Friday, June 5, 2026

(NYSE: SRFM) is Lighting Up Our Radar This Morning After Q1 Guidance Beat

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Spotlight: (SRFM) Beat Its Q1 EBITDA Guidance and Became the First Part 135 Operator Inside the FAA's Advanced Aviation Program.

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Here’s Why It Is Topping My Watchlist Today…

June 5, 2026

(NYSE: SRFM) is Lighting Up Our Radar This Morning After Q1 Guidance Beat

Dear Reader,

With less than 10 minutes until the opening bell, one NYSE-listed company continues to stand out on our screen.

Last month, Surf Air Mobility (NYSE: SRFM) reported its first quarter 2026 financial results and outperformed its own Adjusted EBITDA guidance. Revenue came in at $25.6M, at the high end of the guidance range and up 9% year over year. The Adjusted EBITDA loss narrowed to $12.3M, better than the guided range of a $15.5 to $13.5M loss. And the company improved its full year 2026 Adjusted EBITDA loss guidance by approximately 40%, from a prior range of $50 to $40M loss to a new range of $30 to $25M loss, while reaffirming revenue guidance of $128 to $138M, a 20% to 30% growth over 2025.

The standout was the private charter business.

Surf On Demand revenue jumped 77% year over year to $10.1M, its highest revenue and highest gross margin quarter since inception, with revenue per flight up 38%. That is the BrokerOS and Powered by Surf On Demand engine starting to show up directly in the numbers.

Then came the milestone that caught our attention.

On May 13, Surf Air Mobility (NYSE: SRFM) joined the FAA-sponsored Center for Advanced Aviation Technologies (CAAT) Consortium, becoming the first Part 135 passenger operator to do so. The CAAT is a national initiative between the Texas A&M University System and the Federal Aviation Administration, built to bring government, academia, and industry together to integrate electric aircraft, autonomous systems, and advanced aviation technology into the national airspace. Membership gives SRFM potential access to FAA-funded research programs, eligibility to respond to task orders reserved for consortium members, and a seat in the working groups shaping future solicitations.

And management is putting capital where the plan is. In April, SRFM raised $30M structured to limit dilution, with co-founders, officers, and directors acquiring roughly $5.3M shares alongside institutional level backers.

Deanna White, the company's CEO, put it plainly: “We are pleased with our first quarter Adjusted EBITDA results, which exceeded our expectations. The progress we’ve made across our business has positioned us to improve our annual 2026 Adjusted EBITDA guidance by 40% while maintaining our full year revenue guidance. The efficiencies gained within our core businesses in the first quarter are a clear indication of the value that SurfOS and our partnership with Palantir delivers.”

Zoom out, and the runway is enormous. The regional air mobility market is projected to expand to $75 to $115B globally by 2035, and the global eVTOL aircraft market is forecast to grow from over $5B in 2026 to more than $216B by 2035, an increase of more than 4,000%.

These are just some of the reasons why Surf Air Mobility (NYSE: SRFM) is back near the top of my radar... and why it will be topping my watchlist this week, ahead of Monday, June 8, when CEO Deanna White and CFO Oliver Reeves present at the Jefferies Innovative Aerospace Virtual Summit.

Keep reading to learn more about Surf Air Mobility (NYSE: SRFM).

The BETA ALIA in Surf Air livery. SRFM holds a firm order for 25 all-electric aircraft, with options for up to 75 more.

Surf Air Mobility Inc. (SRFM)

SRFM is a Los Angeles-based air mobility platform and one of the largest commuter airlines in the United States by scheduled departures. In the first quarter of 2026 alone, the company flew 65,376 scheduled passengers across 12,503 scheduled departures and 11,061 scheduled flight hours, while its Surf On Demand private charter arm completed 832 flights, all at a 96% controllable completion factor.

Beyond flight operations, SRFM is building the digital backbone of air mobility, an AI-enabled operating system designed to transform how the industry manages everything from scheduling to compliance to booking. And this platform, powered by Palantir Technologies' (NASDAQ: PLTR) Foundry and AIP, is not just for internal use. The company is commercializing its SurfOS software across the broader market, with BrokerOS commercially live since December 2025 and 29 brokers already enrolled.

Latest Development: A Q1 Beat, a First-of-Its-Kind FAA Seat, and Real Operating Proof

Financial Proof, Ahead of Plan: First quarter revenue of $25.6M landed at the high end of guidance, the Adjusted EBITDA loss of $12.3M beat the guided range, and full year 2026 Adjusted EBITDA guidance improved roughly 40%. The On Demand charter business delivered its best quarter ever, up 77% year over year.

Government and Safety Validation: SRFM became the first Part 135 passenger operator inside the FAA's CAAT Consortium. In the same quarter, its airline operations completed a Safety Management System a full year ahead of the FAA's May 2027 mandate, and Surf On Demand earned ARGUS Certified Charter Broker status.

The Electrification Catalyst Is Real: Through a strategic partnership with BETA Technologies, SRFM holds a firm order for 25 all-electric ALIA aircraft with options for up to 75 more, and it eliminated up to $100M in planned capital expenditure from its prior electrification program along the way. The plan starts in Hawaii, where Mokulele already operates the largest commuter airline in the state.

On the FAA membership, CEO Deanna White was direct: “Surf Air Mobility is building an intelligent operating system for air mobility, and the CAAT gives us a direct connection to the FAA’s research and development priorities that will shape the future of aviation.”

The company also keeps shipping new SurfOS modules at pace, including recently added fuel optimization and crew reserve tools built to take cost directly out of airline operations. In May it released two videos showing SurfOS running daily operations across Southern Airways, Mokulele, and Surf On Demand.

SurfOS, powered by Palantir. BrokerOS is commercially live, and OperatorOS is scheduled to launch in the second half of 2026.

See the full first quarter 2026 results here.

Consider Starting Your Own Research On (SRFM)...

[ Company Website ] | [ Corporate Presentation ]

7 Reasons Why Surf Air Mobility Inc. (NYSE: SRFM) is Back at the Top of My Watchlist This Morning—Friday, June 5, 2026…

1. Just Beat Guidance and Raised Its EBITDA Outlook: First quarter Adjusted EBITDA loss of $12.3M came in better than the guided $15.5 to $13.5M range, and full year 2026 Adjusted EBITDA guidance improved by roughly 40% to a loss of $30 to $25M, with revenue guidance reaffirmed at $128 to $138M.

2. The Charter Engine Is Compounding: Surf On Demand private charter revenue grew 77% year over year to $10.1M, its highest revenue and gross margin quarter ever, with revenue per flight up 38%. That is BrokerOS showing up in the financials.

3. First Part 135 Operator Inside the FAA's Advanced Aviation Program: SRFM joined the FAA-sponsored CAAT Consortium on May 13, gaining potential access to FAA-funded research, task order eligibility, and a seat in the working groups shaping the future of the national airspace.

4. SurfOS Is Live and Producing Real Numbers: BrokerOS launched commercially in December 2025. Early internal results: 32% more bookings for top brokers, 57% faster quote-to-close, and 40% more payments processed on-platform in Q1 2026 versus Q1 2025. OperatorOS is scheduled for commercial launch in the second half of 2026.

5. In-siders Are Accumulating Alongside Institutions: In April, co-founders, officers, and directors purchased roughly $5.3M shares as part of a $30M raise structured to limit dilution, $15M of it in non-dilutive aircraft-backed credit.

6. The Palantir Moat Is Structural: SRFM holds an exclusive five-year agreement with Palantir Technologies for the configuration and sale of Foundry and AIP-powered software to the Part 135 regional aviation market. Palantir is one of the largest non-in-sider shareholders, and Shawn Pelsinger, the former Palantir executive who helped architect Skywise with Airbus, joined the board in October 2025 and was just elected Chairman, effective July 24, 2026.

7. An Electrification Catalyst With a Massive Market Behind It: The BETA partnership puts up to 100 all-electric aircraft within reach and removed up to $100M in planned capex. Meanwhile the regional air mobility market is projected to reach $75 to $115B by 2035. Coverage is building too, with HC Wainwright’s Bullish rating and Stonegate noting SRFM has roughly 1.3x forward EV/Revenue versus a peer average near 2.4x.

Consider Starting Your Own Research On (SRFM)...

[ Company Website ] | [ Corporate Presentation ]

The first quarter results, layered on top of the FAA consortium membership and the electrification roadmap, tie the whole story together. Revenue at the high end of guidance. An Adjusted EBITDA beat. Full year profitability guidance improved by roughly 40%. A charter business growing 77% year over year. And the first Part 135 passenger operator seated inside an FAA advanced aviation program.

Add in the exclusive Palantir partnership powering SurfOS, a former Palantir executive stepping up as Chairman of the Board, up to 100 all-electric BETA aircraft on the roadmap, and fresh coverage from HC Wainwright and Stonegate, and it becomes clear why this company keeps coming back into focus.

Zooming out, the Advanced Air Mobility backdrop keeps expanding. Forecasts put the regional air mobility market at $75 to $115B by 2035 and the eVTOL market at roughly $216B by the same year.

We have all eyes on SRFM this morning—Friday, June 5, 2026.

Keep a lookout for more from me ahead of Monday's Jefferies summit.

And as always, please remember to do your own research.

Sincerely,

Alex Ramsay

Co-Founder / Managing Editor

Krypton Street Newsletter

 

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The Moat That Grows With Every User

The more people use something, the more additional people will want to use it too...
 
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The Moat That Grows With Every User

By Joel Litman, chief investment officer, Altimetry


The online auction world used to run on trust and crossed fingers...

Buying something on eBay (EBAY) at the turn of the century meant mailing a check or money order to a stranger.

The seller wouldn't ship a thing until the payment cleared – often days, sometimes weeks later. If anything went wrong, there was no safety net.

And the system worked fine... until it didn't.

A small band of engineers and entrepreneurs saw the flaw. They were determined to create a solution in the form of digital payments. Most early contenders missed the mark, though...

Offerings like "DigiCash" and "CyberCash" promised futuristic platforms, complete with encryption layers and experimental currencies.

But as much as users wanted reliability and speed, they didn't like change. Folks didn't want to abandon payment methods like credit cards.

So while the rest of corporate America tried to reinvent the wheel... one startup found a better way.

Its platform let folks send money to anyone with an account. All you needed was an e-mail address. The money could come from your bank account or credit card.

Instead of creating a new kind of money, this startup figured out how to move the old kind... fast. And it was willing to pay people to do it.

New users got $10 just for signing up and linking a bank account. Another $10 went to anyone who referred a friend.

The campaign spread like wildfire. By March 2000, the startup was handing out $10 million a month just to get people in the door.

It was a genius marketing gimmick. But the company didn't stop there...

While other platforms were fighting to find an audience, PayPal (PYPL) had found eBay... 

Many of eBay's sellers were part-time hustlers or weekend entrepreneurs. These folks latched onto the idea of instant payment. And they passed that preference straight to their buyers.

Every successful auction became a mini sales pitch. Sellers encouraged customers to use PayPal. Buyers signed up to get their goods faster. Each referral spun the wheel again.

Between January and March 2000, PayPal's user base exploded. Growth hit 7% to 10% per day.

Less than a year earlier, eBay had paid $86 billion for its own payment solution, Billpoint. But users weren't interested in eBay's in-house payment system.

PayPal had the scale. It had the trust. And once folks started using it, they didn't want to switch.

Talk about buyer's remorse.


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PayPal went public in February 2002. It was turning a profit within months. And that summer, eBay threw in the towel... paying $1.5 billion to buy the very company that had outcompeted its in-house product.

By rewriting the payment rules, PayPal became the default trust layer for online transactions.

It built a "network effect" that's still hard to disrupt. The more people use PayPal, the bigger it gets... and the more folks have to keep using it.

The network effect has created some of today's biggest companies... 

Meta Platforms (META) is a classic example... it owns social networks like Facebook and Instagram. The more popular these platforms are, the more people want to join them.

Likewise, credit-card network operators Visa (V) and Mastercard (MA) still process most of the world's payments because almost every store accepts their cards. The same logic applies: The more places the cards can be used, the more folks want to use their cards.

Even chipmaking titan Nvidia (NVDA) benefits from a network effect. The company's proprietary operating software, CUDA, is the industry standard for developing AI models amidst the ongoing AI boom.

The more developers build on CUDA, the richer its ecosystem of tools and libraries becomes... pulling even more developers and enterprise customers in.

And since CUDA only runs on Nvidia's chips... more CUDA users translates to more chip sales for Nvidia.

Businesses with sustainable network effects tend to last for a long time... and their stocks tend to reflect their respective networks' popularity. If you can find a business in the early stages of developing a network effect, it has a high chance of beating the market.

Regards,

Joel Litman
June 5, 2026