Surf Air Mobility Inc. (NYSE: SRFM) reported first-quarter 2026 results that exceeded guidance, indicating early success from its ongoing transformation plan. The company posted revenue of $25.6 million, at the high end of its forecast and up 9% year-over-year, while adjusted EBITDA loss of $12.3 million outperformed the guided range of a loss of $15.5 million to $13.5 million, according to an update from Stonegate Capital Partners.
The improved performance was supported by enhanced On Demand private charter margins, cost controls across airline operations, and faster, more cost-efficient development and deployment of its SurfOS platform. Stonegate highlighted that the transformation plan is beginning to show operating leverage, with route rationalization and tighter cost controls contributing to the beat.
Surf On Demand revenue surged 77% year-over-year to $10.1 million, with revenue per flight up 38% and gross margin improving by approximately 340 basis points. This segment, along with SurfOS, is emerging as the core growth and margin driver for the company. Traction with BrokerOS and OperatorOS suggests SurfOS is moving toward becoming a commercial software platform, which could unlock additional revenue streams.
Management maintained its full-year 2026 revenue guidance of $128 million to $138 million and improved adjusted EBITDA loss guidance by about 40%, reflecting increased confidence in the transformation plan. The stock trades at 1.3x forward EV/Revenue versus peers at 2.4x, according to Stonegate, suggesting potential for multiple expansion if execution continues.
The results come as the company focuses on streamlining operations and capitalizing on high-growth segments. Investors will watch for sustained improvement in margins and further adoption of SurfOS as indicators of long-term profitability.
