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Wheels Up Experience (UP)
NYSE:UP
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Wheels Up Experience
(NYSE:UP)
33Underperform
Wheels Up Experience (UP) vs. S&P 500 (SPY)
Market Cap
$597.88M
Dividend YieldN/A
Average Volume (3M)861.35K
Price to Earnings (P/E)―
Beta (1Y)3.34
Revenue Growth-36.80%
EPS Growth96.50%
CountryUS
Employees1,807
SectorIndustrials
Sector Strength66
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.49
Shares Outstanding698,864,800
10 Day Avg. Volume686,612
30 Day Avg. Volume861,345
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.93
Price to Cash Flow (P/CF)4.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Wheels Up Experience Business Overview & Revenue Model
Company DescriptionWheels Up Experience Inc. (UP) is a leading provider in the private aviation sector, offering membership-based private aviation services. The company caters to a diverse clientele by providing access to a fleet of owned, managed, and third-party aircraft. Its core services include private jet flights, aircraft management, and on-demand charter services, making it a versatile player in the private aviation market.
How the Company Makes MoneyWheels Up Experience Inc. generates revenue primarily through membership fees, aircraft management services, and on-demand charter flight bookings. Members pay annual fees to access a range of private aviation services, including fixed-rate pricing for flights and priority booking options. The company also earns from managing aircraft for individual owners, providing pilots, maintenance, and operational support. Additionally, Wheels Up partners with third-party operators to offer charter services, earning a commission on flights booked through its platform. Strategic partnerships with luxury brands and travel companies further enhance its revenue streams by offering exclusive experiences and packages to its members.
Wheels Up Experience Financial Statement Overview
Summary
Wheels Up Experience faces significant financial challenges across all major financial statements. Consistent losses, high leverage, and negative cash flows highlight the need for strategic restructuring or operational improvements. The company's ability to stabilize and grow is contingent on addressing these critical financial weaknesses.Income Statement
The income statement reveals significant challenges for Wheels Up Experience, with consistent negative net income and declining total revenue from 2022 to 2024. The gross profit margin was positive in 2024, contrasting with a negative margin in 2023, indicating some operational improvements. However, persistently negative EBIT and EBITDA margins highlight ongoing profitability issues, and the revenue growth rate has notably decreased over the years, posing concerns about the company's growth trajectory.25
Negative
Balance Sheet
The balance sheet shows a fragile financial position, with a very low equity base by 2024 and liabilities exceeding assets. The debt-to-equity ratio is unfavorable, indicating high leverage and potential risk in meeting financial obligations. The return on equity is not meaningful due to negative equity in past years, and the equity ratio is extremely low, underscoring substantial reliance on debt financing.30
Negative
Cash Flow
Cash flow analysis indicates severe challenges, with negative free cash flow persisting and declining operating cash flows over the years. The free cash flow to net income ratio is negative, reflecting cash consumption rather than generation. The company faces considerable difficulties in maintaining liquidity and funding operations without external financing.20
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 792.10M | 1.25B | 1.58B | 1.19B | 694.98M | Gross Profit |
| 59.03M | -37.72M | 39.44M | 76.63M | 60.21M | EBIT |
| -258.79M | -443.56M | -384.38M | -204.55M | -62.97M | EBITDA |
| -216.51M | -386.22M | -481.93M | -133.46M | -3.89M | Net Income Common Stockholders |
| -339.63M | -487.39M | -507.55M | -197.23M | -101.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 216.43M | 263.91M | 585.88M | 784.57M | 312.80M | Total Assets |
| 1.16B | 1.32B | 1.97B | 1.98B | 1.36B | Total Debt |
| 96.51M | 336.90M | 365.94M | 115.08M | 283.31M | Net Debt |
| -119.92M | 72.99M | -219.94M | -669.50M | -29.49M | Total Liabilities |
| 1.35B | 1.22B | 1.67B | 1.24B | 1.07B | Stockholders Equity |
| 5.88M | 97.40M | 299.92M | 730.15M | 267.80M |
| Cash Flow | Free Cash Flow | |||
| -200.70M | -701.95M | -382.05M | 66.41M | 194.12M | Operating Cash Flow |
| -77.89M | -665.28M | -230.69M | 126.49M | 209.64M | Investing Cash Flow |
| -46.68M | 40.87M | -175.24M | -38.67M | 81.58M | Financing Cash Flow |
| 78.66M | 300.95M | 244.79M | 374.03M | -62.79M |
Wheels Up Experience Technical Analysis
Negative
0.93
Price Trends
1.28
Negative
1.62
Negative
1.96
Negative
Market Momentum
-0.08
Negative
37.68
Neutral
19.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UP, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.28, and below the 200-day MA of 1.96, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UP.
Wheels Up Experience Risk Analysis
Wheels Up Experience disclosed 51 risk factors in its most recent earnings report. Wheels Up Experience 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
Wheels Up Experience Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $19.72B | 6.39 | 28.63% | ― | 6.23% | 20.08% | |
70 Outperform | $27.40B | 7.95 | 26.19% | 1.42% | 6.19% | -25.26% | |
63 Neutral | $3.58B | 11.69 | 14.28% | ― | 20.18% | 794.72% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% | |
56 Neutral | $6.77B | 9.56 | -21.27% | ― | 2.70% | 2.20% | |
50 Neutral | $932.50M | ― | -19.93% | 4.72% | 0.11% | -311.73% | |
33 Underperform | $597.88M | ― | -2416.94% | ― | -36.80% | 96.50% |
* Industrials Sector Average
Performance Comparison
UP
Wheels Up Experience
0.86
-1.80
-67.67%
ALGT
Allegiant Travel Company
48.71
-16.23
-24.99%
DAL
Delta Air Lines
38.71
-6.86
-15.05%
SKYW
SkyWest
84.52
15.30
22.10%
UAL
United Airlines Holdings
60.23
17.04
39.45%
AAL
American Airlines
9.50
-4.26
-30.96%
Wheels Up Experience Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -13.08% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with stabilized revenue and significant operational improvements, including a successful fleet modernization strategy. While there are challenges such as a decline in membership revenue and on-time performance issues, the company has made significant strides in reducing losses and improving customer satisfaction.Highlights
Stable Revenue and Operational Improvements
Revenue was $194 million in Q3, roughly flat sequentially, highlighting stability. Adjusted contribution margin was 14.8%, nearly double the second quarter, the highest since going public in 2021.
Significant Reduction in Adjusted EBITDA Loss
Adjusted EBITDA loss reduced by nearly 50% sequentially to $20 million, showing meaningful progress towards achieving positive adjusted EBITDA in 2025.
Strong Growth in Block Sales
Block sales were up over 85% year-over-year to $147 million, with joint Delta accounts representing the highest mix of overall block sales in September.
Fleet Modernization Strategy
Announced a fleet modernization strategy including acquisition of Embraer Phenom 300 and Bombardier Challenger 300 series aircraft, expected to complete in approximately 3 years.
Improved Customer Satisfaction
Nearly 50% increase in customer satisfaction, with almost 3/4 rating their experience as excellent or very good.
New Financing Commitment
Entered a commitment letter with Bank of America for up to $332 million revolving credit facility, supported by Delta Airlines.
Lowlights
Decline in Membership Revenue and Members
Decline in membership revenue and members due to streamlined product portfolio and exit of certain business segments.
On-Time Performance Below Target
On-time performance was 82%, below target due to weather, air traffic control delays, and certificate conformity activity.
Private Jet Gross Bookings Decline
Private jet gross bookings down 20% year-over-year, although only 6% sequentially.
Company Guidance
In the third quarter earnings call for Wheels Up, CEO George Mattson highlighted several key metrics indicating the company's financial and operational progress. The adjusted contribution margin reached nearly 15%, almost doubling from the previous quarter and marking the highest since going public, reflecting improved operational performance and higher fleet utilization. The adjusted EBITDA loss was reduced by nearly 50% sequentially to $20 million, advancing towards the goal of achieving positive adjusted EBITDA in 2025. Block sales saw a significant increase, up 85% year-over-year to $147 million, driven by strong traction in corporate sales, particularly joint Delta accounts. Moreover, the company's fleet modernization strategy, including the acquisition of Embraer's Phenom 300 and 300E aircraft, is expected to enhance operational efficiency and profitability. With the support of a new $332 million credit facility from Bank of America, Wheels Up anticipates improvements in cash flow and liquidity, positioning the company for resumed growth in 2025.Wheels Up Experience Corporate Events
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Wheels Up Experience Appoints New CFO John Verkamp
Neutral
Mar 11, 2025
On March 11, 2025, Wheels Up Experience Inc. announced the appointment of John Verkamp as the new Chief Financial Officer, effective March 31, 2025. Verkamp brings over two decades of financial leadership experience from General Electric and GE Vernova. The company also reported its financial results for the fourth quarter and full year 2024, highlighting a revenue of $204.8 million for the quarter and $792.1 million for the year, despite a net loss. Wheels Up is undergoing a fleet modernization strategy, transitioning to preferred aircraft types, and has secured a $332 million revolving credit facility with support from Delta, aimed at enhancing its financial position and operational capabilities.
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.