Volato Group, Inc. (SOAR)·Q1 2025 Earnings Summary

Executive Summary

• Volato achieved profitability from continuing operations in Q1 2025, reporting revenue of $25.5M, net income of $0.5M and diluted EPS of $0.03; gross profit was $4.5M and EBITDA was $2.7M, marking a significant improvement versus Q1 2024’s net loss of $17.4M and EBITDA loss of $4.2M .
• Total liabilities fell from $62.6M at 12/31/2024 to $39.2M by 3/31/2025, aided by debt reduction, asset sales, and deposit releases, materially improving balance sheet flexibility .
• Management plans to raise approximately $8.0M in outside equity and continue settling liabilities to extend the operating runway beyond 12 months; the $4.5M drawn from the $36M convertible facility is expected to convert to equity in Q2 2025 .
• Outlook: Company expects profitability in Q2 and Q4 2025, with Q3 projected negative based on aircraft delivery timing; April delivery of the third G280 is expected to contribute to Q2 revenue and margin similarly to Q1 .
• Wall Street consensus estimates (S&P Global) for EPS and revenue were unavailable; no beat/miss assessment versus Street can be made based on S&P Global data [GetEstimates].

What Went Well and What Went Wrong

What Went Well

• Achieved profitability from continuing operations with net income of $0.5M and diluted EPS of $0.03, reversing prior-year losses; CEO: “Profitability from continuing operations… are all signals that our strategy is working” .
• Significant liability reduction: total liabilities declined by over $20M to $39.2M QoQ, aided by SAC G280 credit facility paydown ($19.5M) and deposit release ($9.0M) linked to G280 delivery timing .
• Vaunt at cash flow breakeven, on track for full-year profitability; subscription revenue increased to $0.383M from $0.048M YoY .

What Went Wrong

• Financing costs elevated: Q1 interest expense was $2.4M, reflecting aircraft financing arrangements; non-cash fair value loss on the convertible note was $0.849M .
• Going-concern uncertainty persists: negative working capital of ~$18.2M and accumulated deficit of ~$103.9M; liquidity depends on aircraft sales and external capital raises .
• Legal overhang and operational transition: WARN Act litigation from 2024 layoffs and continued resolution of discontinued operations liabilities ($11.0M outstanding as of 3/31/2025) .

Financial Results

Notes:

• EBITDA is non-GAAP; Q1 2025 reconciliation provided in EX-99.1 .
• Q3 2024 EBITDA shown as Adjusted EBITDA per press release reconciliation .
• Estimate comparisons are omitted because S&P Global consensus was unavailable [GetEstimates].

Segment/Revenue Mix

Key Balance Sheet and Liquidity KPIs

Guidance Changes

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available in our document sources; themes are drawn from the 8-K press release and 10-Q.

Management Commentary

• CEO Matt Liotta: “Profitability from continuing operations, major liability reductions, and operational growth across our platforms are all signals that our strategy is working” .
• CEO on capital structure: “Settling liabilities at a discount and executing on a targeted equity raise us a clear path to stability without excessive dilution… Now we’re using that position to strengthen the business long-term.” .
• CFO Mark Heinen: “We’re managing cash tightly… operational discipline, creditor engagement, and a focused capital raise is designed to extend our runway and position Volato for long-term financial sustainability.” .
• MD&A perspective: Revenue growth driven by aircraft sales (second G280 delivered); SG&A decreased due to 2024 cost savings initiatives; interest expense increased due to aircraft financing arrangements .

Q&A Highlights

No Q1 2025 earnings call transcript was available; therefore, no Q&A highlights or clarifications could be sourced from a call [ListDocuments earnings-call-transcript: 0 found].

Estimates Context

• S&P Global consensus estimates for EPS and revenue (Q1 2025, Q2 2025, FY 2025) were unavailable via our data retrieval; as a result, we cannot assess beats/misses versus Street for this quarter [GetEstimates].
• Implication: Analysts will likely revisit models given the shift to aircraft sales-driven revenue, Vaunt subscription ramp, and quarterly profitability cadence tied to delivery timing .

Key Takeaways for Investors

• Profitability Inflection: Q1 delivered positive net income and diluted EPS $0.03, driven by aircraft sales and cost control; monitor near-term cadence tied to G280 deliveries (Q2 profitable, Q3 negative, Q4 profitable) .
• Balance Sheet De-risking: Total liabilities reduced to $39.2M; remaining SAC G280 line repaid in April, reducing interest drag and improving flexibility .
• Capital Path: ~$8M planned equity raise and expected Q2 conversion of the $4.5M convertible note aim to extend runway beyond 12 months; dilution risk balanced against solvency objectives .
• Revenue Mix Evolution: Recurring subscription revenue (Vaunt) is growing but remains small; near-term revenue/margin predominantly tied to aircraft transactions (delivery/sale timing) .
• Risk Watch: Elevated interest expense ($2.4M in Q1) and going-concern language highlight dependence on successful aircraft sales and financing access; litigation adds uncertainty .
• Tactical Catalyst: April delivery of the third G280 expected to support Q2 revenue/margin consistent with Q1; potential further creditor settlements could provide additional non-operating gains .
• Medium-term Thesis: Transition away from operating the fleet (to flyExclusive) lowers operating complexity; focus on software (Mission Control) and Vaunt could build a more asset-light profile over time .

Additional Context on Prior Quarters

• Q3 2024: Revenue $40.3M; net loss from continuing ops $(1.3)M; Adjusted EBITDA $3.2M; SG&A down 75%; first G280 delivered .
• Q4 2024: Company withdrew S-1 and anticipated positive Q4 net income per press release, but detailed 8-K 2.02 results not found in our document set .

Non-GAAP Note: EBITDA is a non-GAAP measure; reconciliations provided in Q1 2025 EX-99.1 and Q3 2024 press materials .