EPS of $0.00 increased by 53.3% from previous year
Gross margin of 2.5%
Net income of -1.22M
"N/A" - N/A
Premier Air Charter Holdings Inc (PREM) QQ4 2025 Results Analysis – Revenue Stable but Profitability Struggles in a Capital-Intensive Aviation Charter Market
Executive Summary
Premier Air Charter Holdings Inc (PREM) reported Q4 2025 results showing modest top-line activity but meaningful profitability headwinds. Revenue of $5.88 million was largely offset by cost of revenue and operating expenses, resulting in an EBITDA of -$0.86 million and a net loss of -$1.22 million for the quarter. The company generated positive operating cash flow of approximately $0.995 million, contributing to free cash flow of the same magnitude, and offsetting a reduction in cash caused by financing activities to end the period with roughly $0.147 million of net cash. Balance sheet remains structurally leveraged with total liabilities (~$30.8 million) exceeding total assets ($28.0 million) and negative stockholders’ equity (~$2.78 million). The firm holds a very tight liquidity position (current and quick ratios of ~0.11) but demonstrates low days sales outstanding (~9.5 days), indicating efficient collection in a small revenue base. Management commentary within the period is not captured in the provided transcript data; as such, forward guidance and qualitative outlook from the earnings call are not embedded in this report. The quarter’s performance underscores ongoing profitability challenges amid a capital-intensive jet charter and aircraft management business, even as cash generation remains a meaningful positive driver amid a negative equity structure.
Key Performance Indicators
Revenue
5.88M
QoQ: N/A | YoY:N/A
Gross Profit
146.59K
2.49% margin
QoQ: N/A | YoY:N/A
Operating Income
-856.00K
QoQ: -2 937.94% | YoY:-1 518.76%
Net Income
-1.22M
QoQ: -3 840.13% | YoY:-346.70%
EPS
0.00
QoQ: -444.44% | YoY:53.33%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $5.876 million (Q4 2025).
Gross profit: $0.147 million; gross margin 2.49%.
Operating expenses: $1.002 million; total cost and expenses: $6.731 million.
EBITDA: -$0.856 million; EBITDAR: -$0.1467 per revenue dollar.
Revenue and Margin
- Revenue: $5.876 million (Q4 2025).
- Gross profit: $0.147 million; gross margin 2.49%.
- Operating expenses: $1.002 million; total cost and expenses: $6.731 million.
- EBITDA: -$0.856 million; EBITDAR: -$0.1467 per revenue dollar.
- Operating income: -$0.856 million; operating margin: -14.57%.
- Net income: -$1.224 million; net margin: -20.83%; earnings per share (GAAP): -$0.0049.
Liquidity and Cash Flow
- Net cash provided by operating activities: $0.995 million.
- Free cash flow: $0.995 million.
- Net change in cash: -$0.0786 million; cash end of period: $0.147 million; cash beginning: $0.225 million.
- Cash conversion from net income via working capital motions: working capital change +$1.889 million; accounts receivable change -$34,605; accounts payable +$519,631; other working capital +$1.4037 million; other non-cash items +$66,016.
Balance Sheet and Leverage
- Total assets: $28.033 million; cash and equivalents: $0.147 million; net receivables: $0.618 million; PPE net: $24.093 million.
- Total liabilities: $30.817 million; current liabilities: $7.509 million; long-term liabilities: $23.309 million (mainly other non-current liabilities $23.309 million).
- Stockholders’ equity: -$2.784 million (negative book value); debt ratios are skewed by the equity base; net debt position: -$0.147 million (net cash).
- Current ratio: 0.113; quick ratio: 0.113; cash ratio: 0.0195.
Revenue Quality and Efficiency
- Asset turnover: 0.210x; fixed asset turnover: 0.244x; receivables turnover: 9.50x; inventory turnover: 0 (no inventory data).
- Price-to-book and price-to-sales metrics imply negative book value; substantial equity impairment appears to influence traditional valuation multiples.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.88M
N/A
N/A
Gross Profit
146.59K
N/A
N/A
Operating Income
-856.00K
-1 518.76%
-2 937.94%
Net Income
-1.22M
-346.70%
-3 840.13%
EPS
0.00
53.33%
-444.44%
Key Financial Ratios
currentRatio
0.11
grossProfitMargin
2.49%
operatingProfitMargin
-14.6%
netProfitMargin
-20.8%
returnOnAssets
-4.37%
returnOnEquity
44%
operatingCashFlowPerShare
$0
freeCashFlowPerShare
$0
priceToBookRatio
-3.64
priceEarningsRatio
-2.07
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript data provided. As a result, there are no management quotes or thematic highlights to extract for strategy, operations, or market commentary. Investors should rely on the disclosed financials and any accompanying press materials for qualitative guidance.
N/A
— N/A
N/A
— N/A
Forward Guidance
Management did not provide explicit forward-looking guidance in the data set. Given the large quarterly net loss and negative equity backdrop, any forward view should hinge on: (1) revenue growth initiatives in jet charter and aircraft management, (2) cost discipline to reduce COGS and operating expenses, (3) optimization of capital structure given high non-current liabilities, and (4) liquidity management to support ongoing operations. Market indicators to monitor include charter demand in the aerospace services segment, fuel price volatility, fleet utilization rates, and the company's ability to monetize aircraft assets or pursue partnerships to improve margins. Achievability of guidance will depend on stabilizing demand and achieving meaningful scale to convert fixed costs into higher-margin revenue.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
PREM Focus
2.49%
-14.60%
44.00%
-2.07%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given PREM's current quarter, the investment thesis is highly risk-tolerant and speculative. The business generates positive operating cash flow in a small revenue base but remains unprofitable with negative equity and tight liquidity. The immediate priority for the company is to stabilize profitability through revenue growth and aggressive cost control while addressing balance sheet weaknesses. For investors, the key considerations are: (1) the trajectory of revenue growth and fleet utilization, (2) ability to reduce fixed costs or re-price services to margin, (3) steps to delever and restore equity value, and (4) continued access to favorable liquidity. Absent clear guidance or visibility into margin expansion, PREM should be viewed as a high-risk, high-variance opportunity, suitable only for investors with a high risk tolerance and preference for turnaround prospects in the aviation-charter niche.
Key Investment Factors
Growth Potential
Moderate potential if PREM can scale charter activity and aircraft management with improved utilization and higher-margin services, leveraging existing PPE and a lean cost base post-restructuring. Growth would likely hinge on fleet utilization improvements, premium charter offerings, and potential strategic partnerships to uplift revenue mix.
Profitability Risk
High risk due to negative equity, elevated non-current liabilities, and limited liquidity. Profitability is fragile with negative EBITDA and net income; reliance on ongoing cash flow from operations to fund working capital and any capex needs. Sector cyclicality and regulatory/operational risks in aviation can exacerbate cost pressures.
Financial Position
Weak balance sheet with total liabilities exceeding assets and negative shareholders’ equity. Net cash position is modest but positive; however, debt-bearing pressure remains from non-current liabilities. Liquidity metrics are tight (current ratio ~0.11), suggesting potential sustainability concerns without improvements in working capital efficiency or capital structure.
SWOT Analysis
Strengths
Positive quarterly operating cash flow and free cash flow despite net losses, indicating some operating efficiency and working capital management.
Low days sales outstanding (~9.5 days) suggests efficient receivables collections in a small revenue base.
Fixed asset base (PPE) reflects investment in charter/aircraft capabilities, which could support future revenue when markets recover.
Weaknesses
Negative shareholders’ equity and a balance sheet with liabilities exceeding assets, signaling financial distress and limited cushion for losses.
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