Stonegate Capital Partners has updated its coverage on Surf Air Mobility Inc. (NYSE: SRFM), highlighting the company's progress emerging from restructuring with a more stable operating base and a clearer path to growth. The FY25 results reflect significant improvements in key financial metrics, suggesting that the company is moving beyond stabilization into a recovery phase.
Full-year revenue reached $106.6 million, meeting the company's raised outlook. Adjusted EBITDA loss improved to $41.7 million, driven by better airline operations, a stronger charter mix, and continued execution under the transformation plan. Net debt declined 47% year-over-year to $74 million, supported by capital actions and convertible note conversion. In the fourth quarter of 2025, SRFM reported revenue of $26.4 million and an adjusted EBITDA loss of just under $8 million, both within guidance despite pressure from exiting unprofitable scheduled routes.
The restructuring is evident in cleaner operating execution and a more credible growth trajectory. The airline mix is improving, with On Demand revenue growing 36% as the company shifts away from unprofitable routes toward better charter mix and execution. Software and electrification initiatives, including SurfOS and the BETA partnership, add credible optionality for future upside, though FY26 execution and back-half growth remain critical.
For more details, the full announcement is available here.
This update underscores Surf Air Mobility's transition into a more investable story, with financial improvements and strategic shifts positioning the company for sustained growth.
