A private jet operator based in Kinston, North Carolina, flyExclusive runs a fleet of Cessna Citation, HondaJet, and Challenger aircraft for charter, fractional ownership, and membership flights, plus its own maintenance-and-repair (MRO) shops that even install Starlink internet systems. Aviator Jim Segrave founded the company in 2015, shortly after selling his earlier airline to Delta, and named it "Exclusive Jets" before rebranding to flyExclusive to avoid clashing with another firm in New York. Its name also nods to its approach: it flies nearly all trips on its own planes instead of hiring outside carriers.
Gross margin crossed 20% and operating cash flow turned positive as fleet modernization benefits took hold.
The operating loss narrowed to its smallest in years. rose 21.7% to $111.1 million and widened 5.4 points to 20.4%, driven by higher jet club and charter flight hours and a favorable mix shift toward fractional ownership. The company is inching toward breakeven, but a and $103.9 million in still weigh on the balance sheet.
Key takeaways
widened to 20.4% from 15.0% a year ago, which management attributed to fleet modernization benefits and a favorable mix shift toward higher-margin fractional ownership.
rose 21.7% to $111.1 million, led by a 14.2% increase in jet club and charter revenue on higher flight hours and effective hourly rates, and a 28.4% increase in fractional ownership revenue from membership growth.
The operating loss narrowed to $5.8 million from $12.4 million a year ago, as cost of grew more slowly than revenue and selling, general and administrative expenses fell.
Section summaries
Management's Discussion and Analysis
Revenue grew 15.6% to $207.5M in H1 2026 driven by jet club and fractional gains, while net loss narrowed 36.6% to $24.8M.
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Total rose 15.6% to $207.5M, led by a 14.2% increase in jet club and charter revenue to $178.6M on higher flight hours and effective hourly rates.
turned positive at $2.7 million, compared to a $0.4 million source a year ago, while was a use of $2.7 million.
Cash and equivalents fell 23.7% sequentially to $14.2 million, and the company disclosed $149.0 million in anticipated cash requirements over the next twelve months, which it expects to meet through refinancing and operating cash flows.
The company extended its aircraft management agreement with Volato to September 2026 and acquired certain software and intellectual property assets for $1.3 million in stock.
What changed
The prior quarter flagged whether the deceleration in fractional ownership growth to 26.7% represented a normalization: growth held roughly steady at 28.4% this quarter, suggesting a new, slower pace after the triple-digit rates of 2024 and early 2025.
The prior quarter flagged whether the company could sustain positive adjusted : the operating loss narrowed further to $5.8 million and turned positive, indicating the trajectory is holding.
The prior quarter noted the Jet.AI merger was not mentioned despite a June 2025 termination deadline; it remains absent from this filing, suggesting the deal has been abandoned.
The prior quarter flagged whether the company could refinance $149.0 million in anticipated 12-month cash requirements with only $18.7 million in cash: cash fell to $14.2 million this quarter, and the same $149.0 million requirement is still disclosed, leaving the question unresolved.
What to watch
Whether the company can refinance the $149.0 million in anticipated 12-month cash requirements, given the $14.2 million cash balance and a history of non-compliance.
Whether can hold above 20% in future quarters or whether the fleet modernization benefits and favorable mix shift are one-time in nature.
Whether the company can sustain positive , which turned positive this quarter after years of cash use from operations.
The outcome of the re-filed Wheels Up litigation in North Carolina and whether any settlement or judgment provides a cash inflow or creates a new liability.
Fractional ownership grew 28.4% to $21.9M due to increased membership, while MRO revenue rose 37.6% to $6.4M from more external customer services.
improved to 20.1% from 13.9% a year ago, as benefits from fleet modernization efforts offset a $10.7M increase in fuel expense driven by the war in Iran.
Net loss narrowed to $24.8M from $39.2M, helped by the absence of a prior-year $4.2M loss on debt extinguishment and a $1.4M favorable change in warrant liabilities.
turned positive to $2.1M from a $10.1M use a year ago, while cash and equivalents stood at $14.2M at quarter-end amid a .
The company extended its aircraft management agreement with Volato to September 2026 and acquired certain software and intellectual property assets for $1.3M in stock.
Quantitative and Qualitative Disclosures About Market Risk
In the ordinary course of operating our business, we are exposed to market risks. Market risk represents the risk of loss that may impact our financial position or results of operations due to adverse changes in financial market prices and rates. Our principal market risks are r…
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In the ordinary course of operating our business, we are exposed to market risks. Market risk represents the risk of loss that may impact our financial position or results of operations due to adverse changes in financial market prices and rates. Our principal market risks are related to interest rates and aircraft fuel costs. There have not been any material changes to the market risks described in Part II, Item 7A — “Quantitative and Qualitative Disclosures About Market Risk” included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Please see Note 21 "Commitments and Contingencies" to our condensed consolidated financial statements included elsewhere in this Report for a description of legal proceedings.
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Please see Note 21 "Commitments and Contingencies" to our condensed consolidated financial statements included elsewhere in this Report for a description of legal proceedings.
There have been no material changes to the Company’s risk factors as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes to the Company’s risk factors as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.