Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 114

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 114
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 be directly comparable to similarly titled measures of other companies.

Adjusted EBITDA

We calculate Adjusted EBITDA as Net income (loss) adjusted for (i) Interest income (expense), (ii) Income tax expense, (iii) Depreciation and amortization, (iv) Equity-based compensation expense, (v) Acquisition and integration related expenses and (vi) other items not indicative of our ongoing operating performance, including but not limited to, restructuring charges. We include Adjusted EBITDA as a supplemental measure for assessing operating performance and for the following:

•To be used in conjunction with bonus program target achievement determinations, strategic internal planning, annual budgeting, allocating resources and making operating decisions; and

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•To provide useful information for historical period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and other items not indicative of our ongoing operating performance.

The following table reconciles Adjusted EBITDA to Net loss, which is the most directly comparable GAAP measure (in thousands):

Year Ended December 31,20242023Net loss$(339,635)$(487,387)Add back (deduct):Interest expense65,352 41,255 Interest income(2,170)(6,121)Income tax expense1,226 1,383 Other expense, net717 660 Depreciation and amortization56,546 58,533 Change in fair value of warrant liability8 (739)(Gain) loss on divestiture(2,003)2,991 Loss on disposal of assets, net3,295 — Equity-based compensation expense45,977 25,633 Impairment of goodwill— 126,200 Acquisition and integration expense(1)— 2,108 Restructuring charges(2)7,850 43,655 Fleet modernization expense(3)28,135 — Atlanta Member Operations Center set-up expense(4)3,481 30,568 Certificate consolidation expense(5)6,749 11,375 Other(6)6,599 4,018 Adjusted EBITDA$(117,873)$(145,868)

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(1)Consists of expenses incurred associated with acquisitions, as well as integration-related charges incurred within one year of the applicable acquisition date, which are primarily related to system conversions, re-branding costs and fees paid to external advisors.

(2)For the