Stonegate Capital Partners has updated its coverage on Surf Air Mobility Inc. (NYSE: SRFM) following the company's first-quarter 2026 results, which indicate that its transformation plan is beginning to yield operating leverage. The Dallas-based company reported revenue of $25.6 million, at the high end of its guidance range and up 9% year-over-year, while its adjusted EBITDA loss of $12.3 million outperformed the guided range of $15.5 million to $13.5 million.
The results were supported by improved On Demand private charter margins, cost controls across airline operations, and faster, more cost-efficient development and deployment of its SurfOS platform. According to Stonegate, these factors are contributing to a shift in the company's growth trajectory.
Key takeaways from the quarter include the beginning of operating leverage from the transformation plan. Revenue came in at the high end of guidance, and adjusted EBITDA loss beat expectations, supported by route rationalization, On Demand margin expansion, and tighter cost controls. On Demand and SurfOS are becoming the core growth and margin drivers. On Demand revenue increased 77% year-over-year to $10.1 million, with revenue per flight up 38% and gross margin improving by approximately 340 basis points. Additionally, traction with BrokerOS and OperatorOS suggests SurfOS is moving toward a commercial software platform.
The full-year 2026 setup has improved as guidance appears de-risked. Management maintained revenue guidance of $128 million to $138 million and improved adjusted EBITDA loss guidance by about 40%. The company trades at 1.3 times FY27 EV/Revenue, compared to peers at 2.4 times, which Stonegate believes supports potential multiple re-rating if execution continues.
For more details, the full announcement is available here.
