Blade Air Mobility, Inc. ((BLDE)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Blade Air Mobility’s recent earnings call conveyed a generally positive sentiment, underscored by strategic maneuvers and growth in its Medical division. The sale of the Passenger business to Joby Aviation marks a significant shift, allowing Blade to concentrate on its thriving Medical segment. Despite some challenges, particularly in the Passenger segment and increased maintenance costs, the overall outlook remains optimistic.
Sale of Blade Passenger Business to Joby Aviation
Blade Air Mobility announced a pivotal transaction with Joby Aviation, selling its Passenger business for up to $125 million. This strategic move is designed to unlock the full potential of Blade’s Medical division, which now constitutes approximately 60% of the company’s revenue and 85% of its segment’s adjusted EBITDA. This sale is expected to streamline operations and enhance the company’s focus on its most promising segment.
Strong Performance of Medical Division
The Medical division of Blade Air Mobility showcased impressive growth, with revenue accelerating by 18% in Q2 2025 compared to the previous year. The segment’s revenue reached a record $45.1 million, and its adjusted EBITDA margin improved to 13.4% from 11.4% in the prior quarter. This growth highlights the division’s robust performance and potential for future expansion.
Positive Outlook and Strategic Partnership
Blade’s Medical division is poised for further growth through a new long-term partnership with Joby Aviation, granting access to Joby’s eVTOL aircraft for medical purposes. With approximately $200 million in cash reserves, Blade plans to focus on organic growth and strategic acquisitions, reinforcing its commitment to expanding its Medical segment.
Improvement in Passenger Segment Profitability
Despite facing challenges, Blade’s Passenger segment demonstrated significant profitability improvements. The adjusted EBITDA for this segment tripled year-over-year, rising from $0.8 million to $2.4 million, while the flight margin increased by 580 basis points to 30.5% in Q2 2025.
Challenges in U.S. Short Distance Revenue
Blade experienced a 5.5% year-over-year decline in U.S. Short Distance revenue, attributed to incidents such as the New York Tourist helicopter incident in April 2025 and adverse weather conditions in June. These factors have impacted revenue generation in this segment.
Increased Maintenance Costs Impacting Margins
The Medical segment’s adjusted EBITDA margin faced a decline of 100 basis points compared to Q2 2024, primarily due to increased maintenance downtime and costs. These elevated maintenance events affected fleet uptime and financial outcomes.
Jet & Other Revenue Decline
Blade reported a 2% year-over-year decrease in Jet & Other revenue, resulting from a modest reduction in flight volume and revenue per flight. This decline reflects challenges in maintaining previous revenue levels in this segment.
Forward-Looking Guidance
Blade Air Mobility’s strategic transformation is set to focus exclusively on its Medical division, soon to be renamed Strata Critical Medical. The company anticipates mid-teens revenue growth in the latter half of 2025, supported by a strong cash position of $200 million post-sale. The leadership team, including Co-CEOs Melissa Tomkiel and Will Heyburn, will drive both organic and inorganic growth through disciplined capital allocation, aiming to enhance value creation.
In summary, Blade Air Mobility’s earnings call reflects a strategic pivot towards its Medical division, bolstered by the sale of its Passenger business. While challenges persist in certain segments, the company’s focus on growth and strategic partnerships positions it well for future success. The positive sentiment surrounding the Medical division’s performance and the company’s forward-looking guidance underscore a promising trajectory for Blade.