Revenue: As of FY2026 Q1, the actual value is USD 997 K.EPS: As of FY2026 Q1, the actual value is USD -0.18.EBIT: As of FY2026 Q1, the actual value is USD -2.374 M.VOLATO GROUP, INC. operates in a single reportable segment encompassing private aviation services, including airplane sales and software-as-a-service subscriptions .<h4>Segment Revenue</h4>Total revenue decreased by - $24,486 thousand (-96%) to $997 thousand for the three months ended March 31, 2026, compared to $25,483 thousand in the same period of 2025 . This decline was primarily driven by a - $25,100 thousand decrease in aircraft sales, as the company did not deliver aircraft in 2026, offset by a $614 thousand (160%) increase in subscription-based revenue, mainly from the Vaunt platform .<table><thead><tr><th align="left">Revenue Category</th><th align="left">Three Months Ended March 31, 2026 (in thousands)</th><th align="left">Three Months Ended March 31, 2025 (in thousands)</th><th align="left">Change (in thousands)</th><th align="left">Change (%)</th></tr></thead><tbody><tr><td align="left">Aircraft Sales</td><td align="left">$0</td><td align="left">$25,100</td><td align="left">- $25,100</td><td align="left">-100%</td></tr><tr><td align="left">Subscription</td><td align="left">$997</td><td align="left">$383</td><td align="left">$614</td><td align="left">160%</td></tr><tr><td align="left">Total Revenue</td><td align="left">$997</td><td align="left">$25,483</td><td align="left">- $24,486</td><td align="left">-96%</td></tr></tbody></table><h4>Operational Metrics</h4>Cost of Revenue decreased by - $20,693 thousand (-99%) to $294 thousand for the three months ended March 31, 2026, from $20,987 thousand in the prior year, mainly due to fewer aircraft sales .<table><thead><tr><th align="left">Cost Category</th><th align="left">Three Months Ended March 31, 2026 (in thousands)</th><th align="left">Three Months Ended March 31, 2025 (in thousands)</th><th align="left">Change (in thousands)</th><th align="left">Change (%)</th></tr></thead><tbody><tr><td align="left">Aircraft Sales</td><td align="left">$0</td><td align="left">$20,930</td><td align="left">- $20,930</td><td align="left">-100%</td></tr><tr><td align="left">Subscription</td><td align="left">$294</td><td align="left">$57</td><td align="left">$237</td><td align="left">416%</td></tr><tr><td align="left">Total Cost of Revenue</td><td align="left">$294</td><td align="left">$20,987</td><td align="left">- $20,693</td><td align="left">-99%</td></tr></tbody></table>Gross Margin for the three months ended March 31, 2026, was $703 thousand (approximately 70.5%), compared to $4,496 thousand (approximately 17.6%) in the same period of 2025 .Selling, General and Administrative (SG&amp;A) expenses increased by $1,080 thousand (55%) to $3,050 thousand in 2026 from $1,970 thousand in 2025 . This increase was primarily attributed to a $0.5 million rise in accounting, legal, and professional fees related to the merger with M2i, a $0.4 million increase in professional fees and software development for the Vaunt platform, and a $0.2 million increase in salaries and wages for the Parslee platform .Operating Income (Loss) for the three months ended March 31, 2026, was - $2,347 thousand, a - $4,873 thousand (-193%) decrease from $2,526 thousand in the prior year . The Operating Margin was approximately -235.4% in 2026, compared to approximately 9.9% in 2025 .Net Income (Loss) was - $2,634 thousand for the three months ended March 31, 2026, a - $3,089 thousand (-679%) decrease from $455 thousand in the same period of 2025 .Other Income (Expenses) included a $1,094 thousand gain on the sale of the Mission Control software in 2026 (compared to $0 in 2025) . There was a - $1,378 thousand loss from the change in fair value of financial instruments in 2026, including - $0.8 million loss on M2i investment, - $174 thousand loss on flyExclusive investment, - $0.3 million loss on aviation asset, and - $60 thousand loss on Convertible Notes, compared to a - $849 thousand loss in 2025 . Net interest income (expense) was $27 thousand in 2026, a significant improvement from - $2,400 thousand in 2025 .<h4>Cash Flow</h4>Net Cash Used in Operating Activities was - $2,573 thousand for the three months ended March 31, 2026, an increase from - $312 thousand in the same period of 2025 .Net Cash Used in Investing Activities was - $176 thousand in 2026, primarily for the purchase of property and equipment, compared to $21 thousand in 2025, which was mainly from the sale of property and equipment .Net Cash Used in Financing Activities was - $46 thousand in 2026, mainly for costs of share issuances, while in 2025 it was - $1,133 thousand, primarily for loan repayments .<h4>Unique Metrics</h4>Software Development saw $172 thousand in capitalized internal software development costs for the three months ended March 31, 2026, compared to $0 in 2025 . Amortization expense for computer software development was $27 thousand in 2026, down from $48 thousand in 2025 . Website development costs amortization remained consistent at $24 thousand for both periods .Contract assets, net were $820 thousand as of March 31, 2026, up from $636 thousand as of December 31, 2025, with $455 thousand capitalized and - $271 thousand amortized during the first quarter of 2026 .<h4>Future Outlook and Strategy</h4>Core Business Focus: VOLATO GROUP, INC. aims to provide convenient, high-quality private travel through appropriate aircraft and proprietary technology for a seamless experience . The company has shifted its aircraft ownership program fleet operations to flyExclusive to reduce operational burdens and concentrate on high-growth areas like aircraft sales and proprietary software products, including the Vaunt platform .Non-Core Business and Strategic Initiatives: The company entered into a Merger Agreement with M2i Global, Inc. in July 2025, focusing on critical minerals, with M2i stockholders expected to own approximately 85% of the combined company upon consummation, a merger approved by shareholders on May 7, 2026 . Additionally, in July 2025, the company began developing an enterprise AI platform to automate workflows and synthesize information across systems, including deterministic document processing . The company also sold certain unused intellectual property assets to flyExclusive for $1.3 million in March 2026, with potential for further sales of remaining assets .Liquidity and Funding Strategy: Given a net loss of approximately - $2.6 million and a working capital deficit of approximately - $0.3 million for the three months ended March 31, 2026, management plans to fund operations through future debt and/or equity financings, including issuing convertible notes (with $24.78 million remaining capacity) and potential additional sales of equity or debt securities via its at-the-market sales program . In April 2026, the company received $3.6 million in net proceeds from this program . A plan to regain compliance with NYSE American listing standards by December 17, 2026, was submitted on April 16, 2026 .

VOLATO GROUP INC C/WTS 04/12/2028(TO PUR COM) | 10-Q: FY2026 Q1 Revenue: USD 997 K