Surf Air Mobility Inc. (NYSE: SRFM) reported first-quarter 2026 results that demonstrated continued progress under its transformation plan, with revenue reaching $25.6 million at the high end of guidance and adjusted EBITDA loss narrowing to $12.3 million, outperforming the company's forecasted range of $15.5 million to $13.5 million, according to an update from Stonegate Capital Partners.
The results were supported by improved margins in the On Demand private charter segment, tighter cost controls across airline operations, and more efficient development and deployment of the SurfOS platform. Revenue grew 9% year-over-year, reflecting the early benefits of route rationalization and strategic focus on higher-margin businesses.
Surf On Demand emerged as a key growth driver, with revenue surging 77% year-over-year to $10.1 million. Revenue per flight increased 38%, and gross margins improved by approximately 340 basis points, underscoring the scalability of the on-demand model. Meanwhile, traction with BrokerOS and OperatorOS suggests that the company's SurfOS platform is transitioning toward a commercial software offering, which could unlock additional revenue streams.
Management maintained its full-year 2026 revenue guidance of $128 million to $138 million while improving the adjusted EBITDA loss guidance by roughly 40%, signaling greater confidence in operational efficiencies. The improved outlook de-risks the near-term financial trajectory and highlights the impact of cost discipline and margin expansion initiatives.
Despite the positive momentum, Surf Air Mobility's valuation remains discounted relative to peers. The company trades at 1.3 times forward EV/Revenue for fiscal 2027, compared to a peer average of 2.4 times, according to Stonegate. This gap suggests potential for multiple re-rating if the company continues to execute on its transformation plan and demonstrate sustainable operating leverage.
For further details, the full announcement is available at Stonegate Capital Partners.
