Stonegate Capital Partners has updated its coverage on Surf Air Mobility Inc. (NYSE: SRFM), highlighting that the company's fiscal year 2025 results suggest it is emerging from restructuring with a more stable operating base and a clearer path to growth. Full-year revenue of $106.6 million met the company's raised outlook, while the 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 also 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. Overall, the quarter reinforced continued progress in the transformation heading into 2026. Stonegate Capital Partners noted that restructuring is starting to show up in cleaner operating execution and a more credible path to growth. The firm emphasized that SRFM is moving out of stabilization mode and into a more investable recovery story.
Key takeaways from the update include that the airline mix is improving, not just revenue. On Demand grew 36% as SRFM shifted away from unprofitable routes toward better charter mix and execution. Software and electrification are identified as upside levers, with SurfOS and the BETA partnership adding credible optionality. However, FY26 execution and back-half growth are considered most important for the company's trajectory.
For more details, view the full announcement here.
