Surf Air Mobility Inc.

Good evening, my name is Abby and I'll be your conference operator today at this time, I would like to welcome everyone to the surf air mobility fourth quarter and full year 2025 earnings call. All lines have been placed on mute to prevent any background noise after the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time simply press star followed by the number one on your telephone keypad if you would like to withdraw your question press start one again, thank you. And I will now pass the call over to Sam Levinson. Please go ahead.

Thank you, operator, and good afternoon, everyone. Welcome to Surfer Air Mobility's fourth quarter 2025 earnings call. I'm joined today by Deanna White, Chief Executive Officer, and Oliver Reeves, Chief Financial Officer. Our earnings release can be found on the SEC Egger website and on our Surfer Air 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 these risks have been set forth in our earnings release and in our periodic reports following 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 earlier today, posted on the Surf Air Mobility Investor Relations website, and in our filings with the SEC. I'll now turn the call over to Surf Air Mobility CEO, Deanna White. Deanna?

Thank you, Sam, and thank you, everyone, for joining us. At the beginning of 2025, we were in the midst of transforming our company financially, operationally, and strategically. The investments we made in our key priorities were straightforward. Strengthen the core business by improving reliability and profitability in our airline operations, recalibrate the on-demand charter business, and develop our SURF OS software. We delivered against that plan, demonstrating successful execution against our strategies. I think that's best exemplified by having now met or exceeded our revenue and adjusted EBITDA guidance for eight consecutive quarters. Today, we are no longer resetting. We are pivoting to growth. We are backing that ambition by increasing 2026 revenue guidance by 20 to 30% compared to the prior year, underscoring our platform opportunity and our conviction in delivering it. This revenue guidance does not include the early stages of electric aircraft deployment as we expect our recently announced partnership with Beta Technologies to contribute to revenue growth and operating efficiencies in 2027. In 2025, we raised over $100 million in equity to substantially reduce our overall cost of capital and lower our net debt. This strengthened financial position gives us the flexibility to move beyond stabilization and toward growth. Today, we operate a regional airline and on-demand charter business. safely, reliably, and efficiently and have been building a digital infrastructure equipped with AI-enabled software tools powered by Palantir. These efforts provide the foundation for our business platform ambition that will enable the next generation of advanced air mobility. To set the stage, aviation is entering a structural inflection point. Electrified aircraft nearing commercial readiness and AI-enabled software will soon shift both the economics and operating requirements of flying. These converging technologies will stimulate massive new demand, but the industry remains severely fragmented, with operators, brokers, owners, and manufacturers still relying on disconnected technology solutions that are unprepared to manage the greater operational and regulatory complexity, intensifying the challenges further. Success in this next phase of aviation will be shaped not by individual airlines or OEMs, as in the past, but by a platform that integrates the ecosystem and increases alignment across it. Like all effective platforms, Surfer Mobility intends to benefit from dynamics between supply and demand, where improved access, reliability, and economics on one side make participation increasingly attractive on the other. Surf Air Mobility's platform, enabled by a digital infrastructure powered by Palantir, makes participation in the next generation of aviation simpler, safer, and more economically attractive over time for everyone. We see a world where OEMs will introduce aircraft through our platform. Operators will run fleets on Surf OS. Pilots will build careers within the network. Passengers will manage their travel with a trusted brand. Regulators will rely on the platform's transparency and controls. And capital will flow through its infrastructure. While assets and operations remain distributed, the coordination, standards, and market dynamics will be governed centrally through the platform. Our platform strategy is built on our strengths today. A nationwide commuter network of short-haul routes ready to showcase adoption of electric aircraft a cohort of over 400 plus operator relationships developed within our on-demand charter business proprietary palantir powered software built on live operations partnerships with leading electric aircraft manufacturers including beta technologies and electra to bring new electric aircraft into service We believe this combination of assets is singular in this industry and defines our platform advantage. In our airline operations, 2025 marked a dramatic step change in operational performance. We made meaningful improvements in controllable completion rates and on-time departures and arrival metrics, each reaching all-time highs since becoming a public company. These gains reflect better execution from our incredibly talented team, along with increased digitalization of key processes across the airline. I would like to thank the team for their contribution to this milestone, which would not have been possible without their dedication to operational excellence. As a result, we achieved our guidance of profitability in our airline operations for the full year of 2025, defined as positive adjusted EBITDA. In our on-demand charter business, we focus not only on growth, but also margin expansion. We achieved both. Revenue increased while we saw incremental improvement to flight margins compared to the prior year. The combination of better sourcing discipline, a mixed shift to longer haul trips with larger aircraft, and the adoption of our SurfOS technology helped us recalibrate the business. It's within our on-demand charter business that we expect to see the clearest near-term benefits of our platform becoming operationalized. We already saw this business expand meaningfully in 2025, especially in the second half of the year as our SURFOS tools helped us improve aircraft sourcing and broker productivity. We integrated two charter supply deals into our platform. giving us better economics and more control over aircraft inventory, while guaranteeing distribution for our operating partner. In the fourth quarter of 2025, we launched two new strategic initiatives in our on-demand charter business. The first, powered by SURF OnDemand, our tech-enabled program that equips independent third-party brokers with BrokerOS and expands our on-demand charter team's sales force. and the second, SURF On-Demand Cargo, which expands our product offering into an additional segment of the aviation market. These programs began generating profitable revenue in 2025 and represent early proof points of our platform strategy in action. SURF OS remains a significant investment priority for us. Throughout 2025, we continued working with Palantir to power the core of SURF OS and integrated across more parts of our organization. We launched crew and aircraft scheduling tools, integrated our maintenance management system, enhanced mobile applications for pilots, and adopted CRM capabilities for our on-demand charter team. These tools are actively used within our business every day. At the same time, we continue to validate SurfOS with external operators and brokers, and secured multiple letters of intent for future adoption of our software products. To this end, we remain on track to begin commercializing SurfOS in 2026. The goal is to provide tools that improve efficiency, transparency, and asset utilization in a fragmented market that connects the ecosystem onto a shared digital infrastructure. Our Hawaii operation and strategic partnerships are central to this next phase. and we're placing particular emphasis on that market as a proving ground for our platform in practice. The inter-island network provides a practical environment to introduce electric aircraft technologies responsibly. With short flight distances, a concentrated airport geography, strong community engagement, and meaningful passenger volume, Hawaii is our strategic anchor market to demonstrate the impact of the transition to electric aircraft. We've increased our investment in Hawaii, operating under the brand Localele Airlines, and have committed to investing over $22 million into our Hawaii infrastructure with new planes entering service in the second quarter of 2026, updated lounges, and improved processes. We've strengthened leadership locally, improved operational reliability, and aligned our fleet and network for long-term operational stability. This strategic commitment to Hawaii is further shown by the work we're doing in partnership with Beta Technologies. This week, we secured a strategic partnership with Beta Technologies to be the first operator to launch commercial electric aircraft passenger flights in Hawaii. As part of the strategic partnership, Surfer Mobility will combine its operating expertise existing passenger demand, and establish airport infrastructure with Beta's market-leading electric aircraft and charging capabilities. We've placed a firm fleet order for 25 Beta electric aircraft with an option for 75 more. The order allows for delivery slots to be satisfied across Beta Technologies' product portfolio, from cargo or passenger CTOL aircraft to VTOL variants. perfect for our existing commuter network and on-demand charter business. The order allows aircraft to be operated by us, leased to individual owners that manage their aircraft with Surfer Mobility, or operated by our on-demand charter partners, all stakeholders within our platform. We anticipate that the improved unit economics of beta electric aircraft will lead to increased profitability in our scheduled service and on-demand charter businesses over time. We've entered into another agreement with Beta Technologies that designates our planned maintenance repair and overhaul facility once certified as the exclusive factory authorized service center for Beta electric aircraft in Hawaii with the ability to extend to other launch regions. Our ambition to become the leading MRO for electric aircraft will create a new and growing revenue stream for the company. Moreover, Beta Technologies has selected us as a launch operator for their passenger aircraft. Beta Technologies and Surfer Mobility will co-market Beta Electric Aircraft and Surfer Mobility's operating software capabilities to other third-party Beta Aircraft customers. We aim to leverage this agreement to provide Beta Technology customers with operational and aircraft management services across multiple mission profiles. including high-frequency short-haul scheduled passenger service, regional cargo operations, and on-demand charter flights. These announcements are concrete examples of the progress we're making toward implementing the industry's platform solution and will directly support the early commercial deployment and broader market adoption of electric aircraft. Our broader electrification strategy has been to work with best-in-class aircraft manufacturers to achieve first mover advantage. Our partnership with Beta Technologies illustrates this approach, and we are working toward introducing Beta aircraft into commercial service beginning this year. We believe that Hawaii, where we hold an early advantage, will be one of the first meaningful proof points in the United States and believe Beta Technologies has the aircraft to make it happen. These deliberate steps are designed to reduce risk, increase operational readiness, and position us to be the premier operator of electric aircraft. The Beta Aircraft Order is expected to enable the deployment of electric aircraft in our network before our previously expected timeline of 2027. At the same time, we continue to believe there is a strong use case for an electric caravan, particularly in markets we fly today, such as Hawaii. We believe the most efficient allocation of capital is to focus on providing software to support the development of electric aircraft. We continue to be in discussions with multiple partners across the value chain to advance the electric caravan program, utilizing the work we have accomplished and assets we have created. However, to be clear, we no longer intend to invest 50 to 100 million dollars for the caravan electrification program. To summarize, what I've just described is SURF Air Mobility turning back to growth mode in 2026. I've laid out our vision showing how our strategic initiatives and areas of strength will increasingly work in tandem as a unified platform. The outlook for this next year includes more partnerships, more electric aircraft collaborations, more supply agreements, and more integration and broader rollout of our SURF OS technology across the ecosystem. Over time, we will align the key stakeholders around our platform, coordinating more of the operational financial transactions and capturing an expanding share of the industry's activity. We enter 2026 in a stronger position than at any point in our recent history, seeking to enable an industry at the beginning of structural expansion. And we're intensely focused on turning that position into tangible value for our customers, our partners, and our investors. With that, I'll turn the call over to Oliver to discuss our fourth quarter and full year 2025 results and our 2026 guidance.