Greetings and welcome to the FLY Exclusive Third Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Hannah Rose, VP of Marketing. Please go ahead.

Thank you, Operator. Good morning and thank you for joining FLY Exclusive's Third Quarter 2026 Earnings Conference Call. Joining me today are Jim Segrave, FLY Exclusive's Founder, Chairman, and Chief Executive Officer, and Brad Garner, our Chief Financial Officer. We announced third quarter financial results this morning before market open, along with the filing of our Form 10-Q for the three and nine months ended September 30th, 2026. An investor presentation accompanying today's remarks is available on the investor relations section of our website. During today's discussion, we will refer to certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin. These measures are not substitutes for measures prepared in accordance with GAAP. Reconciliations to net loss, the most directly comparable GAAP measure for the three and nine months ended September 30th, 2026 and 2025 are included in the appendix of our earnings presentation and in our earnings press release. And the nine-month reconciliation is also included in our form 10-Q. Each is also available on our investor relations website. In addition, this discussion includes forward-looking statements including statements about our outlook, fleet plans, financing, and liquidity. Actual results may differ materially for a number of reasons, including the risk factors described in our annual report on Form 10-K for the year ended December 31, 2025, our quarterly reports on Form 10-Q, and the press release covering forward-looking statements. We undertake no obligation to update forward-looking statements except as required by law. Rather than rereading this information, we incorporate it in reference into our prepared remarks.

Thank you, Hannah, and good morning. Last quarter, I talked about the earnings potential of the business we have spent the past two years revamping. Our third quarter results provide further evidence of that potential being turned into reality and show where we need to focus next. Revenue was $111.1 million, up approximately 21% from a year ago. Gross profit nearly doubled to $24.6 million and gross margin expanded from 13.7% to 22.2%. And our adjusted EBITDA improved from a $13.5 million loss for the nine months that ended in September in 2025 to an $8.5 million profit in 2026. Adjusted EBITDA for the third quarter alone was $5.1 million, an improvement of approximately $7.1 million from the third quarter of last year and is within the guidance we provided on our last earnings call. We delivered these results as we have consistently done to this point with a much smaller fleet. We flew more hours, generated more revenue, and retained more of that revenue as gross profit on a fleet that is 19% smaller than it was a year ago. The improvements we have made to the fleet and the way we operate are showing up in the economics of the business. But we still have more work to do. We reported a gap net loss of approximately $13 million for the quarter. Approximately $5.5 million of this loss is related to gap depreciation that in our view does not reflect the actual market depreciation incurred. In fact, we believe our aircraft and assets are worth materially more than what they are carried at on the balance sheet. From a cash perspective, we ended the third quarter with $19.6 million in cash, up $5.3 million and 37% over the second quarter, and we expect to continue building cash in the fourth quarter. Positive adjusted EBITDA is an important measure of our progress, but our objective is to build a business that produces durable earnings and cash flow. And to that end, we expect to deliver positive operational cash flow in the fourth quarter. Brad will walk through our financial results in more detail in his section. But let me explain what is driving the progress and where we see the opportunity ahead. First, we continue to get more productivity from our aircraft. We flew 19,660 hours in the quarter, up approximately 7% from a year ago. Reported aircraft utilization averaged approximately 86 flight hours per aircraft per month. and so far in the fourth quarter, we are averaging nearly 100 hours per aircraft per month and expect this trend to continue in the future. Leveraging technology, primarily our new flight management software system, we are confident we will be able to continue increasing utilization. Dispatch availability increased by 19% to 58.2% compared with 48.9% a year ago. In this business, nothing is more expensive than an aircraft down for maintenance. Returning aircraft to service with urgency and availability to do revenue generating flights rapidly improves the financial return on the aircraft, the productivity and income of our crews, and reduces the average cost per hour of the infrastructure supporting it. That is why maintenance, availability, and utilization have been central to our plan. Those operational details determine how much the business can earn. Utilization has been the primary driver of our success and will continue to pave the path for our future. The fleet transition has also substantially reduced the losses from aircraft that were consuming resources without producing acceptable return. At the beginning of 2024, we had 37 non-performing aircraft generating More than 3 million in monthly operating losses. Today we have eliminated this drag on the business. Our focus now is on fleet growth and specifically on CJ-3, XLS, and Challenger aircraft that fit our operation and meet our return requirements. The unit economics of each of these are now well established and proven performance. Each additional aircraft at this point strengthens the economics of the business as well as expands our capacity. and just as important, we are now able to add aircraft without adding any additional overhead. Second, there is still meaningful opportunity to improve the performance of the fleet we already have. Although dispatch availability improved year over year, we are a long way from done. With the continued expansion of our MSU fleet, we expect dispatch availability to continue to improve. Our expectations are to deliver greater than 70% over the rest of Q4 and for this to be a sustainable level over 2027. Getting an aircraft ready for a revenue trip requires the aircraft, the crew, the maintenance, and the schedule to come together. Our next improvements depend on coordinating these pieces even more effectively, leveraging our software, optimizer, and artificial intelligence. Our maintenance organization is central to that effort. The capabilities we have built in Kinston, together with our mobile service units, give us greater control over maintenance costs and turnaround times. Performing more work where our aircraft are located helps us return them to service more quickly, eliminates repositioning costs, and reduces our dependence on outside providers. Those capabilities also generate revenue from third-party customers. External maintenance reached $4.3 million in the quarter, up 38% from a year ago. We expect this revenue to continue to grow rapidly in the future. We built this infrastructure to support our own operation. It is now supporting a growing external business as well. Third, our retail sales results continue to support the opportunity in Jet Club and fractional ownership. Jet Club sales reached $38.6 million during the quarter, up 22% from a year ago. Fractional sales were up approximately 22% to 16.8 million. Those results show customers continuing to commit to our program. Our job is to turn those commitments into sustained flying and long-term customer relationships. While our retail sales numbers were up materially, contractually obligated flight hours were generally flat year over year during the third quarter. Wholesales line accounted for the growth in total hours and allowed us to put available capacity to work. In fact, wholesale sales in 2026 exceeded full year 2025 wholesale sales around the middle of last month with 75 days left to go in the year. Wholesale remains an important part of our business because it lets us earn revenue from capacity beyond what our membership programs require. It also demonstrates the strength and flexibility of our revenue model. We can shift capacity instantly, even daily as required, to keep our aircraft fully utilized. Our long-term objectives of approximately 70% contractually committed revenue is unchanged, and the fleet and staffing plan we are executing are built around that objective. Fractional ownership continues to be particularly important to our strategic plan. Growing this program increases customer commitment, providing visibility of future earnings, and improves the capital efficiency of our fleet. While the sales results have been extremely encouraging, delivering a reliable experience and converting those sales into productive flying must continue to be our focus. The customer experience is acutely important to our retention rate, and we are committed to maintaining the highest service levels in the industry. while we execute planned and disciplined growth. Finally, I want to put the quarter's margin improvement into context. We generated approximately the same revenue as the second quarter, but gross profit increased by approximately $1.9 million or 8.5%. Compared with the third quarter of last year, revenue increased approximately $19 million and gross profit increased approximately $12 million. The bottom line is we are retaining lots more of the revenue we generate. Overhead discipline also matters. SG&A was approximately $22.3 million, or 20% of revenue, compared with 21.2% a year ago. Revenue grew faster than overhead, although we still have opportunity to improve this relationship as we scale through increased technology usage. Our task now is to carry the operating improvement through overhead financing costs and capital requirements into durable earnings and cash flow. That requires continued progress on dispatch availability, optimization through our new flight management software, aircraft additions with attractive economics, and growth in our customer programs. It also requires discipline in how we finance that growth. The timing of aircraft additions, the availability of crews and parts, and the financing terms we accept will all influence the pace of our progress. Looking ahead, we expect fourth quarter revenue to exceed $115 million, which would be a record for the company and adjusted EBITDA to exceed $7 million compared with $6.6 million in the fourth quarter of 2025. Over the last 12 months, we generated approximately $15.2 million of adjusted EBITDA. and our first quarter alone represent an annualized run rate of approximately $20 million. We believe the earnings power of this platform is becoming increasingly visible in our results and our focus is on converting it into durable cash flow and long-term value for our shareholders. As we move through the fourth quarter and prepare for 2027, our priorities are clear. Improve the availability of the aircraft we operate, add productive capacity, and continue growing our fractional and jet club membership programs, all while focusing on our customers. To summarize, over the last 12 months, we generated just over $15 million in adjusted EBITDA. We hit our record revenue level in the third quarter and we expect to break that record in the fourth quarter. Our utilization rate on our aircraft fourth quarter to date is now approaching 100 hours per plane, an industry leading level and we are confident that with our new FMS software we just launched a few weeks ago, deeply leveraging artificial intelligence, we can increase utilization another 20% over the next 12 months. For instance, just last month we flew nearly 7,300 flight hours. In the third quarter, we only averaged 6,553 flight hours per month. Revenue per SG&A employee will continue to increase. Gross profit set a record in the third quarter and it will increase further. Pilot compensation continues to increase with the higher utilization setting industry leading pay levels for our pilot team. Wholesale sales exceeded full year 2025 performance with the busiest 75 days left in 2026 and the retail sales team is performing stronger than ever. Needless to say, I am encouraged by what the third quarter and the last 12 months in general has demonstrated in what it means for our future. We have made substantial improvements to our business and the financial results increasingly reflect them. We have proven the model we designed works. Each aircraft we add now is delivering the financial performance we expect. Our responsibility now is to build on that progress and turn the opportunity ahead into lasting value for our shareholders. I want to thank our pilots, maintenance technicians, dispatchers, member services teams, sales organizations, and everyone supporting the operation. The improvements we are discussing today come from their hard work and dedication every day. We are going to set records for the company at every level over the next 60 days. It's so much fun to be a part of a winning team. With that, I'll turn the call over to Brad.

Thank you, Jim, and good morning, everyone. The third quarter demonstrates the continued financial benefit of the operating results and improvements that Jim just described. Consistent with what we have discussed throughout 2025 and the first half of this year, the key takeaway is not simply the growth itself, but the quality and efficiency of that growth. Revenue increased 21%. Gross profit increased 95%. Adjusted EBITDA in the third quarter of 2026 improved by approximately $7.1 million year over year. Our gap net loss narrowed to approximately $13 million from $21.1 million a year ago. Our focus now is on converting that progress into stronger cash generation and returns on the capital invested in the business. I walked through revenue, margin, cash flow, the balance sheet, and capital allocation. Consolidated revenue for the third quarter of 2026, as Jim mentioned, was $111.1 million, up 21% from $92.1 million in the third quarter of 2025. Charter revenue, which includes our jet club, fractional, partner, and wholesale flight activity, was $103.2 million, up 19% compared to the third quarter of last year. Flight hours totaled $19,660, an increase of 7% on a fleet that was 19% smaller than a prior year. Effective hourly rates in our jet club and charter business also increased 10% during the quarter, reflecting strong market demand and increased operational efficiency. On revenue mix, our contractually committed demand from our fractional jet club and partner programs remains the strategic foundation for our revenue base. Retail flight revenue grew to $42.4 million in the quarter, an increase of 8% compared to third quarter of 2025. Leading indicators of retail demand remain strong. New Jet Club member sales grew 43%, and deferred revenue, which largely represents prepaid flying not yet flown, increases 12% year over year. Our wholesale channel remains an integral yield management tool that allows us to monetize available capacity around our contractually committed retail demand. Wholesale revenue for the quarter was approximately $60.9 million, up 28% compared to the third quarter of 2025. Revenue from fractional ownership interests, which on a gap basis we recognize over the contract term, was $3.6 million in the third quarter of 2026, up 69% from 2.1 in the prior year. have explained on prior calls current period fractional sales and gap revenue recognition occur on different timelines. Retail fractional share sales and flight funds, which provide a clearer picture of activity in a given quarter, totaled $16.8 million, up 22% year over year. Jet Club retail sales were equally strong during the third quarter, totaling $38.6 million, also a 22% increase from the third quarter of 2025. Renewals were up 11% and new member sales up 43%. External MRO revenue was $4.3 million for the quarter, up 38% compared to prior year. It continues to be a high-margin, capital-like growth channel that leverages the facilities and capabilities which are supporting our own fleet. For the first nine months of 2026, consolidated revenue reached $318.5 million, up 17%. Growth remained broad-based across each of our channels. Charter revenue increased 16% to $299.6 million. Fractional revenue increased 43% to $8.3 million. And external MRO revenue increased 38% to $10.6 million, matching the full-year 2025 external revenue in the MRO in just the first nine months. Turning to profitability. Gross profit was $24.6 million, up 95% compared with $12.6 million in the third quarter of 2025. Gross margin expanded approximately 850 basis points to 22.2% from 13.7%. The sequential comparison is also important. Revenue was essentially unchanged from the second quarter, while gross profit increased approximately $1.9 million, or 175 basis points quarter over quarter. We generated more gross profit from the same level of revenue. That increased productivity is evident in the utilization of our core fleet. As Jim mentioned, we averaged 86 hours per aircraft per month in the third quarter, an increase of 23% year over year. That margin expansion is not the product of a single initiative. It reflects four structural changes in how this business operates, and each one compounds on the other. First, utilization. The productivity I just described spreads a largely fixed base of hanger, insurance, and support costs across a meaningfully more revenue-generating hours. Second, reliability. Dispatch availability improved 930 basis points year-over-year to 58.2. And at our current fleet size, each additional point represents approximately $2.5 million of annualized contribution. Maintenance. Our in-house MRO capabilities and growing mobile service unit network reduces repair and maintenance expense by approximately $3.7 million year over year, even as we flew 7% more hours. And fourth, the fleet itself. At the beginning of 2024, 37 non-performing aircraft were generating more than $3 million of operating losses every month. Today, just two remain. both under contract to be sold, and the associated loss is less than $150,000 per month. These are durable improvements to our cost of delivering service, not seasonal ones, and they should continue to benefit our margins as we add aircraft to the fleet. Volatility in the fuel markets continued during the third quarter. As a result of that volatility, our average fuel cost per gallon in the third quarter increased approximately 13% to $7.02 per gallon. Thank you for joining us. For the first nine months, gross profit was $66.4 million, up approximately 77%, and gross margin was 20.8%, a 690 basis point increase compared to the first nine months of 2025. SG&A expense was $22.3 million in the third quarter, approximately 20.1% of revenue, an improvement of 106 basis points compared to Q3 2025. Consistent with our expectation, SG&A was stable compared to Q2 of 2026 as we discussed last quarter. Revenue per SG&A employee increased approximately 8% to $509,000 for the quarter. These results reflect the continued operating leverage of our SG&A base as we scale, and our objective is unchanged, to build a platform on which each incremental dollar of revenue is supported by a progressively smaller share of fixed overhead. We see further opportunity as aircraft capacity grows and technology, including our Contrails FMS platform, improves scheduling, optimization, and administrative productivity. Adjusted EBITDA for the third quarter of 2026 was $5.1 million compared with a loss of approximately $1.9 million in the third quarter of 2025, an improvement of $7.1 million. Adjusted EBITDA margin expanded 671 basis points to 4.6%, compared with negative 2.1 in the third quarter of 2025. For the first nine months, adjusted EBITDA was 8.6 million, compared with a loss of 13.5 million in the prior year, a $22.1 million improvement on a gross basis. Year-to-date, adjusted EBITDA margin improved to 22.7% from negative 5% in the prior year. Turning to liquidity and the balance sheet. Cash provided by operating activities was $6.1 million for the nine months of 2026, including approximately $4 million in the third quarter. In comparison, the first nine months of 2025 reflected cash used in operations of $10.3 million, an improvement of $16.4 million compared to the prior year. We ended the third quarter, as Jim mentioned, with $19.6 million of cash and cash equivalents. up $5.3 million from the end of the second quarter. As we've discussed on last quarter's call, the closing of the Jet AI transaction in July provided $5.3 million of immediate liquidity. And the additional consideration received, SpaceX stock and aircraft deposits, will generate liquidity in future periods. We plan to liquidate the SpaceX stock as IPO restrictions are lifted to provide additional capital for our growth initiatives. As of September 30th, the stock is carried at a value of approximately $5.7 million. The aircraft deposits support three new CJ-3 Plus aircraft deliveries expected to deliver in early 2027. As those aircraft are delivered, together with our continued investment in the current fleet, we expect them to expand our capacity with newer, more efficient aircraft and support further growth in flight hours and utilization. We continue to invest in our core existing fleet. Capitalized engine overhauls totaled $21.1 million during the first nine months of 2026. These payments are made under our engine overhaul programs, which function much like an insurance program. We pay in as our engines accumulate flight hours, and the program covers the cost of major scheduled engine overhauls when they come due. That converts large irregular maintenance events into a predictable cost tied to flying. As we have noted on prior calls, maintenance cost per hour continues to trend favorably as the fleet mix improves and more work is performed in-house with our MRO and MSU units. Long-term notes payable were approximately $136 million at September 30th, compared with $165.4 million in the prior year, a reduction of 18%. Since the beginning of 2025, we have reduced long-term notes payable by approximately $97 million. We continue to be extremely focused on deleveraging the business to strengthen our balance sheet and provide operational flexibility while also balancing the business's liquidity needs. As we highlighted last quarter, our capital allocation approach remains disciplined and focused on maximizing the return on every dollar we deploy. Prioritizing investments to expand free cash flow generation over time. We evaluate aircraft investments against their expected earnings and cash returns, the financing required, and the effect on liquidity. We also evaluate opportunities to reduce financing costs and improve the maturity profile of our obligations. We continue to evaluate various capital and financing alternatives, but every alternative is measured first against its dilutive impact and its cost to all of our shareholders. Alongside the return we expect to earn by deploying those proceeds. We intend to act only when the terms are accretive. Our ATM program is a strategic tool that provides optionality rather than a primary source of capital. And we will continue to utilize the facility only when accretive. To close, the third quarter added to a consistent and growing body of evidence. Revenue grew 21% to record levels, gross profit nearly doubled, and gross margin expanded 850 basis points. We generated more gross profit on the same revenue with a smaller but more efficient fleet as the second quarter. Adjusted EBITDA improved $7.1 million year over year and $22.1 million year to date. Operating cash flow is positive year-to-date, and we have reduced long-term notes payable by approximately $97 million since the beginning of 2025. As Jim noted, we expect fourth quarter, historically our busiest quarter, to exceed $115 million in revenue producing continued year-over-year adjusted EBITDA growth. Importantly, the levers driving these results, dispatch availability, utilization, vertical integration, and SG&A leverage, still have substantial runway. And our focus is on converting those operating gains into stronger cash generation and returns as we expand our fleet and scale. Before I hand it back, I want to recognize the people behind these numbers. Every figure I walked through today, the hours flown, the gains in dispatch availability, the reduction in maintenance expense, reflects work done around the clock, in our cockpits, on our ramps, in our hangars and in our operation centers so that each customer trip is delivered with exceptional service. Our finance, technology, and corporate teams provide the foundation for the infrastructure of our next stage of growth. Thank you. To our shareholders and analysts, thank you for your investment and your continued engagement. We remain focused on converting this progress into compounding returns. With that, I'll turn it back to the operator Thank you.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.