Executive Summary

Revenue $7.07M, up 76% year over year vs. $4.02M, but down 4.8% quarter over quarter vs. $7.43M; gross margin turned negative (-6.35%) as pre-charter operating costs and fuel weighed on profitability .
Net loss widened to $(1.80)M with diluted EPS $(0.01); operating loss increased to $(1.49)M as higher costs preceded full charter revenue ramp from newly added aircraft .
No formal financial guidance issued; press release emphasized strong charter sales growth (+78% YoY) and regional strength in Hawaii (+25%) and Mexico (+38%) .
Capital structure actions: $6.42M related-party debt converted to 100,000 Series A Preferred; conversion price later raised from $0.04 to $0.25, reducing potential dilution risk .

What Went Well and What Went Wrong

What Went Well

Strong charter sales growth: Q3 charter revenue reportedly up 78% YoY; nine-month charter revenue up 41% and total revenue up 34% YoY, with Hawaii +25% and Mexico +38% in Q3 .
Balance sheet improved via debt-to-preferred conversion: $6.42M of related-party notes exchanged for Series A Preferred; stockholders’ equity moved to a positive $0.87M at 9/30/25 from a deficit at 12/31/24 .
Management’s strategic focus on scaling in high-potential regions: “This quarter’s performance highlights the strength of our market positioning…” (Vincent Monteparte, Chairman) .

What Went Wrong

Margins compressed: gross margin fell to -6.35% (Q3) from +2.98% (Q2), driven by ~$2.36M pre-charter operating costs of acquired aircraft and ~$0.99M fuel costs; operating margin declined to -21.0% .
Net loss widened YoY and QoQ; nine-month net loss increased to $(4.03)M, with higher interest expense and maintenance costs no longer passed through under management contracts .
Liquidity and financing risk: current liabilities $13.06M vs. current assets $0.81M; reliance on related parties ($4.9M due) and high-cost borrowing (e.g., a loan at an effective 90.67% APR) raise going concern risks .

Financial Results

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD)	$4,021,355	$5,875,523 (derived from 6M − Q2)	$7,427,321	$7,073,341
Gross Profit ($USD)	$(152,781)	$146,588 (derived from 6M − Q2)	$221,464	$(449,146)
Gross Margin %	-3.80% (calc)	2.49% (calc)	2.98% (calc)	-6.35% (calc)
Operating Income (EBIT) ($USD)	$(924,762)	$(855,678) (derived from 6M − Q2)	$(823,662)	$(1,486,083)
EBIT Margin %	-23.0% (calc)	-14.6% (calc)	-11.1% (calc)	-21.0% (calc)
Net Income ($USD)	$(1,184,235)	$(1,223,605)	$(999,945)	$(1,804,858)
Net Income Margin %	-29.5% (calc)	-20.8% (calc)	-13.5% (calc)	-25.5% (calc)
Diluted EPS ($USD)	$(0.00)	n/a	$(0.00)	$(0.01)

Notes: Q1 2025 values are arithmetic derivations from reported six-month totals and Q2 figures (see cited filings) .

Segment breakdown: Company reports a single operating segment (no segment detail available) .

KPIs and Operating Detail

KPI	Q3 2025	Comment
Charter Sales Revenue Growth (YoY)	+78%	Company press release metric
Hawaii Charter Sales Growth (YoY)	+25%	Regional highlight
Mexico Charter Sales Growth (YoY)	+38%	Regional highlight
Nine-Month Charter Revenue Growth (YoY)	+41%	Sustained demand
Nine-Month Total Revenue Growth (YoY)	+34%	Mix shift to charter
Weighted Avg Shares (Q3)	280,826,554	Dilution from acquisitions/issuances
Cash and Equivalents (9/30/25)	$64,158	Low liquidity

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Overall financial guidance	Q4 2025 / FY25	None disclosed	None disclosed	Maintained (no guidance)

Management emphasized continued expansion in Hawaii/Mexico but did not issue quantitative guidance ranges .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found; themes below reflect MD&A and filings.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Pre-charter operating costs on new aircraft	Pre-charter costs impacted margins; ~$2.10M in 6M and ~$0.97M in Q2	~$2.36M pre-charter costs weighed on Q3 results	Persistent headwind until full ramp
Fuel and flight expenses	Flight expenses/fuel added to cost base (6M)	Fuel cost ~$0.99M in Q3	Elevated; compresses margins
Regional growth narrative (Hawaii/Mexico)	Focus on charter fleet additions and legacy charter improvements	Hawaii +25%, Mexico +38% YoY; charter +78% YoY	Strengthening demand
Financing and related-party reliance	Significant related-party payables; going concern disclosed	$4.9M due to related parties; going concern reiterated	Ongoing risk
Capital structure actions	Subsequent conversion to Series A noted	$6.42M conversion; conversion price amended to $0.25	Reduces potential dilution vs. prior terms

Management Commentary

Strategic focus: “We remain focused on delivering long-term value through disciplined growth and customer-centric innovation.” — Vincent Monteparte, Chairman .
Operations and margin drivers: Management cited pre-charter operating costs for acquired aircraft, maintenance costs not passed through under prior management contracts, and increased salaries to support operations as key factors behind operating losses .
Liquidity and going concern: The company disclosed substantial doubt about ability to continue as a going concern absent additional funding and continued related-party support .

Q&A Highlights

No Q3 2025 earnings call transcript or Q&A was available in filings; key investor concerns inferred from MD&A include margin trajectory, liquidity runway, and timing of charter ramp on newly added aircraft .

Estimates Context

S&P Global consensus estimates for Q3 2025 EPS and revenue were unavailable for PREM; as a result, direct comparisons to Street estimates are not possible at this time. Values retrieved from S&P Global.*

Key Takeaways for Investors

Strong top-line growth masked by cost timing: Revenue growth (+76% YoY) was offset by pre-charter operating costs and fuel, driving gross margin to -6.35% and widening losses; watch activation timing of added aircraft into full revenue service .
Liquidity risk is acute: Current liabilities ($13.06M) far exceed current assets ($0.81M), with $4.9M due to related parties; continued support and external financing are critical .
Capital structure improved but dilution risk recalibrated: $6.42M related-party debt converted to preferred; conversion price increased to $0.25, reducing potential dilution vs. prior $0.04 terms .
Margin path is the narrative driver: Q2 positive gross margin (+2.98%) slipped to negative in Q3 (-6.35%); stabilization depends on full charter ramp, maintenance cost containment, and fuel management .
Regional demand looks solid: Reported growth in Hawaii (+25%) and Mexico (+38%) alongside charter sales (+78% YoY) supports medium-term demand thesis, contingent on operational execution .
High-cost debt highlights financing risk: A September 2025 operations loan carries an effective 90.67% APR; reducing financing costs could materially aid net loss trajectory .
Near-term trading lens: Expect sensitivity to any updates on fleet utilization ramp, financing commitments, and margin recovery; absence of formal guidance increases volatility around operational disclosures .

Citations:
Q3 2025 8-K Exhibit 99.1 press release; Q3 2025 10-Q balance sheet; Q3 2025 10-Q income statement; Q3 2025 10-Q going concern; Q3 2025 10-Q stockholders’ equity/actions; – Q3 2025 10-Q MD&A drivers; – Oct 22, 2025 8-K conversion price amendment; Q2 2025 10-Q income statement; – Q2 2025 10-Q MD&A; single segment disclosure; financing details and high APR loan; liquidity discussion.

Disclaimer: Consensus estimates unavailable via S&P Global for PREM at the time of analysis; no direct estimate comparisons could be made. Values retrieved from S&P Global.

Premier Air Charter Holdings Inc. (PREM)·Q3 2025 Earnings Summary