Core Insights - Wheels Up Experience Inc. reported a focus on improving financial performance and customer experience through strategic realignment of its product, fleet, and operations, particularly in collaboration with Delta Air Lines [4][6][8] Financial Performance - Revenue for Q2 2025 was $189.6 million, a decrease of 3% year over year [7][9] - Total Gross Bookings for Q2 2025 were $261.9 million, consistent with the previous year [6][7] - Private Jet Gross Bookings decreased by 4% to $208.3 million compared to Q2 2024 [6][7] - Gross profit improved by $13.2 million year over year, reaching $2.2 million [7][8] - Adjusted Contribution was $23.1 million, with an Adjusted Contribution Margin of 12.2%, up 4 percentage points year over year [7][9] Operational Metrics - Live Flight Legs decreased by 7% to 11,971 in Q2 2025 [6][9] - Private Jet Gross Bookings per Live Flight Leg increased by 3% to $17,403 [6][9] - Utility increased by 10% to 41.1 hours [6][9] - Completion Rate remained stable at 98% [6][9] - On-Time Performance decreased to 88% from 91% in the previous year [6][9] Strategic Initiatives - The company is modernizing its fleet, with premium jets comprising approximately 20% of the controlled fleet [8] - Plans to add three Challenger 300 aircraft into revenue service in Q3 2025 [8] - Sold or completed lease returns on 31 legacy aircraft in the first half of 2025 [8] - Corporate membership fund sales exceeded expectations, increasing over 25% year over year [8] - Initiatives are expected to drive approximately $50 million in annual cash cost savings through efficiency and productivity improvements [8] Cash Flow and Balance Sheet - Net cash used in operating activities was $110.8 million for the six months ended June 30, 2025 [22] - Cash and cash equivalents at the end of the period were $107 million, down from $216.4 million [21][22] - Total assets decreased to $1.005 billion from $1.158 billion [21][22]

Group 1 - Wheels Up Experience Inc. will release its second quarter 2025 financial results on August 7, 2025 [1] - Earnings materials will be accessible on the Wheels Up investor relations website [1] Group 2 - Wheels Up is a leading provider of on-demand private aviation in the U.S. with a diverse fleet and a global network of safety-vetted charter operators [2] - The company offers charter and membership programs along with commercial travel benefits through a partnership with Delta Air Lines [2] - Wheels Up also provides freight, safety, security, and managed services to various clients, including individuals and government organizations [2] - The Wheels Up app and website facilitate easy searching, booking, and flying for members [2]

Market Overview - The current market is characterized by significant volatility, influenced by macroeconomic factors and geopolitical relations [1] - The stock market is either sliding or trading within a range, presenting potential opportunities for investors [1] Analyst Background - Gary Alexander has extensive experience in the technology sector, having worked on Wall Street and in Silicon Valley [1] - He has been involved with seed-round startups and has contributed to Seeking Alpha since 2017, gaining recognition in various web publications [1]

Core Insights - Wheels Up Experience Inc. announced key executive leadership appointments to align with its go-to-market growth strategy and evolving customer needs [1][2] - The leadership changes are part of the company's transformation journey, focusing on a customer-centric strategy and enhancing global aviation solutions [2][7] Leadership Changes - Dave Harvey will transition to a senior advisor role until August 2025 to ensure a smooth transition [3] - Mark Briffa, currently CEO of Air Partner, will become Chief Sales Officer, unifying global sales across Membership and Charter offerings [7] - Meaghan Wells has been appointed Chief Growth Officer, overseeing a new commercial strategy group to enhance data-driven decisions [7] - Kristen Lauria will expand her role to include customer experience, integrating brand, communications, and customer engagement [7] Company Overview - Wheels Up is a leading provider of on-demand private aviation in the U.S., with a diverse fleet and a global network of safety-vetted charter operators [4] - The company offers charter and membership programs through a strategic partnership with Delta Air Lines, along with freight, safety, security, and managed services [4]

Core Points - Wheels Up Experience Inc. has regained compliance with NYSE listing standards for minimum share price, reflecting a positive market-driven stock appreciation [1][2] - The company's current market capitalization is approximately $1 billion, indicating its scale and strength [2] - Wheels Up is focused on achieving sustainable profitability and maintaining a strong balance sheet while delivering high-quality experiences for customers [2] Company Overview - Wheels Up is a leading provider of on-demand private aviation in the U.S., featuring a diverse fleet and a global network of safety-vetted charter operators [3] - The company offers charter and membership programs, along with commercial travel benefits through a partnership with Delta Air Lines [3] - Additional services include freight, safety, security, and managed services for various clients, including individuals and government organizations [3]

Summary of Wheels Up Experience (UP) 2025 Conference Company Overview - **Company**: Wheels Up Experience (UP) - **Industry**: Private Aviation - **Position**: Fourth largest private aviation company, largest on-demand provider of private aviation [3][4] Core Insights and Arguments - **Market Dynamics**: Approximately 70% of private aviation aircraft are wholly owned, with fractional ownership being the dominant model [4] - **Investment and Strategy**: Delta Airlines made a significant investment in Wheels Up in September 2023, aiming to integrate commercial and private aviation offerings [5][6] - **Customer Accessibility**: Wheels Up aims to lower barriers for accessing private aviation, with a focus on customer-centric solutions [7][9] - **Membership Model**: Offers two main options: a membership program with guaranteed availability and a global charter service [9][10] - **International Travel**: The integration with Delta allows for seamless travel options, including hybrid solutions for international destinations [12][14] Operational Improvements - **Customer Base**: Wheels Up has around 10,000 customers, with 5,000 active members and charter customers [21] - **Booking Flexibility**: The booking curve is more flexible compared to commercial airlines, with guaranteed availability 48 hours in advance [25][26] - **Operational Excellence**: Focus on improving operational metrics, achieving a completion rate of approximately 98-99% and on-time performance in the high 80s to 90% [32][34] Fleet Modernization - **Fleet Transition**: Transitioning from a legacy fleet to a modernized fleet, replacing older aircraft with premium models like the Embraer Phenom 300 and Bombardier Challenger 350 [39][40] - **Market Positioning**: The fleet modernization aims to reposition Wheels Up from a value to a premium market offering [42][44] - **Cost Efficiency**: Acquiring mid-cycle aircraft to optimize costs and pass savings to customers [50][51] Financial Performance - **Contribution Margin Improvement**: Expanded contribution margin by 19 percentage points, reduced EBITDA loss significantly [53][71] - **Future Profitability**: The fleet transition is expected to drive significant profitability improvements [72] Customer Experience Focus - **Total Experience**: Emphasis on enhancing all aspects of customer interaction, from booking to in-flight experience [55][56] - **Pilot Sourcing**: Diverse sourcing of pilots from private aviation, general aviation, and retired commercial pilots [57][59] Long-term Vision - **Strategic Partnership with Delta**: Aiming for a seamless integration of services between Wheels Up and Delta, enhancing customer travel options [60][62] - **Market Transformation**: Positioning Wheels Up as a transformative player in private aviation, attracting new customers and shifting market dynamics [70][72] Additional Insights - **Technological Upgrades**: Implementation of satellite Wi-Fi on aircraft to enhance connectivity and productivity for passengers [66] - **Addressable Market**: Significant potential customer base identified within Delta's SkyMiles members, with a focus on corporate clients [22][24] This summary encapsulates the key points discussed during the Wheels Up Experience conference, highlighting the company's strategic direction, operational improvements, and market positioning within the private aviation industry.

Company Overview - Wheels Up Experience Inc. is a leading provider of on-demand private aviation in the U.S. with a large and diverse fleet [3] - The company has a global network of safety-vetted charter operators committed to safety and service [3] - Wheels Up offers charter and membership programs along with commercial travel benefits through a strategic partnership with Delta Air Lines [3] Upcoming Event - The CEO of Wheels Up, George Mattson, will present at the Bank of America Industrials, Transportation, and Airlines Key Leaders Conference in New York on May 15, 2025, at 8:45 am ET [1] - The event will be webcast live and accessible via the Investor Relations website [1][2] Services Offered - In addition to private aviation, Wheels Up provides freight, safety, security, and managed services to various clients, including individuals and government organizations [3] - The Wheels Up app and website allow members to easily search, book, and fly [3]

[PART I. Financial Information](index=5&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements for the first quarter of 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.09 billion while the total equity deficit widened to $(288.1) million in Q1 2025 Condensed Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $171,845 | $216,426 | | Total current assets | $298,807 | $332,069 | | Total assets | $1,090,982 | $1,158,011 | | **Liabilities & Equity** | | | | Deferred revenue, current | $758,231 | $749,432 | | Total current liabilities | $925,404 | $917,284 | | Total liabilities | $1,370,865 | $1,354,239 | | Total equity | $(288,106) | $(202,109) | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue decreased to $177.5 million, with the net loss slightly increasing to $99.3 million Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $177,530 | $197,101 | | Cost of revenue | $158,424 | $198,260 | | Loss from operations | $(80,766) | $(84,548) | | Net loss | $(99,313) | $(97,393) | | Net loss per share | $(0.14) | $(0.14) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $47.9 million, resulting in a net cash decrease of $39.4 million Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(47,924) | $(73,794) | | Net cash provided by investing activities | $16,113 | $19,603 | | Net cash used in financing activities | $(8,686) | $(24,314) | | **Net decrease in cash** | **$(39,405)** | **$(79,535)** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, impairment charges, and legal contingencies Disaggregation of Revenue (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Flights, net | $147,568 | $150,929 | | Memberships | $9,189 | $16,854 | | Other | $20,773 | $29,318 | | **Total Revenue** | **$177,530** | **$197,101** | - In Q1 2025, the company recorded a non-cash impairment charge of **$20.2 million** related to the right-of-use asset for a vacated corporate office space in New York City as part of its cost reduction initiatives[82](index=82&type=chunk) - The company is engaged in litigation with flyExclusive, Inc (FE) over the alleged wrongful termination of a Fleet Guaranteed Revenue Program Agreement, seeking compensatory damages including the return of material deposits[123](index=123&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 performance, highlighting lower revenue but improved cost efficiency and margins [Overview of Our Business and Fleet Modernization](index=37&type=section&id=Overview%20of%20Our%20Business%20and%20Fleet%20Modernization) The company is executing a fleet modernization strategy to improve efficiency by consolidating to two jet models Controlled Aircraft Fleet as of March 31, 2025 | Category | Owned | Leased | Total | | :--- | :--- | :--- | :--- | | Premium Jets | 18 | 3 | 21 | | Large Jets | — | 2 | 2 | | Super-Midsize Jets | — | 24 | 24 | | Midsize Jets | 12 | 4 | 16 | | Light Jets | 25 | 5 | 30 | | **Total Jets** | **55** | **38** | **93** | | Turboprops | 41 | — | 41 | | **Total Aircraft** | **96** | **38** | **134** | [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP metrics show an improved Adjusted EBITDA loss of $(24.2) million and a significant increase in Adjusted Contribution Margin to 12.6% Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(99,313) | $(97,393) | | Adjustments | $75,163 | $48,164 | | **Adjusted EBITDA** | **$(24,150)** | **$(49,229)** | Reconciliation of Gross Profit (Loss) to Adjusted Contribution (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross profit (loss) | $(1,104) | $(16,554) | | Adjustments | $23,545 | $18,569 | | **Adjusted Contribution** | **$22,441** | **$2,015** | | **Adjusted Contribution Margin** | **12.6%** | **1.0%** | [Key Operating Metrics](index=42&type=section&id=Key%20Operating%20Metrics) Total Gross Bookings increased by 8%, while Live Flight Legs and Active Users declined by 7% and 40% respectively Key Operating Metrics Comparison | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Gross Bookings (in thousands) | $241,902 | $224,674 | 8% | | Live Flight Legs | 10,895 | 11,754 | (7)% | | Active Users | 6,166 | 10,218 | (40)% | [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Q1 2025 revenue fell 10% due to lower membership and flight activity, while cost of revenue decreased 20% - Q1 2025 revenue decreased by **10% YoY**, driven by a **56% decrease in members** and a **7% reduction in Live Flight Legs**[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - Cost of revenue decreased by **20% YoY**, primarily due to reduced headcount, lower travel expenses, and decreased flight activity, leading to an **1,160 basis point improvement in Adjusted Contribution Margin**[205](index=205&type=chunk)[206](index=206&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $171.8 million in cash and has access to an undrawn $100.0 million revolving credit facility from Delta - The company's principal sources of liquidity are financing activities and deferred revenue from membership fund sales, with cash and cash equivalents at **$171.8 million** as of March 31, 2025[214](index=214&type=chunk) - The company has access to a **$100.0 million revolving credit facility** from Delta, which was undrawn as of the report date and remains available through September 20, 2026[215](index=215&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There were no material changes to the company's principal market risks from interest rates, fuel prices, and foreign currency - There have been no material changes to the market risks related to interest rates, aircraft fuel, and foreign currency exchange as described in the company's 2024 Annual Report[237](index=237&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective due to ongoing remediation of previously identified material weaknesses - Management concluded that disclosure controls and procedures were **not effective** as of March 31, 2025, due to ongoing remediation of material weaknesses in internal control over financial reporting[239](index=239&type=chunk) - The company has implemented and is continuing to execute on a remediation plan to address the identified control deficiencies, with a target completion before December 31, 2025[241](index=241&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk) [PART II. Other Information](index=58&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in ongoing litigation against flyExclusive, Inc over a terminated fleet agreement - The company is vigorously pursuing a lawsuit against flyExclusive, Inc (FE) for wrongful termination of a fleet agreement and is seeking to recover outstanding deposits and other damages[248](index=248&type=chunk)[250](index=250&type=chunk) - The company notes that recovery of amounts from FE may be impacted by FE's financial condition, citing FE's reported net losses, working capital deficit, and potential need for additional capital[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) The company's stock and warrant prices may experience volatility due to industry, market, and operational factors - The company warns that the price of its Common Stock and Warrants may be volatile due to numerous factors, including industry changes, market conditions, competitor actions, and its own operating performance[254](index=254&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no unregistered sales of equity securities and repurchased shares to cover tax liabilities on vested RSUs Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2025 | — | $ — | | Feb 2025 | — | $ — | | Mar 2025 | 88,935 | $1.23 | | **Total** | **88,935** | **$1.23** | [Defaults Upon Senior Securities](index=60&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[256](index=256&type=chunk) [Mine Safety Disclosures](index=60&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[257](index=257&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer of the Company adopted, modified or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[258](index=258&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report, including contracts and required certifications

[First Quarter 2025 Results](index=1&type=section&id=First%20Quarter%202025%20Results) Wheels Up reported Q1 2025 financial and operational results, highlighting revenue decline alongside significant improvements in profitability metrics and strategic advancements [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Wheels Up reported Q1 2025 revenue of $177.5 million, a 10% decrease year-over-year, yet achieved significant improvements in gross loss and a 51% reduction in Adjusted EBITDA loss, coupled with key strategic initiatives Q1 2025 Key Financial Results (YoY) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $177.5M | $197.1M | (10)% | | Gross Loss | $(1.1)M | $(16.6)M | n/m | | Adjusted Contribution | $22.4M | $2.0M | n/m | | Adjusted Contribution Margin | 12.6% | 1.0% | +12 pp | | Net Loss | $(99.3)M | $(97.4)M | (2)% | | Adjusted EBITDA Loss | $(24.2)M | $(49.2)M | 51% improvement | Q1 2025 Key Operating Metrics (YoY) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Gross Bookings | $241.9M | $224.7M | 8% | | Live Flight Legs | 10,895 | 11,754 | (7)% | | Private Jet Gross Bookings per Live Flight Leg | $18,843 | $16,315 | 15% | | Utility | 38.1 | 30.9 | 23% | | Active Users | 6,166 | 10,218 | (40)% | - The company is focused on improving profitability through increased operational efficiency, as evidenced by a $15 million year-over-year improvement in Gross Loss despite a $20 million revenue decline, driven by a **23% increase in Utility**[7](index=7&type=chunk) - Key strategic initiatives announced or progressing in the quarter include: - **Delta Partnership:** New corporate accounts are the fastest-growing segment, and a new hybrid commercial/private travel option for European destinations will launch in the summer[1](index=1&type=chunk) - **Fleet Modernization:** A definitive agreement was signed with Gogo to install high-speed satellite Wi-Fi, with installations beginning this summer[4](index=4&type=chunk) - **Liquidity:** An agreement was reached with Delta to extend the **$100 million revolving credit facility** through September 2026[10](index=10&type=chunk) - **Shareholder Value:** The Board of Directors authorized a **$10 million open market share repurchase program**[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The company's consolidated financial statements for the quarter ending March 31, 2025, detail a net loss of $99.3 million, with total assets of $1.09 billion and total liabilities of $1.37 billion, resulting in a negative total equity position of $288.1 million, while net cash used in operating activities improved to $47.9 million [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, Wheels Up reported revenue of $177.5 million, a 10% decrease from $197.1 million in Q1 2024, with a loss from operations of $80.8 million, an improvement from the prior-year period, and a net loss attributable to the company of $99.3 million, or $(0.14) per share Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $177,530 | $197,101 | | Cost of revenue | $158,424 | $198,260 | | Loss from operations | $(80,766) | $(84,548) | | Net loss | $(99,313) | $(97,393) | | Net loss per share | $(0.14) | $(0.14) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's balance sheet showed $171.8 million in cash and cash equivalents, a decrease from year-end 2024, with total assets at $1.09 billion and total liabilities at $1.37 billion, resulting in a widened total stockholders' equity deficit of $288.1 million Balance Sheet Comparison (in thousands) | Line Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $171,845 | $216,426 | | Total current assets | $298,807 | $332,069 | | Total assets | $1,090,982 | $1,158,011 | | Total current liabilities | $925,404 | $917,284 | | Total liabilities | $1,370,865 | $1,354,239 | | Total equity | $(288,106) | $(202,109) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities improved by 35% to $47.9 million, with net cash provided by investing activities at $16.1 million, primarily from aircraft sales, and net cash used in financing activities at $8.7 million, ending the quarter with $207.1 million in total cash, cash equivalents, and restricted cash Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(47,924) | $(73,794) | | Net cash provided by investing activities | $16,113 | $19,603 | | Net cash used in financing activities | $(8,686) | $(24,314) | | Net decrease in cash, cash equivalents and restricted cash | $(39,405) | $(79,535) | [Key Metrics and Non-GAAP Measures](index=8&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Measures) This section defines the key operating and non-GAAP financial measures used by the company to evaluate performance, including operating metrics like Total Gross Bookings and Utility for business scale and asset efficiency, and non-GAAP measures such as Adjusted EBITDA and Adjusted Contribution for a clearer view of ongoing operational performance, with detailed reconciliations to their nearest GAAP equivalents [Definitions of Key Operating Metrics](index=8&type=section&id=Definitions%20of%20Key%20Operating%20Metrics) The company defines its primary operating metrics to measure business scale, platform usage, and operational efficiency, including Total Gross Bookings, Live Flight Legs, Utility, and Active Users, with an updated calculation for Completion Rate and On-Time Performance in Q1 2025 to include wholesale flight activity - Key metric definitions include: - **Total Gross Bookings:** Total gross spend by customers on all private jet, group charter, and cargo flight services[25](index=25&type=chunk) - **Live Flight Legs:** Number of completed one-way revenue-generating private jet flights[29](index=29&type=chunk) - **Utility:** Total revenue-generating flight hours on the controlled fleet divided by the average number of available aircraft, expressed as a monthly average[31](index=31&type=chunk) - **Active Users:** Unique non-member customers who flew in the period plus all members at period end[32](index=32&type=chunk) - The presentation of Completion Rate and On-Time Performance was changed for Q1 2025 to include wholesale flight activity, which was previously excluded, to better align with internal operational evaluation[34](index=34&type=chunk) [Definitions of Non-GAAP Financial Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Financial%20Measures) Wheels Up utilizes non-GAAP measures to supplement its GAAP results and provide insight into ongoing operations, with Adjusted EBITDA and Adjusted EBITDAR calculated to assess operating performance by removing the effects of financing, capital spending, and certain non-recurring expenses, while Adjusted Contribution and Adjusted Contribution Margin are used to understand core profitability and scalability by adjusting gross profit for specific non-cash or non-indicative costs within the cost of revenue - **Adjusted EBITDA & Adjusted EBITDAR:** Calculated by adjusting Net Income for items such as interest, taxes, depreciation, amortization, equity-based compensation, and other expenses not indicative of ongoing operating performance, with Adjusted EBITDAR further adjusting for aircraft lease costs[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - **Adjusted Contribution & Adjusted Contribution Margin:** Calculated by taking Gross Profit (Loss) and excluding depreciation, amortization, and certain other items within Cost of Revenue, with this metric used to assess profitability trends over time[38](index=38&type=chunk)[39](index=39&type=chunk) [Reconciliations of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Measures) The company provides detailed reconciliations of its non-GAAP measures to the most comparable GAAP figures, showing Adjusted EBITDA improved significantly to a loss of $24.2 million in Q1 2025 from a loss of $49.2 million in Q1 2024, and Adjusted Contribution showed a substantial positive swing, reaching $22.4 million from $2.0 million in the prior-year quarter, boosting the Adjusted Contribution Margin to 12.6% from 1.0% Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(99,313) | $(97,393) | | Adjustments (Depreciation, Interest, etc.) | $75,163 | $48,164 | | **Adjusted EBITDA** | **$(24,150)** | **$(49,229)** | Reconciliation of Gross Profit (Loss) to Adjusted Contribution (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross profit (loss) | $(1,104) | $(16,554) | | Add back: Depreciation and amortization | $20,210 | $15,395 | | Other adjustments | $3,335 | $3,174 | | **Adjusted Contribution** | **$22,441** | **$2,015** | [Supplemental Information](index=13&type=section&id=Supplemental%20Information) This section provides a more detailed breakdown of revenue by category and the allocation of specific expenses, highlighting that Membership revenue saw the sharpest year-over-year decline at 45%, whereas Flight revenue, the largest component, decreased by only 2%, with expense details covering costs associated with equity-based compensation, fleet modernization, and business integration [Supplemental Revenue Information](index=13&type=section&id=Supplemental%20Revenue%20Information) In Q1 2025, total revenue of $177.5 million was primarily driven by $147.6 million in Flight revenue, with Membership revenue at $9.2 million, a 45% decrease year-over-year, representing the most significant decline among the categories, and Other revenue at $20.8 million, down 29% from the prior year Supplemental Revenue by Type (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Membership | $9,189 | $16,854 | $(7,665) | (45)% | | Flight | $147,568 | $150,929 | $(3,361) | (2)% | | Other | $20,773 | $29,318 | $(8,545) | (29)% | | **Total** | **$177,530** | **$197,101** | **$(19,571)** | **(10)%** | [Supplemental Expense Information](index=13&type=section&id=Supplemental%20Expense%20Information) For Q1 2025, the company allocated $12.7 million in equity-based compensation, with the majority ($11.9 million) in General and Administrative expenses, while fleet modernization expenses totaled $5.1 million, split between Cost of Revenue and G&A, and integration and transformation expenses were $1.2 million Q1 2025 Supplemental Expense Allocation (in thousands) | Expense Type | Cost of revenue | General and administrative | Total | | :--- | :--- | :--- | :--- | | Equity-based compensation | $78 | $11,908 | $12,661 | | Integration and transformation | $363 | $320 | $1,183 | | Fleet modernization expense | $3,057 | $2,018 | $5,147 |

Core Insights - Wheels Up Experience Inc. reported financial results for Q1 2025, highlighting progress in business transformation and profitability despite challenging economic conditions [3][6][7] - The company has authorized a $10 million share repurchase program to enhance shareholder value [3][6] - A partnership with Delta is expected to drive growth, particularly in corporate accounts, with new hybrid travel options launching this summer [7][8] Financial Performance - Revenue for Q1 2025 was $177.5 million, a decrease of 10% year-over-year [6][8] - Total Gross Bookings increased by 8% to $241.9 million, while Private Jet Gross Bookings rose by 7% to $205.3 million [5][6] - The company reported a net loss of $99.3 million, or $(0.14) per share, which is a slight increase in loss compared to the previous year [6][8] Operational Metrics - Live Flight Legs decreased by 7% to 10,895, while Private Jet Gross Bookings per Live Flight Leg increased by 15% to $18,843 [5][6] - Utility, a measure of operational efficiency, improved by 23% to 38.1 [5][7] - Completion Rate was 97% and On-Time Performance was 85% for the quarter [8][27] Strategic Initiatives - The company is modernizing its fleet, including a partnership with Gogo to install high-speed satellite Wi-Fi, with installations expected to begin this summer [7][8] - Wheels Up's liquidity position is strong, with approximately $272 million available, including a $100 million undrawn revolving credit facility extended through September 2026 [7][8] - The company is focusing on enhancing operational reliability and customer experience through its strategic initiatives [7][8]