Stonegate Capital Partners has updated its coverage on Surf Air Mobility Inc. (NYSE: SRFM) following the company's first-quarter 2026 results, which demonstrated continued execution under its transformation plan. The company reported revenue of $25.6 million, at the high end of its guidance range and up 9% year-over-year. Adjusted EBITDA loss of $12.3 million outperformed the guided range of $15.5 million to $13.5 million, reflecting improved operational efficiency.
The results were supported by several key factors, including enhanced On Demand private charter margins, cost controls across airline operations, and faster, more cost-effective development and deployment of SurfOS. The transformation plan is beginning to show operating leverage, with revenue coming in strong while losses narrowed more than expected.
Surf On Demand revenue surged 77% year-over-year to $10.1 million, with revenue per flight up 38% and gross margin expanding approximately 340 basis points. This segment, along with SurfOS, is becoming the core growth and margin driver for the company. Traction with BrokerOS and OperatorOS indicates that SurfOS is evolving into a commercial software platform, which could unlock additional value.
Management maintained its full-year 2026 revenue guidance of $128 million to $138 million and improved its adjusted EBITDA loss guidance by about 40%, de-risking the outlook. Despite the positive momentum, SRFM trades at 1.3x forward EV/Revenue versus peers at 2.4x, suggesting a potential multiple re-rating if execution continues. Stonegate Capital Partners notes that the valuation remains discounted relative to comparable companies.
For more details, view the full announcement here. The transformation plan's early success highlights the importance of route rationalization, cost discipline, and software-driven growth in the regional air mobility space.
