi-year transformation plan (focused on building SurfOS, lowering cost structure, rationalizing routes, modernizing the fleet, and restructuring the balance sheet) is largely complete. The company is now shifting to an expansion phase (running through 2027) focused on simultaneous revenue growth and profitability improvement. - Debt was significantly reduced: total debt levels were cut by 50% over the last year, existing convertible note principal was reduced by 64%, and monthly cash amortization payments were lowered by up to 50% via a debt refinancing transaction. A new $21.6 million asset-backed loan was secured to provide incremental working capital for On Demand supply expansion, with a second $14 million funding tranche expected in Q3 2026. ### SurfOS Software Segment - Secured the first multi-year enterprise SurfOS contract with Wheels Up (for BrokerOS), the first commercial product from the SurfOS suite, worth up to $12 million over 2-3 years. - Expanded partnership with Palantir, adding dedicated engineering, business development, and go-to-market resources with deep aviation industry experience to accelerate product development and enterprise sales. - Multiple new features (crew reserve optimization, fuel tracking, AI charter pricing/sourcing) launched in Q2, all tested and proven on the company's own internal operations before commercialization. OperatorOS and OwnerOS are on track for commercial launch in Q4 2026. - Current active enterprise pipeline covers large operators, brokerages, and aircraft manufacturers, with an estimated total potential value of tens of millions of dollars in annual revenue. ### Airline Operations - Delivered resilient results despite headwinds of elevated fuel prices and unplanned weather-related cancellations from unusual heavy thunderstorms and flooding in Hawaii. Achieved a 98% controllable completion factor, 88% on-time arrivals, and 83% on-time departures. - Completed deployment of the required safety management system one year ahead of the FAA mandate; the company's Southern Airways is one of only 9 U.S. Part 135 commuter operators with an operational SMS. - Offset $500,000 in unexpected Q2 fuel cost overruns via permanent structural operational savings generated by SurfOS, proving the software's efficiency benefits. - Right-sized mainland U.S. routes by exiting unprofitable service while growing Hawaii operations, which will serve as the launch pad for commercial electric aircraft service. Two additional aircraft were added to the fleet as part of ongoing fleet renewal. Partnered with Beta Technologies to launch daily electric aircraft cargo demonstration flights in Hawaii in Q2. ### Surf On Demand - Achieved record revenue and flight volume in Q2, with nearly 100% year-over-year growth in first half 2026 private charter revenue. The independent Powered by Surf On Demand broker program has attracted over 500 broker applications, generated over $2.5 million in gross margin positive revenue since launch, and is on track to hit the year-end target of 100 onboarded brokers.
Guidance
- Full year 2026 guidance is reaffirmed: total revenue is projected to be $128 to $138 million, representing 20% to 30% year-over-year growth, and adjusted EBITDA loss is projected to be $25 to $30 million, representing a 40% improvement (narrowing of the loss) from the company's prior guidance. - Q3 2026 guidance: revenue is projected to be $35.5 to $37.5 million, and adjusted EBITDA loss is projected to be $4 to $7 million. The adjusted EBITDA loss is expected to narrow further in Q4 2026. - Scheduled airline operations are expected to be a profitability bright spot in the second half of 2026, driven by permanent cost efficiencies from SurfOS. - Management targets closing at least one additional enterprise SurfOS contract before the end of 2026.
Segment performance
Consolidated company revenue for Q2 2026 was $29.5 million, up 8% year-over-year and 15% quarter-over-quarter, with an adjusted EBITDA loss of $10.5 million. 1. **Scheduled Airline Operations**: Total scheduled service revenue was $17.4 million, down 20% year-over-year from a deliberate exit of unprofitable routes. Hawaii-based Mokulele Airlines revenue was up 7% year-over-year and 15% quarter-over-quarter, representing 59% of total consolidated Q2 2026 revenue. 2. **Surf On Demand**: Second quarter private charter revenue hit $12.1 million, up roughly 100% year-over-year, representing 41% of total consolidated Q2 2026 revenue. Departures increased 67% year-over-year, and revenue per departure increased 25% year-over-year driven by a mix shift to larger aircraft. New revenue lines (cargo, wholesale, Powered by Surf On Demand) contributed 14% of first half 2026 On Demand revenue, all of which are gross margin positive. 3. **SurfOS**: The software segment recorded its first commercial revenue in Q2 2026 via a multi-year contract with Wheels Up worth up to $12 million over the contract term; $2 million of revenue is expected to be recognized in 2026. Revenue contribution from SurfOS was less than 1% of consolidated Q2 2026 revenue.
Risks & headwinds
- Forward-looking performance is subject to risks and uncertainties that could cause actual results to differ materially from current expectations, detailed in the company's periodic SEC filings. - The company currently faces non-compliance with NYSE continued listing standards due to a minimum share price deficiency. Regaining compliance requires the 30-day average trading price to exceed $1 within six months of the July 2026 deficiency notification; while management intends to cure this organically, failure to do so could result in delisting. - Gross margins for Surf On Demand still face drag from legacy low-margin product and membership commitments, though this impact is decreasing quarter-over-quarter. - Enterprise software sales cycles are typically lengthy, and there is no guarantee that current pipeline opportunities will convert to signed, revenue-generating contracts. - Aviation fuel prices remain volatile, and unexpected weather disruptions can impact operational performance and costs.
Analyst Q&A
Q: Has the year-end target for onboarding independent brokers to the Powered by Surf On Demand program changed, and how does broker onboarding compare in priority to expanding wholesale supply relationships for charter growth? /
A: Management still intends to scale the broker program, balancing quality of new brokers to ensure sustainable growth. Expanding wholesale supply partnerships remains equally important in the second half of 2026, as reliable high-quality aircraft supply is required to support broker growth and customer satisfaction.
Q: When does the Wheels Up BrokerOS contract launch, how long does integration take, and has the enterprise pipeline grown following the deal announcement? /
A: Integration is already underway, with $2 million in revenue expected to be recognized in 2026 and $4 million per year starting in 2027. The Wheels Up anchor customer has driven significant incremental new interest across brokers, operators, and aircraft OEMs, expanding the already healthy pipeline.
Q: Is Q2 operating expense a good run rate for Q3, or will costs rise with the expanded Palantir partnership and new product launches? /
A: Q2 OpEx is a good baseline run rate for Q3. Major development investment for SurfOS is largely complete, and the company does not expect costs to rise proportionally with the addition of two new commercial products, leveraging existing infrastructure and team capacity.
Q: Is the expected improvement in scheduled airline profitability driven by easing fuel prices, or by permanent SurfOS efficiencies? /
A: The profitability improvement is driven almost entirely by permanent structural efficiency gains from SurfOS, which allow the airline to offset fuel price volatility regardless of market fluctuations. Digitization efforts will continue to drive further efficiency gains over time.
Q: How does the recent debt refinancing impact future shareholder dilution, and what is the plan to regain NYSE listing compliance? /
A: The refinancing was structured specifically to reduce dilution, cutting convertible principal by 64% and pushing out debt maturity walls. Management plans to cure the share price deficiency organically by executing on transformation milestones, but has already secured shareholder approval for a reverse stock split as a backup risk mitigant if needed.