Surf Air Mobility Inc. (NYSE: SRFM) announced its first-quarter 2026 financial results, demonstrating continued execution under its transformation plan. Revenue reached $25.6 million, at the high end of guidance and up 9% year-over-year, while adjusted EBITDA loss of $12.3 million outperformed the company's guidance range of a loss of $15.5 million to $13.5 million. The results were supported by improved On Demand private charter margins, cost controls across airline operations, and faster, more cost-efficient development and deployment of SurfOS.
The transformation plan is beginning to show operating leverage. Revenue came in at the high end of guidance, and the adjusted EBITDA loss beat expectations, aided by route rationalization, On Demand margin expansion, and tighter cost controls. These factors indicate that the company is on track to improve its financial performance.
On Demand and SurfOS are becoming the core growth and margin drivers for the company. Surf On Demand revenue increased 77% year-over-year to $10.1 million, with revenue per flight up 38% and gross margin improving by approximately 340 basis points. Additionally, traction with BrokerOS and OperatorOS suggests that SurfOS is moving toward becoming a commercial software platform, which could unlock new revenue streams and enhance profitability.
The full-year 2026 setup has improved as guidance appears de-risked and valuation remains discounted. Management maintained fiscal year 2026 revenue guidance of $128 million to $138 million and improved adjusted EBITDA loss guidance by approximately 40%. Surf Air Mobility currently trades at 1.3 times fiscal year 2027 enterprise value to revenue, compared to peers at 2.4 times, supporting the potential for a multiple re-rating if the company continues to execute on its plan.
For more details, the full announcement is available here.
