Executive Summary

Q3 2025 revenue declined 4% YoY to $185.5M as the exit of Connect and Pay‑As‑You‑Fly weighed on flight revenue, while Total Gross Bookings rose 5% YoY on 14% growth in on‑demand charter; margins were pressured by fleet transition inefficiencies and $8.7M of non‑recurring modernization costs .
Management raised its productivity/cost‑saving target to ~$70M+ annual run‑rate (from $50M), with benefits beginning 1Q26 and full run‑rate by 3Q26; the CEO reiterated expectations for Q4 2025 to be the best since the transformation and targeted positive Adjusted EBITDAR in 2026 .
Corporate momentum via Delta accelerated: record $62M corporate Membership Fund sales (+15%+ YoY) and mix rose to 49%; Signature Membership launched 9/3 and comprised ~20% of block sales in Sep/Oct with ~two‑thirds conversions .
Liquidity was ~$225M at quarter‑end ($125M cash plus $100M undrawn revolver); company issued ~$50M via ATM to fund fleet modernization and sold three non‑core businesses for ~$21.5M net proceeds before transaction costs .

What Went Well and What Went Wrong

What Went Well

Operational reliability improved to the highest levels since transformation: Completion Rate 99% (+1 pp) and On‑Time Performance (D‑60) 89% (+4 pp) in Q3; 24 “brand days” with no cancellations .
Demand/mix momentum: Total Gross Bookings +5% YoY; on‑demand charter +14% YoY; corporate Membership Fund sales a quarterly record ($62M, +15%+ YoY) and mix rose to 49% .
Strategic progress and early Signature traction: “Signature membership sales … off to a very strong start…expect accelerating growth…We expect our fourth quarter financial results to be the best since starting our transformation two years ago,” CEO George Mattson said .

What Went Wrong

Profitability pressure from transition: Adjusted Contribution Margin fell to 12.7% (from 14.8%) with ~4 pts headwind from transitory fleet migration inefficiencies; gross loss of $1.3M included $8.7M of non‑recurring fleet modernization expense .
Revenue down 4% YoY to $185.5M as discontinued Connect and Pay‑As‑You‑Fly offset growth in core/corporate members; Membership revenue fell sharply YoY (–52%) given program changes .
Higher financing burden: interest expense rose to $23.5M in Q3 (from $16.0M), widening net loss to $83.7M (vs. $57.7M) despite operational gains .

Financial Results

Income statement snapshot (GAAP and key non‑GAAP)

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	$193.9	$189.6	$185.5
Gross Profit (Loss) ($M)	$14.6	$2.2	$(1.3)
Gross Margin (%)	7.5%	1.2%	(0.7)%
Adjusted Contribution ($M)	$28.8	$23.1	$23.5
Adjusted Contribution Margin (%)	14.8%	12.2%	12.7%
Net Loss ($M)	$(57.7)	$(82.3)	$(83.7)
Diluted EPS ($)	$(0.08)	$(0.12)	$(0.12)
Adjusted EBITDA ($M)	$(20.0)	$(29.0)	$(23.2)
Adjusted EBITDAR ($M)	$(11.6)	$(25.1)	$(19.7)

Key drivers:

YoY revenue decline stemmed from discontinuing Connect and Pay‑As‑You‑Fly, partially offset by growth in core/corporate; margins were impacted by fleet migration inefficiencies (~4 pts) and $8.7M of non‑recurring modernization costs .
Interest expense increased materially, pressuring net loss despite operational improvements .

Revenue mix (Supplemental Revenue Information)

Revenue ($M)	Q3 2024	Q2 2025	Q3 2025
Membership	$13.2	$7.5	$6.3
Flight	$155.4	$158.3	$155.2
Other	$25.3	$23.8	$24.0
Total	$193.9	$189.6	$185.5

KPIs and operating metrics

KPI	Q3 2024	Q3 2025
Total Gross Bookings ($M)	$255.1	$266.6
Private Jet Gross Bookings ($M)	$204.3	$209.7
Live Flight Legs	12,776	11,593
Private Jet Gross Bookings per Live Flight Leg ($)	$15,990	$18,088
Utility (hours)	38.1	43.1
Completion Rate	98%	99%
On‑Time Performance (D‑60)	85%	89%

Trajectory across 2025

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$177.5	$189.6	$185.5
Total Gross Bookings ($M)	$241.9	$261.9	$266.6

Liquidity and balance sheet notes:

Quarter‑end liquidity ~$225M: $125M cash and cash equivalents, plus $100M undrawn revolver; raised ~$50M via ATM to fund modernization .
Sold three non‑core services businesses for $21.5M net proceeds before transaction costs; divestiture aligns with simplification strategy .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Annual cash cost savings (run‑rate)	Run‑rate by 3Q26; begin 1Q26	~$50M run‑rate; benefits back‑half 2026	~$70M+ run‑rate; benefits begin 1Q26; full by 3Q26	Raised
Adjusted EBITDAR	FY 2026	Not provided	Target positive in 2026	New objective
Q4 2025 performance	Q4 2025	Not provided	“Best since starting our transformation” expected	New qualitative outlook
Fleet modernization completion	Through YE 2026	Transition largely complete by YE 2026 (framework since Oct‑2024)	Reiterated: ~50% premium jets by YE 2025; ≥80% by YE 2026	Maintained/updated milestones

Earnings Call Themes & Trends

Note: A Q3 2025 earnings call transcript was not available in the document set; themes below synthesize management’s Q3 investor letter and prior quarterly materials.

Topic	Previous Mentions (Q2 2025 and Q1 2025)	Current Period (Q3 2025)	Trend
Fleet modernization (Phenom/Challenger)	Premium jets ~20% of controlled fleet (Q2); retirement of legacy types underway	~30% at Q3‑end; ~50% by YE25; ≥80% by YE26	Accelerating scale
Delta partnership/corporate sales	Corporate fund sales +25% YoY; 45% mix (Q2). Q1: +13% YoY; ~40% mix	Record $62M; >15% YoY; 49% mix	Strengthening
Operational reliability	Q1: 97% completion, 85% OTP; Q2: 98% completion, 88% OTP	99% completion; 89% OTP; 24 “brand days”	Improving
Cost/productivity actions	~$50M targeted (Q2)	Raised to ~$70M+ run‑rate; 1Q26 start, full 3Q26	Raised
Connectivity (Gogo)	Agreement; installs to begin summer 2025 (Q1)	Phenom certification done; first Phenom with satellite Wi‑Fi by EOY; Challenger FAA cert expected EOY → installs early 2026	Progressing
Membership strategy	Pricing tech; transparency initiatives (Q1)	Signature membership launched 9/3; ~20% of Sep/Oct block sales; 100+ members by 11/5; ~2/3 conversions	Early traction
Portfolio simplification	—	Sold three non‑core services businesses for $21.5M net proceeds before costs	Streamlining

Management Commentary

“We expect our fourth quarter financial results to be the best since starting our transformation two years ago…on track to be Adjusted EBITDAR positive for 2026…” — CEO George Mattson .
“Signature membership sales of our new fleet offerings are off to a very strong start…accelerating growth of corporate and individual Signature membership sales in the fourth quarter and coming year.” — CEO .
“The third quarter saw $62 million of corporate Membership Fund sales – a quarterly all‑time high…Corporate membership fund mix was 49% for the quarter…” .
“We are in the process of implementing initiatives now expected to drive approximately $70 million or more in annual cash cost savings…completed by the first quarter 2026…full run‑rate impact by the third quarter 2026.” .

Q&A Highlights

A Q3 2025 earnings call transcript was not available in the document catalog; therefore, Q&A highlights and any on‑call guidance clarifications are unavailable from primary sources [ListDocuments shows no earnings‑call‑transcript; 2025 set].

Estimates Context

S&P Global consensus estimates for Q3 2025 (EPS and revenue) were unavailable in the dataset; only actuals were returned. As a result, we cannot assess beat/miss versus Wall Street consensus for Q3 2025 using S&P Global. Values retrieved from S&P Global.

Key Takeaways for Investors

Transition friction but improving mix: Revenue –4% YoY contrasts with +5% YoY Gross Bookings, signaling healthier demand/mix (on‑demand charter +14% YoY) even as program exits reduce reported revenue .
Temporary margin headwinds: ~4‑pt Adjusted Contribution Margin headwind from fleet migration and $8.7M one‑time modernization costs should abate as premium fleet scales and complexity falls .
Structural cost program raised: Run‑rate savings target lifted to ~$70M+ with earlier benefit timing (beginning 1Q26), supporting 2026 positive Adjusted EBITDAR target .
Strategic flywheel with Delta: Record corporate fund sales ($62M) and rising mix (49%) plus cross‑sell into on‑demand charter reinforce a durable enterprise channel .
Signature Membership traction: ~20% of Sep/Oct block sales and strong conversions underpin premium fleet monetization and brand repositioning into higher‑value segments .
Liquidity intact through transition: ~$225M liquidity at Q3‑end (including $100M undrawn revolver), $50M ATM issuance, and non‑core divestitures bolster the balance sheet while modernization completes .
Near‑term catalyst: Management’s call for Q4 2025 to be the best since transformation, plus visible cost‑savings milestones and Wi‑Fi upgrades entering service, are key narrative drivers into 2026 .

Additional Relevant Press Releases (Q3 2025 context)

Wheels Up to release Q3 results on Nov. 5, 2025 .
AtYourJet partnership to enhance in‑flight dining (Signature Members complimentary) .
Signature Membership launch and program details (9/3/25) .
Divestiture of three non‑core services businesses (Aug. 20, 2025) ; 8‑K later disclosed $21.5M net proceeds before transaction costs .

Cross‑reference notes: Press release on divestitures cited “~$20M” proceeds, while the 8‑K reports $21.5M net proceeds before transaction‑related expenses; we anchor to the 8‑K for precision .

Citations:

Q3 2025 8‑K earnings materials and investor letter .
Q3 2025 press release .
Q2 2025 8‑K/press release .
Q1 2025 8‑K/press release .
Other Q3‑related press releases .

Wheels Up Experience Inc. (UP)·Q3 2025 Earnings Summary