JetAI (JTAI) AI Stock Analysis

• Market Cap: $9.52M
• Dividend Yield: N/A
• Average Volume (3M): 344.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 19.78%
• EPS Growth: 60.46%
• Country: US
• Employees: 8
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): -1.85
• Shares Outstanding: 2,551,256
• 10 Day Avg. Volume: 365,609
• 30 Day Avg. Volume: 344,338
• PEG Ratio: 0.00
• Price to Book (P/B): 21.63K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.14K
• Enterprise Value/Market Cap: 2.04K
• Enterprise Value/Revenue: 339.50
• Enterprise Value/Gross Profit: -20.31K
• Enterprise Value/Ebitda: -382.23
• 1Y Price Target: $20.00
• Price Target Upside: 458.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $3.50 ▼(-2.23%Downside)

The overall score reflects serious financial challenges, including declining revenue, persistent losses, and negative cash flows. The technical analysis indicates bearish momentum with the stock trading below key moving averages. Valuation is poor due to a negative P/E ratio and no dividend yield, making it a risky investment proposition.

Positive Factors

Business Strategy

Jet.AI is selling its aviation businesses to focus on higher-margin brokerage, software, and AI businesses.

Financial Flexibility

Jet.AI has signed a $50M non-binding term sheet for an equity line of credit, boosting its financial flexibility.

Product Growth

CharterGPT, an AI-powered charter booking app, significantly grew its user base and processed substantial requests for quotes, indicating strong performance in retained business areas.

Negative Factors

Financial Performance

Jet.AI reported 1Q25 results with $3.5M in revenue and an adjusted EBITDA loss of ($2.6M), both missing analyst estimates.

Revenue Decline

The decline in revenue was mainly due to a decline in software-related revenue from the company's booking platform primarily due to reduced marketing efforts and an industry-wide decline in private jet travel demand.

JetAI Business Overview & Revenue Model

Company Description

Jet.AI Inc. primarily engages in the development and operation of private aviation platforms. The company operates CharterGPT, a booking platform that functions as a prospecting and quoting platform to arrange private jet travel with its aircrafts and third-party carriers. It also provides Flight Club API, an aviation software, that enables FAA Part 135 operators to function simultaneously under FAA Part 380 which permits sale of private jet service by the seat instead of by whole aircraft. In addition, the company offers Reroute software, that recycles aircraft waiting to return to base into prospective new charter bookings to destinations within specific distances. Further, it is involved in the aircraft charter, management, and brokerage services. The company was founded in 2018 and is headquartered in Las Vegas, Nevada.

How the Company Makes Money

JetAI makes money through a diversified revenue model that primarily includes the sale and licensing of its AI software solutions to airlines and aviation service providers. Key revenue streams involve subscription fees for access to its cloud-based platforms, one-time sales for customized AI systems, and ongoing maintenance and support services. Additionally, JetAI partners with major aviation companies and technology firms to co-develop new AI applications, which often results in shared revenue from joint ventures and collaborations. The company also engages in strategic partnerships and alliances that allow for the expansion of its market reach and customer base, further driving its earnings.

JetAI Financial Statement Overview

Summary

JetAI is facing substantial financial hurdles across income, balance sheet, and cash flow verticals. The company's declining revenue, persistent losses, and negative cash flows highlight the need for significant operational improvements and strategic adjustments. While the cash position provides some short-term buffer, the negative equity and reliance on external financing underscore the urgent need for financial restructuring and improved profitability.

Income Statement

JetAI's income statement shows a concerning trajectory with negative gross profit margins and consistent net losses. Revenue has declined significantly from the previous year, and the EBIT and EBITDA margins are deeply negative, reflecting operational inefficiencies. The consistent losses in net income highlight significant challenges in turning revenue into profit.

Balance Sheet

JetAI's balance sheet presents a mixed picture. On the positive side, the company has a strong cash position and low debt levels, as indicated by its negative net debt. However, the equity ratio is concerning, and the company has experienced negative stockholders' equity in recent periods, indicating potential solvency issues. The debt-to-equity ratio is not applicable due to negative equity, which is a significant risk factor.

Cash Flow

The cash flow statement reveals significant challenges, with persistent negative operating and free cash flows. Although financing activities have provided cash inflow, the reliance on external financing is not sustainable long-term. The free cash flow to net income ratio indicates that cash generation is not keeping pace with net income losses, which is a critical area for improvement.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
13.65M	14.02M	12.21M	21.86M	1.11M
	Gross Profit
-955.77K	-965.00K	-179.00K	2.06M	-271.00K
	EBIT
-12.59M	-12.57M	-12.51M	-7.74M	-15.97M
	EBITDA
-12.55M	-12.56M	-12.38M	-7.60M	-15.84M
	Net Income Common Stockholders
-12.67M	-12.73M	-12.62M	-7.74M	-15.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.25M	5.87M	2.10M	1.53M	643.49K
	Total Assets
18.46M	10.80M	5.74M	4.89M	2.14M
	Total Debt
891.41K	1.02M	2.12M	2.03M	194.73K
	Net Debt
-11.35M	-4.85M	18.81K	498.95K	-448.77K
	Total Liabilities
4.84M	4.28M	9.68M	4.15M	1.24M
	Stockholders Equity
13.62M	6.51M	-3.94M	736.29K	897.47K
Cash Flow		Free Cash Flow
-7.87M	-8.24M	-3.84M	-96.04K	-2.72M
	Operating Cash Flow
-7.89M	-8.23M	-3.78M	-96.04K	-2.61M
	Investing Cash Flow
-3.57M	-2.41M	-191.00K	290.49K	-546.13K
	Financing Cash Flow
23.11M	14.41M	4.55M	689.45K	1.58M

JetAI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JTAI, the sentiment is Negative. The current price of 3.58 is below the 20-day moving average (MA) of 3.98, below the 50-day MA of 4.06, and below the 200-day MA of 9.35, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 10.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JTAI.

JetAI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
JTAI	43 Neutral	$9.52M	―	-233.22%	―	19.78%	60.46%
VS	39 Underperform	$10.83M	―	-34.07%	―	-78.87%	85.62%
AMST		$13.22M	―	-107.30%	―	―	―
IFBD		$8.93M	1.10	-3.40%	―	―	―
DATS		$11.41M	―	-53.43%	―	―	―
CYN	36 Underperform	$7.92M	―	-205.05%	―	-34.12%	82.42%

JetAI Corporate Events

JetAI Updates Merger Agreement with flyExclusive

Jet.AI Inc. has entered into an Amended and Restated Agreement and Plan of Merger and Reorganization with flyExclusive, Inc., FlyX Merger Sub, Inc., and Jet.AI SpinCo, Inc., which modifies the original merger agreement from February 13, 2025. The new agreement changes the terms of the merger consideration, allowing for eighty percent of the shares to be issued upon closing, with the remaining twenty percent held in reserve until a final post-closing purchase price is determined. Additionally, the financing obligation has been updated to require a new securities purchase agreement with a third-party investor, involving a warrant for up to $50 million in preferred stock. These changes aim to streamline the merger process and potentially impact the company’s financial strategy and stakeholder interests.