Volato Group, Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
SOAR$0.20+6.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001628280-25-026001
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001853070-25-000006
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 79 previous paragraphs and 87 current paragraphs.
44 unchanged; 33 reworded; 3 added; 2 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
•We generated total revenue of $24.9 million, an increase of $24.7 million compared to the 2024 period, primarily related to an increase in aircraft sales of $24.5 million as we took delivery of our third Gulfstream G280;
Current report
Recent Developments
Current report
On July 29, 2025, the Company entered into an Agreement and Plan of Merger and Reorganization with M2i Global (“M2i”), pursuant to which a subsidiary formed by the Company for purposes of effecting the transaction will merge with M2i, with M2i surviving the merger as a wholly-owned subsidiary of Volato (the “Merger”). The Merger is subject to approval by the Company’s stockholders and various other customary closing conditions. M2i’s business focuses on providing its partners with access to turnkey solutions, facilitating expanded business opportunities, securing offtake agreements, influencing strategic government policy, and engaging with aligned organizations and laboratories. M2i specializes in the development and execution of a complete global value supply chain for critical minerals, including the creation of a U.S. Strategic Mineral Reserve, a Public/Private Partnership to collaborate with the U.S. government. Upon consummation of the Merger it is currently expected that M2i’s stockholders will own approximately 85% of the combined company.
Removed paragraphs (2)
Previous report
In July 2024, the Company entered into a business loan and security agreement (the “Loan”) with TVT Capital Sources LLC (the “Lender”), which provides for a term loan in the amount of $4.0 million. Net proceeds of $3.8 million were received by the Company and used to fund operations. The Loan bears interest at an annual percentage rate of 165% and matures on January 28, 2025, with principal and interest payments made weekly. In the first quarter of 2025, the loan was repaid in full.
Previous report
The Company’s contracts for managing aircraft provide for fixed monthly management fees and reimbursement of operating expenses at a predetermined margin. Generally, contracts require two months advance deposit of estimated expenses.
Reworded paragraphs (33)
Previous wording
Our mission is to provide our customers more time for the rest of their lives by providing convenient and high-quality travel by using the right aircraft for the mission and by developing proprietary technology designed to make the travel experience more seamless. Our revenue is generated through airplane sales and software-as-a-service subscriptions.
Current wording
Our historical mission has been to provide our customers more time for the rest of their lives by providing convenient and high-quality travel by using the right aircraft for the mission and by developing proprietary technology designed to make the travel experience more seamless. Our revenue is generated through airplane sales and software-as-a-service subscriptions.
Previous wording
In September 2024, we entered into an agreement with flyExclusive, a leading provider of private jet charter services, to transition our aircraft ownership program fleet operations to flyExclusive. This move is expected to bring substantial cost savings and provide Volato with the opportunity to focus on what it believes to be its high-growth areas, including aircraft sales and products and services utilizing our proprietary software. Volato expects to benefit from the margins on aircraft sales without the burden of operational costs, while also generating revenue from its proprietary software, including the Vaunt platform, Volato’s successful empty leg consumer app. In the fourth quarter of 2024, we transferred the aircraft lease agreements to flyExclusive and have no further obligations under the aircraft lease agreements or control over such flight operations. Items related to our aircraft ownership program fleet operations are now included in discontinued operations.
Current wording
In September 2024, we entered into an agreement with flyExclusive, a leading provider of private jet charter services, to transition our aircraft ownership program fleet operations to flyExclusive. This move was intended to bring substantial cost savings and provide Volato with the opportunity to focus on what it believes to be its high-growth areas, including aircraft sales and products and services utilizing our proprietary software. Volato expects to benefit from the margins on aircraft sales without the burden of operational costs, while also generating revenue from its proprietary software, including the Vaunt platform, Volato’s empty leg consumer app. In the fourth quarter of 2024, we transferred the aircraft lease agreements to flyExclusive and have no further obligations under the aircraft lease agreements or control over such flight operations. Items related to our aircraft ownership program fleet operations are now included in discontinued operations.
Previous wording
Financial highlights for the quarter ended March 31, 2025 include:
Current wording
Financial highlights for the three months ended June 30, 2025 include:
Previous wording
•We generated a net income of $0.5 million, representing a $17.8 million improvement over the same quarter of the prior year.
Current wording
•We generated total net income of $3.6 million, representing a $20.5 million improvement over the same quarter of the prior year.
Previous wording
•We generated total revenue of $25.5 million, an increase of $25.4 million compared to 2024, primarily related to an increase in aircraft sales of $25.1 million as we took delivery of our second Gulfstream G280;
Current wording
•We generated total revenue of $50.3 million, an increase of $50.1 million compared to the 2024 period, primarily related to an increase in aircraft sales of $49.6 million as we took delivery of our second and third Gulfstream G280.
Previous wording
•Net income from continuing operations was $0.4 million compared to a net loss of $5.7 million in the first quarter of 2024. The decrease in net loss from continuing operations was the result of higher plane sale revenue mentioned above, and;
Current wording
•Net income from continuing operations was $3.0 million compared to a net loss of $13.2 million in the second quarter of 2024. The decrease in net loss from continuing operations was the result of higher plane sales revenue as mentioned above, and
Previous wording
We expect to take delivery of three Gulfstream G280 aircraft manufactured by Gulfstream Aerospace Corporation (“Gulfstream”) and sell these airplanes to third parties in 2025. Our first Gulfstream G280 was delivered and sold to a third party in the third quarter of 2024. In February 2025, our second GulfStream G280 was delivered and sold to a third party.
Current wording
We expect to take delivery of three Gulfstream G280 aircraft manufactured by Gulfstream Aerospace Corporation (“Gulfstream”) and sell these airplanes to third parties in 2025. Our first Gulfstream G280 was delivered and sold to a third party in the third quarter of 2024. In February 2025, our second GulfStream G280 was delivered and sold to a third party and in June 2025 our third Gulfstream G280 was delivered and sold to a third party. We expect to take delivery of our fourth Gulfstream G280 in the fourth quarter of 2025.
Previous wording
In 2022 and 2023, we invested in the core business systems, processes and people required to safely operate a growing, publicly traded private aviation company. In September 2024, we entered into an agreement with flyExclusive to transition our fleet operations to flyExclusive. This move has resulted in substantial cost savings and provides us with the opportunity to focus on what we believe to be our high-growth areas, including aircraft sales and proprietary software. We will continue to take delivery of and sell new aircraft. We expect to benefit from the margins on aircraft sales without the burden of operational costs, while also generating revenue from its proprietary software, including the Vaunt platform, our successful empty leg consumer app.
Current wording
In 2022 and 2023, we invested in the core business systems, processes and people required to safely operate a growing, publicly traded private aviation company. In September 2024, we entered into an agreement with flyExclusive to transition our fleet operations to flyExclusive. This move has resulted in substantial cost savings and provides us with the opportunity to focus on what we believe to be our high-growth areas, including aircraft sales and proprietary software. We expect to benefit from the margins on aircraft sales without the burden of operational costs, while also generating revenue from its proprietary software, including the Vaunt platform, our empty leg consumer app.
Previous wording
Comparison of three months ended March 31, 2025 and 2024
Current wording
Comparison of three and six months ended June 30, 2025 and 2024
Previous wording
The following table sets forth our results of operations for the three months ended March 31, 2025 and 2024 (in thousands, except percentages):
Current wording
The following table sets forth our results of operations for the three and six months ended June 30, 2025 and 2024 (in thousands, except percentages):
Previous wording
Revenue increased by $25.4 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase in revenue was the result of an increase in aircraft sales of $25.1 million and subscription based revenue of $335 thousand during the three months ended March 31, 2025 compared to the prior year. The increase in revenue from aircraft sales was the result of the delivery and sale of our second Gulfstream G280 during the quarter. We have orders for two additional Gulfstream G280s and expect delivery in 2025. The increase in subscription based revenues are attributable to our Vaunt platform which began to generate revenue during the 2024 fiscal year.
Current wording
Revenue increased by $24.7 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase in revenue was the result of an increase in aircraft sales of $24.5 million and subscription based revenue of $174 thousand during the three months ended June 30, 2025 compared to the prior year period. The increase in revenue from aircraft sales was the result of the delivery and sale of our third Gulfstream G280 during the quarter. We have an order for one additional Gulfstream G280 and expect delivery in the fourth quarter of 2025. The increase in subscription based revenues is attributable to our Vaunt platform which began to generate revenue during the 2024 fiscal year and continuing through the quarter ended June 20, 2025.
Previous wording
Cost of revenue comprises expenses tied to the associated revenue streams: aircraft sales and subscription based revenue. Aircraft sales cost of revenue is our purchase price of the aircraft. Subscription costs includes costs we incur related to our proprietary software, the Vaunt platform.
Current wording
Cost of revenue comprises expenses tied to the associated revenue streams: aircraft sales and subscription based revenue. Aircraft sales cost of revenue is our purchase price of the aircraft. Subscription cost include costs we incur related to our proprietary software, the Vaunt platform.
Previous wording
Costs of revenue consists of the following (in thousands, except percentages):
Current wording
Cost of revenue consists of the following (in thousands, except percentages):
Previous wording
Cost of revenue increased by $20.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase in cost of revenue was primarily a result of an increase in aircraft sales as we took delivery of our second Gulfstream G280 aircraft during the quarter.
Current wording
Cost of revenue increased by $21.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase in cost of revenue was primarily a result of an increase in aircraft sales as we took delivery of our third Gulfstream G280 aircraft during the first six months of 2025.
Previous wording
Selling, general and administrative expenses decreased by $2.4 million for the three months ended March 31, 2025 to $2.0 million, compared to the three months ended March 31, 2024. The decrease in selling, general and administrative is primarily related to the cost savings initiatives implemented during 2024.
Current wording
Selling, general and administrative expenses decreased by $0.9 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The decrease in selling, general and administrative is primarily related to the cost savings initiatives implemented during the second half of 2024.
Previous wording
The loss on change in fair value of financial instruments relates to the fair value adjustment on the 2024 Convertible Notes resulting in a non-cash loss of $0.8 million during the three months ended March 31, 2025.
Current wording
For the three and six months ended June 30, 2025, the loss on change in fair value of financial instruments relates to the fair value adjustment on the 2024 Convertible Notes resulting in a non-cash gain of $99 thousand and a non-cash loss of $750 thousand, respectively.
Previous wording
For the three months ended March 31, 2024, the loss on change in fair value of $0.2 million was the result of the fair value adjustment on an OTC Equity Prepaid Forward Transaction (the “Forward Purchase Agreement”). In July 2024, the Forward Purchase Agreement was terminated.
Current wording
For the three and six months ended June 30, 2024, the loss on change in fair value of $2.8 million and $3.0 million was the result of the fair value adjustment on an OTC Equity Prepaid Forward Transaction (the “Forward Purchase Agreement”). In July 2024, the Forward Purchase Agreement was terminated.
Previous wording
Interest expense primarily consists of interest related to our aircraft brokerage and services agreement with OgaraJets LLC and the pre-delivery payment agreement with SAC Leasing G280 LLC. Interest expense increased $1.3 million during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily as a result of the aircraft brokerage and services agreement with OgaraJets LLC.
Current wording
Interest expense increased $1.3 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily as a result of interest related to the aircraft brokerage and services agreement with OgaraJets LLC, offset by the interest related to the pre-delivery payment agreement with SAC Leasing G280 LLC.
Previous wording
Our principal sources of liquidity have historically consisted of financing activities, including proceeds from the issuance of stock, borrowings under our credit facilities, and capital raises from convertible debt and preferred stock. We additionally managed liquidity through the aircraft sales. As of March 31, 2025, we had $2.6 million of cash and cash equivalents.
Current wording
Our principal sources of liquidity have historically consisted of financing activities, including proceeds from the issuance of stock, borrowings under our credit facilities, and proceeds from sales of debt and equity securities. We additionally generate revenue through aircraft sales and sales subscriptions to our software application. As of June 30, 2025, we had $4.7 million of cash and cash equivalents.
Previous wording
We believe factors that could affect our liquidity include the ability of Gulfstream to meet our delivery schedule and our ability to sell those aircraft, whether the closing conditions under the Securities Purchase Agreement are met (or waived) such that we are able to issue one or more additional convertible note under that arrangement, our ability to raise additional funds on favorable terms, the timing and extent of spending on software development and other growth initiatives, our ability to manage our expense, and overall economic conditions. To the extent that our current liquidity is insufficient to fund future activities, we will need to raise additional capital. We may attempt to raise additional capital through the sale of equity securities, through debt financing arrangements, or both. Raising additional capital by issuing equity securities will dilute the ownership of existing shareholders. The occurrence of additional debt financing would result in debt service obligations, and any future instruments governing such debt could provide for operating and financing covenants that could restrict our operations. In the event that additional capital is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.
Current wording
We believe the primary factors that could affect our liquidity include the ability of Gulfstream to meet our delivery schedule and our ability to sell those aircraft, whether the closing conditions under the Securities Purchase Agreement are met (or waived) such that we are able to issue one or more additional convertible note under that arrangement, our ability to raise additional funds on favorable terms, the timing and extent of spending on software development and other growth initiatives, our ability to manage our expense, and overall economic conditions. To the extent that our current liquidity is insufficient to fund future activities, we will need to raise additional capital. We may attempt to raise additional capital through the sale of equity securities, through debt financing arrangements, or both. Raising additional capital by issuing equity securities will dilute the ownership of existing stockholders. The occurrence of additional debt financing would result in debt service obligations, and any future instruments governing such debt could provide for operating and financing covenants that could restrict our operations. In the event that additional capital is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.
Previous wording
We have incurred negative cash flows from operating activities and significant losses from operations historically. Management believes that its current cash position, along with its anticipated margin from aircraft sales and proceeds from future debt and/or equity financings, when combined with prudent expense management, will allow the Company to continue as a going concern and to fund its operations for at least one year from the date of issuance of these financial statements. There are no assurances, however, that management will be able to raise capital or debt on terms acceptable to the Company. If the Company is unable to obtain sufficient additional capital or debt on terms acceptable to the Company, the Company may be required to reduce the near-term scope of its planned development and operations, which could delay implementation of the Company’s business plan and harm its business, financial condition, and operating results. These above matters raise substantial doubt about the Company's ability to continue as a going concern.
Current wording
We have historically incurred negative cash flows from operating activities and significant losses from operations historically. Management believes that its current cash position, along with its anticipated margin from aircraft sales and proceeds from future debt and/or equity financings, when combined with prudent expense management, will allow the Company to continue as a going concern and to fund its operations for at least one year from the date of this Quarterly Report. There are no assurances, however, that management will be able to raise capital or debt on terms acceptable to the Company. If the Company is unable to obtain sufficient additional capital or debt on terms acceptable to the Company, the Company may be required to reduce the near-term scope of its planned development and operations, which could delay implementation of the Company’s business plan and harm its business, financial condition, and operating results. These above matters raise substantial doubt about the Company's ability to continue as a going concern.
Previous wording
The following table summarizes our cash flows for the three months ended March 31, 2025, and 2024 (in thousands):
Current wording
The following table summarizes our cash flows for the six months ended June 30, 2025, and 2024 (in thousands):
Previous wording
Net cash used in operating activities for the quarter ended March 31, 2025 was $0.3 million. The cash outflow from operating activities consisted of our net income of $0.5 million, non-cash items of $1.1 million, and a change in net operating assets and liabilities of $1.9 million. The change in net operating assets and liabilities was primarily as a result of a decrease in customer deposits and deferred revenue of $2.1 million and a decrease in deposits of $1.8 million. The change in net assets and liabilities for discontinued operations for the quarter ended March 31, 2025 was $1.6 million.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2025 was $0.5 million. The cash inflow from operating activities consisted of our net income of $4.1 million, non-cash items of $2.4 million, and a change in net operating assets and liabilities of $2.6 million. The change in net operating assets and liabilities was primarily as a result of a decrease in customer deposits and deferred revenue of $1.5 million and accounts payable and accrued liabilities of $0.9 million, offset by a decrease in deposits of $5.2 million. The change in net assets and liabilities for discontinued operations for the six months ended June 30, 2025 was $3.7 million.
Previous wording
Net cash used in operating activities for the quarter ended March 31, 2024 was $7.7 million. The cash outflow from operating activities consisted of our net loss of $17.4 million, non-cash items of $0.4 million and a change in net operating assets and liabilities of $6.3 million. The change in net assets and liabilities for discontinued operations for the quarter ended March 31, 2024 was $2.9 million.
Current wording
Net cash used in operating activities for the six months ended June 30, 2024 was $7.4 million. The cash outflow from operating activities consisted of our net loss of $34.3 million, non-cash items of $3.5 million and a change in net operating assets and liabilities of $15.6 million. The change in net assets and liabilities for discontinued operations for the six months ended June 30, 2024 was $7.8 million.
Previous wording
Net cash provided by investing activities for the quarter ended March 31, 2025 was $21 thousand. The cash flow from investing activities consisted of the sale of property and equipment.
Current wording
Net cash provided by investing activities for the six months ended June 30, 2025 was $30 thousand. The cash flow from investing activities consisted of the sale of property and equipment.
Previous wording
Net cash used in investing activities for the quarter ended March 31, 2024 was $56 thousand.
Current wording
Net cash used in investing activities for the six months ended June 30, 2024 was $113 thousand.
Previous wording
Net cash used in financing activities for the quarter ended March 31, 2025 was $1.1 million. Cash flow used in financing activities consisted of the repayment on loans of $1.1 million.
Current wording
Net cash provided by financing activities for the six months ended June 30, 2025 was $141 thousand. Cash flow used in financing activities consisted of the repayment on loans of $1.1 million and the proceeds from the second tranche of the convertible note of $1.4 million.
Previous wording
Net cash used in financing activities for the quarter ended March 31, 2024 was $0.7 million. Cash flow used in financing activities consisted of the repayment on loans of $0.4 million. The cash used in financing from discontinued operations was $0.3 million for the quarter ended March 31, 2024.
Current wording
Net cash used in financing activities for the six months ended June 30, 2024 was $2.0 million. Cash flow used in financing activities consisted of the repayment on loans of $1.7 million. The cash used in financing from discontinued operations was $0.4 million for the six months ended June 30, 2024.
Previous wording
To date, we have financed our operations primarily through the business combination, sale of preferred stock, borrowings of long-term and short-term debt, loans and convertible notes. As of March 31, 2025, we had a working capital deficit of approximately $18.2 million. As of March 31, 2025, our primary source of liquidity was cash totaling $2.6 million. Based on our recent trends, we expect to fund our operations in 2025 from our cash on hand, cash from operations, one or more sales of convertible promissory notes in accordance with the Securities Purchase Agreement described in Note 2 and Note 10 to our unaudited financial statements in this quarterly report and potentially additional sales of equity or debt securities. The Company believes it has the ability to generate and obtain enough cash to meets its obligations for the next 12 months.
Current wording
To date, we have financed our operations primarily as a result of the 2023 business combination, sales of preferred stock, borrowings of long-term and short-term debt, loans and convertible notes. As of June 30, 2025, we had a working capital deficit of approximately $9.3 million. As of June 30, 2025, our primary source of liquidity was cash totaling $4.7 million. Based on our recent trends, we expect to fund our operations in 2025 from our cash on hand, cash from operations, one or more sales of convertible promissory notes in accordance with the Securities Purchase Agreement described in Note 2 and Note 10 to our unaudited financial statements in this quarterly report and potentially additional sales of equity or debt securities. The Company believes it has the ability to generate and obtain enough cash to meets its obligations for the next 12 months.
Previous wording
During the year ended December 31, 2022, the Company executed a series of purchase agreements with Gulfstream Aerospace, LP for the acquisition of four (4) Gulfstream G-280 aircraft. The first Gulfstream G280 was delivered in the third quarter of 2024 and the second Gulfstream G280 was delivered in the first quarter of 2025. As of March 31, 2025, total consideration due on the remaining two Gulfstream G280s was $41.7 million with expected deliveries in 2025.
Current wording
During the year ended December 31, 2022, the Company executed a series of purchase agreements with Gulfstream Aerospace, LP for the acquisition of four (4) Gulfstream G-280 aircraft. The first Gulfstream G280 was delivered in the third quarter of 2024, the second Gulfstream G280 was delivered in the first quarter of 2025 and the third was delivered in second quarter of 2025. As of June 30, 2025, total consideration due on the remaining Gulfstream G280 was $18.0 million with expected delivery in 2025.
Previous wording
The maturity date is the earlier of the delivery date of the aircraft or September 14, 2025, which is thirty-five (35) months from the date of funding. The purchase agreement contracts were assigned to SAC G280 LLC as collateral on this credit facility. In the third quarter of 2024, $9.0 million was repaid to SAC G280 LLC as a result of the delivery of the first Gulfstream G280. In the first quarter of 2025, an additional $19.5 million was repaid to SAC G280 LLC as a result of the delivery of the second Gulfstream G280 and the return of $9.0 million in deposits related to the fourth Gulfstream G280. After the delivery of the second Gulfstream G280 and the deposit return related to the fourth Gulfstream G280, the outstanding balance of the credit facility from SAC Leasing was $8.5 million, net.
Current wording
The Company entered into the pre-delivery payment agreement on October 5, 2022, with SAC Leasing G280, LLC to obtain loans in the aggregate amount of $40.5 million for the purchase of four (4) Gulfstream G280 aircraft to be delivered in 2024 and 2025. The maturity date is the earlier of the delivery date of the aircraft or September 14, 2025, which is thirty-five (35) months from the date of funding. The purchase agreement contracts were assigned to SAC G280 LLC as collateral on this credit facility. In the third quarter of 2024, $9.0 million was repaid to SAC G280 LLC as a result of the delivery of the first Gulfstream G280. In the first quarter of 2025, an additional $19.5 million was repaid to SAC G280 LLC as a result of the delivery of the second Gulfstream G280 and the return of $9.0 million in deposits related to the fourth Gulfstream G280. After the delivery of the second Gulfstream G280 and the deposit return related to the fourth Gulfstream G280, the outstanding balance of the credit facility from SAC Leasing was $8.5 million, net. In the second quarter of 2025, with the delivery of the third G280, the remaining outstanding balance of the SAC Leasing credit facility was paid in full.
Previous wording
Our principal commitments consist of contractual cash obligations under our credit facilities, operating leases and the 2024 Convertible notes. We have committed to acquire two (2) additional Gulfstream G-280 aircraft for total consideration of $41.7 million with expected deliveries in 2025, of which $15 million was funded and paid through March 31, 2025.
Current wording
Our principal commitments consist of contractual cash obligations under our credit facilities, operating leases and the 2024 Convertible notes. We have committed to acquire one (1) additional Gulfstream G-280 aircraft for total consideration of $21.0 million with expected delivery in 2025, of which $3 million was funded and paid through June 30, 2025.
Previous wording
For each revenue stream, we evaluate whether our obligation is to provide the good or service itself, as the principal or to arrange for the good or service to be provided by the other party, as the agent, using the control model. For certain services provided to the customer, primarily in our aircraft management services revenue stream, the Company directs third-party providers to assist in our fulfillment of the performance obligation in contracts with our customers. Any cost reimbursements and third-party costs are recognized in revenue on a gross basis as Volato has pre-negotiated these costs and takes a certain amount of risk that it will not fully recover the costs incurred. In such circumstances, the Company is primarily responsible for satisfying the overall performance obligation with the customer and is considered the principal in the relationship because the Company has the ability to direct the third parties to provide services to our customers.
Current wording
For each revenue stream, we evaluate whether our obligation is to provide the good or service itself, as the principal or to arrange for the good or service to be provided by the other party, as the agent, using the control model. In such circumstances, the Company is primarily responsible for satisfying the overall performance obligation with the customer and is considered the principal in the relationship.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
•Net income from continuing operations was $2.7 million compared to a net loss of $7.5 million in the second quarter of 2024. Net income during the 2025 period was the result of higher plane sale revenue mentioned above, and
Current report — wording carried from elsewhere
Financial highlights for the six months ended June 30, 2025 include:
Current report — wording carried from elsewhere
•We generated a net income of $4.1 million, representing a $38.4 million improvement over the same period in the prior year.
Current report — wording carried from elsewhere
Revenue increased by $50.1 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase in revenue was the result of an increase in aircraft sales of $49.6 million and subscription based revenue of $509 thousand during the six months ended June 30, 2025 compared to the prior year. The increase in revenue from aircraft sales was the result of the delivery and sale of our second and third Gulfstream G280 during the year. We have an order for one additional Gulfstream G280 and expect delivery in the fourth quarter of 2025. The increase in subscription based revenues is attributable to our Vaunt platform which began to generate revenue during the 2024 fiscal year and continuing through the quarter ended June 30, 2025.
Current report — wording carried from elsewhere
Cost of revenue increased by $42.0 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase in cost of revenue was primarily a result of an increase in aircraft sales as we took delivery of our second and third Gulfstream G280 aircraft during the year.
Current report — wording carried from elsewhere
Selling, general and administrative expenses decreased by $3.3 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease in selling, general and administrative is primarily related to the cost savings initiatives implemented during the second half of 2024.
Current report — wording carried from elsewhere
Interest expense primarily consists of interest related to our aircraft brokerage and services agreement with OgaraJets LLC and the pre-delivery payment agreement with SAC Leasing G280 LLC.