Company: UP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819516-25-000044
Chunk: 81

Company: Wheels Up Experience Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 81
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 obsolete or in excess of forecasted demand for aircraft maintenance. The decrease was also driven by the absence of $2.4 million of FAA certificate consolidation-related expenses and $0.5 million of expenses associated with setting up our Atlanta Member Operations Center incurred in the second quarter of 2024. The decreases were partially offset by a $7.7 million increase in expenses related to executing our fleet modernization strategy, which primarily included expenses associated with adding Embraer Phenom 300 series and Bombardier Challenger 300 series aircraft to our operations and related pilot training programs, as well as certain costs incurred associated with exiting legacy private jet models.

Adjusted Contribution Margin increased 440 basis points for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily attributable to the realization of cost savings as a result of restructuring actions taken during fiscal year 2024 and other discrete cost optimization and operational efficiency measures. See “Non-GAAP Financial Measures” above for a definition of Adjusted Contribution Margin, information regarding our use of Adjusted Contribution Margin and a reconciliation of Gross profit and Adjusted Contribution to Revenue.

Other Operating Expenses

Technology and Development 

Technology and development expenses decreased by $1.2 million, or 11%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily attributable to a $0.9 million decrease in enterprise software spend and other IT-related spend as a result of cost optimization actions.   

42

Sales and Marketing

Sales and marketing expenses increased by $2.9 million, or 14%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily attributable to a $1.4 million increase in employee compensation and allocable costs due to increased headcount and a $1.9 million increase in advertising, media and marketing events-related spend. The increase was partially offset by a $0.5 million decrease in spend on marketing flights and partnership-related expenses. 

General and Administrative

General and administrative expenses decreased by $5.7 million, or 16%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily driven by a $5.2 million decrease in equity-based compensation expense related to the Executive Performance Awards (as defined in Note 9), which was partially offset by a $0.4 million increase