Blade Air Mobility (BLDE -6.09%), a provider of air transportation services specializing in both medical organ transport and on-demand passenger flights, released its Q2 2025 results on August 5, 2025. The earnings release highlighted GAAP revenue of $70.8 million, exceeding analyst expectations of $64.1 million (GAAP) by more than $6.7 million, or 10.5%. Earnings per share (GAAP) matched consensus at $(0.04). The most notable development is the planned divestiture of the Passenger division to Joby Aviation, which will transform Blade into a specialized medical air mobility company. The quarter saw noticeable year-over-year profitability improvements, led by medical services growth. However, free cash flow (non-GAAP) turned negative and medical segment margins came under pressure due to higher maintenance costs. Overall, the quarter was defined by operational progress in Blade’s core medical business and a strategic pivot away from passenger-facing operations.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.05) | $-0.04 | $(0.15) | 66.7 % |
| Revenue (GAAP) | $70.8 million | $64.07 million | $67.9 million | 4.3 % |
| Flight Profit | $17.7 million | $16.4 million | 7.9 % | |
| Adjusted EBITDA | $3.2 million | $1.0 million | 220.0 % | |
| Free Cash Flow | $(5.7) million | $6.2 million | -191.9 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Business Focus
Blade Air Mobility operates two main lines of business: on-demand helicopter and jet passenger flights in urban markets, and MediMobility Organ Transport services for hospitals and transplant centers. The firm's most significant recent move is its decision to divest its Passenger segment. This decision means Blade will become a dedicated medical air mobility operator, soon rebranding as Strata, and will focus fully on critical healthcare logistics for organ transport and related services.
In recent quarters, Blade’s key priorities have centered on expanding its medical segment, optimizing asset-light operations, meeting regulatory standards, and preparing for the adoption of Electric Vertical Aircraft (eVTOL) technology to improve efficiency and sustainability. Other crucial factors include competitive positioning and compliance across aviation and healthcare regulations. The company’s ability to grow its medical business, maintain profitability, and leverage new technology are central to its future success.
Key Second Quarter Developments and Segment Performance
The quarter was marked by substantial operational and financial changes. The medical segment, MediMobility Organ Transport, delivered revenue of $45.1 million, up 17.6% from the prior year, driven by new customer wins and a rise in revenue per flight hour. The technology-enabled TOPS organ matching service grew even faster than the core medical segment, highlighting Blade’s emphasis on differentiated healthcare logistics technology.
Despite strong top-line gains, medical segment margins narrowed. Medical Flight Margin (non-GAAP) dropped to 22.0% from 23.6% versus the prior year, squeezed by higher maintenance downtime and associated costs as the company repositioned aircraft closer to customers. Adjusted EBITDA for the medical segment increased by $0.5 million to $6.0 million as the company absorbed short-term margin pressure due to fleet upgrades. The company expects these margin effects to ease as maintenance activity returns to normal levels in the coming quarters.
The Passenger segment experienced both operational shifts and a planned exit. Revenue fell 13.2% to $25.7 million year over year, with a sharper decline in Short Distance flights. This trend was partly driven by Blade’s exit from the Canadian market in August 2024 and weaker U.S. demand after a helicopter incident in New York in April 2025. Flight Margin in the Passenger business improved to 30.5% from 24.7% versus the prior year, benefiting from the Canadian exit and restructuring in Europe. Adjusted EBITDA for the segment rose by $1.6 million to $2.4 million, even as the number of seats flown declined to 22,730 from 27,391 one year ago.
On the strategic front, the announced sale of the Passenger division to Joby Aviation for up to $125 million stands out. After the transaction closes, Blade will operate solely in medical air mobility and rebrand as Strata Critical Medical. The company expects this transition to be neutral to both Adjusted EBITDA and Free Cash Flow on an annualized basis going forward, primarily due to expected cost reductions of about $7 million annually. Leadership changes accompany this transformation, with the current CEO moving to lead the Passenger business at Joby and senior Medical segment leaders stepping in as co-CEOs of Strata.
Financial Metrics, Operating Trends, and Notable Events
The quarter’s financials showed Blade’s strengths and areas needing improvement. Overall profitability improved: net loss (GAAP) was $(3.7) million, an improvement of $7.6 million over the prior year. Adjusted EBITDA (non-GAAP) increased to $3.2 million, pushing the adjusted EBITDA margin up to 4.5% (non-GAAP). Gross margin (GAAP) climbed to 18.2%, up from 16.7% compared to the prior year.
Despite these gains, free cash flow before aircraft acquisitions turned negative at $(5.7) million, a swing from a $6.2 million positive figure in the prior year. Management attributed this to higher working capital needs, as revenue climbed 30.4% compared with the previous quarter. The company ended the quarter with $113.4 million in cash and short-term investments. Looking ahead, Blade estimates its pro forma liquidity after the sale of the Passenger business will exceed $200 million in cash and short-term investments.
Another notable area is the transition to quieter, zero-emission eVTOL aircraft, which Blade plans to implement via a strategic partnership with Joby Aviation. Access to these aircraft types could further reduce costs and strengthen the firm’s competitive standing in medical logistics. The asset-light operating model, where Blade leverages third-party aircraft, remains a linchpin. This approach minimizes capital expenditures and operational risks while preserving fleet flexibility as demand changes.
From a regulatory and compliance perspective, Blade continues to navigate U.S. Department of Transportation (DOT), Federal Aviation Administration (FAA), and both U.S. and international privacy and healthcare regulations.
Looking Ahead: Management Outlook and Investor Considerations
Blade’s management reaffirmed full-year 2025 revenue and Adjusted EBITDA guidance prior to the Passenger segment divestiture. Revenue for 2025 is expected to total between $245 million and $265 million, with adjusted EBITDA (non-GAAP) in the double-digit millions, though no exact figure was disclosed. Management stated it would update its outlook after the divestiture officially closes.
As it transitions to a dedicated medical air mobility company under the Strata brand, key factors for investors include continued execution of medical growth initiatives, plans for future integration and deployment of eVTOL aircraft, and the restoration of healthy margins as maintenance schedules normalize. The company’s dependence on a single, specialized segment will also put a premium on operational discipline and medical sector trends. Updated forward guidance and the financial impacts of the Passenger division sale will be central issues to track in the next few quarters.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
