Good morning. Welcome to JP Morgan's 51st annual TMC conference. My name is Bill Peterson. I cover clean tech here at the firm, including Blade. We're really pleased to have Will Heyburn, the CFO of Blade, here to join us for the fireside chat. Will can introduce himself and the company here in a moment. Feel free to ask questions. Please use the microphone. You know, thanks for supporting the conference and, yeah, welcome.
Bill, thanks so much for having us. Thanks to all you for your interest. Will Heyburn, CFO of Blade. For those of you who are new to the story, just a quick couple-minute primer. you know, Blade's approach to air mobility is to focus on the routes, use cases, customers that can be profitable and can grow today with conventional aircraft. We're doing that across medical, where we're the largest transporter of human organs in the United States. That's more than half of our business. Passenger, where we're laser-focused on a handful of markets in the world, primarily New York, Vancouver, and Southern Europe, where we've got the right value proposition in terms of time savings and cost for our customers. We're doing this in an asset-light way. We don't own or operate any aircraft.
We work through a network of third-party Part 135 operators. This is what has allowed us to be so capital efficient as we grow. 111% growth, for example, organically in medical in this most recent quarter, and we're able to do that without having to invest CapEx in aircraft. We're focused on this strategy because we're building a huge competitive advantage for what we believe will be a massive market expansion opportunity with electrification of aviation. We don't need this to grow, as evidenced by our growth in the most recent quarter. Because electric aircraft are gonna be quieter, less moving parts, less maintenance, potentially less expensive to operate, we think this will create an opportunity for more places to land in the passenger business because communities will be more accepting of something that's quieter.
In the medical business, it can replace what we're doing for last mile, which right now is helicopters or lights and sirens SUVs, with something that's faster. Because transit time is so critical in organ transportation, a heart, for example, only has four hours to get where it's going, that will also expand the addressable market and increase the number of organs that are available for transplant. We're really excited about our ability to get a first-mover advantage in both markets today. On the medical side, two to three-year contracts contracting directly with transplant centers. They are our credit. We don't need to deal with any insurance. In the passenger business, we're building worldwide brand recognition, hundreds of thousands of people that fly Blade around the world.
We're building exclusive terminal infrastructure in the heliports that we operate in places like New York City, absolutely critical to operating a service at scale. We've got that network of Part 135 operators that have capacity dedicated to Blade, pilots trained in the local environment, all safety vetted by our internal safety team, and all with places to hangar their aircraft that are very close to these critical urban areas, eliminating repositioning time and giving us a cost advantage both today and with the transition to EVA. There's my one subway stop pitch.
Okay. Well, that pretty much covers everything. Thanks, Will, for joining. This is a tech conference, and I always wanna kinda tie in what you guys have in your, you know, I guess under the hood or in the back end, you know, that maybe people don't see. You know, what are the key technologies you guys employ, you know, competitive advantage of the platform? You know, I guess kind of integrating the service from basically from customer to cockpit?
Great question, Bill. Really the best thing I can say is, you know, there's a lot of folks that might try to design on a whiteboard what kind of technology solution would work for passenger air mobility or for organ transportation. We've been actually using it for years now. That's the most important part of our tech platform, is that this customer to cockpit link, you booking on the app, that information getting transmitted to our accounting department, our operations department, our operators dispatch, the actual pilot who's gonna fly the aircraft, seeing the manifest. That's all been battle tested in multiple geographies with multiple payment systems, multiple regulatory regimes, and we know it works, and we know it's able to allow us to operate all these aircraft at the same time with very minimal staff. It's allowed us to scale.
The same thing is true in the organ transportation business. The technology that's customized to that use case focused a little more on chain of custody, focused on making things easy for the hospital to see where's our driver, how is he getting to the helicopter, how's the helicopter getting to the jet, or how's the helicopter going directly where it's going. It's, it's been tested through the use by our customers, and it's been improved by their direct feedback. No one who's not doing it today can really say that. That's true of all those elements of the platform that I talked about up front. We know what we need to have the competitive advantage because we're actually flying today.
Yeah, great. You know, you guys did do some acquisitions, you know, Canada and Europe and MediMobility. I guess how common are the platforms between these? Are there further opportunities for synergies, like put them all in one system or how's that working currently?
We're making a lot of progress on the integration, on the technology. Europe is now up and running on the BLADE app. If you open up the app, you'll see you can pick Canada, you can pick Europe, you can pick United States. We're already starting to see the benefits of rolling that technology across geographies. Most importantly, it's the cross-pollination of our customer base. We got a lot of customers that maybe fly with us in New York, and now when they're flying into Nice and they're going to Cannes, they're going to Monaco, they see Blade as an option there, in addition to the already very large market that existed when we made those acquisitions. It's equal parts technology and cross-pollination of our customer base.
Great. You know, I guess in addition to the, you know, consumer tech, the platforms you talked about, one thing that gets overlooked is the physical infrastructure. You know, why is that a competitive advantage in perhaps relative to future UAM? I might bundle that with, you know, yesterday you made the announcement of Newport, that's a new site. You know, how does that play in, and what does that signify?
Yeah, I mean, a great example is New York City, where we're the only company that has exclusive air mobility terminals at the heliports. The heliports are public use. You know, if you decide to go buy your own helicopter, and you've got your SUV waiting for you at the West 30th Street heliport, you can land there, you can hop into your car, but if you're trying to aggregate six people coming in six different Ubers, processing baggage, checking IDs, having them wait for the helicopter to arrive, you simply can't aggregate the demand. If you're unloading without the use of the Blade terminal, you're literally going out of a hole in the fence into the Hudson River Park bike path. It doesn't work.
In fact, so much so that when a very large ridesharing company, a couple of years back tested their own helicopter transfer service to airports in New York, they weren't able to operate from our West 30th or East 34th heliport, and they ended up working out of the sightseeing terminal down at Wall Street, which has a lot of disadvantages, location and just the general customer experience there. We think it's incredibly important to aggregate that infrastructure today. We're using it today, and Newport's another great example of that, where we had the opportunity to relight a pad that we think will be value add to our customers, gives us the ability to build exclusive terminal infrastructure there. Most importantly, it allows us to start serving those customers on a charter basis today.
I wanna be clear, we're gonna be offering the ability for folks to charter an entire aircraft which does not carry risk to Blade. Don't think of this as a place where we're gonna be investing and building something that's gonna be loss-making. This is something that's gonna be additive to our existing customer bases, and to the extent we did offer any ability to book on a single-seat basis, we would not do it in a way that would add losses to the business.
Yeah. It's a good segue to short distance. Maybe you can talk about your current footprint, you know, why you're in the markets you're in, and, you know, maybe when we'd expect to have more routes, considering you wanna obviously optimize for loading, for profitability, but how should we think about that?
The focus right now is an inch wide and a mile deep. We're focused on places we like to say either that are extremely congested or geographically contested, right? You need to be able to save people a lot of time without having to fly very far. That's the sweet spot for air mobility. Manhattan to JFK is one of the best examples of that because you're talking about 10 miles as the crow flies, but I don't have to tell you, it can be three hours in the car. We don't have to fly very far, we can offer that service starting at $195, $95 for our customers that purchase the $795 Airport Pass. It's really a great return on the cost for the customer themselves.
There aren't that many places in the world today with helicopter infrastructure where that alchemy works. You're gonna see us focus on these areas where besides the airport route, all of these are flight margin profitable today. They're good businesses. They can grow. We have pricing power. The airport business breaks even at two and a half out of six seats sold. If we continue to have quarters like we had last quarter, where we had a doubling year-over-year of our revenues, we will get that business to profitability in terms of the airport new route that we launched. You've got a nice profitable passenger business, and that's where we wanna keep it.
We'll be in the pole position then to launch even more routes once the addressable market starts to expand with electric vertical take-off and landing or as we like to call it, EVA, electric vertical aircraft.
Yeah.
That's the focus, really laser in on the areas that can be profitable today.
Yeah. I think there's been a lot of fears about, you know, slowing economy, you know, maybe lack of business travel, but you still actually are generating pretty good year-over-year growth and the airports continues to do well. I guess, how should we think about that business or even maybe even short distance in general, airport and short distance for as we look at the back half of the year?
Yes. You know, we have seen a lot of resilience from our customer. We haven't seen any kinda slowdown to date. In fact, the opposite, if you look at what we've seen in airport. We've also been able to take advantage of pricing on top of that volume growth. Everything we're seeing is really positive. If there's some uncertainty in the macro, this asset-light model is tailor-made to deal with that. Remember, exact same aircraft are utilized for our medical and our passenger business. The same helicopter that would be flying you to JFK this afternoon will be flying a heart for NYU Langone tonight. The same jet that could be flying a passenger down to Palm Beach will be flying a pair of lungs in from Mount Sinai.
We always have the flexibility to use these aircraft in different parts of our business. We can flex capacity up and down as we need it. If there was a slight reduction in demand, maybe from that incremental customer on the passenger side, we'd be able to adjust our capacity instantly. We think we're set up really well. As far as the outlook for the back half of the year, you know, the short distance business is a very seasonal business. When you think about it pro forma for the Europe acquisition, roughly 40% of the revenue is gonna come through in Q3. It's seasonal in that way.
About a quarter comes through in Q2, and then Q1 and Q4 are very light quarters for all of those short distance businesses, with the notable exception of Canada, which actually sees its biggest season in the winter. I think the seasonality is something that we always try to help investors understand a little bit. We expect to see continued growth in airport. Again, the number one focus in passengers on getting that business to profitability.
Maybe just speak to a little bit more to Canada and, you know, the European operations. There were some challenges. I think Canada had challenges with COVID and everything like that, and Europe had some strange weather.
Mm-hmm.
What are your current what current trends are you seeing in those businesses? Presumably Canada's hopefully getting closer to normal. I mean, France, who knows? You had a summer of travel, as you just sort of spoke to. What kind of trends should we think about those as we move through the year?
Canada had a great quarter in Q1. Returned to profitability, significant growth, obviously from an easy comp with Omicron. Though still demand not quite back to pre-pandemic levels. We think there's still even some room to go from there. Europe, Q1 for us is a little more about ski season demand in Europe. We had some very rough weather this year, both in terms of bad ski conditions, but also in terms of unfavorable flying conditions, where we had to cancel a lot of flights. It's a very light revenue quarter, so it doesn't impact the overall year all that much. That's kind of what we saw on those two businesses. Then again, it's really, it's all about the summer for the European business and for the US business. That's what we're looking forward to.
Yep. I wanna pivot to MediMobility. I wanna see if there's any questions on short distance before pivoting. Happy to take questions. Okay. Two years ago, you know, nobody really thought too much about the organ transplant business. Now it's, you know, over half the revenue. Obviously through acquisition and some strong growth on top of that, you mentioned that. I guess, you know, for people that are not as familiar, you know, how does this business work? I mean, who's the customers? I mean, what does a typical organ transplant mission, you know, look like? What are, you know, what are the costs associated with it?
Great question. Our customer is the transplant center. That is the organization that's going to be putting the organ into the recipient or an Organ Procurement Organization, which is more on the procurement side. We can work for both. They are our credit. There may be some reimbursement on the back end on their side. We do not have to deal with that at all. They are good credits and they pay us according to their terms. That takes a lot of the risk out of it for us. In terms of how the organ transportation space works, the governing body for organ allocation in America is a group called UNOS.
UNOS keeps a database of everybody who's on the recipient list, and they will help identify matches of a potential donor that's in a hospital somewhere and a potential recipient that's in a transplant center. The transplant center then can accept that match, and that's when they start to call us, because a big part of whether or not you can accept the match is whether or not you can get there in time. Again, 4 hours for a heart, 4-6 hours for lungs, a little bit longer for liver. Heart, liver, lung is where we're focused, which is about a third of the 40,000 organ transplants that happen in America every year.
A big part of our value add is because we have that asset-light model, lots of different aircraft available in lots of different places, we are able to move more quickly. In some cases, for example, in the Northeast, when before folks were working with Blade, they might have been driving to Teterboro, taking a jet down to Philadelphia Airport, getting in another car, a 2.5-hour journey for $10,000s. We'll do that with a direct helicopter that might be 45 minutes and just a few single digit $1,000s to complete that trip. Our flexibility in terms of the aircraft we have available to us allows hospitals to save a lot of time.
Because we're now the largest player in organ transportation, we're aggregating more flight hours across the U.S., both from our medical business and from our passenger business. The more you fly, the more hours you can promise to your operators, the less it costs you to fly because they're able to amortize those fixed costs, pilots, hangar, insurance, asset ownership costs, whether that's financing or just internal cost of capital. They amortize that over more hours, and so it gives us a huge competitive advantage on cost. When you think about the old way of moving organs, most hospitals worked with a mom-and-pop operator. That's still true, in a lot of cases with aircraft that were based very light jets right near their hospital, and everything was a round trip, and you couldn't fly very far.
Mm-hmm.
The world has completely been turned upside down. Hospitals are getting much more aggressive. They're having local surgeons examine an organ to see if it's accepted. That doesn't work with the mom-and-pop operator because they would have to send the plane before you know if you're gonna accept the organ. We can have a local aircraft from our network waiting on standby. If the organ's rejected, it's a couple thousand dollars, no harm, no foul. If it's accepted, we have an aircraft ready. The most exciting thing that's happening right now is multiple different developers of perfusion technology.
Mm-hmm. Mm-hmm.
This is equipment that can preserve an organ for longer in flight. That's allowing hospitals to go lengths that would have been unheard of years ago. When you look at the overall growth in the organ transportation space from the UNOS data, maybe 10% growth in the number of organs transplanted, that incremental organ is actually flying a lot farther and often using a larger aircraft to make the trip. In fact, you know, one of our partners and customers did a press release this morning having set the record, and we were proud to support them on the logistics side, for the longest a heart has ever flown to reach a recipient over 2,500 miles, much longer than 4 hours. It's really revolutionary what we're able to do with this new technology.
We think uniquely Blade, with our distributed network of aircraft, is situated to help everyone, grow this market and really help these transplant centers save some more lives.
I wanna stick on that topic just for a second and maybe the synergies between the two. Some of these companies, these perfusion companies are talking about trying to become vertically integrated, maybe taking care of their own transport. You know, what kind of challenges may they encounter? Again, tying it back to you in the combined business, like what are your advantages relative to anybody that would be trying to do that vertically?
You know, first of all, we always welcome competition and we work with multiple different operators of perfusion technology, and what they're doing is fantastic, and it's changing the market. What I would say when it comes to transportation, it's just math. It's all about scale. How many hours can you put on these machines? From our perspective, we have traditional cold transport. That's still the vast majority of organs moving around because it's much less expensive to just put the organ in a cooler and move it. We have perfusion technology that's maybe enabling that incremental organ and some of that growth. Then we gotta fly Bill to Cabo on the weekend. When you have all of those use cases, you got a lot more flight hours.
If you're only doing one of those things, it's just gonna be hard to have enough demand to be able to be competitive on price, and it's gonna be hard to have enough demand to have aircraft where you need them. You're gonna end up flying more repositioning to get the aircraft where it needs to go, and you're gonna be paying more per flight hour 'cause the aircraft's not flying as much. We think it could be hard, and we think we're in the best position to support everyone as they're using this new technology and all of our customers. You know, we always welcome competition, and we think there's gonna be a lot more demand from this new technology, so lots of players are gonna need to help support this.
Ultimately, that's what's gonna allow more organs to get recipients because, you know, the sad fact is about 20% of organs that are wrapped up, ready to go to a recipient, get discarded 'cause they can't get there in time. It's really ridiculous, and there's been a lot of focus on getting that statistic to improve. You've probably seen some news articles recently about pushing transplant centers and Organ Procurement Organizations and all the players like us that support that with data and with more transparency to be more effective. I think it's gonna take a team effort from everybody to get there.
You know, in light of these newer technologies, coupled with your existing, you know, heart and lung and so forth, how should we think about your current market share and maybe how should we think about the growth of the market now that there's some new opportunities out there?
We think we're kinda high 20s, you know, in terms of our % market share in heart, liver, lung today. We see no reason we can't be the majority of this market. We think we've got the low-cost option. We think we have the most flexibility. We're seeing incredible growth that recently, last few quarters, has been about an even split. If you think about like the 111% growth in this quarter organically, about half of that was from new customers, and the other half was same-store sales growth, really. It was customers flying farther or more. And so we see a big opportunity to continue growing our share. Intrinsically, if you look at heart, liver, lung, you've got that 10-ish% growth.
Remember, that will translate to us since that incremental organ is maybe coming from a center being more aggressive or using some new technology that lets you fly farther. That's gonna come with more flight hours per organ and potentially more cost per flight hour if you're using a larger plane. There's a multiplier effect in terms of how it drops down to Blade. As we think about getting to, you know, maturity in terms of market share, you know, somewhere the majority of the market, there's a lot of horizontal opportunities that we've looked to and that we've talked about. You know, kidneys is something that we do for some of our transplant centers today, generally using dedicated aircrafts.
The vast majority of that market today, though, is Next Flight Out, meaning it's going on the next flight to LaGuardia, and then you're picking it up. That has a lot of problems. Just like LaGuardia loses your bag, you know, sometimes they actually lose organs. That's one of the things that we hope that the market is gonna improve, and we think our model, though it could be a more expensive, could provide a more reliable service. That's something we wanna focus on in the future. Other critical cargo, whether that's for medical radioisotopes with a very short half-life, is something we support hospitals with up in Canada actually today, but don't do in the United States. Just-in-time manufacturing parts is something.
Really, we'd start to look once we get the market share, maturity at any way to leverage this great network we have and the asset base that we have devoted to us for any other similar critical cargo.
Okay. That's interesting. I guess, you know, in terms of flight margin, and maybe you can define flight margin, you know, how does that compare to your corporate average or maybe a mature short distance route? You know, how should we think about that type of margin opportunity over the longer term, especially in light of these new opportunities?
On the organ transportation side, generally 15%-20% flight margins. You know, right now we're sort of in the single-digit adjusted EBITDA on a Segment basis land, we think that gets into the teens as we continue to grow. When you think about the trajectory of that flight margin, when we're growing really, really quickly, you're gonna trend kinda closer to the 15% level. That's because we might be sourcing more aircraft out in the spot market 'cause we need to move some of those dedicated aircraft around, or we need to get a sense for the flight volume, promise more hours to somebody, get a more favorable rate with an aircraft that's situated closer to some of the new hospitals we're serving.
Over time, you start to see that trend closer to the 20% level, when growth is not as quick. The other big vector for growth is that we can bring in our own dedicated ground assets, which get a great payback, on that limited CapEx for buying the lights and sirens SUVs. Then that is gonna be 30% plus margin flowing through. Over time, there's a bigger margin opportunity there. On the passenger side, closer to 20%-30%. In terms of the flight margin, though jet charter, which we break out separately in the passenger segment, is closer to about 10%. And that's just something that because we have access to all those aircraft for the medical business, we think about it as just incremental gross profit dollars.
You know, if they're not doing anything, if we have the access, we'll offer jet charter to some of our customers. It's non-core, but any way we can pick some nickels up on the ground, we're always gonna do that.
Yeah. Dimes or quarters, whatever it takes. Want to see if there's any questions from the audience before moving on to some of the newer technology. Right here, wait for the microphone, please.
Just a question or clarification. You said, in the scenario where a doctor rejects the organ and you're on standby, a couple thousand dollars, no harm, no foul, you're still charging them, or that's what it costs you and you're not charging them?
That's what it costs us, and we pass that through.
Got it. Okay. Thank you.
How often does that happen?
It doesn't happen that often. You know, generally, they're taking a look because they think there's a real opportunity there. It saves a lot of money for hospitals over time, and it gives them the confidence to go take a look.
On a helicopter transport, I'm wondering about vibration and absence of pressurization. Does that impact the organ life?
You know, we haven't seen any data that there's any negative impact from extra vibrations. We haven't heard any feedback on that front. There is some great technology that we utilize with some of our customers that actually measures vibrations, makes sure there aren't any issues, and that's not something we've seen.
For the lounge example that you gave earlier, the east and west side heliports in New York City, do you have long-term contracts with the Port Authority on those? How did you secure those, and how long do those deals run?
The big unlock to get those deals is that we're flying a lot today. That's the key. They want somebody who's gonna fly a lot today. We do have multi-year deals. The deals are with the operators of those heliports, and generally, they are coterminous with the operator's underlying agreement with the Port. I don't have to tell you, and it's not really the Port, it can be a different entity depending on what heliport you're talking about here. Generally, inertia wins in these kinda deals and, you know, for example, on the west side, the same operator that we have the coterminous agreement with has been there for over 30 years now, I believe. We feel like we have a great competitive advantage there with those leases.
Any more questions from the audience? Okay. You know, a few years back, there was a lot of, you know, thoughts and hype around the electric aviation. There still is. You know, maybe it comes around the middle of the decade, you know, maybe 2020, late 2024, early 2025, and then in the back half of the year. How does this eVTOL, or as you guys call EVA, how does that complement your existing business model? You mentioned you don't need it to drive profitability, but how does it, how does it really drive the business model further?
On the passenger side, the number one advantage is quiet. If we can have an aircraft that's quiet, we're gonna be able to create more places to land, and that's gonna expand our addressable market. Over time, we do believe that these machines are gonna be less expensive to operate and maintain. Might have an opportunity to both increase the margins and lower the price, further increasing the addressable market. This will probably take time. It's gonna be a crawl, walk, run. We think we are particularly well suited for the crawl and walk phase of this journey.
We already have passengers that we're flying with unit economics that make sense with helicopters, which we believe are gonna be more expensive than EVA, we think that our markets uniquely will be able to make money on day one with EVA, even if they're not materially less expensive. We already have places to land, because we think it might take a little bit of time to create new places to land. I don't know how many people live in New York, but Barry Diller's been trying to build a free park on the West Side Highway. It took about a decade because of fears about the shade it might generate for the eel population in the Hudson River. It's hard to do things in cities. Even if there's something that everybody agrees they wanna do, it could take time.
During that window, we think that we're gonna be in the pole position for rolling out this technology and putting ourself on a pedestal for kinda every major market in the world to see as the success story of air mobility. That could open us up for opportunities to kinda do build, operate, train, and maybe international markets, kinda like our joint venture structure in India. We think by focusing on the areas that are gonna work, and we know they're gonna work because they work with helicopters today, that'll put us in a position when we do get to that run phase and folks are looking for a partner on the logistics platform side, we think we're gonna be number one on the list.
Yeah. You guys talked about in the past maybe even MediMobility makes an early, you know, earlier opportunity even maybe before passenger. You mentioned, you know, in the past, you've chosen Eve and Wisk and BETA as partners. You know, why them and why not other the other eVTOL makers?
To be clear, we're manufacturer agnostic, so we can work with anybody, and we reserve the right to work with anybody. The folks you just mentioned have been very focused on partnering and showing our mutual stakeholders that this thing work. That's why we focused on these. We've done a number of simulations with Eve in India and Chicago, showing people that there can be a benefit from air mobility. This is helicopter service done as a test that they underwrote to really demonstrate that this can provide a benefit to folks that need to get around. BETA recently did a demonstration flight, the first ever EVA demonstration flight in the New York City area. This is important to let people actually hear it with their own ears that these things are quiet.
We like to partner with people that are trying to advance our common goal of preserving the infrastructure that exists, showing people that this emission-free, quiet transportation mode is coming, and letting them see it with their own eyes. We are maintaining that manufacturer-agnostic approach, and it gives us incredible flexibility to pick the best aircraft for the mission. Frankly, it might be one aircraft that's perfect to fly an unattended heart 15 miles, might be a totally different aircraft that's great to go to the airport, and a different one that's good to go between Vancouver and Victoria. You know, rarely is aviation one size fits all, and that's why we think our flexible platform is really gonna be best suited.
Yep. At this stage, definitely, a lot of concerns about, you know, balance sheet, you know, cash burn, things like that. you know, in an event that in, you know, much worse macro, you know, the passenger business falls off, whatever, what areas can you defer spend and, I guess, to manage through that?
Well, the biggest thing is we're completely flexible on the cost of goods sold side, so we can throttle that up and down. What I would say, you saw it a little bit in Q1, we talked about being able to double our revenues in airport with 20% less marketing spend. Really what I think you see there is the power of the brand that we've built in these great air mobility markets. We're starting to see that we can achieve some of the growth with less marketing investment. Any given week, more than half of our flyers in airport, for example, are people who've flown before. We're starting to get that flywheel going. We've already got the brand recognition, we do think that there's opportunities to continue growing some of these products with less marketing investment.
Of course, we've got a lot of flexibility in the platform. If you look at that unallocated corporate expense in the most recent quarter, you really don't have to add to the platform expense, even as we're growing a business like medical 111% year-over-year. I think the most important thing we wanna demonstrate to people is that our corporate expenses continue to shrink as a percentage of our overall revenues. We're seeing flight profit grow faster than revenue, growing faster than corporate expenses. If we continue on that path, you're gonna see the whole business get to profitability. I think it might be a little hard to see sitting in Q1, given the massive seasonality of the passenger business, with 40% of that revenue typically coming through in Q3.
I think we're really on the right path here and hopefully people will be able to start to see even more than they already have the leverage of the platform.
Yep. Maybe last question, but, you know, do you envision that Blade may have to raise capital in the coming year? Obviously fairly strong balance sheet now, but are there any gaps in terms of M&A that you would, you know, consider any other partnerships or acquisitions that you would be open to?
No need to raise capital. you know, from our perspective, fortress balance sheet, where the vast majority of that can be allocated towards acquisitions. We're gonna be focused on things like Trinity, where we're buying a good free cash flow business. Trinity was doing about $16 million of revenues, less than $2 million of EBITDA when we purchased it, about a year and a half ago. We had the largest organ transportation business in the Northeast, single digit million revenue contribution. You plug that into our aircraft sourcing platform, and now we've got a business that's running at more than $100 million of annualized revenues. It's doing almost $2 million a quarter of Segment EBITDA. We're really able to buy down our purchase multiple really quickly and generate that ROI.
That's the kind of stuff we'll be looking for, whether that's a horizontal expansion, new capability or something that improves our cost structure. We've got the cash to do it.
Great. Well, with that, we're out of time. I need to get on the BLADE app and look at what, you know, Cabo flights cost. We'll leave it there. Thanks, Will, for supporting the conference. Thanks.
Thanks so much, Bill.
Yeah.
This was great.