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Surf Air Mobility, Inc. (SRFM)
NYSE:SRFM
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Surf Air Mobility, Inc.
(NYSE:SRFM)
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Rating:46Neutral
Price Target:
$4.00
▼(-11.11% Downside)
Surf Air Mobility, Inc. faces significant financial challenges, with declining revenues, substantial losses, and financial instability. Despite these issues, the company showed strong revenue growth and operational improvements in its latest earnings call, which partially offset the negative financial performance. Technical indicators suggest mixed momentum, and valuation metrics are unattractive due to ongoing losses. Overall, the stock score reflects the company's financial struggles, tempered by recent operational achievements.
Positive Factors
Revenue Growth
The company's strong revenue growth indicates successful market penetration and demand for its services, supporting long-term business expansion and stability.
Strategic Partnerships
These partnerships enhance technological capabilities and expand market reach, potentially leading to new revenue streams and competitive advantages.
Operational Improvements
Operational enhancements contribute to customer satisfaction and efficiency, which can lead to increased demand and profitability over time.
Negative Factors
Financial Instability
Negative equity and high leverage indicate financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.
Cash Flow Challenges
Negative cash flows suggest liquidity issues, which can constrain operational flexibility and investment in strategic initiatives.
Declining Revenue Trend
A declining revenue trend indicates potential market challenges or competitive pressures, which could impact long-term growth prospects.
Surf Air Mobility, Inc. (SRFM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$192.72M
Dividend YieldN/A
Average Volume (3M)2.34M
Price to Earnings (P/E)―
Beta (1Y)3.33
Revenue Growth-3.95%
EPS Growth85.63%
CountryUS
Employees556
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-1.34
Shares Outstanding42,826,070
10 Day Avg. Volume1,867,190
30 Day Avg. Volume2,343,630
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit73.28
Enterprise Value/Ebitda-5.50
Forecast
1Y Price Target
$6.58Price Target Upside46.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 generates revenue primarily through its aviation services, which include offering subscription-based flight services and on-demand charter flights. The company is working towards integrating hybrid-electric aircraft into its fleet, which is expected to provide cost savings on fuel and maintenance, thereby improving profitability. Additionally, Surf Air Mobility may engage in strategic partnerships with aircraft manufacturers and technology firms to further develop and implement its sustainable aviation technologies, potentially opening up new revenue streams through collaborations or technology licensing. The company's focus on regional routes allows it to capture a niche market segment, contributing to its earnings.
Surf Air Mobility, Inc. Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in revenue growth, operational improvements, and strategic partnerships, outweighing the concerns regarding the adjusted EBITDA loss.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Second quarter revenue of $27.4 million exceeded guidance of $23.5 million to $26.5 million, rising 17% sequentially versus the first quarter.
Improved Operational Performance
Key operating performance metrics improved by double-digit percentages, including on-time departure, on-time arrival, and controllable completion factor, which improved from 82% in Q1 to 95% in Q2.
Profitability in Airline Operations
Achieved profitability in airline operations for the second quarter, with a goal of full-year profitability.
Successful Capital Raise
Raised approximately $45 million in additional capital during the second quarter, significantly delevering the balance sheet and reducing annualized interest by $2.9 million.
Strategic Partnerships and Agreements
Entered into a 5-year software license agreement with Palantir and signed an interline agreement with Japan Airlines.
Positive Margins in On-Demand Business
On-demand business achieved positive margins in June, with July being the highest sales month since inception.
Negative Updates
Adjusted EBITDA Loss
Adjusted EBITDA loss for Q2 was $9.5 million, although this was better than the guidance of a loss of $10 million to $13 million.
Company Guidance
During Surf Air Mobility's Second Quarter 2025 Earnings Call, the company reported strong financial performance, exceeding its revenue guidance with $27.4 million, a 17% increase from the first quarter. Their scheduled service revenue rose by 20%, attributed to an improvement in the controllable completion factor from 82% in Q1 to 95% in Q2. Additionally, on-demand revenue increased by 5%, supported by the introduction of a new Jet Card and strategic volume purchase agreements. The company also reported an adjusted EBITDA loss of $9.5 million, better than the anticipated loss of $10-13 million, marking a sequential improvement of $4.8 million. Surf Air Mobility successfully raised approximately $45 million in additional capital, further strengthening its balance sheet and supporting its ambitious growth plans. The company remains focused on transforming into a technology-led platform, with its SurfOS software platform, developed in partnership with Palantir, playing a crucial role in driving efficiencies and growth in the regional air mobility market.Surf Air Mobility, Inc. Financial Statement Overview
Summary
Surf Air Mobility, Inc. is facing significant financial challenges. The income statement shows substantial losses with a negative net profit margin and declining revenues. The balance sheet reveals financial instability with negative equity and high leverage. Cash flow issues are evident with negative operating and free cash flows, indicating liquidity problems.Income Statement
Surf Air Mobility, Inc. is experiencing significant challenges in its income statement. The company has a negative net profit margin of -53.48% TTM, indicating substantial losses relative to revenue. The gross profit margin is also low at 2.53% TTM, reflecting high costs relative to sales. Revenue has declined by 4.39% TTM, showing a negative growth trend. The EBIT and EBITDA margins are negative, highlighting operational inefficiencies. Overall, the income statement reflects a struggling financial performance with declining revenues and profitability.20
Very Negative
Balance Sheet
The balance sheet of Surf Air Mobility, Inc. reveals financial instability. The company has negative stockholders' equity, indicating more liabilities than assets, and a negative debt-to-equity ratio of -0.21 TTM, which is concerning. The return on equity is positive at 45.33% TTM, but this is due to negative equity, which distorts the metric. The equity ratio is negative, further emphasizing financial distress. Overall, the balance sheet suggests high financial risk and leverage issues.15
Very Negative
Cash Flow
The cash flow statement shows some concerning trends. Operating cash flow is negative, and the operating cash flow to net income ratio is -0.64 TTM, indicating cash flow issues relative to net income. Free cash flow is also negative, though it has shown slight improvement with a growth rate of 6.10% TTM. The free cash flow to net income ratio is 1.21 TTM, suggesting that free cash flow covers net income, albeit both are negative. Overall, the cash flow situation is challenging, with negative cash flows and limited liquidity.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.37M | 119.42M | 60.51M | 20.27M | 11.80M | 7.50M |
| Gross Profit | 2.71M | 9.49M | -5.17M | -5.58M | -3.75M | -3.53M |
| EBITDA | -36.16M | -58.24M | -247.27M | -72.74M | -32.59M | -19.04M |
| Net Income | -57.42M | -74.91M | -250.70M | -74.36M | -35.78M | -23.44M |
Balance Sheet | ||||||
| Total Assets | 128.98M | 124.06M | 110.99M | 13.70M | 7.56M | 11.71M |
| Cash, Cash Equivalents and Short-Term Investments | 22.57M | 21.11M | 1.72M | 6.00K | 719.00K | 7.40M |
| Total Debt | 23.90M | 92.49M | 47.45M | 30.25M | 23.47M | 20.39M |
| Total Liabilities | 244.47M | 244.06M | 188.47M | 235.79M | 180.58M | 153.25M |
| Stockholders Equity | -115.48M | -120.00M | -77.48M | -222.09M | -173.03M | -141.54M |
Cash Flow | ||||||
| Free Cash Flow | -75.71M | -66.08M | -72.15M | -28.34M | -24.19M | -9.03M |
| Operating Cash Flow | -62.34M | -54.32M | -64.37M | -28.04M | -23.93M | -8.73M |
| Investing Cash Flow | -2.01M | -3.61M | -7.10M | -298.00K | -261.00K | 302.00K |
| Financing Cash Flow | 89.82M | 77.17M | 72.99M | 27.67M | 18.25M | 14.18M |
Surf Air Mobility, Inc. Technical Analysis
Positive
4.50
Price Trends
4.68
Negative
3.78
Positive
3.79
Positive
Market Momentum
-0.02
Negative
53.65
Neutral
73.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRFM, the sentiment is Positive. The current price of 4.5 is above the 20-day moving average (MA) of 4.30, below the 50-day MA of 4.68, and above the 200-day MA of 3.79, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 73.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | 466.48M | -23.98 | -8.51% | ― | 6.70% | 63.35% | |
54 Neutral | 417.48M | -4.43 | 9.48% | ― | 0.00% | 0.00% | |
52 Neutral | 56.10M | -0.31 | 429.35% | ― | -14.62% | -86.07% | |
48 Neutral | 1.75B | -5.34 | 173.08% | ― | -20.21% | 88.09% | |
46 Neutral | $192.72M | ― | 138.02% | ― | -3.95% | 85.63% | |
45 Neutral | 9.29M | -0.40 | 248.84% | ― | -9.49% | 97.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
SRFM
Surf Air Mobility, Inc.
4.50
3.26
262.90%
MESA
Mesa Air Group
1.34
0.19
16.52%
SRTA
Strata Critical Medical
5.71
2.69
89.07%
UP
Wheels Up Experience
2.50
0.46
22.55%
FLYX
flyExclusive
5.21
2.92
127.51%
SOAR
Volato Group
1.56
-6.90
-81.56%
Surf Air Mobility, Inc. Corporate Events
Business Operations and StrategyExecutive/Board Changes
Tyrone Bland Resigns from Surf Air Mobility Board
Neutral
Aug 29, 2025
On August 27, 2025, Tyrone Bland resigned from Surf Air Mobility’s Board of Directors to pursue opportunities in public sector lobbying, political engagement, and business development. His departure was not due to any disagreements with the company, and the Board expressed gratitude for his service. This change comes as Surf Air Mobility continues its focus on growth and innovation in the regional air mobility sector, including the development of AI-powered software and electrified aircraft technologies.
The most recent analyst rating on (SRFM) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Surf Air Mobility, Inc. stock, see the SRFM Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.