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Surf Air Mobility, Inc. (SRFM)
NYSE:SRFM
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Surf Air Mobility, Inc.
(NYSE:SRFM)
Rating:41Neutral
Price Target:
$2.50
▲(4.60%Upside)
Positive Factors
Operational Efficiency
The company achieved a 35% year-over-year decrease in operating expenses, significantly improving operational efficiency.
Strategic Partnerships
Surf Air Mobility is in late-stage discussions with a potential partner to capitalize on their electric/hybrid powertrain initiative, which could be a major catalyst for the stock.
Transformation Plan
The company completed 'Phase One' of its transformation plan following the recapitalization of its balance sheet with a $50M term loan.
Negative Factors
Capital Constraints
The company remains capital-constrained with approximately $6.6 million on the balance sheet and a high average quarterly cash burn rate.
Equity Dilution
The dilution impact from the GEM facility due to advance draws to fund operations has remained a consistent overhang on SRFM shares with investors.
Unprofitable Routes
Surf Air Mobility continues to face challenges with unprofitable routes that are temporarily maintained due to EAS subsidies.
Surf Air Mobility, Inc. (SRFM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.09M
Dividend YieldN/A
Average Volume (3M)301.24K
Price to Earnings (P/E)―
Beta (1Y)3.17
Revenue Growth31.17%
EPS Growth83.01%
CountryUS
Employees556
SectorIndustrials
Sector Strength92
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-1.09
Shares Outstanding19,283,800
10 Day Avg. Volume548,401
30 Day Avg. Volume301,236
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-0.32
Price to Sales (P/S)0.00
P/FCF Ratio-0.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.25Price Target Upside35.98% Upside
Rating ConsensusHold
Number of Analyst Covering1
Surf Air Mobility, Inc. Business Overview & Revenue Model
Company DescriptionSurf Air Mobility Inc. operates as an electric aviation and air travel company in the United States. It offers an air mobility platform with scheduled routes and on demand charter flights operated by third parties; and air cargo services. The company is headquartered in Hawthorne, California.
How the Company Makes MoneySurf Air Mobility, Inc. generates revenue primarily through its regional air travel services, offering flights to various destinations with a focus on short-haul and commuter routes. The company's revenue model includes ticket sales to passengers and potentially subscription-based travel services. Additionally, Surf Air Mobility may engage in strategic partnerships with aircraft manufacturers, technology providers, and regional airports to enhance its service offerings and operational efficiency. As the company develops and integrates hybrid-electric and fully electric aircraft into its fleet, it aims to capitalize on the growing demand for sustainable aviation, potentially opening up new revenue streams through licensing or technology partnerships.
Surf Air Mobility, Inc. Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -16.72%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
Surf Air Mobility's earnings call highlighted strong revenue performance, successful renewal bids, and operational improvements. However, the company faced challenges with adjusted EBITDA loss, service interruptions, and decreased revenue in key segments. The sentiment is mixed, with significant achievements counterbalanced by notable challenges.Q1-2025 Updates
Positive Updates
Revenue at High End of Expectations
First quarter revenue was $23.5 million, at the high end of the expected range of $21 million to $24 million, keeping the company on track to meet full year expectations of over $100 million in revenue.
Renewal Bids Secured
Surf Air Mobility was awarded renewal bids for DuBois, Pennsylvania and Kalaupapa, Hawaii, representing $7.6 million annually in subsidy revenue.
Operational Achievements
Relocation of the company systems operations center to the Dallas/Fort Worth area, attracting top aviation talent, and optimization of airline operations.
Improved Flight Completion Factor
Flight completion factors improved to above 92% in the second quarter, with an objective to reach 96% before initiating route expansion.
Interline Agreement with Japan Airlines
Mokulele Airlines operations entered into an interline agreement with Japan Airlines, expanding access to over 435 million potential customers.
Negative Updates
Adjusted EBITDA Loss
Adjusted EBITDA loss in Q1 was $14.4 million, reflecting ongoing financial challenges.
Service Interruption
A brief service interruption occurred in January due to maintenance issues, which impacted operations.
Decreased Revenue in Key Segments
Scheduled service revenue decreased by 23% and on-demand service revenue decreased by 25% year-over-year, driven by the elimination of unprofitable routes and a focus on profitability.
Company Guidance
During the Surf Air Mobility Q1 2025 earnings call held on May 13, 2025, the company provided guidance indicating strong financial and operational performance. The first quarter revenue was reported at $23.5 million, aligning with the high end of the projected range of $21 million to $24 million, and the company remains on track to exceed $100 million in revenue for the full year. The adjusted EBITDA loss for Q1 was $14.4 million, within the expected range. Looking ahead, Surf Air Mobility projects Q2 revenue between $23.5 million and $26.5 million and an adjusted EBITDA loss ranging from $10 million to $13 million. The company aims to achieve profitability in its airline operations by the end of 2025, driven by strategic initiatives such as route optimization, fleet efficiency, and leveraging software capabilities through SurfOS. Additionally, the company highlighted advancements in its electrification initiative and recent strategic partnerships, such as an interline agreement with Japan Airlines, which expands access to over 435 million potential customers.Surf Air Mobility, Inc. Financial Statement Overview
Summary
Surf Air Mobility, Inc. is experiencing significant revenue growth but continues to operate at a loss with negative profitability and cash flow issues. The company has high leverage and financial instability, though there is some improvement in gross margins and asset growth.Income Statement
Surf Air Mobility, Inc. has shown a significant increase in revenue over the past year, with a 97.3% growth from 2023 to 2024. However, the company's margins remain negative, with a net profit margin of -62.7% and an EBIT margin of -50.4% for 2024. The gross profit margin improved to 7.9%, indicating some positive movement towards profitability. Despite these improvements, the company continues to operate at a loss, impacting the overall score.45
Neutral
Balance Sheet
The company has a negative stockholders' equity of -$119.997 million, indicating high leverage and potential financial instability. The debt-to-equity ratio is not calculable due to negative equity, which signifies risk. However, the total assets have increased to $124.058 million, showing some growth in asset base. The equity ratio is negative due to the negative equity, suggesting a weak balance sheet structure.30
Negative
Cash Flow
Free cash flow improved slightly, although it remains negative at -$66.08 million. Operating cash flow to net income ratio indicates inefficiencies, with negative cash flows. The company has managed to increase its cash position, aided by financing activities, but the reliance on external financing could pose risks if not managed properly.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 119.42M | 60.51M | 100.61M | 11.80M | 7.50M | Gross Profit |
| 9.49M | -5.17M | 6.19M | -3.75M | -3.53M | EBIT |
| -60.26M | -196.77M | -110.68M | -33.35M | -20.76M | EBITDA |
| -58.24M | -247.27M | -72.74M | -32.59M | -19.04M | Net Income Common Stockholders |
| -74.91M | -250.70M | -117.15M | -35.78M | -23.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 21.11M | 1.72M | 6.00K | 719.00K | 7.40M | Total Assets |
| 124.06M | 110.99M | 13.70M | 7.56M | 11.71M | Total Debt |
| 26.76M | 47.45M | 30.25M | 23.47M | 20.39M | Net Debt |
| 5.66M | 45.73M | 30.24M | 22.75M | 12.99M | Total Liabilities |
| 244.06M | 188.47M | 235.79M | 180.58M | 153.25M | Stockholders Equity |
| -120.00M | -77.48M | -222.09M | -173.03M | -141.54M |
| Cash Flow | Free Cash Flow | |||
| -66.08M | -72.15M | -28.34M | -24.19M | -9.03M | Operating Cash Flow |
| -54.32M | -64.37M | -28.04M | -23.93M | -8.73M | Investing Cash Flow |
| -3.61M | -7.10M | -298.00K | -261.00K | 302.00K | Financing Cash Flow |
| 77.17M | 72.99M | 27.67M | 18.25M | 14.18M |
Surf Air Mobility, Inc. Technical Analysis
Negative
2.39
Price Trends
2.51
Negative
3.27
Negative
2.89
Negative
Market Momentum
-0.07
Positive
46.23
Neutral
38.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRFM, the sentiment is Negative. The current price of 2.39 is below the 20-day moving average (MA) of 2.53, below the 50-day MA of 2.51, and below the 200-day MA of 2.89, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 38.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRFM.
Surf Air Mobility, Inc. Risk Analysis
Surf Air Mobility, Inc. disclosed 77 risk factors in its most recent earnings report. Surf Air Mobility, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Surf Air Mobility, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.50B | 12.28 | 5.32% | 248.52% | 4.13% | -12.36% | |
56 Neutral | $285.99M | ― | -11.64% | ― | 12.04% | -30.50% | |
52 Neutral | $234.78M | 28.86 | 26.01% | ― | ― | ― | |
47 Neutral | $1.06B | ― | -2416.94% | ― | -29.68% | 95.14% | |
41 Neutral | $46.09M | ― | 138.02% | ― | 31.17% | 83.01% | |
| $41.33M | ― | -472.57% | ― | ― | ― | ||
41 Neutral | $3.92M | ― | -398.23% | ― | -4.90% | 81.88% |
* Industrials Sector Average
Performance Comparison
SRFM
Surf Air Mobility, Inc.
2.39
0.40
20.10%
MESA
Mesa Air Group
1.00
-0.34
-25.37%
BLDE
Blade Air Mobility
3.80
0.76
25.00%
UP
Wheels Up Experience
1.51
-0.52
-25.62%
FLYX
flyExclusive
2.93
-1.57
-34.89%
SOAR
Volato Group
2.09
-15.72
-88.27%
Surf Air Mobility, Inc. Corporate Events
Business Operations and Strategy
Surf Air Mobility Unveils New Profitability Strategy
Positive
Feb 14, 2025
On February 14, 2025, Surf Air Mobility Inc. released a new video in its business plan series, detailing strategies to achieve profitability in its airline operations by 2025. The video, presented by CEO Deanna White, highlights the company’s focus on optimizing its operations as part of its ongoing transformation plan. The announcement of this strategic initiative is indicative of Surf Air Mobility’s efforts to solidify its position within the regional air mobility sector and demonstrates a commitment to innovation and operational efficiency, which could have significant implications for its stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.