BETA Technologies, Inc.

(in thousands, except share and per share amounts)

1. Nature of Operations

BETA Technologies, Inc. (“BETA” or the “Company”) specializes in the design, development and manufacturing of electric aircraft, including advanced flight control and electric propulsion systems, with a focus on clean aviation technology. The Company has wholly-owned subsidiaries located in the United States and certain foreign jurisdictions for the purpose of holding its interests in aircraft, intellectual and real property.

2. Basis of Presentation and Accounting Policies

Basis of Presentation and Principles of Consolidation

The condensed consolidated financial statements included in this report have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with the instructions to Form 10-Q. These condensed consolidated financial statements are unaudited and, in the opinion of management, reflect all normal recurring adjustments necessary to fairly state the financial position, results of operations, cash flows and change in equity for the periods presented. Results for the periods presented are not necessarily indicative of the results that may be expected for any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report for the year ended December 31, 2025.

Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (the “ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (the “FASB”). The Company’s condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Emerging Growth Company Status

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The Company expects to use the extended transition period for any other new or revised accounting standards during the period in which it remains an emerging growth company.

Summary of Significant Accounting Policies

There have been no changes to the Company’s significant accounting policies described in Note 2 “Basis of Presentation and Accounting Policies” to the consolidated financial statements and notes thereto included in the Company’s Annual Report for the year ended December 31, 2025 that have had a material impact on the condensed consolidated financial statements and related notes.

Concentration of Credit Risk

As of March 31, 2026 and December 31, 2025,96% and 85% of accounts receivable, respectively, were derived from customers in excess of 10% of total accounts receivable.

Specific revenue from customers exceeding 10% of total revenues for the three months ended March 31, 2026 and 2025 were as follows:

*Less than 10%

Collaborative Arrangement

During September 2025, the Company entered into a collaborative arrangement with General Electric Company, operating as GE Aerospace (“GE Aerospace”) and in connection with this arrangement, issued warrants to purchase Class A common stock. During the three months ended March 31, 2026, the Company recorded research and development expense of $6,134, which includes $5,634 of warrant expense. As of March 31, 2026, there was $55,529 of unrecognized compensation cost related to unvested warrants.

Fair Value Disclosures

As of March 31, 2026 and December 31, 2025, cash and cash equivalents included $1,418,434 and $1,550,925 of cash equivalents, respectively. The Company’s cash equivalents are determined to be Level 1 in the fair value hierarchy.

The Company’s credit facility under its credit agreement with the Export-Import Bank of the United States (the “Ex-Im Credit Facility”) is recorded on an amortized cost basis and had a fair value of $154,421 and $155,507 as of March 31, 2026 and December 31, 2025, respectively. The fair value of the Ex-Im Credit Facility is based on quoted prices in similar markets, which is a Level 2 input within the fair value hierarchy.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The new standard is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is still evaluating the effects of adopting this accounting standard on the condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public entities to disclose in the notes to the consolidated financial statements, specified information about certain costs and expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (subtopic 220-40): Disaggregation of Income Statement Expenses, Clarifying the Effective Date. ASU 2025-01 clarifies that the guidance in ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is still evaluating the effects of adopting this accounting standard on the condensed consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which adds guidance to ASC 832 on the recognition, measurement, and presentation of government grants. ASU 2025-10 is effective for annual periods beginning after December 15, 2028, and interim reporting periods beginning after December 15, 2029. The Company does not anticipate that the standard will have a material impact on the condensed consolidated financial statements.

3. Revenue Recognition

Disaggregated Revenue

The Company disaggregates revenue from contracts with customers by customer type, product or service type and geographic location, as the Company believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The Company’s revenues by customer type were as follows (in thousands):

The Company recognized revenue from sales to customers in the United States during the three months ended March 31, 2026 and 2025 of $9,574 and $9,599, respectively. The Company generated $559 of revenue from international customers during the three months ended March 31, 2026 and there wasno revenue generated from international customers for the three months ended March 31, 2025.

Remaining performance obligations represent the amount of contracted future revenue that has not yet been recognized. As of March 31, 2026, the Company’s remaining performance obligations were $25,115. The Company currently expects to recognize approximately $15,720 of the remaining performance obligations as revenue during the next 12 months and the remaining to be recognized thereafter. For contracts that the Company has elected the practical expedient to recognize revenue in the amount of consideration to which it has the right to invoice the customer based on services provided, the Company does not disclose unsatisfied performance obligations.

Contract Liabilities

As of March 31, 2026 and December 31, 2025, the Company had total deferred revenue of $17,141 and $16,254, respectively. Deferred revenue, and deferred revenue, non-current, increased during the three months ended March 31, 2026, primarily due to receipt of customer payments exceeding revenue recognized on performance obligations. Revenue recognized related to these balances that existed at the beginning of the year was $288 and $3,372 for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026, the Company also entered into an agreement for post-certification aircraft sales. This agreement hasno associated revenues or cost of sales for the three months ended March 31, 2026. As of March 31, 2026 and December 31, 2025, the Company has recorded deposits of $1,000 within deferred revenue and $4,260 within deferred revenue, non-current.

4. Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

Depreciation expense for the three months ended March 31, 2026 and 2025 was $6,151 and $5,121, respectively.

During the three months ended March 31, 2026 and 2025, the Company disposed $331 and $1,302 of property and equipment, net, respectively.

5. Leases

The Company’s lease arrangements consist of facility, vehicle, aircraft and equipment, as well as other short-term leases for storage and office space. There have been no material changes to the Company’s leases during the three months ended March 31, 2026.

6. Commitments and Contingencies

As of March 31, 2026, the Company was not aware of any material existing, pending or threatened legal actions against the Company. Additionally, the Company has not incurred any material costs as a result of indemnifications nor experienced any losses related to them. As of March 31, 2026, the Company was not aware of any claims under indemnification arrangements and does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible; therefore, no related reserves were established.

7. Stock-Based Compensation

During the three months ended March 31, 2026, the Company granted 2,236,939 restricted stock units (“RSUs”), which had a weighted-average grant-date fair value of $21.17 per share. Additionally, during the three months ended March 31, 2026, the Company granted 2,575,356 performance-based restricted stock units (“PSUs”) under the Company’s 2025 Omnibus Incentive Plan, which had a weighted-average grant-date fair value of $21.41 per share. The PSU grant consists of four distinct tranches that align with quarterly performance objectives. Upon vesting, each RSU and PSU is equivalent toone share of the Company’s Class A common stock. The Company determines the fair value of PSUs using the per-share market price of the Class A common stock on the grant date. The ultimate number of PSUs that vest is contingent on performance against the Company’s quarterly pre-set objectives and will be adjusted based on the probability and timing of performance achievement. Final compensation expense recognized is based on the number of PSUs that ultimately vest. The PSUs granted during the three months ended March 31, 2026 vest within atwo-year period. In April 2026, the Company’s Compensation Committee certified achievement of the first quarterly 2026 PSU performance objective, resulting in the vesting of 630,349 PSUs.

There was $14,360 and $44,726 of unrecognized compensation cost related to unvested PSUs and unvested restricted stock granted during the three months ended March 31, 2026, which is expected to be recognized over a weighted-average period of 0.8 and 3.7 years, respectively.

Total stock-based compensation expense was allocated as follows (in thousands):

8. Net Loss Per Share

The calculations of net loss per share were as follows (in thousands, except share and per-share amounts):

The Company’s potentially dilutive securities, which include pre-initial public offering (“IPO”) convertible preferred stock, unvested warrants, stock options and restricted stock, have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The following potentially dilutive securities have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:

9. Segment Reporting

The Company hasone operating and reportable segment- Development and Manufacturing of Electric Aircraft. The Company determined its reportable segment based on how the chief operating decision maker (“CODM”) evaluates the business. Substantially all of the Company’s fixed assets are located and its revenues are generated in the United States. The Company’s foreign operations primarily consist of expenses associated with engineering and related supporting administrative services.

The Company’s CODM is its Chief Executive Officer. During the three months ended March 31, 2026, the Company changed the presentation of the financial information regularly provided to the CODM to evaluate segment performance and inform business decisions. The CODM reviews forecasted-to-actual segment loss for purposes of making operating decisions, allocating resources and evaluating financial performance. The CODM does not use any segment asset measures to assess performance and decide how to allocate resources.

The Company’s prior-period segment amounts have been recast in the table below to conform to the new presentation of significant expenses. A reconciliation of segment loss to net loss was as follows (in thousands):

(1)Includes selling, marketing, shipping and freight expenses.

(2)Includes of loss on disposal of property and equipment, interest income/expense, IPO costs and provision for income taxes.

10. Government Assistance

As a result of government assistance received under the Company’s agreements incorporated in the Annual Report for the year ended December 31, 2025, during the three months ended March 31, 2026 and 2025, the Company recorded a reduction to property and equipment of $45 and $426, respectively, and $0 and $140 as a reduction to general and administrative expenses, respectively.

11. Related Party Transactions

The Company has generated revenue from transactions with related parties, primarily through the Company’s relationship with United Therapeutics Corporation, GE Aerospace and Advanced Regenerative Manufacturing Institute, Inc. These amounts are disclosed within the Company’s condensed consolidated balance sheets and condensed consolidated statements of operations and comprehensive loss.

Additionally, the Company enters into certain transactions with management for the lease of aircraft and property for use within the business. The aggregate expenses are included with general and administrative expenses for the three months ended March 31, 2026 and 2025.

Sale-Leaseback Transaction

During 2025, the Company entered into a sale-leaseback transaction with an associated company of a board member fortwo of its buildings with an initial leaseback term of 29 years. Payments representing interest expense were made under the financing.

GE Aerospace

In September 2025, the Company issued convertible Series C-1 preferred stock to GE Aerospace for total proceeds of $300,000, which converted into Class A common stock as the result of the IPO. Additionally, the Company performed engineering services for GE Aerospace and recognized $6,261 in service revenues during the three months ended March 31, 2026.