Surf Air Mobility Inc.

Good evening. My name is Christine Nguyen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Surf Air Mobility first quarter 2026 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 this time, 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 Surfer Mobility's first quarter 2026 earnings call. I'm joined today by Deanna White, our Chief Executive Officer, Louis Sancerre, President of Airline Operations, Joshua Loughton, President of Surf On Demand, Liam Fayyad, Co-Founder of Surf Air Mobility, and Oliver Reeves, our Chief Financial Officer. Our earnings release can be found on the SEC Edgar website and on our investor relations page at investors.surfare.com. Before we begin, I want to remind everyone that during today's 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, or we anticipate. These statements are subject to risks and uncertainties, and actual results could differ materially from the views expressed today. Some of these risks are set forth in our earnings release and in our periodic reports filed with the SEC. We will also present both GAAP and non-GAAP financial measures. Additional disclosures regarding non-GAAP measures, including the reconciliation of GAAP to non-GAAP, are included in our earnings release posted on our Investor Relations website and in our SEC filings. With that, I'll now turn the call over to Deanna. Deanna?

Thank you, Sam, and thank you all for joining us this afternoon. Our Q1 2026 results came in better than we expected. Revenue landed at $25.6 million at the high end of our guidance range, and adjusted EBITDA loss of $12.3 million outperformed our guidance. These results reflect a business that is executing with more discipline and efficiency than a year ago, despite the macro environment and higher fuel prices. We have improved our 2026 adjusted EBITDA guidance by approximately 40% to a loss of 30 to 25 million, while maintaining our annual revenue guidance at 128 million to 138 million, 20 to 30% growth year over year. This revised adjusted EBITDA guidance represents a significant improvement from our previous guidance and is a result of four factors. First, we anticipate SurfOS to continue to reduce costs across the airline and charter businesses. 6% for the airline, 15% for on-demand private charter. Second, corporate automation and procurement discipline will reduce our staffing requirements by 32% and our professional services spend by 17%. Third, our chartered businesses growing revenue through the Powered by Surf on Demand program without a proportionate increase in fixed costs. Fourth, AI-assisted development has compressed SurfOS build cycles and reduced development spend. Together, these four factors are expected to generate an incremental $15 to $20 million in adjusted EBITDA improvement from our previous guidance. The bigger picture is that SurfOS is now visibly moving our financial results. Last week, we released go-to-market details of the SurfOS platform with a presentation available on our investor relations site. In just a few minutes, our co-founder, Liam Fayad, will share more on our go-to-market strategy. Lastly, our strategic partnership with Beta Technologies remains central to our ambitions to adopt electric aircraft within our operations. In March, we announced a firm order for 25 Beta all-electric aircraft with options for 75 more and a designation as Beta's launch operator for commercial passenger electric service. Under the agreement, Surfer Mobility will become Beta Technologies' exclusive maintenance, repair, and overhaul facility in our launch market of Hawaii, with the ability to expand into future geographic areas. Importantly, this partnership allowed us to eliminate up to $100 million in planned capital expenditure on our Cessna Caravan power train electrification program. We still believe in a long-term case for an electric caravan and are exploring partner paths forward that would complete the initiative without further deployment of our capital. I'll now turn it over to the business leaders of our company to discuss their specific areas, beginning with Louis Sancier, president of our airline operations.