Surf Air Mobility, Inc. (SRFM) AI Stock Analysis

• Market Cap: $185.87M
• Dividend Yield: N/A
• Average Volume (3M): 3.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.35
• Revenue Growth: -3.95%
• EPS Growth: 85.63%
• Country: US
• Employees: 556
• Sector: Industrials
• Sector Strength: 78
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -1.34
• Shares Outstanding: 42,826,070
• 10 Day Avg. Volume: 2,086,257
• 30 Day Avg. Volume: 3,582,232
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 73.28
• Enterprise Value/Ebitda: -5.50
• 1Y Price Target: $6.58
• Price Target Upside: 51.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 47 Neutral
• Price Target: $4.50 ▲(3.69% Upside)

Surf Air Mobility, Inc. faces significant financial challenges, which heavily impact its overall stock score. Despite positive developments in revenue growth and strategic initiatives, the company's financial instability and negative valuation metrics weigh down the score. The earnings call and corporate events provide some optimism, but the financial performance remains a critical concern.

Positive Factors

Financial Support

Investor confidence in the company's ability to execute on its strategic plans has been bolstered by the roughly $44.7M in new financing over the last few months.

Operational Efficiency

Surf's airline operation turned a profit, driven by improvement in controllable completion factor by 13% to 95%.

Strategic Partnerships

The company's partnership with players such as Palantir and Electra are important strategic advantages as it moves to become a bigger player in the regional air mobility services market.

Negative Factors

Cash Constraints

The company remains capital-constrained with approximately $6.6 million on the balance sheet and a high average quarterly cash burn rate.

Financial Outlook

Management's Q3 guidance implies a slight 2.2% revenue decrease y/y and a 3.5% y/y widening of the bottom line.

Revenue Decline

Surf Air Mobility reported a revenue decrease of 23% compared to the previous year, primarily due to efforts to eliminate unprofitable routes.

Surf Air Mobility, Inc. Business Overview & Revenue Model

Company Description

Surf Air Mobility, Inc. (SRFM) is a technology-driven aviation company that focuses on developing and providing sustainable aviation solutions within the regional air mobility sector. The company aims to revolutionize air travel by enhancing accessibility and efficiency through the use of hybrid-electric aircraft. Surf Air Mobility's core services include offering affordable, convenient, and environmentally-friendly air travel options, primarily targeting regional routes that are not well-served by traditional airlines.

How the Company Makes Money

Surf 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. Financial Statement Overview

Summary

Surf Air Mobility, Inc. faces significant financial challenges across all verticals. Consistently negative profitability and high leverage present a risky financial position. While there has been some revenue growth and cash management efforts, the company's overall financial health remains weak, with urgent need for strategic improvements to stabilize and enhance financial performance.

Income Statement

The income statement shows significant challenges with profitability, evident from the consistent negative net income and EBIT margins. Although there was revenue growth in earlier years, recent periods have seen a decline. Margins remain poor, with gross profit margin turning positive only in the latest TTM data. Despite these setbacks, the company's ability to increase revenue over some periods is a positive indicator.

Balance Sheet

The balance sheet reflects a high-risk profile with negative stockholders' equity and increasing total liabilities. The debt-to-equity ratio is concerning due to negative equity, indicating financial instability. However, the company has managed to maintain some level of cash and equivalents, which is a minor positive amidst the otherwise weak balance sheet.

Cash Flow

Cash flow statements reveal ongoing operational challenges, with negative operating and free cash flows throughout the periods. The cash flow from financing activities has been positive, suggesting reliance on external financing. The lack of positive operating cash flow to net income ratio highlights inefficiencies in converting revenue into cash flow.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 4.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRFM, the sentiment is Neutral. The current price of 4.34 is below the 20-day moving average (MA) of 4.39, below the 50-day MA of 4.63, and above the 200-day MA of 3.67, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 54.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SRFM.

Surf Air Mobility, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.84B	16.09	8.89%	1.97%	2.67%	-15.04%
BLDE	55 Neutral	$357.01M	―	-8.39%	―	6.70%	63.35%
FLYX	55 Neutral	$322.12M	28.86	26.01%	―	―	―
MESA	52 Neutral	$51.92M	―	-378.73%	―	-14.62%	-86.07%
UP	50 Neutral	$2.05B	―	-2416.94%	―	-20.21%	88.09%
SRFM	47 Neutral	$185.87M	―	138.02%	―	-3.95%	85.63%
SOAR	41 Neutral	$9.43M	―	-398.23%	―	-9.49%	97.34%

Surf Air Mobility, Inc. Corporate Events

Tyrone Bland Resigns from Surf Air Mobility Board

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.

Surf Air Mobility Approves Key Proposals at Annual Meeting

On June 26, 2025, Surf Air Mobility Inc. held its Annual Meeting where stockholders approved several key proposals, including the election of Class B directors and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, stockholders approved an amendment to the company’s certificate of incorporation to implement a reverse stock split and an increase in the share reserve under the Amended and Restated 2023 Equity Incentive Plan by 3,500,000 shares. These decisions are set to impact the company’s governance and financial structuring, potentially influencing its market position and shareholder value.

Surf Air Mobility Announces $27 Million Stock Offering

On June 25, 2025, Surf Air Mobility, Inc. entered into a securities purchase agreement with certain investors for a registered direct offering of 10,800,002 shares of common stock at $2.50 per share, including pre-funded warrants to purchase up to 926,668 shares. The offering closed on June 26, 2025, generating approximately $27 million in gross proceeds. The company issued warrants to H.C. Wainwright & Co., LLC, the placement agent, to purchase up to 540,000 shares at $3.125 per share. During a restricted period of 60 days following the closing date, the company agreed not to sell or dispose of any additional shares. This offering is part of the company’s strategy to strengthen its financial position and enhance its market presence.