10-Q: flyExclusive Reports Q1 2025 Results: Revenue Up, Losses Narrow Amid Fleet Modernization

Sentiment:

Quarterly Report 13 May 2025 4:03 PM

flyExclusive saw a revenue increase and a reduction in net losses for the first quarter of 2025, driven by fractional ownership growth and fleet modernization efforts.

Capital raiseThe company entered into a Securities Purchase Agreement with an individual investor to issue 2,000,000 shares of Class A Common Stock for $5.8 million.The company cancelled the EGA Sponsor Note in exchange for 4,227 shares of the Company's Series B Preferred Stock and warrants to purchase up to 1,268,100 shares of the Company's Class A common stock.

Better than expectedRevenue increased by 10.2% year-over-year.Net loss decreased significantly compared to the same period last year.Adjusted EBITDA improved year-over-year.

Summary

flyExclusive, Inc. reported its financial results for the first quarter ended March 31, 2025.
Revenue increased by 10.2% to $88.1 million, compared to $79.9 million in the same period last year.
The increase in revenue was primarily driven by growth in fractional ownership and aircraft management services.
Net loss decreased to $23.0 million, compared to $33.0 million in the first quarter of 2024.
The company is undergoing fleet modernization, replacing older aircraft with newer models.
Adjusted EBITDA was $(6.4) million compared to $(19.4) million in the prior year.
The company had $14.7 million in cash and cash equivalents as of March 31, 2025.
The company is planning a merger with Jet.AI, Inc.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While the company is still operating at a loss, there are improvements in revenue growth and loss reduction. The proposed merger with Jet.AI adds uncertainty but also potential upside.

Positives

Revenue increased by 10.2% year-over-year.
Net loss decreased significantly compared to the same period last year.
Fractional ownership revenue more than doubled, indicating strong growth in that segment.
Aircraft management services revenue increased due to the Volato Agreement.
Adjusted EBITDA improved year-over-year.
The company is actively modernizing its fleet.

Negatives

The company still reported a net loss of $23.0 million for the quarter.
The company has a working capital deficit of $185.4 million as of March 31, 2025.
The company has an accumulated deficit of $301.0 million as of March 31, 2025.

Risks

The proposed merger with Jet.AI may not be completed.
The company is subject to economic conditions that could affect demand for private aviation services.
The company faces competition from other private aviation operators.
Pilot availability and attrition could affect operations.
The termination of the Wheels Up agreement could have an adverse effect on the business.
The company may not be able to secure refinancing as needed to meet its obligations.

Future Outlook

The company expects revenue to increase over time as a result of adding aircraft to its fleet and forecasted membership growth. The company expects the fleet modernization to continue through the fiscal 2025 and does not anticipate a material decline to revenue as it will replace sold models with the newer aircraft which offer increased availability and operating efficiency.

Industry Context

The private aviation industry is competitive, with factors such as price, reliability, safety, and aircraft availability influencing market share. flyExclusive is focused on vertical integration and capital-efficient growth to compete effectively.

Comparison to Industry Standards

It is difficult to compare flyExclusive's results directly to industry standards without specific competitor data.
However, companies like NetJets, Flexjet, and Wheels Up (prior to its financial difficulties) are key players in the fractional and membership-based private aviation market.
Key metrics to compare would be revenue growth, fleet utilization (hours per aircraft), and customer acquisition costs.
Given the limited information, it's challenging to assess flyExclusive's performance against global benchmarks.

Legal Proceedings

flyExclusive is involved in a legal dispute with Wheels Up Partners, LLC, with ongoing settlement discussions.

Related Party Transactions

The Company regularly enters into related party transactions with entities associated with, and under control of, the majority owner of the Company.
During the three months ended March 31, 2025 and 2024, the Company purchased a total of $ 366 and $ 461 in fuel from subsidiaries of LGMV, respectively.
During the three months ended March 31, 2025 and 2024, the Company incurred rent expense to subsidiaries of LGMV totaling $ 1,034 and $ 1,029 , respectively.
During the three months ended March 31, 2025 and 2024, the Company recorded $ 3,896 and $ 5,251 in charter flight revenue from owners of subsidiaries and lessor VIEs, respectively.
In December 2023, the Company issued to the Sponsor $ 15,871 in principal amount of senior secured notes due December 2024.
On January 26, 2024 (the Effective Date), FlyExclusive Jet Share, LLC (the Borrower), a wholly-owned subsidiary of LGM, which is the operating company of flyExclusive together with LGM as guarantors; in such capacity, the Parent Guarantors) entered into a Senior Secured Note (the Note) with ETG FE LLC (a related party of the Company through its affiliation with the EGA Sponsor).

Stakeholder Impact

Shareholders: Dilution from potential merger and future equity issuances.
Employees: Potential changes due to merger and ongoing operational improvements.
Customers: Access to newer aircraft through fleet modernization.
Creditors: Ongoing debt management and refinancing efforts.

Next Steps

Complete the proposed merger with Jet.AI.
Continue fleet modernization efforts.
Focus on membership growth and customer retention.
Manage debt and liquidity effectively.

Key Dates

Date	Description
March 27, 2020	CARES Act signed into law.
June 30, 2023	flyExclusive served Wheels Up a Notice of Termination of the parties Fleet Guaranteed Revenue Program Agreement.
December 27, 2023	EG Acquisition Corp. and LGM Enterprises, LLC consummated a business combination (the Merger).
March 4, 2024	Company entered into a securities purchase agreement with EnTrust Emerald (Cayman) LP to issue Series A Preferred Stock and warrants.
August 8, 2024	Company entered into a Securities Purchase Agreement with EnTrust Emerald (Cayman) LP and the EGA Sponsor to issue Series B Convertible Preferred Stock and warrants.
August 14, 2024	Company issued remaining shares of Series B Preferred Stock and warrants to EG Sponsor.
September 2, 2024	Company entered into an Aircraft Management Services Agreement with Volato Group, Inc.
March 7, 2025	Company entered into a Securities Purchase Agreement with an individual investor to issue 2,000,000 shares of Class A Common Stock.
March 21, 2025	Company and EGA Sponsor entered into a Securities Purchase Agreement whereby they cancelled the EGA Sponsor Note in exchange for 4,227 shares of the Company's Series B Preferred Stock and warrants.
March 31, 2025	End of the reporting period for the Q1 2025 results.
May 6, 2025	flyExclusive, FlyX Merger Sub, Inc., Jet.AI Inc. and Jet.AI SpinCo, Inc. entered into an Amended and Restated Agreement and Plan of Merger and Reorganization.

Keywords

flyExclusive, financial results, Q1 2025, revenue, net loss, fleet modernization, fractional ownership, aircraft management, Jet.AI, merger, private aviation

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