Executive Summary

Q3 2024 revenue was $3.92M, up $0.55M year over year (+16%) and $0.83M sequentially (+27%) on higher service revenue from added aircraft management and charter throughput; operating loss improved to $2.88M from $4.27M YoY and $3.22M QoQ .
Gross margin remained negative (gross loss of $14K) as jet card activity fell without commensurate fixed cost reduction; however, gross loss improved meaningfully vs Q2 (-$417K) .
Corporate actions: Board authorized a $2.0M share repurchase program through Dec 31, 2025, executed a 1-for-225 reverse split (Nov 12), and management indicates the company believes it has regained Nasdaq stockholders’ equity compliance (approx. $4.0M equity, $3.6M cash, ~840K shares outstanding) .
Strategy continues to pivot toward “capital-light” growth (pre-selling aircraft shares) and AI automation via CharterGPT and Reroute AI, with DynoFlight 2.0 carbon management launched; potential catalysts include recurring service revenue and AI-enabled booking conversion .

What Went Well and What Went Wrong

What Went Well

Revenue growth with mix shift to services and charter: Q3 revenue rose to $3.92M, with Management & Other Services revenue of $0.96M (vs $0.78M YoY) and Software App & Cirrus Charter of $2.40M (vs $1.9M YoY implied by press release), supported by adding a second managed aircraft and increased charter activity .
Operating efficiency improved: Operating expenses fell to $2.87M from $4.44M YoY, driving operating loss improvement to $2.88M from $4.27M YoY and $3.22M QoQ .
Strategic AI roadmap and fleet planning: “We aim to develop CharterGPT into an ‘AI agent’… Expanding sales by using AI brokers… is very interesting,” and orders placed for three CJ4s (2026) complement proposed Bombardier Challenger 3500 deliveries (2027), aligning with a capital-light pre-sale model .

What Went Wrong

Persistent negative margins: Q3 gross loss was ~$14K (vs gross profit $170K YoY), reflecting reduced jet card flights without fixed cost reductions; cost of revenues increased to $3.93M from $3.20M YoY .
Low quarter-end liquidity before subsequent financings: Cash and cash equivalents were $311,883 at 9/30/24 (vs $528,117 at 6/30/24); management highlighted subsequent cash of ~$2.5M as of Nov 14, 2024, and later press indicates ~$3.6M by Nov 18, 2024 .
Continued net losses: Q3 net loss was $2.88M, with basic/diluted EPS of ($43.82) (split-adjusted), underscoring the need for scale, pricing, and utilization improvements to turn margins positive .

Financial Results

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD)	$3,848,598	$3,083,884	$3,917,393
Cost of Revenues ($USD)	$3,972,954	$2,993,631	$3,931,279
Gross Profit (Loss) ($USD)	($124,356)	($416,996)	($13,886)
Operating Expenses ($USD)	$3,025,440	$2,803,619	$2,868,052
Operating Loss ($USD)	($3,149,796)	($3,220,615)	($2,881,938)
Net Loss ($USD)	($3,229,049)	($2,448,704)	($2,881,882)
Diluted EPS ($USD)	($0.28)	($0.25)	($43.82)
Cash & Cash Equivalents ($USD)	$595,555	$528,117	$311,883

Margins (calculated from cited figures):

Gross margin %: Q1 -3.2% ; Q2 -13.5% ; Q3 -0.4%
Operating margin %: Q1 -81.9% ; Q2 -104.4% ; Q3 -73.6%
Net margin %: Q1 -84.0% ; Q2 -79.4% ; Q3 -73.6%

Note: Wall Street consensus estimates were unavailable due to SPGI access constraints for this request; therefore, no “vs. estimates” comparisons are shown.

Segment Revenue Breakdown

Segment	Q1 2024	Q2 2024	Q3 2024
Software App & Cirrus Charter ($USD)	$2,371,091	$1,610,898	$2,400,000
Jet Card & Fractional Programs ($USD)	$677,320	$558,561	$547,000
Management & Other Services ($USD)	$800,187	$914,425	$960,000
Total ($USD)	$3,848,598	$3,083,884	$3,917,000

KPIs (Utilization & Balance Sheet Drivers)

KPI	Q1 2024	Q2 2024	Q3 2024
Flight Hours Sold (#)	55	55	N/A (not disclosed)
Flight Hours Flown/Forfeited (#)	95	87	N/A (not disclosed)
Deferred Revenue – End of Period ($USD)	$1,395,285	$1,099,466	$1,206,869
Aircraft Operated/Managed	N/A	3 HondaJets, 1 CJ4; managed King Air 350i	N/A

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Action	Change
Share Repurchase Authorization	Through 12/31/2025	None	Up to $2,000,000 buyback program authorized	Raised (new program)
Reverse Stock Split	Effective 11/12/2024	None	1-for-225 reverse split; split-adjusted trading under JTAI	Implemented
Nasdaq Stockholders’ Equity Compliance	By 11/26/2024 deadline	Non-compliant	Company believes it has regained compliance (~$4.0M equity; ~$3.6M cash; ~839,733 shares)	Achieved (company assertion)
Fleet Plan (Orders/Proposals)	2026–2027	None	Agreement to purchase 3 Cessna Citation CJ4 jets (deliveries: Q1, Q2, Q4 2026); proposed Bombardier Challenger 3500 deal (expected Q1–Q3 2027)	New fleet plan commentary

No formal revenue, margin, OpEx, OI&E, or tax rate guidance was issued in Q3 materials .

Earnings Call Themes & Trends

Note: A Q3 earnings call transcript was not available in the document set; themes below are derived from press releases and 10-Q commentary.

Topic	Previous Mentions (Q1 & Q2 2024)	Current Period (Q3 2024)	Trend
AI/Technology Initiatives	Launch of CharterGPT and DynoFlight; Operator Platform B2B SaaS; software revenues scaling	Advancements to CharterGPT and Reroute AI; launch of DynoFlight 2.0; JetLeg.AI beta; aim for AI agents reducing human oversight	Expanding features; increasing automation focus
Private Aviation Utilization	Increased charter activity and added managed aircraft drove revenues; flight hours fluctuated QoQ	Sequential revenue growth; service revenue from second managed aircraft; Cirrus charter activity supportive	Improving utilization mix toward services
Capital Structure & Listing	GEM facility, Ionic financing, Nasdaq Capital Market transfer; reverse split contemplated	Reverse split executed; buyback announced; company believes equity compliance regained	Normalization and compliance focus
Sustainability/Carbon	DynoFlight API enabling carbon removal credits	DynoFlight 2.0 web-based carbon management platform launched	Product evolution continues
Liquidity & Funding	Low cash at quarter ends balanced by financing access; going concern plans described	Q3-end cash low (~$312K), raised subsequently; later press indicates ~$3.6M cash	Short-term liquidity improved post-quarter

Management Commentary

“We’re seeing strength across our business… To make our earnings more predictable, we entered an agreement with Textron Aviation to purchase three Cessna Citation CJ4 jets… complements a proposed fleet deal with Bombardier… Our plan is to pre-sell shares… maintaining a ‘capital-light’ model…” — Mike Winston, Chairman & CEO .
“We’ve authorized a share buyback, completed a reverse split and pulled a Form S-1 due to its heavy warrant structure… The Company now expects to regain compliance with NASDAQ’s listing standards by the November 26th deadline.” — Mike Winston .
“We aim to develop CharterGPT into an ‘AI agent’… returning results without extensive human oversight… expanding sales by using AI brokers… is very interesting.” — Mike Winston .

Q&A Highlights

Earnings call transcript for Q3 2024 was not available in the dataset; Q&A details and any mid-quarter guidance clarifications were therefore unavailable for review [ListDocuments returned none for earnings-call-transcript].

Estimates Context

Wall Street consensus EPS and revenue estimates (S&P Global) could not be retrieved due to access constraints at the time of this request. As a result, no beat/miss vs. estimates is shown.

Key Takeaways for Investors

Sequential and YoY revenue growth, with mix improving toward managed services and charter brokerage, reduced operating loss; watch for continued traction of services and app-driven bookings .
Margins remain negative; unlocking utilization, pricing discipline on jet cards, and fixed cost absorption are critical to drive sustained gross margin improvement (Q3 gross loss narrowed materially vs Q2) .
Corporate actions support listing stability and capital market access: buyback authorization, reverse split, and management assertion of Nasdaq equity compliance could reduce overhang and catalyze investor confidence .
Capital-light fleet expansion strategy (CJ4 in 2026; proposed Challenger 3500 in 2027) offers visibility, but execution hinges on pre-sales and delivery schedules; monitor capital requirements and pre-sell conversion rates .
AI roadmap (CharterGPT “agent,” Reroute AI, DynoFlight 2.0) is a potential medium-term differentiator to scale sales with lower variable costs; KPIs to track include app-driven gross bookings and conversion .
Liquidity improved post-quarter via financings; near-term trading may react to compliance confirmations and buyback activity; medium-term thesis depends on scaling services and AI monetization to reach breakeven .

Citations:

Jet.AI Inc. (JTAI)·Q3 2024 Earnings Summary