JetAI (JTAI) AI Stock Analysis

• Market Cap: $10.51M
• Dividend Yield: N/A
• Average Volume (3M): 299.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 19.78%
• EPS Growth: 60.46%
• Country: US
• Employees: 8
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): -1.85
• Shares Outstanding: 2,551,256
• 10 Day Avg. Volume: 97,762
• 30 Day Avg. Volume: 299,133
• PEG Ratio: <0.01
• Price to Book (P/B): -0.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.00
• Price Target Upside: 385.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

JetAI's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, persistent losses, and negative cash flows. The technical analysis does not provide significant bullish indicators, and the valuation remains unattractive due to a negative P/E ratio and absence of dividends. There is a need for substantial operational and financial restructuring to improve the company's prospects.

Positive Factors

Business Strategy

Jet.AI is focusing on higher-margin brokerage, software, and AI businesses by selling its aviation segments.

Financial Flexibility

Jet.AI has secured a $50 million equity line of credit, providing financial flexibility for its transition.

Growth of CharterGPT

CharterGPT, an AI-powered booking app, significantly grew its user base and processed substantial requests for quotes.

Negative Factors

Challenges in Aviation Business

The aviation business being sold was challenged with lacking scale, utilization issues, and high pilot salary costs.

Earnings 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

JetAI (JTAI) is an innovative technology company specializing in the development and deployment of artificial intelligence solutions for the aviation industry. The company focuses on creating advanced AI-driven systems designed to enhance operational efficiency, safety, and customer experience across various aviation sectors including commercial airlines, private aviation, and logistics. JetAI's core products include AI-powered flight optimization tools, predictive maintenance systems, and intelligent customer service platforms.

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 faces substantial financial challenges, with persistent losses, high leverage, and negative cash flow. While there have been some improvements in revenue and equity, the company needs to address its operational inefficiencies and high debt levels to stabilize and grow. Strategic cost management and cash flow improvements are critical for future sustainability.

Income Statement

The income statement shows a concerning trend of declining revenues and persistent negative margins. The most recent year saw a revenue increase of 14.8% compared to the prior year, but this follows a sharp decline from two years prior. Gross profit margins remain negative, and both EBIT and net profit margins are deeply negative, indicating ongoing operational challenges. However, the slight revenue growth provides some optimism if cost management can be improved.

Balance Sheet

JetAI's balance sheet is mixed, with a positive shift in stockholders' equity from negative to positive over the past year, indicating some improvement in financial position. However, the debt-to-equity ratio is notably high, reflecting significant leverage, though reduced from previous years. The equity ratio has also improved, suggesting better asset management, but the overall high leverage remains a risk factor.

Cash Flow

Cash flow analysis reveals significant challenges. Operating cash flow remains negative, and the free cash flow is also negative, showing no improvement in operational cash generation. There is high reliance on financing activities, which is a concern. The operating cash flow to net income ratio is unfavorable, indicating inefficient cash conversion from earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
15.03M	14.02M	12.21M	21.86M	1.11M
	Gross Profit
-628.37K	-964.62K	-178.53K	2.06M	-270.90K
	EBIT
-12.33M	-12.57M	-12.51M	-7.74M	-15.97M
	EBITDA
-12.23M	-12.57M	-12.38M	-7.60M	-15.84M
	Net Income Common Stockholders
-12.49M	-12.73M	-12.62M	-7.74M	-15.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10M	5.87M	2.10M	1.53M	643.49K
	Total Assets
5.74M	10.80M	5.74M	4.89M	2.14M
	Total Debt
2.12M	1.02M	2.12M	2.03M	194.73K
	Net Debt
18.81K	-4.85M	18.81K	498.95K	-448.77K
	Total Liabilities
9.68M	4.28M	9.68M	4.15M	1.24M
	Stockholders Equity
-3.94M	6.51M	-3.94M	736.29K	897.47K
Cash Flow		Free Cash Flow
-5.90M	-8.23M	-3.84M	-96.04K	-2.72M
	Operating Cash Flow
-5.88M	-8.23M	-3.78M	-96.04K	-2.61M
	Investing Cash Flow
-34.39K	-2.41M	-191.00K	290.49K	-546.13K
	Financing Cash Flow
5.32M	14.41M	4.55M	689.45K	1.58M

JetAI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4.12 is below the 20-day moving average (MA) of 4.16, below the 50-day MA of 4.29, and below the 200-day MA of 13.43, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 23.85 is Neutral, 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 *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
JTAI	41 Neutral	$10.51M	―	-233.22%	―	19.78%	60.46%
VS	39 Underperform	$10.10M	―	-34.07%	―	-78.87%	85.62%
CYN	36 Underperform	$7.71M	―	-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.

Spark’s Take on JTAI Stock

According to Spark, TipRanks’ AI Analyst, JTAI is a Neutral.

JetAI’s overall stock score reflects significant financial and operational challenges, including persistent losses, high leverage, and negative cash flow. Although there are some signs of improvement, such as increased revenues and better equity ratios, these are overshadowed by ongoing inefficiencies and a bearish technical outlook. The valuation is unattractive due to negative earnings and no dividends, further impacting investor sentiment.

To see Spark’s full report on JTAI stock, click here.