Company: UP
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049230
Chunk: 171

Company: Wheels Up Experience Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 171
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Gross profit (loss)(1,318)14,560 (230)(12,992)Gross margin(0.7)%7.5%—%(2.2)%Add back (deduct):Depreciation and amortization13,926 12,484 47,626 43,472 Equity-based compensation expense in Cost of revenue24 535 202 2,097 Integration and transformation expense  in Cost of revenue(1)2,523 — 2,886 — Fleet modernization expense in Cost of revenue(2)8,681 — 19,463 — Restructuring charges in Cost of revenue(3)— 172 — 3,875 Atlanta Member Operations Center set-up expense in Cost of revenue(4)— — — 1,860 Certificate consolidation expense in Cost of revenue(5)— 1,032 — 4,503 Other in Cost of revenue(6)(336)(25)(936)3,256 Adjusted Contribution$23,500 $28,758 $69,011 $46,071 Adjusted Contribution Margin12.7%14.8%12.5%7.8%

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

(4)Consists of expenses associated with establishing the 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 FAA operating certificates, primarily including pilot training and retention programs and consultancy fees associated with planning and implementing the consolidation process.

(6)Consists of amounts recovered on Parts and supplies inventory reserved during prior periods related to Parts and supplies inventory deemed in excess after revision