Blade Beats Q1 Forecasts As Jet Surge, Short Flights Drive Gains

Blade Air Mobility Inc. BLDE shares are trading higher on Monday after the company reported better-than-expected first-quarter 2025 results.Revenue grew 5.4% year-over-year (Y/Y) to $54.3 million, beating the consensus of $49.43 million.Revenue growth was driven by growth in the Passenger segment. Excluding Canada, which exited in August 2024, revenue increased 10.9% Y/Y.Medical revenue declined 0.2% Y/Y to $35.9 million. Short Distance revenue fell 5.4% Y/Y to $9.3 million, but excluding Canada, it grew 28.1% Y/Y.Jet and Other revenue surged 59.9% to $9.1 million on increased flight volumes and revenue per flight.Flight Profit rose 18.1% Y/Y to $12.0 million, driven by growth in Passenger segments. Flight Margin improved to 22.1% from 19.7% in the quarter.Adjusted EBITDA improved by $2.3 million Y/Y to $(1.2) million, driven by improvements in the Passenger segment.Quarterly net loss improved by $0.7 million Y/Y to $(3.5) million, mainly due to a $2.3 million improvement in operating losses.EPS loss of 4 cents exceeded the street view of loss of 11 cents.Operating Cash Flow rose by $15.3 million to $(0.2) million in the quarter. Capex was $3.2 million due to aircraft maintenance and purchase of aircraft in the Medical Segment.Free Cash Flow before aircraft acquisitions improved by $14.0 million to $(2.7) million in the quarter.Rob Wiesenthal, Blade’s chief executive officer, said, “Our strong Passenger Segment results reflect several factors including our durable competitive positioning along with the important actions we’ve taken recently to improve profitability such as our exit from Canada and broad-based cost rationalization initiatives.”Will Heyburn, chief financial officer added, “Our Medical business is well positioned to prosper in the current environment given the strength of our logistics platform, strong underlying transplant volume growth, limited economic sensitivity and insulation from tariffs.”2025 Outlook: Blade Air Mobility expects revenue of $245 million – $265 million versus consensus of $256.3 million and double-digit Adjusted EBITDA.Heyburn added, “We continue to expect improving results throughout the rest of the year in both business lines. In Medical, we are onboarding additional new customers and expect continued growth with existing customers. In Passenger, while the economic outlook may be uncertain, we still expect ongoing year-over-year benefits from cost and restructuring actions, as we will not anniversary our implementation of most items until the fourth quarter of this year.“Melissa Tomkiel, president, stated, “Following a period of unusually heavy scheduled aircraft maintenance and associated downtime during the first half of 2025, we expect a significant improvement in the second half of the year through 2026, resulting in reduced capital expenditures and improved Medical Segment Adjusted EBITDA margins.”Investors can gain exposure to the stock via ARK Space Exploration & Innovation ETF ARKX.Price Action: BLDE shares are up 14.7% at $3.35 at the last check Monday. Joby Vs. Archer Vs. Blade: Which eVTOL Stock Is Ready For Takeoff? Image created using artificial intelligence via Midjourney.