Flyexclusive, Inc. ((FLYX)) has held its Q3 earnings call. Read on for the main highlights of the call.
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FlyExclusive, Inc. recently held its third quarter 2025 earnings call, revealing a positive outlook driven by significant progress in fleet modernization, revenue growth, and profitability improvements. Despite some challenges, such as delays caused by the government shutdown and a few remaining non-performing aircraft, the overall sentiment was optimistic, highlighting strong growth and operational enhancements.
Fleet Modernization and Performance
FlyExclusive, Inc. has made substantial strides in modernizing its fleet over the past year. The company eliminated 26 non-performing aircraft and replaced them with high-performing models like the Challenger 350s, XLSs, and CJ3 Plus. This strategic move has resulted in increased reliability, utilization, and margins, with fleet utilization reaching a record 7,000 hours in October.
Revenue Growth and Contracted Demand
The company reported a 20% year-over-year increase in total revenue for Q3 2025, reaching $92 million. Contracted hours grew by 30%, and the shift towards more contractually committed demand now accounts for approximately 45% of total flight revenue, indicating a strong foundation for future growth.
Maintenance, Repair, and Overhaul (MRO) Growth
FlyExclusive’s MRO segment experienced remarkable growth, with revenue increasing by 103% year-over-year in Q3. The MRO business generated $7.7 million in revenue in the first nine months of 2025, already surpassing the full-year revenue of 2024, reflecting both external demand and expanded internal throughput.
Improved Profitability Metrics
The company reported an 82% year-over-year increase in year-to-date gross profit, with gross margin expanding by 500 basis points. Adjusted EBITDA improved by 72%, and adjusted EBITDAR increased by 104%, showcasing significant profitability enhancements.
Retail Membership and Sales Growth
Retail membership saw a 51% year-over-year increase, with Jet Club sales rising 17% and fractional sales surging by 68%, driven by demand for the Challenger platform. This growth highlights the company’s successful efforts in expanding its customer base and sales.
Delays Due to Government Shutdown
The federal government shutdown posed challenges, delaying the completion of the merger agreement with JetAI and the finalization of the ATM sales facility. These delays impacted capital access and the company’s growth plans.
Remaining Non-Performing Aircraft
Despite significant progress, flyExclusive, Inc. plans to reduce the number of non-performing aircraft to mid-single digits by the end of 2025 and aims to fully eliminate them in 2026, continuing its fleet optimization efforts.
Forward-Looking Guidance
FlyExclusive, Inc. provided a robust forward-looking guidance, expecting to sustain positive adjusted EBITDA into 2026. The company anticipates continued growth and profitability, supported by increased fleet utilization, improved dispatch availability, and strategic shifts in its operations.
In summary, FlyExclusive, Inc.’s third quarter 2025 earnings call conveyed a positive sentiment, underscoring the company’s achievements in fleet modernization, revenue growth, and profitability improvements. Despite some challenges, the company’s strategic initiatives and forward-looking guidance position it well for continued success in the coming years.