Company: UP
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049230
Chunk: 8

Company: Wheels Up Experience Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 8
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 of warrant liability— (107)— (9)Gain on divestiture(1,833)— (1,833)(3,403)(Gain) loss on disposal of assets, net(480)(70)(3,749)1,757 Equity-based compensation expense12,499 7,885 33,455 33,364 Integration and transformation expense(1)2,866 — 4,232 — Fleet modernization expense(2)8,697 — 21,816 — Restructuring charges(3)— 970 — 7,485 Atlanta Member Operations Center set-up expense(4)— — — 3,481 Certificate consolidation expense(5)— 1,143 — 5,955 Other(6)624 (244)21,991 6,183 Adjusted EBITDA$(23,224)$(19,982)$(76,411)$(106,566)Aircraft lease costs(7)3,573 8,387 12,849 25,127 Adjusted EBITDAR$(19,651)$(11,595)$(63,562)$(81,439)

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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 our Bombardier Challenger 300 series and Embraer Phenom 300 series aircraft to our operations and pilot training programs aligned to our fleet modernization strategy, as well as certain cash and non-cash costs incurred associated with exiting legacy private jet models.

(3)Includes charges for contract termination fees and employee separation programs as part of our cost reduction and strategic business initiatives. 

(4)Consists of expenses associated with establishing our Member Operations Center located in the Atlanta, Georgia area (“Atlanta Member Operations Center”) and its operations primarily including redundant operating expenses during the transition period, relocation expenses for employees and costs associated with onboarding new employees. The Atlanta Member Operations Center began operating on May 15, 2023.

(5)Consists of expenses incurred to execute the consolidation of our U.S. Federal Aviation Administration (“FAA”) operating certificates, primarily related to pilot training and retention programs, and consultancy fees associated with planning and implementing the consolidation process