Surf Air Mobility Inc.

If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I will now pass the call over to Sam Levinson. Please go ahead.

Thank you, operator, and good afternoon, everyone. Welcome to Surf Air Mobility's third quarter 2025 earnings call. I'm joined today by the NOI Chief Executive Officer, and Oliver Reeves, Chief Financial Officer. Our earnings release can be found on the SEC EDGAR website and on our Surfer Mobility Investor Relations page at investors.surfer.com. During this call, we will discuss our outlook and expectations for future performance. These forward-looking statements may be preceded by words such as we expect, we believe, we anticipate, or other similar statements. These statements are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Some of those risks have been set forth in our earnings release and in our periodic reports filed with the SEC. During today's call, we will present both GAAP and non-GAAP measures. Additional disclosures regarding non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures, are included in the earnings release we issued today, posted on the Surfer Mobility Investor Relations website, and in our filings with the SEC. I'll now turn the call over to SURF Air Mobility's CEO, Deanna White. Deanna?

Thank you, Sam, and thank you to everyone who has joined our call today. One year ago, we announced a four-phase transformation plan to reset the financial and operational trajectory of SURF Air Mobility. Each phase was designed as a building block to execute on our core mission, to build the air mobility platform that will transform flying. Our goal is to fly people using technology that generates long-term value for our shareholders. The plan was crafted to first strengthen the financial position of the company, then leverage our many strengths into catalysts for the adoption of software and electrification technology. Our transformation plan is proving to be reality and not just theory. We are executing and demonstrating improvements in all areas of the business, financially, operationally, and strategically. Financially, over the past year, we have improved our capital structure and deleveraged our balance sheet through a series of debt and equity transactions. During the 12 months ended September 30th, 2025, we secured a $50 million credit facility and raised $50 million of additional capital through equity issuances. Furthermore, we reduced our debt by $52 million through pay downs and conversions to equity. Subsequent to the end of the third quarter, we announced a pivotal $100 million strategic financing that will accelerate growth and further strengthen our balance sheet. This financing includes 26 million of new capital to drive development and commercialization of SURF OS. The remaining 74 million, structured as a zero-coupon convertible note, will be used to refinance debt, reducing cash interest expense and allowing for further deleveraging of the balance sheet. We will continue to look for opportunities to strengthen our balance sheet and unlock catalysts for our shareholders. Turning to our third quarter results, this quarter marks the seventh consecutive quarter that we have met or exceeded our revenue and adjusted EBITDA guidance. Third quarter revenue of 29.2 million exceeded the company's guidance of 27 to 28.5 million and rose 6% sequentially versus the second quarter. Adjusted EBITDA loss of $9.9 million was within our guidance range as the disciplined execution led by our experienced management team once again yielded expected results. With another quarter of improved financial results behind us, we have raised our 2025 revenue guidance to at least $105 million and remain on track for a full year of profitability in our airline operations. Operationally, we have transformed our commuter airline, consistently producing strong results, which have translated into our second consecutive quarter of profitability in this business. I would like to recognize the achievements of the Seasons Aviation Team recruited at our Systems Operations Center, which was relocated to Dallas, Texas this past year. This team has created a high functioning operation grounded in performance metrics that produces safe, reliable, and profitable results for the organization. Our operations position us to both become the preferred operator in new markets and to deploy new electrification technology coming to market in the near future. We produce exceptional sales results in our on-demand business for the third quarter. generated an approximate 40% increase in revenue compared to both the second quarter and the same quarter of the prior year. Our on-demand business is executing strongly against our key recalibration initiatives. Third quarter results benefited from a shift in the mix of flying from turboprop to jet aircraft and from domestic to international flight. which resulted in a 14% increase in revenue per flight. At the same time, we reduced expenses of the on-demand team 36% since adopting SRF OS, generating higher revenues for less cost. Additionally, the team implemented profitability enhancements by securing inventory through volume purchase agreements with operators who are also users of SurferOS. Our on-demand business is well positioned for profitable growth. Surfer Mobility is at the epicenter of the air mobility market, not only as one of the largest commuter airlines in the country, having flown over 300,000 passengers in the past 12 months, but also as a result of our relationships with over 400 operators who serve our on-demand operations, and who are ideal customers of the ServOS platform in the future. The Part 135 industry is made up of small businesses with unsophisticated tech stacks and fragmented data. As an operator and broker, we have unique insight into the technology needs of this industry. Our exclusive partnership with Palantir allows us to leverage cutting edge AI tools and best in class data management expertise to build an all in one AI enabled software platform for this industry. During the third quarter, we entered a five year agreement with Palantir that expanded our relationship to include exclusivity for products developed for charter brokers and operators. We obtained the ability to team with Palantir on solutions designed for enterprise customers, aircraft manufacturers, and the FAA. As part of the recent strategic transaction, we added resources from Palantir to further these efforts. In our SRF OS business, we continue to make substantial progress on driving efficiencies in our own operations by adding incremental functionality and expanding our applications. We have successfully implemented multiple applications within our operations and are already seeing significant improvements in efficiency and profitability. In our scheduled operations, we launched an aircraft and crew scheduling tool in our Northeast and Hawaii networks that required parallel testing and FAA approvals. We anticipate that the entire network will be live on this tool by the end of the year. Our SurfOS team also launched additional features within the mobile crew app that increased pre-post-flight communications and reporting. Lastly, robust CRM functionality was built into BrokerOS to streamline customer insights and promote sales efficiencies. During 2025, SurfOS has been in a beta test phase with eight users who have given us valuable insights. We have secured seven LOIs from brokers and operators extremely interested in purchasing SurfOS once we commercialize this product. In October, the company hosted a private event at MDAA showcasing SurfOS and conducted 18 product demos for a select group of brokers, operators, aircraft manufacturers, and enterprise clients. We are extremely pleased with the progress made in the last year and expect to exit 2025 with strong momentum as we enter the strategic phases of our transformation plan next year. Strategically, Surfer Mobility is well positioned to continue optimizing its businesses and begin pursuit of the expansion and acceleration phases of our transformation plan. First, we will commercialize SurfOS and begin full deployment to third parties in 2026. With a recently announced financing, we have secured funding for the continued development and commercialization of SurfOS. SurfOS is AI-driven software powered by Palantir that organizes key stakeholder data into a single platform, allowing actionable insights for a business. We intend to launch our three flagship Surf OS products in 2026, Broker OS, Operator OS, and Owner OS. Broker OS manages end-to-end sales and sourcing and will empower charter brokers to automate processes. Operator OS improves efficiency and the utilization of planes, pilots, and airport staff. OwnerAss delivers transparency and optimization to private aircraft owners to generate better returns on their aviation assets. These products can be integrated into customized solutions for enterprise clients. We intend to announce our commercialization plan with milestones in the coming months. Second, we are pursuing strategies to showcase new technologies in our airline operations network and in new markets. We currently provide commuter service to approximately 200,000 inter-island fliers annually within the state of Hawaii. The length of these flights, ranging from 25 to 75 miles, is the perfect testing ground for electrified aircraft coming online in the near future. We are working with aircraft manufacturers in the state of Hawaii to launch a pilot program within our existing network. Additionally, we intend to launch a part 145 maintenance program to service existing and new technology aircraft and our scouting potential locations within our network to invest. The high functioning system operations center we have built positions Surfer Mobility to become a preferred operator for companies looking to adopt new aircraft technology in their business models. Billions of dollars are being invested across the aviation industry in the development of new technologies focused on smaller aircraft flying shorter distances. With over a decade of operating both scheduled and on-demand short-haul flights, we have flown millions of passengers millions of miles and worked with hundreds of operators in this market. This uniquely positions us to deploy these new technologies across a variety of business models and partners. In the meantime, we will continue to add capacity to our network utilizing combustion engine caravans, of which we are taking four new deliveries in the first half of 2026. Our work on detailed launch plans continues for new routes we intend to unveil next year. Third, we intend to grow our on-demand business and expand the number of operators in our network through a series of strategic initiatives directed at profitable revenue growth. We will continue our efforts to secure a supply advantage through operator partnerships that provide volume pricing benefits. To achieve our revenue aspirations, we plan to grow our sales team by acquiring seasoned broker talent and books of business. Currently, our on-demand team is working towards a coveted Argus broker accreditation, which will equip our operations with 100% operator vetting and strong compliance oversight. Lastly, let me update you on our electrification effort. We have targeted securing a supplemental type certificate for the electrified powertrain in 2027. As such, we have been working with key organizations within the industry supply chain and are evaluating partnership opportunities where we no longer bear the full cost of development. In addition to being the largest passenger operator of Cessna Grand Caravans, we have an exclusive agreement with Textron Aviation, the manufacturer of this aircraft. For us to be the exclusive supplier of electric and hybrid electric powertrains, and for Textron Aviation to provide global marketing, sales, and distribution for these electrified aircraft. As our progress toward this initiative continues, we look forward to updating you as things unfold. Certified Mobility has never been positioned as strongly as we are today, and we fully intend to leverage that strength to drive shareholder value over the coming years. With that, let me now turn the call over to Oliver to cover the recently announced strategic financing and our Q3 results and Q4 outlook in more detail. Oliver?