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 on Form 10-K 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.

On June 30, 2026, the last business day of the Company’s recently completed second quarter, the market value of our common stock held by non-affiliates exceeded $700 million. As a result, the Company will be deemed a large accelerated filer as of December 31, 2026 and, beginning with its Annual Report on Form 10-K for the year ending December 31, 2026, the Company will no longer qualify as an emerging growth company. Accordingly, the Company will no longer be able to rely on certain exemptions and reduced disclosure requirements available to emerging growth companies, including the extended transition period for complying with recently issued accounting standards and auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act.

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 on Form 10-K 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 June 30, 2026 and December 31, 2025,86% and 85% of accounts receivable, respectively, was derived from customers in excess of 10% of total accounts receivable.

Revenues from customers exceeding 10% of total revenues for the three and six months ended June 30, 2026 and 2025 were as follows:

*Less than 10%

Fair Value Disclosures

As of June 30, 2026 and December 31, 2025, cash and cash equivalents included $1,289,828 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 $153,316 and $155,507 as of June 30, 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 requirements of ASU 2023-09 are effective beginning with the Company’s 2026 annual reporting period. 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 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. The requirements are effective beginning with the Company’s 2027 annual reporting period and 2028 interim reporting period. The Company is still evaluating the effects of adopting this accounting standard on the 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. The requirements of ASU 2025-10 are effective beginning with the Company’s 2029 annual period and 2030 interim reporting period. The Company does not anticipate that the standard will have a material impact on the consolidated financial statements.

3. Asset Acquisition and Collaborative Arrangement

Asset Acquisition

During the three months ended June 30, 2026, the Company acquired Biocogniv, Inc. (“Biocogniv”), a developer of an agentic artificial intelligence (“AI”) platform, to assist in accelerating the design of software development in support of aircraft certification efforts. The total consideration consisted of Class A common stock valued at $10,797, net cash of $2,561, and a cash holdback of $1,645 for indemnification claims, payable in installments on thesix- andtwelve-month anniversaries of the closing date. The transaction was accounted for as an acquisition of assets because substantially all the fair value of the gross assets acquired were concentrated in a single identifiable asset. The Company recognized acquired in-process research and development (“IPR&D”) expense of $15,003, as the AI platform did not have alternative future use at the time of the acquisition. The Company incurred direct transaction costs of $1,144, which were recorded as research and development expense.

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 and six months ended June 30, 2026, the Company recorded research and development expense of $6,511 and $12,645, which includes $5,697 and $11,331 of warrant expense, respectively. As of June 30, 2026, there was $49,832 of unrecognized compensation expense related to unvested warrants.

4. 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 generated $1,561 and $2,120 of revenue from foreign customers during the three and six months ended June 30, 2026, respectively, and there wasno revenue generated from foreign customers for the three and six months ended June 30, 2025.

Remaining performance obligations represent the amount of contracted future revenue that has not yet been recognized. As of June 30, 2026, the Company’s remaining performance obligations were $32,976. The Company currently expects to recognize approximately $21,465 of the remaining performance obligations as revenue during the next 12 months and the remaining to be recognized thereafter.

Contract Liabilities

As of June 30, 2026 and December 31, 2025, the Company had total deferred revenue of $21,894 and $16,254, respectively. Deferred revenue, and deferred revenue, non-current, increased during the six months ended June 30, 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 $1,280 and $2,082 for the three months ended June 30, 2026 and 2025 and $1,568 and $5,454 for the six months ended June 30, 2026 and 2025, respectively. During the six months ended June 30, 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 and six months ended June 30, 2026. As of June 30, 2026 and December 31, 2025, the Company has recorded deposits of $1,000 within deferred revenue and $4,285 and $4,260 within deferred revenue, non-current, respectively.

5. Property and Equipment, Net

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

During the three months ended June 30, 2026 and 2025, the Company disposed $5,411 and $1,169 of property and equipment, net, respectively. During the six months ended June 30, 2026 and 2025, the Company disposed $5,742 and $2,473 of property and equipment, net, respectively. During the three and six months ended June 30, 2026, the Company recorded a loss on disposal of $5,321 to research and development expense related to the abandonment of certain machinery and equipment.

6. 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. In connection with an operating lease entered into during the three and six months ended June 30, 2026, the Company has agreed to lease additional space with expected commencement dates during the remainder of 2026. The Company expects future payments of approximately $11,000 over a period of 10 years in connection with the leases that have not yet commenced.

7. Commitments and Contingencies

As of June 30, 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 June 30, 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.

8. Stock-Based Compensation

During the six months ended June 30, 2026, the Company granted 2,492,497 restricted stock units (“RSUs”), which had a weighted-average grant-date fair value of $20.74 per share. Additionally, during the six months ended June 30, 2026, the Company granted 2,935,511 performance-based restricted stock units (“PSUs”) under the Company’s 2025 Omnibus Incentive Plan, which had a weighted-average grant-date fair value of $20.72 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 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 $12,038 and $44,730 of unrecognized compensation expense related to unvested PSUs and unvested restricted stock granted during the six months ended June 30, 2026, which is expected to be recognized over a weighted-average period of 0.9 and 3.5 years, respectively.

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

During the three and six months ended June 30, 2025, the Company approved modifications to certain incentive stock option awards in connection with the termination of service of an employee. These modifications resulted in an extension of the post-termination exercise period for vested awards and a change of vesting conditions for unvested awards. As a result of these modifications, the Company recorded additional stock-based compensation of $3,799.

9. 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, and shares issuable under stock-based compensation plans, 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:

10. 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 first quarter of 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 acquisition-related expense, loss on disposal of property and equipment, interest income/expense, IPO costs, and provision for income taxes.

11. Government Assistance

As a result of government assistance received under the Company’s agreements incorporated in the Annual Report on Form 10-K for the year ended December 31, 2025, during the three months ended June 30, 2026 and 2025, the Company recorded a reduction to property and equipment of $45 and $272, respectively. During the six months ended June 30, 2026 and 2025, the Company recorded a reduction to property and equipment of $90 and $698, respectively. During the six months ended June 30, 2025, the Company recorded a reduction to general and administrative expense of $140.

12. 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 and six months ended June 30, 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 and integration services for GE Aerospace and recognized $6,253 and $12,514 of service revenues during the three and six months ended June 30, 2026, respectively.