Air mobility platform and one of the largest commuter airlines in the U.S. by scheduled departures. It's also the largest U.S. passenger operator of Cessna Caravans. In addition to its airline operations, Surf Air Mobility is developing an AI-powered software platform for the regional air mobility industry in partnership with Palantir Technologies called Surf OS. The company is also working to commercialize electrified aircraft and creating proprietary powertrain technology for the Cessna Caravan under an exclusive agreement with Textron Aviation. Surf Air Mobility plans to offer its software and electrification solutions to the regional air mobility industry to improve safety, efficiency, and profitability. Deanna White, CEO and COO, brings years of aviation experience and commitment to transforming flight. Before taking the reins as CEO, Deanna was the Chief Financial Officer responsible for leading the company's public listing in 2023.
Prior to Surf Air Mobility, she served as COO at Kitty Hawk, where she led the finance and business operations for an R&D eVTOL aircraft program. That's where she transformed an R&D and eVTOL project into a thriving startup company that she monetized for investors through a joint venture transaction with Boeing, currently known as WISC. Deanna also had a successful career with Flexjet, a leading fractional airline operator, as a Chief Executive Officer and Chief Financial Officer for this Bombardier business unit. During her tenure, the company achieved profitability through optimized operations and business expansion. Deanna eventually led the sale of the company to private equity partners. Deanna holds a BS in Accounting from the University of Tampa, an MBA and MA in Cybersecurity from the University of Dallas. She also attended the Women's Executive Leadership Forum at Harvard Business School.
Deanna, it's so nice to have you back today. Excited to hear your update as well.
Yeah, thank you for having me.
Wonderful. Now, when you first joined us back in July, you outlined what Surf Air Mobility does, and you discussed the company's go-forward strategy. To those of our listeners who are new, would you please briefly encapsulate that for what we discussed?
Sure. Surf Air Mobility is, we're building the air mobility platform that will transform flying. We have two distinct business units within our company: Air Mobility, which does scheduled and charter flight operations in the Part 135 space, and our Air Technology business, which has two initiatives: one, our Surf OS software platform initiative with Palantir Technologies, and our powertrain electrification initiative with Textron Aviation. At our core, Surf Air Mobility is one of the largest commuter airlines in the U.S. We flew approximately 320,000 passengers in the last 12 months through our network. We are able to connect regional commercial airports through our interline agreements that we have with some of the major airlines. We also operate on-demand flights throughout a network of 400+ operators. We are developing aviation technologies for B2C and B2B customers who fly in the Part 135 industry.
I recall from our last conversation that Surf Air Mobility is taking a leadership position in investing in both technology and in electrification within your industry. Tell me more about that.
That is correct, Anna. We are developing technologies to help transform the Part 135 industry. You know, we ourselves are an operator, and it gives us unique insight into what this industry needs. We have two technology initiatives within our Air Technology business. The first is Surf OS. It's an all-in-one software platform that we are developing with Palantir Technologies. We have an exclusive relationship with Palantir Technologies to help build and sell these tools in the Part 135 industry. We are first optimized in our own business with these. We have both Broker OS and Operator OS modules live within our scheduled service and our on-demand business today. We plan to offer those products to other Part 135 operators, brokers, and aircraft owners in the future when we commercialize this product, starting in 2026.
Very interesting, our on-demand business actually has a ready-made customer pipeline with our 400+ operator relationships that we use with them today. The Part 135 industry has a mix of small businesses with very unsophisticated tech stacks and fragmented data. Our product will really help that industry thrive. Our second project is our supplemental type certificate for the proprietary electric and hybrid electric powertrains for the Cessna Grand Caravan, which we operate today. We started that project a couple of years ago, and we're in discussions with partners in this supply chain to collaborate on this STC. We have a unique agreement with Textron Aviation to help develop, market, and sell these powertrains once they're certified. These powertrains will help reduce costs and emissions for folks who operate the Cessna Grand Caravan like ourselves.
Fascinating. Can you tell us a little bit more about how you're setting the stage? Before we discuss your update, of course, tell our audience about your transformation plan and where you stand on that initiative.
Sure, Anna. We designed and implemented a four-stage transformation plan last year. The first phase was transformation, and we've done a lot of work to improve our capital structure, strengthen our balance sheet. I put a whole new management team into place with a lot of aviation expertise. We also captured synergies from the merger we had at listing between Surf Air and Southern. We completed all of the first phases in 2024, and we've emerged as a newly capital and newly energized company. The next phase, which is optimization, is what we're currently in. We are optimizing our airline operations, recalibrating our on-demand business, and we are driving within those businesses efficiencies through the implementation of our AI-powered technology platform called Surf OS. The third and final phase of the transformation plan is our expansion and acceleration phases, which will take place next year and in 2027.
Here we plan to launch new routes in our scheduled airline operations. We plan to deploy our Surf OS product to third parties in partnership with Palantir Technologies. We are planning to also deploy electric aircraft within our network. We're going to pursue additional opportunities to bring more products and services to the Part 135 marketplace.
Thank you for that recap. Now, let's talk about your current update. First of all, you reported second quarter earnings shortly after we last spoke. Can you summarize those results for us, please?
Yes, we had a really great second quarter of this year and achieved significant results throughout our operations, which translated into really good financial results. Our Q2 revenue was $27 million. It was above our guidance range of $23.5 to $26.5 million. Our adjusted EBITDA loss for the quarter, we were able to narrow it to $9.5 million, which beat our guidance range of $10 to $13 million. Importantly, the key operating performance measures within our airline operations improved significantly. Our on-time departure, our on-time arrival, and our control of completion all improved by double-digit % versus the prior year. We were able, because of this, to achieve profitability in our airline operations for the second quarter, which keeps us on track and in line for our goal of profitability for the full year this year.
Additionally, in the second quarter, we signed our fifth interline agreement with the major carrier, Japan Airlines, which is very important to us since we have a key route network in Hawaii. In our on-demand business, we drove substantial improvements in our margins and signed volume purchase agreements with two operators for the use of their capacity within our on-demand business. Those operators are also beta users of our Surf OS program. Now, within our air mobility business, we continue to drive efficiencies using our Surf OS platform. In the second quarter, we introduced our flagship products: Broker OS, Operator OS, and Owner OS. Broker OS is live and fully used within our own on-demand business. We were able to sign LOIs for this software to a number of the operators within our on-demand network.
On the Operator OS side, we launched and rolled out the flight and crew scheduling tool with Palantir Technologies within our operations and completed the launch of flight docs to help streamline our maintenance processes. The most important takeaway I have for our second quarter results is that we have driven significant improvements, and we reiterate our guidance for achieving at least $100 million in revenue for the year and a positive adjusted EBITDA in our airline operations for the year.
Wonderful. I also understand that after the quarter, you also had another significant development. Can you outline that for our audience, please, Deanna?
Yes. The company and Palantir Technologies have had a long-time relationship. In the quarter, we entered a five-year, or after the quarter, we entered a five-year software license agreement, naming the company as Palantir Technologies' exclusive partner with respect to the configuration and sale of the software that we are developing for Part 135 operators and brokers and other stakeholders in the industry. The agreement also allows the company the ability to sublicense certain of its rights to third-party clients that we use within our Surf OS platform. Additionally, it contemplates that the company and Palantir Technologies will team together to bid on software development products for stakeholders within the Part 135 industry, including the FAA. Like I said, we've been working with Palantir Technologies for several years now, and this new agreement deepens that relationship and expands our abilities to be at the epicenter of the air mobility market.
Notably, Palantir Technologies is one of our largest shareholders, so our interests are very aligned.
Fantastic. With the time we have remaining, give us a quick high-level update on your progress against this transformation plan.
A lot has changed for the company over the last 12 to 18 months. We improved our capital structure, our balance sheet, and our stock liquidity, and we were able to raise $50 million through a debt facility, an additional $32 million through equity offerings, and we were able to reduce our debt stack via some equity conversions up to $45 million. The new management team that has been put in place with the deep aviation experience has also done a whole lot in 2025 during our optimization phase. The company relocated our systems operational center to Dallas, and we were able to hire the seasoned aviation talent by that move. Dallas is a big aviation hub. That team has improved some key operating performance indicators, which really drove our airline operation profitability.
Another part of that is we were able to exit some unprofitable airline routes that we previously serviced. On our technology side, we unveiled our Broker OS, our Operator OS, and our Owner OS platforms, and we launched beta testing for those products, not just within our own business, but within some of the brokers and operators that we use as vendors today. We were able to sign LOIs with some brokers and operators, and we integrated Broker OS into our own on-demand operations and major features of Operator OS into our scheduled service. In addition, on the technology side, we have an order with Electra for their ultra-short haul takeoff aircraft, and we were able to participate with them in their first demonstration.
Like I previously said, during the quarter, we entered into the five-year agreement with Palantir Technologies, which provides us with the exclusive right to provide products and services alongside their partnership for the Part 135 industry. Our transformation plan is all about profitable growth. Our mission is to fly people using technology that can generate profits for our shareholders. Our transformation is proving to be reality. It's not just theory, and you can see it in our results. We are executing and demonstrating improvements in all areas of our business. We have a strong operational team in both our airline operations and our on-demand businesses, and we have unique agreements with Palantir Technologies and Textron Aviation to drive our growth initiatives over the coming year.
At our core, we're one of the largest commuter airlines in the U.S., and we're uniquely positioned to design, develop, and deploy new technologies that can be adopted for all the stakeholders within the industry. We're making excellent progress against those initiatives. Our transformation plan, the first phases, are all about earning the right to grow. When we're successful, as we've demonstrated, we will return to profitable growth.
Perfect. Thank you so much. Great update. We appreciate it, and we look forward to having you on our program again in the future and hear some more positive updates just like this. Thank you, Deanna and Surf Air Mobility, for joining us.