FLYX continues turnaround with $111m Q2 revenue, expanding margins
Segrave said the company disposed of one non-performing aircraft during the second quarter of 2026.
Private aviation company flyExclusive (FLYX) reported a 22% year-over-year jump in revenues to $111.1m in the second quarter of 2026 while reporting its second consecutive quarter with positive adjusted EBITDA.
“For the last two years, we have been very clear about what needed to change at flyExclusive. We needed to remove unproductive aircraft, modernise the fleet, dramatically improve dispatch availability and aircraft utilisation, reduce our corporate cost structure, and create operating leverage,” said the founder and CEO Jim Segrave of flyExclusive in earnings call.
The company’s flight revenue increased by 20% year-over-year during the quarter, followed by a 51% increase in fractional revenue and another 52% improvement in MRO services.
Segrave said the company’s transformation strategy has started delivering results. “In the second quarter of 2025, revenue increased to approximately $91m, while the number of aircraft declined to 86. And this quarter, we generated more than $111m with only 81 revenue-producing aircraft,” he said.
“In two years, we have increased second-quarter revenue by more than 40% while reducing the number of aircraft required to produce that revenue by approximately 15%.”
The efficiency gains in fleet operations were visible in the company’s 65% improvement in gross profit to $22.7m, with margin improving by 539 basis points to 20% of revenue.
The trend of margin improvement continued down the income statement as adjusted EBITDA swung into a positive $4.2m – an improvement of $9.4m from -$5.2m. In terms of margin, the adjusted EBITDA margin grew 954 basis points from last year, supported by an 11% improvement in revenue per SG&A headcount reflecting efficiency gains.
On fleet improvement, Segrave said the company disposed of one non-performing aircraft during the second quarter of 2026.
Dispatch availability increased by 21% year-over-year across the fleet. The company estimates each 100-basis point improvement in dispatch availability results in $210,000 per month or $2.5m per annum.
“We believe that through continued fleet modernisation and the efficiencies of our vertically integrated platform, we can ultimately produce dispatch availability well above 70%,” Segrave said.
The company achieved a 14% increase in fleet utilisation during the quarter, increasing flight hours by 8% despite a 6% reduction in fleet size.
Retail members grew to 997 from 952; retail sales through the company’s Jet Club programme rose 13% to $30m, with fractional retail sales rising by 34% to $15m.
“Fractional retail sales increased approximately 34% year-over-year during the second quarter and approximately 29% during the first half. More importantly, fractional aircraft generate substantially better economics to flyExclusive than comparable leased aircraft. As fractional becomes a larger percentage of our fleet, we can grow revenue while simultaneously improving the economic profile of the fleet. We are seeing strong demand for the product, and we now have additional aircraft inventory coming into the business to support that growth,” said Segrave.
The company posted an operating loss of $5.7m – an improvement of $6.6m from the same period last year. On the bottom line, the company posted a net loss of $11.64m, of which loss attributable to flyExclusive stood at $7.3m. The major chunk of the increase in net loss came as a result of a $5.6m interest expense.
“Long-term notes payable declined from approximately $232m at the end of the first half of 2024 to approximately $150m a year ago, and down to approximately $138m today. That represents approximately $94m and a 40% reduction in debt in just two years,” said Segrave.
Overall, during the first half of 2026, the company’s revenue grew 15% to $207m, with all three segments including flight, fractional, and MRO generating double-digit growth. Dispatch availability improved by 884 basis points.
The company also completed the Jet.AI transaction after the second quarter. Segrave said this “improved our balance sheet, providing approximately $12m in liquidity.”
“Additionally, we have multiple term sheets in hand that could provide up to $50m of additional liquidity. That financing would provide substantially more capital than our currently forecasted growth capital requires,” he added.
The company ended the second quarter with cash and cash equivalents of approximately $14.3m, compared to $18.7m at the end of the first quarter.
“The marginal decline in our cash balance reflects three factors: continued debt paydowns, ongoing fleet capital expenditures tied to our modernisation initiative, and the timing of the Jet.AI transaction, which closed just after quarter-end. For those reasons, we don’t believe the June 30 cash balance by itself provides a complete picture of our current liquidity position,” explained Segrave.
