What’s Happening With Surf Air Mobility Stock?

August 20th, 2025 by Trefis Team
SRFM: Surf Air Mobility logo
SRFM
Surf Air Mobility

Surf Air Mobility stock (NYSE:SRFM) has seen its stock price tumble from about $8.80 in mid-July to roughly $4.50 now, giving back much of the gains it had clocked earlier this summer. There are a couple of factors that could be impacting the stock. First off, Q2 earnings were mixed, with the company posting a loss of $0.93 per share on $27.4 million in revenue versus $32.4 million a year earlier. Moreover, investor enthusiasm has also cooled after months of strong momentum. With Q3 revenue projected at just $27 million to $28.5 million, growth visibility also looks limited in the near term.

Image by 필대리 from Pixabay

Surf Air’s Upside

Surf Air is positioning itself for a long-term transformation. Most of the company’s revenues today come from regional scheduled flights, charter operations, and cargo services. However, the real upside from the stock could come from the company’s plans to electrify short-haul regional air travel by using hybrid and fully electric propulsion systems. Unlike most of its peers in this space, the company plans to retrofit existing aircraft such as those made by Cessna with its powertrain technology, enabling faster and more cost-effective deployment. Surf Air has deepened its ties with artificial intelligence software behemoth Palantir, which now owns nearly 20% of the company after boosting its stake in a recent fund raise. The company also has a five-year exclusive software partnership with Palantir and Surf Air’s SurfOS platform is powered by Palantir’s AI, is slated for launch in 2026 and aims to become a next generation operating system for aviation. related Palantir Stock: 5 Risks Investors Shouldn’t Ignore.

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Mixed Financials

From a valuation perspective, SRFM looks fair, trading at about 0.6x sales compared to 3.1x for the S&P 500. But this may also explain why investors remain cautious about the stock. Revenues have slipped 4% over the past 12 months, while operating margins sit at -32.6% and cash flow remains deeply negative. The company’s balance sheet isn’t too strong either. Debt of $91 million is roughly half the company’s $180 million market cap, while cash reserves of $23 million provide a limited buffer. For now, Surf Air represents a high risk, high reward bet. While the company has a bold vision for electrified air travel and AI-driven operations, near-term fundamentals don’t give it much room for error.

Now, investing in a single stock like Surf Air can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

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