Wheels Up Experience Inc. (NYSE: UP) reported fourth‑quarter 2025 results on February 19, 2026, showing total revenue of $183.842 million, a 10% year‑over‑year decline, and a net loss of $28.875 million. The company’s adjusted EBITDA rose to $32.928 million, its first positive adjusted EBITDA in a quarter, while adjusted EBITDAR reached $36.908 million, a turnaround from the $3.174 million loss reported in the same period a year earlier.
Revenue fell 10% YoY, largely driven by a 52% drop in membership‑program revenue to $6.31 million as Wheels Up exited low‑frequency flyers. Charter revenue remained flat at $155.17 million, and live flight legs declined 20% to 10,235, yet gross bookings per leg increased 23% to $20,575, reflecting a higher‑margin mix of larger aircraft.
The first‑quarter adjusted EBITDA gain is attributed to a combination of cost‑reduction initiatives, higher utilization of the new Embraer Phenom 300 and Bombardier Challenger 300 platforms, and a reduction in one‑time restructuring charges. Strong corporate block sales also contributed to the improved profitability.
Adjusted contribution margin expanded to 19.1% from 12.7% in the prior quarter, driven by the higher mix of profitable flying and the cost efficiencies of the modernized fleet. The company’s net loss narrowed from $87.5 million in Q4 2024 to $28.9 million in Q4 2025, underscoring the impact of the cost‑control program.
Wheels Up’s strategic focus is evident in its fleet modernization to Embraer Phenom 300 and Bombardier Challenger 300 aircraft, the launch of its Signature Membership program with over 600 members, and the ongoing Delta partnership that provides liquidity and customer acquisition channels. The company is pursuing a charter‑first strategy to capture higher‑margin opportunities.
Investors reacted to the earnings release with a 1.55% decline in pre‑market trading, driven primarily by the substantial revenue miss against the consensus estimate of $486.9 million. The market’s focus on top‑line performance outweighed the positive EBITDA and margin expansion.
Management emphasized the turnaround narrative: “We’re winding down unprofitable flying and building up profitable flying on the new aircraft fleet. That transition will probably last another couple of quarters, after which we should expect to see continued growth.” CEO George Mattson also noted, “We have an EBITDA positive business model now.”
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