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FLYEXCLUSIVE INC. (FLYX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue rose 15.6% year over year to $91.33M, with net loss narrowing to $(16.13)M and basic/diluted EPS of $(0.26); gross margin improved vs last year as cost discipline and fleet refresh took hold .
  • Mix improved: flight revenue +15% YoY, fractional revenue +79% YoY, and MRO +28% YoY; dispatch availability improved ~400 bps YoY, supporting utilization and profitability .
  • No formal numerical guidance was issued; management reiterated goals to drive operating losses toward mid‑single digits by end‑2025 and eliminate by 2026, underpinned by ongoing fleet modernization and SG&A reductions .
  • Strategic context: company waived sponsor lock‑up to pursue Russell index inclusion (liquidity catalyst) and extended Jet.AI merger outside date to Oct 31, 2025, which together frame near‑term capital markets optionality and execution milestones .

What Went Well and What Went Wrong

  • What Went Well

    • Top-line acceleration with improved mix: Q2 revenue $91.33M (+15.6% YoY), with flight, fractional, and MRO revenue up meaningfully; gross profit and margin improved YoY .
    • Operating efficiency: dispatch availability improved ~400 bps YoY; removal of 24 non-performing aircraft over 12 months, with monthly operating loss down from >$3M at start of 2024 to ~$0.5M by Q2 2025, positioning for further reductions .
    • Cost discipline: SG&A down 6% YoY in Q2; YTD SG&A down 12%, implying >$10M annualized savings; Adjusted EBITDA margin improved vs prior year per company presentation (non‑GAAP) .

  • What Went Wrong

    • Still loss-making: Q2 operating loss $(12.36)M and net loss $(16.13)M; interest expense remained significant at $(4.43)M for the quarter, though improved YoY .
    • Working capital and leverage remain tight: current liabilities $260.17M vs current assets $65.51M; total liabilities $496.04M; management highlights potential need for incremental capital if growth or conditions change .
    • Series A and B preferred dividends (12–20% step‑ups) and warrant structures add fixed obligations/dilution risk; ERC liability ($9.04M) remains an uncertainty (recorded in other current liabilities) .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($M)$79.01 $88.13 $91.33
Cost of Revenue ($M)$72.76 $76.83 $77.61
Operating Income (Loss) ($M)$(21.84) $(14.74) $(12.36)
Interest Expense ($M)$(5.67) $(5.39) $(4.43)
Net Income (Loss) ($M)$(27.85) $(23.05) $(16.13)
Basic & Diluted EPS ($)$(0.32) $(0.30) $(0.26)
Weighted Avg Shares (M)19.17 25.16 27.77

  • Segment/Category Revenue Mix (Disaggregated) | Category ($M) | Q2 2024 | Q2 2025 | |---|---|---| | Flights | $74.38 | $85.77 | | Memberships | $1.34 | $0.27 | | MRO | $2.24 | $2.87 | | Fractional Ownership Purchase Price | $1.05 | $1.87 | | Aircraft Management Services | — | $0.55 | | Total | $79.01 | $91.33 |

  • KPIs/Operating Indicators (company-reported) | KPI | Q2 2024 | Q1 2025 | Q2 2025 | |---|---|---|---| | Dispatch Availability (YoY change) | — | — | +400 bps YoY | | Flight Revenue YoY | — | +10% YoY (Q1 narrative) | +14% YoY | | Fractional Revenue YoY | — | +100% YTD in Q1 activity (sales + flight) | +79% YoY | | MRO Revenue YoY | — | +18% YoY (Q1) | +28% YoY | | Operating Loss Run-Rate | — | — | ~$0.5M/month vs >$3M at start of 2024 | | Retail Members (YoY) | — | ~1,000+ contrib. in Q1 (context) | +9% (members contributing revenue, Q2) | | Jet Club Retail Sales YoY | — | +32% (Q1) | +26% (Q2) | | Fractional Retail Sales YoY | — | +91% (Q1) | +24% (Q2) |

Notes: All non‑GAAP references (e.g., Adjusted EBITDA, Adjusted EBITDAR) are company-provided; reconciliations referenced to Q2 2025 10‑Q appendix per presentation disclosure .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating loss trajectory2H 2025–2026Not previously quantified“Continued progress towards mid‑single digits by end of 2025 and elimination by 2026” (run‑rate) New qualitative target
SG&A trend2025Down YoYQ2: –6% YoY; YTD: –12% (>$10M annualized savings) Maintained/improving
Formal revenue/EPS/EBITDA guidance2025NoneNone disclosedMaintained

No formal numerical guidance ranges (revenue, margins, EPS, or tax rate) were issued in Q2 materials .

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document set despite targeted searches during the Q2 window; themes below reflect Q4 2024 and Q1 2025 calls vs Q2 2025 disclosures (presentation/10‑Q) .

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Fleet modernization & dispatch availabilityRemove non‑performing aircraft; grow Challenger fleet; each 1% availability adds ~$3M per year; dispatch up Q/Q and YoY 24 non‑performers removed over 12 months; dispatch +400 bps YoY; operating loss run‑rate down to ~$0.5M/month Improving execution
Program mix (Jet Club, Fractional)Q1: Jet Club sales +25% YoY; fractional activity $16.2M; utilization per member +13% Q2: Retail members +9%; Jet Club +26%; Fractional +24%; fractional revenue +79% YoY Demand resilient
MRO growth & vertical integrationMRO scaling, backlog; +18% YoY Q1; competitive advantage MRO +28% YoY in Q2; internal and third‑party support continues Positive
Capital structure/liquidityRepaid $59M LOC; amended senior secured note to 2027; S‑3 shelf planned; Jet.AI merger funding Waived sponsor lock‑up for index inclusion; extended Jet.AI merger outside date to 10/31/25 Optionality, timelines extended
Macro/tariffs/taxWatching bonus depreciation; shift to domestic travel; pricing power intact No new macro guidance; continued mix/efficiency focus (presentation) Neutral

Management Commentary

  • Strategy and operations: “Fleet Refresh resulting in improved utilization and more efficient fleet… Contractually committed demand (Partner, Fractional, Jet Club) hours +32% compared to Q2 2024” .
  • Cost and profit trajectory: “Operating loss reduced to $500K per month from over $3M monthly at beginning of 2024… Continued progress towards mid-single digits by end of 2025 and elimination by 2026” .
  • Capital markets positioning: “We… executed a waiver letter to waive the lock-up… as the Company believes it positions flyExclusive to be included in the Russell Indices, which is expected to benefit its shareholders through increased volume and liquidity” — CFO Brad Garner (press release) .
  • Prior quarter context: “Each challenger should generate $8–$10 million in annual revenue and deliver stronger margins than any other aircraft in our fleet” — CEO Thomas Segrave (Q1 2025) .

Q&A Highlights

A Q2 2025 earnings call transcript was not found in the available documents. For context, prior calls emphasized:

  • Demand/pricing: resilient demand, some shift toward domestic; pricing up ~4% with favorable mix (Q1) .
  • Fleet ramp: smooth addition of Challenger aircraft through 2025, financing facilities in place (Q4 Q&A) .

Estimates Context

  • Wall Street consensus (S&P Global Capital IQ) for FLYX Q2 2025 EPS and revenue was unavailable; prior two quarters’ consensus detail also unavailable. Values retrieved from S&P Global.*

Implication: Absent published consensus, the print appears stronger on revenue YoY and better on losses vs last year; however, investors will likely focus on continued sequential loss reductions and cash/liquidity trajectory in lieu of beat/miss framing .

Key Takeaways for Investors

  • Revenue growth with healthier mix: flights, fractional, and MRO all advanced; YoY revenue +15.6%, with better cost control contributing to improved operating results YoY .
  • Execution on fleet modernization is translating to availability and margin leverage; non‑performers cleared materially, Challengers scaling, dispatch up ~400 bps YoY, and monthly operating loss compression continues .
  • Losses persist but trajectory is favorable: operating loss $(12.4)M and net loss $(16.1)M improved YoY; interest expense eased; watch for continued sequential improvement in 2H seasonally stronger periods .
  • Balance sheet watch-items: working capital deficit and sizable liabilities necessitate ongoing discipline; preferred dividends and warrant structures add cash/dilution considerations; ERC remains a contingent risk .
  • Potential catalysts: Russell index inclusion attempt via lock‑up waiver and progress on Jet.AI merger (outside date extended to Oct 31, 2025); either could affect liquidity/cost of capital and growth funding pace .
  • Trading setup: near‑term, stock likely reacts to continued evidence of sequential loss reduction and utilization gains; medium‑term, proof points on positive Adjusted EBITDA/free cash flow and balance sheet optimization could drive re‑rating .

Citations

  • Q2 2025 10‑Q financials and notes: .
  • Q2 2025 8‑K and presentation: .
  • Q1 2025 10‑Q and call: .
  • Q4 2024 call: .
  • Lock‑up waiver press release (July 28, 2025): .
  • Jet.AI merger amendment (July 30, 2025): .

S&P Global disclaimer: *Values retrieved from S&P Global.