10-Q · May 11, 2026
Surf Air Mobility Inc. reported Q1 2026 financial results with total revenue of $25.6 million, exceeding estimates of $25.48 million, and narrowed its EPS loss to $0.26 from an expected $0.36. The company's focus on its…
Earnings analysis · 10-Q
SRFM earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Surf Air Mobility grew second-quarter revenue 8% year over year to $29.509 million, led by a 101% increase in On-Demand revenue, but Scheduled revenue declined 19% and gross margin compressed to approximately 0.2%. The…
Read full summary
Surf Air Mobility grew second-quarter revenue 8% year over year to $29.509 million, led by a 101% increase in On-Demand revenue, but Scheduled revenue declined 19% and gross margin compressed to approximately 0.2%. The company remained unprofitable, with a $28.133 million net loss, approximately $25.850 million of six-month free cash outflow and a $116.446 million working-capital deficit. Financing improved cash to $18.429 million, but going-concern uncertainty, tax and debt defaults, persistent material weaknesses and a new NYSE minimum-price deficiency create substantial downside risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.29
What stood out
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Revenue grew 8% year over year
Revenue increased to $29.509 million from $27.431 million, up $2.078 million or 8% year over year. Revenue was also above the $28.274 million consensus estimate.
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On-demand charter growth accelerated
On-Demand revenue rose 101% to $12.126 million from $6.026 million, driven by larger jet charter sales and more charter flights. This offset a 19% decline in Scheduled revenue to $17.383 million.
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Overhead and development costs declined
General and administrative expense declined 9% to $11.488 million from $12.628 million, while technology and development expense decreased 35% to $1.781 million from $2.734 million.
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Operating cash burn improved
Operating cash outflow improved to $13.407 million from $26.447 million in the prior-year six-month period. The improvement included a $12.239 million increase in deferred revenue and a $3.711 million increase in accounts payable.
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Liquidity was supported by financing
Cash and cash equivalents increased to $18.429 million from $12.672 million at December 31, 2025, supported by $20.396 million of financing cash inflows, including $25.0 million of GEM advances and $14.3 million of equity proceeds.
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Debt restructuring reduced interest expense
The company reduced High Trail Convertible Note fair value to $42.700 million from $61.600 million at December 31, 2025, and reduced quarterly interest expense to $1.239 million from $3.766 million.
What to watch
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Profitability remained deeply negative
The company reported a $28.133 million quarterly net loss and a $18.798 million operating loss. Gross margin was approximately 0.2%, down from 12.3% a year earlier, while operating margin was approximately negative 63.7% versus negative 58.1%.
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Free cash flow remained substantially negative
Free cash flow, calculated as $13.407 million of operating cash outflow plus $9.645 million of property and equipment purchases and $2.798 million of internal-use software costs, was approximately negative $25.850 million for the six months ended June 30, 2026.
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Going-concern and working-capital risk
The filing states that substantial doubt exists about the company’s ability to continue as a going concern. Current liabilities were $157.782 million versus current assets of $41.336 million, producing an approximately $116.446 million working-capital deficit.
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Tax and debt defaults persist
The company disclosed defaults on certain tax and debt obligations, including $11.1 million of federal excise taxes, approximately $0.9 million of property taxes and a $0.5 million SAFE-T principal balance.
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NYSE minimum-price deficiency
A new risk-factor update states that the company received a formal NYSE notice on July 24, 2026 because its average closing share price was below $1.00 for 30 consecutive trading days. Failure to cure the deficiency within six months could lead to delisting proceedings.
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Material weaknesses remain unresolved
Disclosure controls and procedures were not effective as of June 30, 2026 because of material weaknesses in financial reporting controls, including controls over complex transactions, period-end reporting, IT general controls and debt, leases, property and equipment, payables and accrued liabilities.
Management's outlook
The 10-Q does not provide new numeric revenue or EPS guidance; quantitative outlook was provided in the August 10, 2026 earnings release rather than the filing.
Earlier filings 4
10-K · April 30, 2026
Surf Air Mobility Inc. continues to navigate its recovery phase post-restructuring. Despite operating losses, there are signs of a revenue rebound in Q4 2025 and a multi-year roadmap aimed at electrification and…
10-K · March 12, 2026
Surf Air Mobility’s 2025 10-K emphasizes scale (over 300,000 passengers, ~62,000 scheduled departures) and strategic technology and partner initiatives (SurfOS, exclusive Palantir and Textron relationships, MOUs for…
10-Q · August 12, 2025
Surf Air Mobility reported Q2 revenue of $27.431M (beat consensus $25.398M) and a GAAP net loss per share of $(1.34). Revenue is down YoY from $32.366M but improved sequentially vs Q1 2025 ($24.0M). Operating loss…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.