Company: UP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819516-25-000044
Chunk: 85

Company: Wheels Up Experience Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 85
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 marketing expenses increased by $3.6 million, or 8%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily attributable to a $3.6 million increase in employee compensation and allocable costs due to increased headcount and a $2.6 million increase in advertising, media and marketing events-related spend. The increases were partially offset by the absence of a $1.6 million one-time charge to terminate a consultancy agreement during the first quarter of 2024 and a $1.1 million reduction in spend on marketing flights and partnership-related expenses.

General and Administrative

General and administrative expenses increased by $14.9 million, or 21%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily driven by a by a one-time $20.2 million non-cash, pre-tax right-of-use asset impairment charge associated with vacating our former New York City corporate office space during the three months ended March 31, 2025 (see Note 8). This increase was partially offset by a $3.5 million decrease in equity-based compensation expense attributable to the Executive Performance Plans (as defined in Note 9), the absence of a $1.3 million charge to bad debt expense associated with certain aged receivables related to the aircraft management business recorded during first quarter of 2024, a $1.1 million reduction in consulting spend and the absence of $1.0 million in spend related to strategic planning activities in the prior year period.

Depreciation and Amortization

Depreciation and amortization expenses increased $2.7 million, or 9%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily driven by a one-time impairment of certain leasehold improvements and furniture and fixtures associated with vacating our former New York City corporate office space (see Note 8, Leases of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 “Financial Statements” in this Quarterly Report).

Interest Income

Interest income increased by $1.6 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily driven by an increase in cash equivalents held in money market funds.

Interest Expense

Interest expense increased $10.7