Surf Air Mobility (NYSE:SRFM) Posts Earnings Results, Misses Expectations By $0.03 EPS

Surf Air Mobility (NYSE:SRFM) issued its quarterly earnings results on Thursday. The company reported ($0.16) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.03), FiscalAI reports. The firm had revenue of $36.46 million for the quarter.

Here are the key takeaways from Surf Air Mobility’s conference call:

• Third-quarter revenue reached a company record of $36.5 million, up 25% year over year, while the Adjusted EBITDA loss narrowed 36% from the prior quarter to $6.7 million.
• Surf On Demand revenue more than doubled year over year to a record $19 million; gross margin improved by over four percentage points year over year and over 10 points sequentially.
• The airline generated $1.2 million in Adjusted EBITDA, with year-to-date operating improvements including lower costs and fuel burn. The company also secured a four-year, $19.4 million Lanai service contract.
• SurfOS is still at an early commercialization stage: third-quarter revenue was not material, and longer-than-expected implementations contributed to the company modifying its full-year Adjusted EBITDA loss outlook to $35 million–$32 million. Management expects meaningful SurfOS revenue in 2027 but did not provide a forecast.

Surf Air Mobility Price Performance

Shares of SRFM traded up $0.02 during mid-day trading on Friday, hitting $0.71. The company’s stock had a trading volume of 3,308,834 shares, compared to its average volume of 2,759,738. The firm has a 50-day moving average price of $0.80 and a 200 day moving average price of $1.16. Surf Air Mobility has a fifty-two week low of $0.46 and a fifty-two week high of $3.73. The stock has a market capitalization of $87.54 million, a price-to-earnings ratio of -0.63 and a beta of 2.65.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on SRFM shares. Wall Street Zen raised Surf Air Mobility from a “sell” rating to a “hold” rating in a report on Saturday. HC Wainwright restated a “buy” rating on shares of Surf Air Mobility in a research report on Tuesday, August 11th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Surf Air Mobility in a research note on Thursday, October 22nd. Finally, Canaccord Genuity Group decreased their price target on Surf Air Mobility from $1.50 to $1.00 and set a “hold” rating for the company in a research note on Monday, August 17th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Surf Air Mobility currently has an average rating of “Hold” and an average target price of $2.92.

Institutional Trading of Surf Air Mobility

A number of large investors have recently added to or reduced their stakes in SRFM. Ritholtz Wealth Management acquired a new stake in shares of Surf Air Mobility during the 3rd quarter valued at $37,000. J. Derek Lewis & Associates Inc. grew its holdings in shares of Surf Air Mobility by 12.4% in the 3rd quarter. J. Derek Lewis & Associates Inc. now owns 136,000 shares of the company’s stock worth $163,000 after acquiring an additional 15,000 shares during the last quarter. Engineers Gate Manager LP grew its holdings in shares of Surf Air Mobility by 147.4% in the 2nd quarter. Engineers Gate Manager LP now owns 96,389 shares of the company’s stock worth $112,000 after acquiring an additional 57,423 shares during the last quarter. Squarepoint Ops LLC acquired a new stake in shares of Surf Air Mobility during the second quarter worth $53,000. Finally, Parrish Capital LLC acquired a new stake in shares of Surf Air Mobility during the second quarter worth $27,000. 17.68% of the stock is currently owned by institutional investors.

About Surf Air Mobility

Surf Air Mobility Inc operates as an electric aviation and air travel company in the United States. The company offers an air mobility platform with scheduled routes and on demand charter flights operated by third parties. Surf Air Mobility Inc is headquartered in Hawthorne, California.