Company: UP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819516-25-000044
Chunk: 7

Company: Wheels Up Experience Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 7
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The following table reconciles Adjusted Contribution to Gross profit (loss), which is the most directly comparable GAAP measure (in thousands):

Three Months Ended June 30,Six Months Ended June 30,2025202420252024Revenue$189,637 $196,285 $367,167 $393,386 Less: Cost of revenue(173,955)(191,690)(332,379)(389,950)Less: Depreciation and amortization(13,490)(15,593)(33,700)(30,988)Gross profit (loss)2,192 (10,998)1,088 (27,552)Gross margin1.2%(5.6)%0.3%(7.0)%Add back (deduct):Depreciation and amortization13,490 15,593 33,700 30,988 Equity-based compensation expense in Cost of revenue100 816 178 1,562 Integration and transformation expense  in Cost of revenue(1)— — 363 — Fleet modernization expense in Cost of revenue(2)7,725 — 10,782 — Restructuring charges in Cost of revenue(3)— 3,703 — 3,703 Atlanta Member Operations Center set-up expense in Cost of revenue(4)— 458 — 1,860 Certificate consolidation expense in Cost of revenue(5)— 2,445 — 3,471 Other in Cost of revenue(6)(437)3,281 (600)3,281 Adjusted Contribution$23,070 $15,298 $45,511 $17,313 Adjusted Contribution Margin12.2%7.8%12.4%4.4%

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(1)Consists of expenses associated with the Company’s global integration efforts including charges for employee separation programs.

(2)Consists of expenses incurred in connection with the execution of our fleet modernization strategy first announced in October 2024, which primarily includes expenses associated with transitioning the Embraer Phenom 300 series and Bombardier Challenger 300 series aircraft to our operations and pilot training programs aligned to our fleet modernization strategy, as well as certain costs incurred associated with exiting legacy private jet models.

(3)Primarily includes charges for employee separation programs as part of our ongoing cost reduction and strategic business initiatives.

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(4)Consists