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DATE

Monday, May 11, 2026 at 5 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Deanna White
  • President of Airline Operations — Louis Sancier
  • President of Surf On Demand — Joshua Loughton
  • Cofounder — Liam Fayed
  • Cofounder — Sudhin Shahani
  • Chief Financial Officer — Oliver Reeves

TAKEAWAYS

  • Total revenue -- $25.6 million, a 9% increase year over year and at the high end of guidance ($24 million to $26 million).
  • Adjusted EBITDA loss -- $12.3 million, outperforming the guided range ($15.5 million to $13.5 million) and improved by $1.1 million year over year.
  • Net loss -- $20.3 million, compared to $18.5 million in the prior-year quarter, with the increase attributed to continued investment in technology and commercial initiatives.
  • Scheduled service revenue -- $15.5 million, down 13% year over year due to strategic reduction of unprofitable routes.
  • On Demand private charter revenue -- $10.1 million, up 77% year over year; the highest quarter since inception.
  • Surf OS cost reduction -- Surf OS reduced airline costs by 6% and On Demand private charter costs by 15% compared to prior business process levels.
  • Corporate efficiency -- Staffing requirements reduced by 32%, and professional services spend decreased by 17% through automation and procurement discipline.
  • Operational metrics -- Controllable completion factor reached 96%, on-time departures were 72%, and on-time arrivals were 78%, all improved from the previous year.
  • Powered by Surf On Demand growth -- Independent brokers using BrokerOS increased from six at quarter-end to 29 currently, with hundreds of broker applications in queue.
  • Gross margin improvement (On Demand) -- Charter business gross margins improved by 340 basis points year over year.
  • Broker productivity -- Comparing first quarter year over year, brokers using BrokerOS closed 32% more bookings, quote-to-close time improved 57%, and on-platform payments grew 40%.
  • Long-haul and large aircraft usage -- Long-haul private charter flights (over 1,000 miles) increased 149%, international departures rose 87%, and flights on aircraft over nine seats climbed 49% year over year.
  • Safety milestone -- Airline completed FAA-mandated Safety Management System (SMS) a year ahead of the May 2027 deadline, joining only eight other Part 135 commuter operators nationwide.
  • ARGUS certification -- Surf On Demand achieved ARGUS Certified Charter Broker accreditation, one of only 16 charter brokerages globally.
  • Beta Technologies partnership -- Announced firm order for 25 Beta all-electric aircraft (options for 75 more); Surf Air Mobility is now Beta’s launch operator for commercial passenger electric service with exclusive MRO rights in Hawaii.
  • Capital raise -- Raised $30 million in April: $15 million through an aircraft-backed credit facility (nondilutive), $15 million in new equity, with $5.3 million purchased by insiders including executive leadership and directors.
  • Adjusted fiscal 2026 guidance -- Improved adjusted EBITDA loss range to $25 million to $30 million (a 40% improvement from previous guidance), and maintained annual revenue guidance of $128 million to $138 million, targeting 20%-30% growth.
  • Surf OS commercial roadmap -- BrokerOS commercially launched December 2025 with a year-end 2026 target of 100 brokers onboarded; Operator OS commercial launch expected second half 2026 with goal of 10 additional LOIs and five operators live by year end.
  • Beta aircraft program -- Hawaii cargo demonstration flights planned to launch in summer, with operational data collection and joint staff training cited as near-term priorities.
  • Second quarter 2026 guidance -- Revenue expected at $27 million to $30 million and adjusted EBITDA loss at $10.5 million to $8.5 million.

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RISKS

  • Chief Financial Officer Oliver Reeves noted that second quarter adjusted EBITDA guidance incorporates, "global fuel markets moved against the industry, and April weather in Hawaii drove an elevated cancellation rate on our interisland network with both revenue and unit cost consequences."
  • President of airline operations Louis Sancier said, "When we look at the EAS program, it is not really built to frequently reset the rates, but we are comfortable with what we have done over the past six to twelve months with the bids we have put in place."
  • Chief Financial Officer Oliver Reeves stated the increase in net loss to $20.3 million "reflects our continued strategic investment in development and the commercial rollouts we are building towards."
  • Operator OS and Enterprise Solutions revenue contributions depend on conversion of LOIs and contract signings, with the timing and scale of those conversions yet to be realized.

SUMMARY

Surf Air Mobility Inc. (SRFM +0.00%) reported $25.6 million in first-quarter revenue and improved year over year adjusted EBITDA results driven by increased Surf OS adoption and private charter growth. Surf Air Mobility initiated a firm order for 25 Beta all-electric aircraft, securing Beta’s launch operator designation and exclusive Hawaii MRO rights, while eliminating up to $100 million in previously planned capital expenditures for Cessna Caravan electrification. Management raised $30 million in April, including $15 million in nondilutive debt and $15 million in equity, with $5.3 million purchased by insiders. BrokerOS commercialization accelerated with 29 independent charter brokers onboarded and a target of 100 by year-end, while Operator OS and Enterprise Solutions outlined clear milestones for new contract signings in 2026. Surf Air Mobility reaffirmed its full-year revenue guidance and improved adjusted EBITDA outlook, citing cost reduction drivers and expanding SaaS product adoption as key strategic pillars.

  • The cost-reduction program tied to Surf OS and process automation generated a projected incremental $15 million to $20 million in adjusted EBITDA improvements versus prior guidance.
  • Management detailed that, "The fact that cofounders, our chairman, CEO, CFO, and other directors collectively purchased approximately $5.3 million of Surf Air Mobility common stock in the offering translates as follows: The people running this company are buying the stock. We believe in our plan."
  • Surf On Demand’s 340 basis-point gross margin expansion and productivity boosts are credited to operational leverage and BrokerOS impact, with leadership stating the Powered by Surf On Demand program now scales without matching increases in fixed cost.
  • Partnership with Palantir delivers access to foundational infrastructure, exclusive teaming in the broker and operator category, and expedited AI deployment for software solutions across Surf Air Mobility’s market segments.
  • Beta demonstration flights in Hawaii this summer will provide operational data and establish a roadmap for future passenger and cargo services, positioning Surf Air Mobility at the forefront of electric aircraft adoption in regional markets.
  • Surf Air Mobility achieved multiple safety and compliance milestones—including early SMS completion and ARGUS certification—providing the company with differentiation in regulated aviation segments.

INDUSTRY GLOSSARY

  • Surf OS: Proprietary software platform integrating operations, crew scheduling, aircraft dispatch, and maintenance for airline and charter businesses, designed for internal use and external commercialization.
  • BrokerOS: Surf OS module for independent brokers to manage aircraft sourcing, quoting, pricing, and booking; delivered as a SaaS for partner brokers under the Powered by Surf On Demand program.
  • Operator OS: Surf OS module for small and midsized aircraft operators providing core scheduling and integration for direct supply into the Surf Air Mobility broker ecosystem.
  • ARGUS Certified Charter Broker accreditation: Prestigious third-party safety and compliance certification for charter brokerages, awarded to a select group based on operational excellence.
  • Essential Air Service (EAS) program: U.S. government subsidy program ensuring air service to underserved communities, supporting routes with minimum revenue guarantees and certain cost-sharing mechanisms.
  • LOI (Letter of Intent): Nonbinding agreement indicating preliminary commitment between parties, common in enterprise software sales pipelines and partnership building.
  • MRO (Maintenance, Repair, and Overhaul): Comprehensive services covering aircraft maintenance, repair, and overhaul tasks, essential for safe, reliable fleet operation and regulatory compliance.

Full Conference Call Transcript

Deanna White, our chief executive officer; Louis Sancier, president of airline operations; Joshua Loughton, president of Surf On Demand; Liam Fayed, cofounder of Surf Air Mobility Inc.; and Oliver Reeves, our chief financial officer. Our earnings release can be found on the SEC EDGAR website and on our Investor Relations page at investors.surfer.com. Before we begin, I want to remind everyone that during today’s call, we will discuss our outlook and our future performance. These forward-looking statements may be preceded by words such as “we expect,” “we believe,” or “we anticipate.” These statements are subject to risks and uncertainties, and actual results could differ materially from the views expressed today.

Some of these risks are set forth in our earnings release and in our periodic reports filed with the SEC. We will also present both GAAP and non-GAAP financial measures. Additional disclosures regarding non-GAAP measures, including the reconciliation of GAAP to non-GAAP, are included in our earnings release posted on our Investor Relations website and in our SEC filings. With that, I will now turn the call over to Deanna. Deanna, thank you.

Deanna White: Thank you, Sam, and thank you all for joining us this afternoon. Our Q1 2026 results came in better than we expected. Revenue landed at $25.6 million at the high end of our guidance range, and adjusted EBITDA loss of $12.3 million outperformed our guidance. These results reflect a business that is executing with more discipline and efficiency than a year ago, despite the macro environment and higher fuel prices. We have improved our 2026 adjusted EBITDA guidance by approximately 40% to a loss of $30 million to $25 million while maintaining our annual revenue guidance at $128 million to $138 million, 20% to 30% growth year-over-year.

This revised adjusted EBITDA guidance represents a significant improvement from our previous guidance and is a result of four factors: First, we anticipate Surf OS to continue to reduce costs across the airline and charter businesses, 6% for the airline and 15% for On Demand private charter. Second, corporate automation and procurement discipline will reduce our staffing requirements by 32% and our professional services spend by 17%. Third, our charter business is growing revenue through the Powered by Surf On Demand program without a proportionate increase in fixed cost. Fourth, AI-assisted development has compressed Surf OS build cycles and reduced development spend.

Together, these four factors are expected to generate an incremental $15 million to $20 million in adjusted EBITDA improvement from our previous guidance. The bigger picture is that Surf OS is now visibly moving our financial results. Last week, we released go-to-market details of the Surf OS platform with a presentation available on our investor relations site. In just a few minutes, our cofounder, Liam Fayed, will share more on our go-to-market strategy. Lastly, our strategic partnership with Beta Technologies remains central to our ambitions to adopt electric aircraft within our operations.

In March, we announced a firm order for 25 Beta all-electric aircraft with options for 75 more and a designation as Beta’s launch operator for commercial passenger electric service. Under the agreement, Surf Air Mobility Inc. will become Beta Technologies’ exclusive maintenance, repair, and overhaul facility in our launch market of Hawaii, with the ability to expand into future geographic areas. Importantly, this partnership allowed us to eliminate up to $100 million in planned capital expenditure on our Cessna Caravan powertrain electrification program. We still believe in the long-term case for an electric Caravan and are exploring partner paths forward that would complete the initiative without further deployment of our capital.

I will now turn it over to the business leaders of our company to discuss their specific areas, beginning with the president of our airline operations.

Louis Sancier: Thank you, Deanna. Q1 2026 was a solid quarter for our airline operations, both in terms of operational performance and how we are using technology to improve efficiency across the network. For the quarter, we maintained a controllable completion factor of 96%, with on-time departures of 72% and on-time arrivals of 78%. All three metrics improved relative to the same period last year. Within our peer group of regional airlines, we are consistently operating as a leader on these metrics, and that consistency is a direct result of better tools, better processes, and a focus on safety and reliability.

Our two airline brands, Southern Airways Express and Mokulele Airlines, flew approximately 65 thousand passengers on nearly 13 thousand departures in the quarter. Scheduled service revenue of $15.5 million reflects a 13% year-over-year decrease, which was planned. We have continued to exit routes that do not contribute positively to the business. That trade-off is the right one. We are building a more profitable scheduled service network, not one optimized for revenue at the expense of margins. We also had a solid quarter managing our cost base, driven by tighter cost discipline and operational efficiencies. The airline came in better than plan for Q1. That kind of cost performance is what makes the network rationalization sustainable.

The efficiency gains reflected in our financial results are largely driven by what Surf OS is doing inside the airline. In Q1 2026, Surf OS-powered crew scheduling, aircraft dispatch, and maintenance digitization drove measurable improvements in both productivity and reliability. Our proprietary mobile crew app and maintenance management system reduced both the cost and frequency of irregular operations. These cost efficiencies are the result of better data, better planning, and faster decision-making, all integrated through Surf OS. As we automate more workflows and feed more operational data into the system, the returns compound. We expect these results to be indicative of the efficiencies we can drive for our Surf OS customers.

In Hawaii, we continue to execute on our investment commitments. We renovated our terminal, which has significantly improved our passenger experience at our Honolulu Airport hub, and we took delivery of two new Cessna Caravans in April. These are tangible improvements that enhance the experience for Hawaii’s interisland travelers and reinforce our position as the largest interisland airline network by departures and airports served. Hawaii is also the market where our electrification roadmap will come to life. The ultra short-haul route network, the airport access, and the community relationships that Mokulele has built over many years provide the operating foundation for Beta cargo demonstration flights which will begin this summer, and ultimately for passenger service on electric aircraft.

That transition will happen because we have already established the operational footprint and credibility in that market. Safety, reliability, and profitability—in that order—are the priorities of our airline. In April, we completed the implementation of our Safety Management System, known as SMS. We are one of nine Part 135 commuter operators in the country to have completed an operational SMS, and we did this a full year ahead of the FAA’s May 2027 mandate. SMS is a key differentiator in how we manage risk and how we demonstrate safety leadership to regulators, partners, and passengers. It also governs the vetting of all third-party operator partners used by Surf On Demand private charters.

With that, I will hand it over to Josh Loughton, president of Surf On Demand, to cover our private charter business. Thanks.

Joshua Loughton: Q1 2026 was a breakout quarter for Surf On Demand. We set records across revenue and margin, and have stronger momentum than at any point in the history of this business. Surf On Demand private charter revenue of $10.1 million represented a 77% year-over-year increase and our highest revenue quarter since inception. March was our highest revenue month ever, and gross margins improved 340 basis points from the same quarter year-over-year. Margin improvement reflects our deliberate shift in how we are building the business.

Some stats that support this: Revenue per flight increased 38% in the first quarter, driven by a number of factors, including long-haul flights over 1 thousand miles, which grew 149% year-over-year; international departures increased 87%; flights on larger cabin aircraft, defined as greater than nine seats, were up 49%. We are flying farther, with larger aircraft, and to more destinations, domestically and internationally. Supporting this performance are efficiency gains from BrokerOS. Comparing Q1 2026 to Q1 2025, BrokerOS contributed to top brokers closing 32% more bookings, quote-to-close time improving 57%, and payments processed on-platform increasing 40%. What these improvements mean is that our On Demand private charter business is more productive than at any point in our history.

We are booking more, we are closing faster, and we are keeping more of the transactions on-platform. One of the contributors to growth in our private charter business is Powered by Surf On Demand. Powered by Surf On Demand equips independent brokers with BrokerOS to sell under the Surf On Demand brand and enables us to continue to scale globally. At the end of Q1 2026, we had six active independent brokers enrolled in the program. That number has grown to 29, and we have hundreds of additional applications in queue. Independent brokers are looking for a branded platform that offers a full suite of tools, including 24/7 customer service, safety accreditation, real-time aircraft access, and complementary aircraft recovery.

And the economics are attractive. We generate incremental revenue without a proportional increase in fixed costs, and we anticipate that margin will continue to expand as we scale. In April, we signed another exclusive wholesale agreement to expand our aircraft supply by 7% and added a new aircraft category. Those supply agreements directly support our ability to serve the growing demand coming through Powered by Surf On Demand. Looking at the full year, we expect Surf On Demand to be the largest single contributor to revenue growth in 2026, with expanding gross margins as the mix continues to shift towards higher value flights and as the Powered by Surf On Demand program gains traction.

One final milestone worth noting: In March, Surf On Demand achieved the ARGUS Certified Charter Broker accreditation, making us one of only 16 ARGUS-certified brokerages globally. This accreditation is not easy to obtain, and it matters to our clients and reinforces that we operate at the safety and compliance standards that they require. We also joined the Air Charter Safety Foundation, a nonprofit organization dedicated to advocating for safety, professionalism, and operational best practices throughout the charter aviation industry. With that, I will hand over to our cofounder to discuss our Surf OS initiative. Thank you.

Liam Fayed: Thank you, Josh. Briefly to introduce myself, I am the cofounder of Surf Air Mobility Inc. and I run the Surf Technologies team developing Surf OS. Most software companies enter a market from the outside, then try to learn as they build and iterate from there. We took a different approach. Every Surf OS product is built and validated on the operational and commercial data from our airline and charter businesses before we offer it to external customers, which means we have worked through our own pain points and found solutions within our own business first. Looking to the broader opportunity, Surf OS is targeting a large and growing market spanning charter aviation, private aircraft sales, and MRO aftermarket.

Taken together, these three interdependent market segments share the same operators, brokers, and aircraft, and represent an estimated $156 billion global opportunity. Yet each still largely runs on legacy software and manual processes. Surf OS is designed to bring the data and workflows across all three onto one connected operating system. Our software development is moving at record speed. To highlight just a few of the new tools we built in 2026: We developed an aircraft intelligence tool to monitor fleet utilization and movement patterns of third-party aircraft to better inform charter sourcing decisions. We integrated Palantir’s AIP-enabled price rating directly into BrokerOS, allowing brokers to determine market rates and identify margin opportunities in every quote.

And we continued expanding BrokerOS CRM capabilities, moving closer to a true end-to-end solution for independent brokers operating under the Surf On Demand brand. After the end of the first quarter, we launched a fuel optimization module and a crew reserve optimization module for our airline operations. These are both AI-supported workflows built on Palantir’s Foundry and AIP infrastructure. Last week, we released the details of our Surf OS commercial go-to-market strategy. I want to walk through that here and reiterate our approach to the software business in 2026 and beyond. In 2025, we focused on building our data infrastructure on Palantir Foundry, digitizing our processes, capturing data, and deploying tools within our own business.

Now, with the infrastructure in place, we are focused on bringing three Surf OS products to market this year. BrokerOS launched commercially in December 2025. Independent brokers join our Powered by Surf On Demand program and use BrokerOS to manage sourcing, quoting, pricing, and bookings end-to-end. Before external launch, BrokerOS was developed inside On Demand’s own sales team. The results speak for themselves: a 32% increase in bookings for top-performing brokers, 57% faster quote-to-close cycles, and 40% more payments processed on-platform comparing Q1 2026 with 2025. BrokerOS generates revenue via take rate across On Demand private charter bookings.

The early results are encouraging, and, as Josh mentioned, we are accelerating the Powered by Surf On Demand program as the primary commercialization channel for BrokerOS. Our 2026 target is 100 independent brokers onboarded by year end. Operator OS is targeted for commercial launch in 2026. It is designed for small and midsized Part 135 operators, both scheduled and charter, and provides core modules for crew and aircraft scheduling while integrating supply directly into BrokerOS distribution. The better Operator OS works for operators, the more real-time aircraft supply is available to our brokers. The products are designed to reinforce one another. We have worked with over 440 operators over the past several years who supply our charter operations.

These operators form our prospective software sales pipeline for Operator OS, and we currently have 17 LOIs and software agreements signed. Operator OS will be monetized through a modular subscription fee based on operator size, with additional revenue generated through ancillary services upsells. Our highest strategic priority for Operator OS is aggregating as much supply onto the platform as possible. Our 2026 targets are 10 additional LOIs signed and five operators live on the platform by year end. Surf OS Enterprise Solutions targets large operators, charter, and aircraft manufacturers that need fully customized Surf OS deployment.

Under our exclusive teaming agreement, Palantir forward-deployed engineering participates directly in enterprise sales conversations alongside us and provides business development resources for go-to-market and commercialization. The combination of Palantir’s infrastructure, credibility, and forward-deployed engineers paired with our real-world software operational use case opens up doors and shortens sales cycles in ways that pure SaaS competitors have trouble replicating. Our 2026 target for enterprise software is to close multiyear, multimillion-dollar contracts, and we are currently in several active conversations. I also want to briefly address Surf OS’s approach to agentic AI because it is where the next phase of our software gets particularly interesting.

The data from our own airline and charter businesses is already unified on Palantir’s Foundry, which means the foundation is in place to maximize the impact from deploying AI agents to autonomously optimize workflows like crew scheduling, aircraft sourcing, maintenance prediction, and aircraft recovery. With Palantir’s AIP, we are embedding agents quickly into the highest impact opportunities. Our Surf OS products, as they launch and grow, will enable something that does not exist today: a distributed charter network where brokers, operators, aircraft owners, and passengers all benefit from coordinated supply and demand on a single AI-enabled operating system. Operators reduce costs and improve fleet utilization. Owners maximize asset returns. Brokers close more deals with better aircraft sourcing.

Passengers access more inventory at transparent, competitive prices. None of that is possible today because the ecosystem is so fragmented, causing stakeholders to operate with incomplete information. Surf OS will change that. The more participants on the platform, the more valuable it becomes for everyone. That is the big opportunity we see ahead of us. For additional details on our go-to-market strategy and our product roadmap, the full presentation is available on our investor relations website. I will now turn it over to Oliver Reeves, our chief financial officer. Thank you.

Oliver Reeves: I would like to begin by covering our Q1 2026 financial results, and I will then walk through guidance for the second quarter and full year 2026. Total revenue of $25.6 million came in at the high end of our guidance range of $24 million to $26 million, representing a 9% increase year-over-year. Scheduled service revenue was $15.5 million, a 13% decrease compared to the prior year period. As mentioned earlier, scheduled service revenue reflects the intentional exit of unprofitable routes. We are trading short-term revenue for long-term margin, which is the correct outcome to drive long-term value. Surf On Demand private charter revenue of $10.1 million grew 77% year-over-year.

That is the strongest quarter the charter business has had since inception, and it reflects both the demand growth Josh described and the productivity gains flowing through BrokerOS. Net loss for Q1 2026 was $20.3 million compared to a net loss of $18.5 million in the prior year period. Both periods include investments in R&D for technology initiatives, stock-based compensation, transaction costs, and other nonrecurring items. The year-over-year increase in net loss reflects our continued strategic investment in development and the commercial rollouts we are building towards. Adjusted EBITDA loss for the quarter was $12.3 million, outperforming our adjusted EBITDA loss guidance range of $15.5 million to $13.5 million.

Adjusted EBITDA results were driven by improving On Demand charter, effective cost controls across our airline operations, and a more rapid and cost-efficient development and deployment of Surf OS. Additionally, adjusted EBITDA loss improved by $1.1 million compared to the prior year, driven primarily by the broader internal adoption of Surf OS within our airline operations. This is the ninth consecutive quarter in which we have met or exceeded our revenue and/or adjusted EBITDA guidance. We do not take that record for granted. It reflects a management team that sets guidance it can stand behind and then executes against it.

In April, we revised our full-year 2026 adjusted EBITDA loss guidance to a range of $25 million to $30 million, an improvement of approximately 40% from our prior adjusted EBITDA loss guidance of $40 million to $50 million. Revenue guidance is unchanged at $128 million to $138 million, representing 20% to 30% growth over full-year 2025 revenue. The guidance improvement is not driven by a single factor. As covered by Deanna and the team, there are several drivers behind the upward revision, including data-driven cost reductions in the airline and charter businesses, corporate automation and procurement discipline, profitable revenue growth through the Powered by Surf On Demand program, and lower Surf OS development costs through AI-assisted build cycles.

For the second quarter of 2026, we expect revenue in the range of $27 million to $30 million. These expectations reflect both continued growth in On Demand private charter and the impact for scheduled service of the prior year’s exit of unprofitable routes. We expect adjusted EBITDA loss in the range of $10.5 million to $8.5 million. Adjusted EBITDA excludes the impact of stock-based compensation, changes in the fair value of financial instruments, and other noncash and nonrecurring items. Adjusted EBITDA loss guidance for the second quarter reflects two external headwinds. First, global fuel markets moved against the industry, and April weather in Hawaii drove an elevated cancellation rate on our interisland network with both revenue and unit cost consequences.

We responded to the fuel pressure with targeted fare actions in markets where demand supports them. The operational improvements we have talked about in recent quarters, including Surf OS productivity gains and maintenance and scheduling efficiencies, provided a meaningful offset, and absent these two events, our Q2 guidance expectation would have demonstrated the underlying margin trajectories more clearly. In summary, in line with our recently announced 40% improvement to full-year 2026 adjusted EBITDA guidance, our company is focused on accelerating its path to profitability and anticipates adjusted EBITDA loss to further narrow through 2026, absent unexpected macro or geopolitical headwinds.

One additional item worth noting: In April, we raised $30 million in new capital—$15 million through a nondilutive aircraft-backed credit facility, and $15 million in common equity led by a cofounder, with participation from officers, directors, and existing institutional investors. The proceeds are primarily intended to accelerate Surf OS implementation and fund our electrification initiatives. The fact that cofounders, our chairman, CEO, CFO, and other directors collectively purchased approximately $5.3 million of Surf Air Mobility Inc. common stock in the offering translates as follows: The people running this company are buying the stock. We believe in our plan. I will hand it back to Deanna for some closing remarks before we open for questions.

Deanna White: The operational and financial results of the first quarter clearly demonstrate that the work we did in 2025—building Surf OS, tightening operations, and recalibrating the private charter business—is starting to bear fruit. We exceeded adjusted EBITDA guidance, improved full-year guidance by nearly 40%, and closed the first quarter with a series of milestones that matter: SMS completion ahead of schedule, ARGUS certification, and a capital raise backed by the leadership team’s own capital. The plan we have laid out for 2026 is clear. We are executing against it. We appreciate your time today and interest in Surf Air Mobility Inc. I will now turn it back over to the operator.

Operator: We will now open the call for questions. We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Mike Latimer with Northland. Mike, your line is now open.

Analyst: Afternoon. Nice to see the accelerating growth in On Demand and the overall efficiency benefits from Surf OS—great results here. As we think about moving from about 29 brokers to 100 by year end, can you talk about your visibility into that? What is the process for onboarding? Is this going to be a linear process throughout the year?

Deanna White: Hi, Mike, thanks for your interest in the company. I am going to turn that question over to the president of the On Demand business.

Joshua Loughton: Hi, Mike. Since we launched the program, as I mentioned, we have brought on board just shy of 30 brokers in the first couple of months, and we have had over 200 brokers apply to join the program. So hitting 100 brokers is something that we know we can do, but we really want to focus on quality. The reason we believe in this program is because it can be scaled globally, and we want to make sure we focus on brokers that have the industry relationships and the customers to bring to the table. We are confident we can hit our goal of 100 brokers.

In terms of onboarding, it is a fully automated process through the software that we built together with Palantir. The process of getting on board and getting selling, for some brokers, can happen in just a couple of days.

Analyst: Okay, excellent. And then with regard to the airline operations, you are already getting some of the efficiencies from using Surf OS. You mentioned some of the modules you currently use internally and their impact. As you think about the next tranche of modules you could use, how impactful could they be relative to what you have implemented so far?

Deanna White: I am going to turn that over to the president of airline operations.

Louis Sancier: Hi, Mike. Thanks for the question. Our vision is an end-to-end digital experience for our operation, for our employees, and for our customers. When you do that, you get rid of redundancy and you end up managing an airline that is a lot less complicated. You end up having savings from processes and being more efficient. We are seeing that now, and we are really excited about where we are going. For example, our pilots will interact with us through their iPads. They already have a robust set of modules now, but the next step—from the time they bid their schedules to the time that they get paid the following month—is all going to be virtual.

We are really excited about that. It is all going to be seamless.

Analyst: Excellent. Great. Thanks a lot. Best of luck this year.

Operator: Our next question comes from the line of Brian Kinstlinger with Alliance Global Partners. Brian, your line is now open.

Analyst: Hi, this is Kevin for Brian. Thanks for taking our questions. On the BrokerOS side, as you start to scale external adoption, how should we think about the progression from internal efficiencies to meaningful take-rate revenue with customers of the platform? What are some of the early indicators that give you confidence in that monetization path?

Deanna White: Thanks, Kevin. I am going to turn that over to the head of On Demand, who has been actively using BrokerOS and is managing the Powered by Surf On Demand program.

Joshua Loughton: Hi, thanks for your question. We will continue to scale take rate on BrokerOS naturally by increasing the number of brokers on the platform and also through additional modules we will be developing. Without getting too much into the weeds, we have a tool that helps brokers source aircraft from our aircraft partnerships. Our supply deals are a great way for us to be really competitive in what we are offering brokers. Therefore, by increasing revenue per broker, we can also increase our take rate per broker. We can also give brokers access to markets they would not usually be able to access through our global brand—so enabling a broker in North America to sell in Europe and so on.

It is really about increasing that take rate by increasing the market share that each of our brokers can capture, and by acquiring and working with brokers around the world.

Analyst: Got it. Thank you. And then for the Operator OS side, what are some key milestones that will determine successful conversion from those LOIs to live operators once you launch? What do you view as the primary driver of adoption as you roll this out?

Deanna White: Thanks, Kevin. I am going to turn that over to Sudhin Shahani, our cofounder, to talk about that.

Sudhin Shahani: Hi, Kevin, nice to meet you. As you mentioned, we are pursuing a number of enterprise relationships and have LOIs in place, including on the Operator OS side. We see Operator OS as a way to bring both supply into the market to enable BrokerOS and be complementary to it, as well as to bring operators real efficiencies within their own business. We have seen significant efficiencies ourselves, which is why we developed this product and are bringing it to market. As our beta customers start to realize these efficiencies in early tests, we expect to see strong conversion from LOIs into contracts.

Operator: Our next question comes from the line of Austin Mueller with Canaccord. Austin, your line is now open.

Analyst: Hi, good afternoon. First question: Regarding Hawaii and higher fuel prices, are you able to pass on those higher fuel costs with the Essential Air Service program through inflation cost escalators, or what are the dynamics there?

Deanna White: Thanks, Austin. I will turn that question over to the president of airline operations.

Louis Sancier: Thanks, Austin. Fuel is a problem for everybody. From the get-go, we operate the Caravan, which is a very efficient aircraft—it is a leader in its class. From a cost-to-revenue perspective, we have an advantage over the industry. We have also implemented modules through Surf OS to help us better manage our fuel program, which is great. When we look at the EAS program, it is not really built to frequently reset the rates, but we are comfortable with what we have done over the past six to twelve months with the bids we have put in place. We have a few this year as well, and we will be adjusting for fuel.

Combined with technology and rebidding of routes, what we did in the past year puts us in a good position.

Analyst: Thanks. Second question: How should we think about the revenue mix for Surf OS—BrokerOS and Operator OS—relative to the core airline business as that is rolled out to customers over time?

Deanna White: Thanks, Austin. I am going to turn that over to Oliver.

Oliver Reeves: Hi, Austin, good to talk to you again. In the short to medium term, we expect BrokerOS and its impact on the Surf On Demand business to be the largest part of the growth we are looking to experience through the expansion phase of our transformation plan. As you start getting further out and see us convert on some of the opportunities that Sudhin mentioned on the enterprise side, you will start seeing customized versions of Surf OS become a more meaningful percentage of our revenue.

As you know, there are sometimes longer conversion cycles for larger enterprise customers, so you would expect to see them a little bit further out, notwithstanding the fact that we still anticipate seeing our first multiyear, multimillion-dollar contracts on Surf OS this year.

Analyst: Great. I will pass it back there. Thank you.

Operator: Our last question comes from the line of Dave Storms with Stonegate. Dave, your line is now open.

David Joseph Storms: Good evening, and thank you for taking my questions. Starting with the upcoming work with Beta in Hawaii beginning in June, with those cargo aircraft flights, what would you consider early success there? Can you help us understand how the margin profile is different between cargo flights versus passenger flights, and any additional color as we look forward to that?

Deanna White: Thanks, Dave. I will turn that over to the president of airline operations.

Louis Sancier: Thanks, Dave. We are really excited about the trials starting in June. The plane is going to be there for probably two months, and we will be doing cargo flights as you mentioned. Our flight ops, maintenance, and ground teams are teaming up with the Beta team. It is really going to be an exchange of operational knowledge with the Beta folks, and an exchange of data—there will be a lot of data coming back to us from the aircraft. As we operationalize between Honolulu, Molokai, and Lanai, it is to do several things: validate our assumptions and see the performance of the aircraft in an environment we think is best suited in the United States for this airplane.

When you look at the stage lengths, the population, and some of the remote areas in Hawaii, this plane is perfect to service the communities. With our staff working side-by-side with the Beta staff—the aircraft has already flown over 130 thousand miles—that is where the transfer of knowledge will start. That is where we will start building our programs, training programs, manuals, etc., and really get us ahead of the curve for when these planes are coming into our fleet in 24 months. We are very excited about what is going to happen this summer.

David Joseph Storms: Understood. That is great color, thank you. Circling back to the brokers in the Surf On Demand platform, are you seeing differences in sophistication between brokers? Are some using it more or less than others? Is it a homogenous group, and is that informing additional rollouts or tailored plans?

Joshua Loughton: Thanks for your question. The program is new this year and we certainly want to focus on brokers. One of the real benefits of building BrokerOS for ourselves within our own On Demand business first was that we built a lot of modules to train and get everybody to a certain standard. As I mentioned, we recently achieved our ARGUS certification. That has enabled us to obtain a standard that we can train our brokers to, which many sophisticated brokers still might not have if they have not worked for an ARGUS-accredited brokerage. We have leveraged that to build modules and training within the platform that bring everybody to a standard.

You are right that brokers have different levels of sophistication and understanding of different markets. For example, a broker might be really experienced in regional charter and have less experience with midsize jets and up. Our platform is built to guide brokers through how to manage that relationship and get those customers flying on larger planes with you versus going somewhere else. I am confident that with the platform we have built, we can get all of our brokers to a very high standard, and I do not think the goal of getting 100 brokers means we have to compromise on quality.

Operator: There are no further questions at this time. I will now turn the call back to the Surf Air Mobility Inc. executive team.

Deanna White: We would like to take some questions from our Say Media platform and other inbound sources. We appreciate all the investors and shareholders who submitted questions. The first question is: Net income keeps going down. What is being done to fix that? I will turn that question over to our CFO, Oliver.

Oliver Reeves: As you know, net income includes a lot of things: nonoperating expenses, one-time items, and noncash items. Each of those affect net income comparability. The reason that we use adjusted EBITDA as a measure of profit is because it excludes those and it really gives you the ability to compare without having volatility within the numbers. As we have mentioned, the company is accelerating its path to profitability. We anticipate net loss to narrow in 2026, absent unexpected macro or geopolitical headwinds, and we expect Surf OS to improve the scale and margin of both our scheduled and On Demand businesses.

When you put all of these things together, we anticipate that net loss is going to transition into net income to the benefit of our shareholders.

Deanna White: Thank you, Oliver. There is a lot of interest from shareholders in our technology. The next question is: How is the partnership with Palantir allowing you to gain an advantage in this space? I will turn that over to Sudhin Shahani to answer.

Sudhin Shahani: Thank you, Deanna. Our partnership with Palantir gives us a number of advantages. One, we use the enterprise-grade Foundry and AIP data infrastructure platforms to develop our proprietary applications. That infrastructure is used by some of the world’s largest government and commercial organizations. We use their development and deployment resources to accelerate the pace of our development, as well as their business development resources to build out our enterprise sales platform. Their platform also allows us to develop and launch AI much faster on top of the data foundation we have already built.

Additionally, we have an exclusive with them in the charter broker and operator category, and our data advantage compounds significantly as more brokers, operators, and flights transact through Surf OS.

Deanna White: Thanks, Sudhin. Our next question has two parts: What specific quantifiable milestones and timelines can you share for Surf OS commercialization and the Beta electric aircraft program in 2026 to 2027 that would drive revenue acceleration, contribute to positive adjusted EBITDA, and support free cash flow? I will turn it back to Sudhin to first comment on how Surf OS will do that.

Sudhin Shahani: Thank you, Deanna. To recap: We expect Surf OS to begin contributing meaningfully in 2026. Surf OS includes both products and services. For the products, BrokerOS has been live since December 2025. We have a target of 100 active brokers enrolled by year end 2026, up from 29 currently enrolled, with hundreds of applicants already in the queue. For Operator OS, we are targeting a second-half 2026 commercial launch. Our target KPIs are 10 additional signed LOIs and five operators live on the platform by year end. For our Enterprise Solutions, we have an active pipeline in discussions with large operators, brokers, and aircraft manufacturers. Our target there is signed multiyear, multimillion-dollar contracts in 2026.

Our teaming agreement with Palantir and their go-to-market team are supporting this pipeline directly. I will now pass it over to our airline operations lead to talk about Beta.

Louis Sancier: Thanks, Sudhin. As mentioned earlier, we are doing the demonstration flights this summer and are very excited about that and all the data we will get. When we signed the agreement with Beta, we gained the ability to have different variants in terms of certification for the plane—cargo and passenger service. We also have with Beta a factory-authorized service maintenance agreement with exclusivity rights in Hawaii, and we want to build on that. Looking at the program’s advantage, it will cost us about 30% less to operate per aircraft compared to the Cessna Caravans, and that is the real competitive edge. We are very excited about that, driven by energy costs and maintenance.

Reliability in terms of days down for heavy maintenance is considerably less than traditional aircraft, including the Caravan. Those are the real opportunities.

Deanna White: Thanks. Next question: How close are you to certification, and what are some hurdles and important dates ahead of that?

Louis Sancier: With the Beta aircraft, we initially had a focus on the electric powertrain for the Cessna Caravan, and we have moved away from that. The advantage of doing that is we are focusing on the OEMs that are bringing new technology to the marketplace. That allows us to avoid spending up to $100 million of capital on Caravan electrification and to reallocate our spend to higher ROI initiatives like Surf OS. Regarding Beta’s progress with the Alia, they are part of the EIPP program starting this summer. They were awarded seven of the eight programs in the United States, which is significant and will help expedite certification.

Even if we are talking about 24 months, at the end of Q4 2028 for the arrival of our first aircraft, we are optimistic with everything Beta is doing and what they have laid out. They clearly have a direct path to certification, and they have already flown this aircraft 130 thousand miles. Hawaii will be a showcase for this aircraft, and we are excited about what we are doing this summer and what will happen in the next couple of months.

Deanna White: Thanks. Last question: In the Q1 call, you said that Surf and Beta would co-market Surf OS with Beta aircraft. With the cargo flights approaching, can you confirm Surf OS is being designed with native electronic capabilities like battery state monitoring or charge-cycle optimization?

Sudhin Shahani: Thank you, Deanna. We are building Surf OS to support operational requirements of fleets at scale. The benefit of next-gen aircraft is you can design them from the ground up with enhanced data capabilities. The capabilities we intend to have include battery health monitoring, charge-cycle tracking, and predictive maintenance amongst other things, all of which will be weighted by the commercial and operational realities of flying electric aircraft. These are areas where the Palantir Foundry and AIP platforms have proven very effective in deployments across larger commercial aircraft manufacturers and airlines. We are bringing this to the Part 135 space.

Deanna White: That ends our Q&A session. We appreciate everybody’s interest and time today, and we hope you will call in and meet us next time on the next quarter. Thank you very much.

Operator: This concludes today’s conference call. You may now disconnect.

Operator: Goodbye.