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Wheels Up Experience Inc. (UP)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue declined 10% year over year to $177.5M, while Adjusted Contribution Margin expanded to 12.6% (+12 pp YoY); Adjusted EBITDA loss improved 51% YoY to -$24.2M, underscoring transformation progress despite GAAP net loss of $99.3M and diluted EPS of -$0.14 .
  • Operational metrics improved: Utility rose 23% YoY to 38.1 hours; completion rate was 97% and on-time performance (D-60) was 85% (definitions updated to include wholesale activity) .
  • Liquidity remained solid at ~$272M (cash and equivalents of $171.8M plus undrawn $100M revolver); Delta extended the revolver to remain available through September 20, 2026, strengthening flexibility .
  • Strategic catalysts: $10M share repurchase authorization, definitive agreement with Gogo to install Galileo HDX satellite Wi‑Fi beginning in summer 2025, and growing Delta-enabled corporate traction (corporate membership fund sales +13% YoY, ~40% of total membership fund sales) .

What Went Well and What Went Wrong

What Went Well

  • Margin and profitability trajectory: Adjusted Contribution rose to $22.4M and margin to 12.6% (+12 pp YoY); Adjusted EBITDA loss improved 51% YoY, reflecting more profitable flying and higher Utility .
  • Operational reliability: Completion rate 97% and on-time performance 85% (expected to increase as fleet modernizes); Utility up 23% YoY to 38.1 hours .
  • Strategic momentum with Delta and corporate: Corporate membership fund sales +13% YoY; ~40% of total membership fund sales, plus hybrid travel options for Delta One customers to five European destinations, expanding the addressable market .
    • “We remain focused on improving profitability and expanding margins by modernizing our fleet, leveraging our first-of-its-kind partnership with Delta, and delivering premium solutions for every customer journey.” — CEO George Mattson .

What Went Wrong

  • Top-line pressure: GAAP revenue fell 10% YoY to $177.5M; mix shifted toward off‑fleet on‑demand charter (booked net) vs programmatic membership flying, weighing on GAAP revenue recognition .
  • Persistent GAAP loss: Net loss of $99.3M; diluted EPS -$0.14; non‑cash right‑of‑use asset impairment of ~$20.2M elevated GAAP loss .
  • Demand/engagement metrics: Active Users declined 40% YoY; On‑Time Performance slipped YoY (85% vs 90%) amid winter weather and Citation X availability early in quarter (improved into March/April) .

Financial Results

Summary P&L and Profitability (quarterly)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$193.9 $204.8 $177.5
Gross Margin (%)7.5% 7.6% -0.6%
Adjusted Contribution ($USD Millions)$28.8 $39.6 $22.4
Adjusted Contribution Margin (%)14.8% 19.3% 12.6%
Adjusted EBITDA ($USD Millions)-$20.0 -$11.3 -$24.2
Net Loss ($USD Millions)-$57.7 -$87.5 -$99.3
Diluted EPS ($)-$0.08 -$0.13 -$0.14

Revenue Mix (quarterly)

Revenue ($USD Millions)Q3 2024Q4 2024Q1 2025
Membership$13.23 $11.48 $9.19
Flight$155.36 $163.90 $147.57
Aircraft Management$1.41 $2.15 — (not reported)
Other$23.91 $27.29 $20.77
Total$193.90 $204.82 $177.53

KPIs and Operating Metrics (quarterly)

Note: Q1 2025 Completion Rate and D‑60 include wholesale activity; prior periods used different presentation .

KPIQ3 2024Q4 2024Q1 2025
Total Gross Bookings ($USD Millions)$255.1 $313.9 $241.9
Private Jet Gross Bookings ($USD Millions)$204.3 $212.4 $205.3
Live Flight Legs12,776 12,731 10,895
Private Jet Gross Bookings per Live Flight Leg ($)$15,990 $16,683 $18,843
Utility (avg monthly revenue hours per aircraft)—41.1 38.1
Completion Rate (%)98% 98% 97%
On‑Time Performance (D‑60, %)82% 80% 85%
Active Users8,215 7,286 6,166

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDA (company-level)FY 2025Management expected positive Adjusted EBITDA (communicated Q3 2024) No explicit update in Q1 press release; transformation progressing Maintained (implicit)
Revolving Credit Facility AvailabilityOngoing$100M revolver undrawn (Delta) Extended to remain available through Sep 20, 2026 Raised (term extension)
LiquidityQ1 2025N/A~$272M liquidity (cash ~$171.8M + $100M undrawn revolver) N/A
Share RepurchaseOngoingN/AUp to $10M authorized open-market program (approved Apr 30, 2025) New
Fleet Connectivity2025LOI with Gogo for satellite Wi‑Fi (Q3 2024) Definitive agreement; installations to begin summer 2025 Firmed timeline

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript found; themes reflect Q4 2024 call and Q1 2025 Investor Letter/May 2025 conference remarks.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Fleet modernization (Phenom 300, Challenger 300/350)Strategy announced; GrandView deal; Credit support from Delta Transition plans detailed; expected to drive unit economics and reliability 3 Challengers introduced; fleet mix progressing; installations and repaint/interior investments accelerated Improving execution
Delta partnership & hybrid travelHighlighted strategic JV nature; corporate traction Delta credit support on financing; corporate blocks strength Corporate fund sales +13% YoY; ~40% of membership funds; hybrid travel pilot for five EU cities Strengthening
Operational reliability (completion, OTP)Transparency commitment; 98% completion, OTP subdued (82%) 98% completion; 80% OTP; brand days tracked 97% completion; 85% OTP; improved in March/April Improving QoQ
Pricing/technology initiatives——New pricing tech; plan to display historical average pricing on website; aim to shift demand and boost utilization New initiatives
Liquidity & capital structureNew BofA revolving facility; expected $115M cash add Liquidity + reserves $236M; facility closing targeted Liquidity ~$272M; Delta revolver extended to 2026 Stable to improving
Connectivity & productLOI for Gogo Galileo HDX Continued focus on standardized interiors; customer experience Definitive Gogo agreement, installations start summer 2025 Advancing

Management Commentary

  • “With solid liquidity, an improving path toward sustainable profitability, and other achievements that reflect the strength of our business, our Board of Directors has authorized a $10 million open market share repurchase program...” — CEO George Mattson .
  • “Utility – average monthly revenue hours per aircraft – in the first quarter was just over 38 hours, a 23% increase year over year.” — Investor Letter .
  • “Corporate membership fund sales increased 13 percent year over year and represented nearly 40 percent of total membership fund sales.” — Q1 press release .
  • On hybrid travel with Delta: “We put in place a pilot... five of the largest leisure destinations in Europe... thousands and thousands of searches and inquiries...” — May 15, 2025 conference .

Q&A Highlights

  • Delta hybrid travel pilot: Management outlined the Athens/Barcelona/Naples/Nice/Rome pilot for Delta One customers and economics of adding private legs; strong inquiry volume indicates re‑education of travel choices across private/commercial modalities .
  • Corporate traction and addressable market: Delta’s ecosystem (45k+ corporate customers; millions of SkyMiles members) creates large funnel; New Corporate segment now ~40% of business .
  • Operating excellence: Completion ~98–99% daily target; D‑60 high‑80s to 90%; brand day tracking; Ops Center modeled after Delta’s OCC in Atlanta .
  • Fleet strategy rationale: Move from four jet types to two best‑in‑class platforms to improve unit economics, reliability, and customer positioning; sourcing via secondary market to accelerate timeline and economics .
  • Booking curve and customer promise: Guaranteed availability 48 hours out; most bookings within 1–4 weeks; dynamic daily scheduling complexity acknowledged .

Estimates Context

  • Wall Street consensus for Q1 2025 EPS and revenue was unavailable via S&P Global; GetEstimates returned no consensus values for EPS or revenue (only actuals present). Values retrieved from S&P Global.*
  • Implication: With limited Street coverage, estimate comparisons are not determinative; investor focus should center on sequential margin trajectory, Utility, and execution of fleet transition.

Key Takeaways for Investors

  • Margin rebuild overshadowed by GAAP loss: Strong YoY improvements in Adjusted Contribution and Adjusted EBITDA, but GAAP net loss and EPS remain a drag; watch non‑cash impairments and OpEx mix .
  • Operational KPIs improving: Utility +23% YoY and D‑60 improved sequentially; completion remains high; continued fleet modernization should further enhance reliability and cost per hour .
  • Demand mix shift: Off‑fleet charter growth supports bookings but reduces GAAP revenue vs programmatic flying; pricing technology and transparency aim to optimize utilization and value .
  • Strategic catalysts: $10M buyback, Delta revolver extension to 2026, Gogo satellite Wi‑Fi deployment, and corporate growth through Delta sales channel; each supports narrative and potential stock sentiment .
  • Liquidity adequate during transition: ~$272M liquidity provides runway; monitor cash burn vs capex/lease commitments and pace of asset sales/acquisitions .
  • Watch Active Users trajectory: Engagement metrics declined YoY; success of pricing, product upgrades, and Delta hybrid offerings will be key to reversing this trend .
  • FY 2025 profitability goal: Prior guidance targeted positive Adjusted EBITDA for FY 2025; progress depends on fleet transition execution, corporate traction, and operational efficiencies .

Footnote: *Values retrieved from S&P Global.