Surf Air Mobility’s Q2 earnings reveal a company that’s not only improving operationally but also quietly building a software platform with the potential to completely reshape its industry. The market’s focus remains on the airline business, but if you read between the lines, the real story is emerging in the software division—one Wall Street is drastically underestimating.

Strong Core Execution

The headline numbers show clear momentum. Second quarter revenue of $27.4 million beat company guidance ($23.5M–$26.5M) and grew 17% sequentially from Q1. Airline operations reached profitability for the quarter, keeping the company on track for full-year airline profitability. The on-demand business, which was relaunched with a focus on product profitability, saw its highest sales month ever in July thanks to the introduction of a Jet Card and a strategic push into larger cabin sales.

Essential Air Service (EAS) contracts worth $14 million over four years were renewed in Hawaii, and the company signed an interline agreement with Japan Airlines—another sign it’s building meaningful partnerships. CFO Oliver Reeves also announced that SRFM raised $44.7 million in equity capital, strengthening its balance sheet and funding growth.

The Overlooked Software Catalyst

The more important development—and the one that Wall Street isn’t pricing in—is SurfOS, SRFM’s proprietary software platform built in partnership with Palantir. This isn’t some side project. SurfOS already has real beta users, has launched BrokerOS and OperatorOS features, and has a five-year exclusive partnership with Palantir to configure and sell the software to Part 135 operators and charter brokers. Six clients have already signed LOIs to purchase SurfOS flagship products ahead of its commercial launch.

Why is this significant? Because SRFM isn’t just running software internally—it’s building a scalable, recurring-revenue software product for the broader private aviation market. In other words, it’s doing what Palantir did in data analytics: create mission-critical tools for an industry and then scale them to a wide customer base.

Why This Matters for Investors

Italkstocks.com has a massive position in SRFM because we see this as more than just an airline recovery story. The company is proving that its own operations improve when running on SurfOS, and once other operators see the same efficiency and profitability gains, adoption will spread. This is a network effect business model—the more operators use SurfOS, the more valuable it becomes, and the more entrenched SRFM becomes in the industry.

We’ve seen this playbook before. Palantir (PLTR) was misunderstood for years as just a government contractor before investors realized the commercial side of its software business could explode. SRFM’s aviation software has similar potential—except it’s in a space with far less competition and a massive opportunity to modernize outdated processes.

Long and Strong Into 2026 and Beyond

We believe the software segment will be the driver that transforms SRFM from a niche airline into a high-margin, Rule of 40-caliber software company. If management executes, the financial profile in 2026 and beyond could start to look a lot more like PLTR’s—recurring revenue, sticky customers, and a valuation multiple that reflects SaaS, not airlines.

For investors willing to stay long and strong, SRFM offers exposure to both the tangible progress of a growing airline and the explosive upside of a software business that’s still flying under the radar. Wall Street is valuing it like an airline, but the future is software.

Italkstocks is betting big here. We think the market will eventually wake up—and when it does, SRFM could be one of the most compelling under-the-radar growth stories in years.