Volato Group, Inc. (SOAR)·Q3 2024 Earnings Summary

Executive Summary

• Q3 revenue surged to $40.27M, driven by aircraft sales (two HondaJet Elite IIs and first G280), yielding operating income of $1.85M and positive Adjusted EBITDA of $3.17M; net loss from continuing operations narrowed to $(1.34)M YoY .
• Early turnaround actions: transition of fleet ops to flyExclusive, 75% sequential SG&A reduction to a ~$0.7M quarterly run-rate, and Vaunt ARR reached $1.45M; NYSE American accepted the Company’s compliance plan .
• Offsetting headwinds: managed services revenue fell 51% YoY; discontinued operations loss was $(3.10)M; cash ended Q3 at $3.76M with going-concern risk and reliance on expensive short-term financing (165% APR term loan) .
• Street estimates: S&P Global consensus for Q3 2024 EPS/revenue was unavailable; comparisons vs. estimates cannot be made (consensus unavailable via S&P Global).

What Went Well and What Went Wrong

• What Went Well

  • Delivered two HondaJets and first Gulfstream G280; aircraft sales revenue was $38.15M and propelled Q3 operating income and positive Adjusted EBITDA .
  • “We achieved an Adjusted EBITDA positive quarter ahead of our previous forecast as a result of strong aircraft sales... and the transfer of flight operations to flyExclusive” — CFO Mark Heinen .
  • SG&A cut by ~75% sequentially to a ~$0.7M quarterly run-rate; Vaunt ARR reached $1.45M with flyExclusive flights added to the platform post-quarter .

• What Went Wrong

  • Managed services revenue contracted 51% YoY to $1.80M as the model transitions; subscription revenue is small at $0.32M .
  • Discontinued operations loss of $(3.10)M in Q3 (vs. $(9.26)M LY) and going-concern disclosure underscore liquidity pressure; cash and equivalents were $3.76M at quarter-end .
  • Cost of capital is high (165% APR term loan); Honda Fleet Purchase Agreement was terminated with a ~$1.0M deposit write-off, adding execution and funding risk to the delivery pipeline .

Financial Results

• Income statement snapshot (YoY)

• Segment revenue breakdown (YoY)

• Additional financial/operational KPIs

Note: Sequential (QoQ) comparisons to Q2 2024 were not available in accessible source documents.

Guidance Changes

Management did not provide quantitative revenue/margin/tax/OpEx guidance ranges for Q4/FY in the accessible Q3 materials.

Earnings Call Themes & Trends

Transcript not available via our sources; themes reflect press release/10‑Q narratives.

Management Commentary

• CEO Matt Liotta: “The third quarter marks the first phase of our turnaround plan. By transitioning operational responsibilities to flyExclusive, we’re able to focus on our strengths in aircraft sales and software development...” .
• CFO Mark Heinen: “We achieved an Adjusted EBITDA positive quarter ahead of our previous forecast as a result of strong aircraft sales... additional cost savings initiatives and the transfer of flight operations to flyExclusive” .
• Strategy narrative: Early progress on cost reductions (SG&A down ~75%), aircraft delivery momentum (2 HondaJets, 1 G280), and software commercialization (Mission Control adoption), with plans to extend Mission Control to other operators .

Q&A Highlights

• An earnings call transcript for Q3 2024 was not available via our document corpus. No Q&A-specific clarifications could be validated.

Estimates Context

• S&P Global consensus EPS and revenue estimates for Q3 2024 were unavailable through our data interface at the time of analysis, so we cannot assess beats/misses versus Street. If provided subsequently, we would update comparisons and highlight any material deltas (consensus unavailable via S&P Global).

Key Takeaways for Investors

• Aircraft sales pivot worked in Q3: $38.15M aircraft sales drove $1.85M operating income and $3.17M Adjusted EBITDA, achieving EBITDA-positive ahead of prior guidance timing .
• Structural shift reduces operating complexity: transferring fleet ops to flyExclusive and cutting SG&A to a ~$0.7M run-rate should lower cash burn and sharpen focus on aircraft sales and software .
• Liquidity remains the gating factor: $3.76M cash at Q3-end, going-concern disclosure, and a costly 165% APR term loan signal urgency to secure lower-cost capital; watch for financing and working-capital updates .
• Delivery pipeline: three additional G280 deliveries expected in 2025; monitor order conversion, margins on sales, and any replacement strategy post-Honda FPA termination and $1.0M deposit write-off .
• Mixed revenue quality: Q3 growth was largely transactional (aircraft sales) while managed revenue fell 51% YoY; sustainability hinges on repeat sales cadence and software monetization (Mission Control, Vaunt) .
• Compliance plan accepted by NYSE American reduces immediate listing risk; progress will be reviewed quarterly through Dec 2025 — execution toward equity rebuild is a catalyst (and a risk if missed) .
• Near-term catalysts: completion of flyExclusive transition and further Insider Card deposit liability reductions in Q4; medium-term: software revenue scaling and 2025 deliveries .

Appendix: Additional Detail and Cross-References

• Consolidated statements and reconciliation tables: revenue $40.27M, cost of revenue $33.77M, SG&A $4.65M, operating income $1.85M, interest expense $(3.23)M, net loss from continuing ops $(1.34)M, Adjusted EBITDA $3.17M .
• Q1 2024 context: revenue $13.21M; Adjusted EBITDA $(13.10)M; blended yield and flight hours grew YoY; management projected EBITDA-positive in Q4 at the time .
• Q2 2024 context (KPIs/investor materials): non-owner demand mix at 56%, blended yield $5,330/hr, total flight hours 3,052; Vaunt ARR reached $1M .

All citations:

• Q3 2024 8‑K press release and exhibits .
• Q3 2024 Form 10‑Q (financials, MD&A, liquidity, financing, OEM notes) .
• Q1 2024 8‑K press release .
• Q2 2024 KPIs/Investor materials .