Company: UP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819516-25-000044
Chunk: 5

Company: Wheels Up Experience Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 5
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iles Adjusted EBITDA and Adjusted EBITDAR to Net loss, which is the most directly comparable GAAP measure (in thousands):

Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net loss$(82,299)$(96,973)$(181,612)$(194,366)Add back (deduct):Interest expense22,084 16,667 41,964 31,222 Interest income(836)(285)(1,984)(341)Income tax (benefit) expense959 441 1,037 327 Other (income) expense, net470 221 169 350 Depreciation and amortization13,490 15,593 33,700 30,988 Change in fair value of warrant liability— 70 — 98 Gain on divestiture— — — (3,403)(Gain) loss on disposal of assets, net20 (136)(3,269)1,827 Equity-based compensation expense8,295 14,268 20,956 25,479 Integration and transformation expense(1)183 — 1,366 — Fleet modernization expense(2)7,972 — 13,119 — Restructuring charges(3)— 4,371 — 6,515 Atlanta Member Operations Center set-up expense(4)— 458 — 3,481 Certificate consolidation expense(5)— 3,674 — 4,812 Other(6)625 4,276 21,367 6,427 Adjusted EBITDA$(29,037)$(37,355)$(53,187)$(86,584)Aircraft lease costs(7)3,918 8,596 9,276 16,740 Adjusted EBITDAR$(25,119)$(28,759)$(43,911)$(69,844)

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(1)Consists of expenses associated with the Company’s global integration efforts, including charges for employee separation programs and third-party advisor costs.

(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 modern