Bridger Aerospace Group Holdings, Inc. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. BRIDGER AEROSPACE GROUP HOLDINGS, INC. INDEX TO FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm (PCAOB ID 173 ) 64 Consolidated Balance Sheets as of December 31, 2025 and 2024 65 Consolidated Statements of Operations for the years ended December 31, 2025 and 2024 66 Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025 and 2024 67 Consolidated Statements of Stockholders’ Deficit for the years ended December 31, 2025 and 2024 68 Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024 69 Notes to Consolidated Financial Statements 70 63 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Stockholders and the Board of Directors of Bridger Aerospace Group Holdings, Inc. Belgrade, Montana Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Bridger Aerospace Group Holdings, Inc. (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’ deficit, and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ Crowe LLP We have served as the Company’s auditor since 2022. Atlanta, Georgia March 6, 2026 64 Table of Contents BRIDGER AEROSPACE GROUP HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (dollars in thousands, except par value amounts) As of December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 31,381 $ 39,336 Restricted cash — 13,747 Accounts receivable 3,190 5,945 Aircraft support parts 1,654 857 Prepaid expenses and other current assets 3,994 3,924 Total current assets 40,219 63,809 Property, plant, and equipment, net 218,814 183,769 Intangible assets, net 6,023 6,076 Goodwill 20,888 20,749 Other noncurrent assets 1 44,362 16,406 Total assets $ 330,306 $ 290,809 LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable 2 $ 3,417 $ 5,330 Accrued expenses and other current liabilities 3 9,794 14,057 Operating right-of-use current liabilities 4 2,384 1,835 Current portion of long-term debt, net of debt issuance costs 926 2,170 Total current liabilities 16,521 23,392 Long-term accrued expenses and other noncurrent liabilities 7,576 5,388 Operating right-of-use noncurrent liabilities 5 29,163 6,083 Long-term debt, net of debt issuance costs 212,380 202,469 Total liabilities 265,640 237,332 COMMITMENTS AND CONTINGENCIES MEZZANINE EQUITY Series A Preferred Stock, $ 0.0001 par value; 315,789.473684 shares authorized, issued and outstanding at December 31, 2025 and 2024 407,257 380,179 STOCKHOLDERS’ DEFICIT Common Stock, $ 0.0001 par value; 1,000,000,000 shares authorized; 55,894,663 shares issued and outstanding at December 31, 2025; 54,209,388 shares issued and outstanding at December 31, 2024 6 6 Additional paid-in capital 82,315 101,495 Accumulated deficit ( 425,099 ) ( 429,239 ) Accumulated other comprehensive income 187 1,036 Total stockholders’ deficit ( 342,591 ) ( 326,702 ) Total liabilities, mezzanine equity and stockholders’ deficit $ 330,306 $ 290,809 1 Includes related party operating lease right-of-use assets of zero and $ 5.1 million as of December 31, 2025 and 2024, respectively . 2 Includes related party accounts payable of zero and $ 0.1 million as of December 31, 2025 and 2024, respectively. 3 Includes related party accrued expenses of $ 0.4 million and zero as of December 31, 2025 and 2024, respectively. 4 Includes related party operating lease right-of-use current liabilities of zero and $ 1.3 million as of December 31, 2025 and 2024, respectively. 5 Includes related party operating lease right-of-use noncurrent liabilities of zero and $ 3.8 million as of December 31, 2025 and 2024, respectively. The accompanying notes are an integral part of these Consolidated Financial Statements. 65 Table of Contents BRIDGER AEROSPACE GROUP HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except per share amounts) For the years ended December 31, 2025 2024 Revenues 1 $ 122,830 $ 98,613 Cost of revenues: Flight operations 2 31,933 31,016 Maintenance 39,214 26,459 Total cost of revenues 71,147 57,475 Gross income 51,683 41,138 Selling, general and administrative expense 3 36,283 35,820 Interest expense 4 23,263 23,714 Other income 11,788 2,067 Income (loss) before income taxes 3,925 ( 16,329 ) Income tax benefit 215 762 Net income (loss) $ 4,140 $ ( 15,567 ) Series A Preferred Stock - adjustment to maximum redemptions value ( 27,078 ) ( 25,339 ) Loss attributable to Common stockholders - basic and diluted $ ( 22,938 ) $ ( 40,906 ) Loss per share - basic and diluted $ ( 0.42 ) $ ( 0.81 ) Weighted average Common Stock outstanding - basic and diluted 54,283,410 50,524,996 1 Includes related party revenues of zero and $ 0.3 million for the years ended December 31, 2025 and 2024, respectively. 2 Includes related party cost of revenues of $ 1.3 million and $ 2.6 million for the years ended December 31, 2025 and 2024, respectively. 3 I ncludes related party selling, general and administrative expense of $ 0.4 million and zero for the years ended December 31, 2025 and 2024, respectively. 4 Includes related party interest expense of zero and $ 0.8 million for the years ended December 31, 2025 and 2024, respectively. The accompanying notes are an integral part of these Consolidated Financial Statements. 66 Table of Contents BRIDGER AEROSPACE GROUP HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (dollars in thousands) For the years ended December 31, 2025 2024 Net income (loss) $ 4,140 $ ( 15,567 ) Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment 226 62 Unrealized loss on derivative instruments ( 377 ) ( 43 ) Reclassification of realized gain on derivative instruments to earnings ( 698 ) — Reclassification of realized loss on investments in marketable securities to earnings — 30 Total other comprehensive (loss) income, net of tax ( 849 ) 49 Comprehensive income (loss) $ 3,291 $ ( 15,518 ) The accompanying notes are an integral part of these Consolidated Financial Statements. 67 Table of Contents BRIDGER AEROSPACE GROUP HOLDINGS, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (dollars in thousands, except share value amounts) Series A Preferred Stock Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Income Total Stockholders’ Deficit Share Value Share Value Balance at December 31, 2023 315,789 $ 354,840 47,200,504 $ 5 $ 84,771 $ ( 413,672 ) $ 987 $ ( 327,909 ) Net loss — — — — — ( 15,567 ) — ( 15,567 ) Foreign currency translation adjustment — — — — — — 62 62 Unrealized loss on derivative instruments — — — — — — ( 43 ) ( 43 ) Reclassification of realized loss on investments in marketable securities to earnings — — — — — — 30 30 Sales of Common Stock through offerings — — 2,217,164 — 9,337 — — 9,337 Series A Preferred Stock adjustment to maximum redemptions value — 25,339 — — ( 25,339 ) — — ( 25,339 ) Costs related to offerings — — — — ( 1,006 ) — — ( 1,006 ) Common Stock issued related to acquisition activity — — 4,947,202 1 18,216 — — 18,217 Repurchased shares for tax withholding — — ( 187,020 ) — ( 644 ) — — ( 644 ) Cancellation of vested restricted stock units — — ( 2,032,545 ) — — — — — Stock-based compensation — — 2,064,083 — 16,160 — — 16,160 Balance at December 31, 2024 315,789 $ 380,179 54,209,388 $ 6 $ 101,495 $ ( 429,239 ) $ 1,036 $ ( 326,702 ) Net income — — — — — 4,140 — 4,140 Foreign currency translation adjustment — — — — — — 226 226 Unrealized loss on derivative instruments — — — — — — ( 377 ) ( 377 ) Reclassification of realized gain on derivative instruments to earnings — — — — — — ( 698 ) ( 698 ) Series A Preferred Stock adjustment to maximum redemptions value — 27,078 — — ( 27,078 ) — — ( 27,078 ) Common Stock issued related to acquisition activity — — 617,189 — 1,191 — — 1,191 Repurchased shares for tax withholding — — ( 254,246 ) — ( 391 ) — — ( 391 ) Stock-based compensation — — 1,322,352 — 7,098 — — 7,098 Balance at December 31, 2025 315,789 $ 407,257 55,894,683 $ 6 $ 82,315 $ ( 425,099 ) $ 187 $ ( 342,591 ) The accompanying notes are an integral part of these Consolidated Financial Statements. 68 Table of Contents BRIDGER AEROSPACE GROUP HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands) For the years ended December 31, 2025 2024 Cash Flows from Operating Activities: Net income (loss) $ 4,140 $ ( 15,567 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities, net of acquisitions: Depreciation and amortization 15,471 17,451 Loss on debt extinguishment 7,776 — Impairment of long-lived assets 178 — Stock-based compensation expense 7,098 16,160 Change in fair value of Warrants 4,264 ( 4,530 ) Amortization of debt issuance costs 1,096 943 Loss on termination of interest rate swap 59 — Reclassification of realized gain on derivative instruments from AOCI ( 698 ) — Change in fair value of earnout consideration ( 2,285 ) ( 393 ) (Gain) loss on disposal of fixed assets ( 87 ) 386 Gain on sale-leaseback transaction ( 16,876 ) — Change in fair value of embedded derivative — ( 885 ) Realized gain on investments in marketable securities — ( 16 ) Deferred tax benefit ( 373 ) ( 1,142 ) Changes in operating assets and liabilities, net: Accounts receivable 2,755 ( 2,133 ) Aircraft support parts ( 797 ) ( 104 ) Prepaid expense and other current and noncurrent assets 2,345 2,286 Accounts payable, accrued expenses and other liabilities 1 ( 7,334 ) ( 3,101 ) Net cash provided by operating activities 16,732 9,355 Cash Flows from Investing Activities: Proceeds from sale-leaseback transaction, net 46,849 — Sale of property, plant and equipment 976 649 Capitalized costs related to in-process research and development (“IPR&D”) ( 1,326 ) ( 1,156 ) Purchases and improvements of property, plant and equipment ( 80,942 ) ( 4,084 ) Proceeds from sales and maturities of marketable securities — 1,055 Collection of note receivable — 3,000 Cash acquired through acquisition — 2,592 Net cash (used in) provided by investing activities ( 34,443 ) 2,056 Cash Flows from Financing Activities: Proceeds from issuance of term loans 220,251 — Payment of issuance costs for term loans ( 13,850 ) — Termination of interest rate swap 639 — Payment of finance lease liability ( 27 ) ( 26 ) Cash paid for taxes related to net share settlement of equity awards ( 391 ) ( 644 ) Repayments on debt ( 210,942 ) ( 2,988 ) Payment of issuance costs for Common Stock in offerings — ( 1,006 ) Proceeds from issuance of Common Stock in the at-the-market offering — 168 Proceeds from issuance of Common Stock in the registered direct offering — 9,169 Net cash (used in) provided by financing activities ( 4,320 ) 4,673 Effects of exchange rate changes 329 62 Net change in cash, cash equivalents and restricted cash ( 21,702 ) 16,146 Cash, cash equivalents and restricted cash – beginning of the year 53,083 36,937 Cash, cash equivalents and restricted cash – end of the year $ 31,381 $ 53,083 Less: Restricted cash – end of the year — 13,747 Cash and cash equivalents – end of the year $ 31,381 $ 39,336 1 Includes related party accounts payable and accrued expenses of $ 0.4 million and $ 0.1 million for the years ended December 31, 2025 and 2024. The accompanying notes are an integral part of these Consolidated Financial Statements 69 Table of Contents BRIDGER AEROSPACE GROUP HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Nature of Business Bridger Aerospace Group Holdings, Inc. and its subsidiaries (“Bridger”, “the Company,” “we,” “us” or “our”) provide aerial wildfire surveillance, relief and suppression, and aerial firefighting services using next-generation technology and environmentally friendly and sustainable firefighting methods primarily throughout the United States, as well as airframe modification and integration solutions for governmental and commercial customers. Our mission is to deploy the most advanced technologies in aviation to protect lives, property, critical infrastructure, and the environment, delivering these capabilities where they are needed most, from wildfire response to defense and beyond. Through innovation and the use of advanced technology and software, focusing on aerial firefighting, disaster response, government applications and public safety, Bridger aims to set the global standard in aviation services. The Company was formed on November 20, 2018 and registered in the State of Delaware. The legal name of the Company was officially changed from ElementCompany Operations, LLC to Bridger Aerospace Group Holdings, LLC through an amendment with the State of Delaware, effective January 1, 2020. As of December 31, 2025, the Company operates the following aircraft fleet: Aircraft Type Number Operated CL-415EAF (“Super Scooper”) 6 Canadair CL-215T (“Spanish Scooper”) 2 Daher Kodiak 100 (“Daher Kodiak”) 4 Pilatus PC-12 (“Pilatus”) 1 4 Beechcraft King Air 350 (“King Air”) 2 Twin Commander 1 Total aircraft operated 19 1 The Company owns three and leases one . Principles of Consolidation and Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The Consolidated Financial Statements include the financial statements of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest, for which all intercompany transactions have been eliminated upon consolidation. Certain prior period amounts have been reclassified to conform to the current year’s presentation. These reclassifications had no impact on previously reported net income/loss, total assets, or stockholders’ equity. Recent Activity On October 1, 2025, the Company completed the purchase of its second King Air aircraft for approximately $ 3.7 million. This aircraft will support the Company’s service offerings within aerial surveillance. The aircraft is included in Property, plant and equipment, net in the Consolidated Balance Sheets. Refer to “Note 8 – Property, Plant and Equipment, Net” included in this Annual Report on Form 10-K for additional details. On October 28, 2025, the Company completed a sale and leaseback transaction of its hangar and office facilities at the Bozeman Yellowstone Airport in Belgrade, Montana, to an unrelated third party for a total sales price of approximately $ 49.3 million, subject to related transaction cost adjustments. Refer to “Note 16 – Leases” included in this Annual Report on Form 10-K for additional details. On October 28, 2025, Bridger completed the refinancing of its then outstanding $ 160.0 million Series 2022 Bonds, with a new Credit Agreement (“the Credit Agreement”), consisting of $ 210.0 million Initial Term Loans (the “Initial Term Loans”), a $ 21.5 million Revolving Credit Facility (the “Revolver”), and a $ 100.0 million Delayed Draw Term Loan (“the DDTL”). The proceeds from the Initial Term Loans were used to refinance existing debt, pay associated transaction costs and the 3 % prepayment penalty on the Series 2022 Bonds, and prepay in full various permanent and term loan agreements, including all outstanding obligations associated with the Series 2022 Bonds and the LOB credit facilities. In addition, the Company terminated the interest rate swap agreement with UMB Bank (“UMB”) related to variable rate debt from the credit facility for UMB as further discussed in “ Note 13 – Interest Rate Swap ” included in this Annual Report on Form 10-K. 70 Table of Contents On December 17, 2025, the Company drew an aggregate of $ 10.3 million under its DDTL to fund the purchase of two Pilatus aircraft that were previously leased under noncancelable operating lease agreements. The purchase resulted in additions to property, plant and equipment of $ 10.3 million, derecognition of operating lease right-of-use assets, operating lease right-of-use current liabilities, and operating lease right-of-use noncurrent liabilities of $ 3.9 million, $ 1.4 million, and $ 2.5 million. Refer to “Note 8 – Property, Plant and Equipment, Net,” “Note 15 – Long-Term Debt,” and “Note 16 – Leases” included in this Annual Report on Form 10-K for additional details. On December 31, 2025, the Company completed the purchase of two Spanish Scooper aircraft that were previously included in the return to service work in connection with the MAB Funding, LLC (“MAB”) services agreement. The purchase resulted in additions to property, plant and equipment, of $ 50.0 million. The two Spanish Scoopers purchased will remain in Europe for the first part of 2026 to assess operations outside of the U.S. Refer to “Note 8 – Property, Plant and Equipment, Net” and “Note 17 – Commitments and Contingencies” included in this Annual Report on Form 10-K for additional details. Reverse Recapitalization On January 24, 2023, (the “Closing Date”), Jack Creek Investment Corp (“JCIC”) completed the reverse recapitalization (the “Closing” and the “Reverse Recapitalization”) with the Company’s predecessor, Bridger Aerospace Group Holdings, LLC and its subsidiaries (collectively, “Legacy Bridger”), which operated the majority of the historical business and was identified as the acquirer and predecessor upon the consummation of the transactions contemplated by the agreement and plan of merger (the “Transaction Agreements”) entered into on August 3, 2022. On the Closing Date, pursuant to the Transaction Agreements, JCIC and Legacy Bridger became wholly owned subsidiaries of a new public entity that was renamed Bridger Aerospace Group Holdings, Inc., and JCIC shareholders and Legacy Bridger equity holders converted their equity ownership in JCIC and Legacy Bridger, respectively, into equity ownership in Bridger. Upon the consummation of the Reverse Recapitalization, Bridger issued Common Stock to the Legacy Bridger equity holders and Series A Preferred Stock (as defined below) as summarized below: • the surrender and exchange of all 606,061 Legacy Bridger incentive units (“Incentive Units”) into 583,308 shares of Bridger’s common stock, par value $ 0.0001 , (“Common Stock”) at a deemed value of $ 10.00 per share as adjusted by the per share Common Stock consideration of approximately 0.96246 (the “Exchange Ratio”), rounded down to the nearest share for each holder; • the direct or indirect surrender and exchange of the remaining 40,000,000 issued and outstanding shares of Legacy Bridger common shares (excluding Incentive Units) into 38,498,436 shares of Common Stock at a deemed value of $ 10.00 per share as adjusted by the Exchange Ratio, rounded down to the nearest share for each holder; and • the surrender and exchange of all 315,789.473684 issued and outstanding Series C preferred shares of Legacy Bridger (the “Legacy Bridger Series C Preferred Shares”), which were surrendered and exchanged on a one -to-one basis in connection with the Reverse Recapitalization into 315,789.473684 shares of preferred stock of Bridger that have the rights, powers, designations, preferences, and qualifications, limitations and restrictions set forth in Section 4.5 of the Amended and Restated Certificate of Incorporation (the “Series A Preferred Stock”). The Series A Preferred Stock are convertible at the election of the holders into shares of Common Stock, without the payment of additional consideration by the holders into such number of shares of Common Stock as determined by dividing the original issue price, plus accrued interest by a conversion price equal to $ 11.00 at the time of conversion. Other related events occurred in connection with the Reverse Recapitalization, are summarized below: • the filing and effectiveness of the Amended and Restated Certificate of Incorporation of Bridger and the effectiveness of the Amended and Restated Bylaws of Bridger, each of which occurred immediately prior to the Closing; • the adoption and assumption of the 2023 Omnibus Incentive Plan (the “Omnibus Plan”) and any grants or awards issued thereunder and adoption of the 2023 Employee Stock Purchase Plan upon the Closing to grant equity awards to Bridger employees; and • during the period from the Closing until five years following the Closing, JCIC subjected 20 % of JCIC’s issued and outstanding common stock (“Sponsor Earnout Shares”), comprised of two separate tranches of 50 % of the Sponsor Earnout Shares per tranche, to potential forfeiture to Bridger for no consideration until the occurrence (or deemed occurrence) of certain triggering events. 71 Table of Contents Immediately after giving effect to the Transaction Agreements, the following were outstanding: • 43,769,290 shares of Common Stock; • 315,789.473684 shares of Bridger Series A Preferred Stock; • 9,400,000 private placement warrants (“Private Placement Warrants”) to purchase shares of Common Stock at an exercise price of $ 11.50 per share; • 17,250,000 public warrants (“Public Warrants”) to purchase shares of Common Stock at an exercise price of $ 11.50 per share; and • 6,581,497 restricted stock units issued to the executives and senior management of the Company. In connection with the Reverse Recapitalization, the Company paid transaction costs of $ 10.3 million as of the Closing. The transactions contemplated by the Transaction Agreements were accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, JCIC was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the financial statements of Bridger represent a continuation of the financial statements of Legacy Bridger with the Reverse Recapitalization treated as the equivalent of Legacy Bridger issuing stock for the net assets of JCIC, accompanied by a recapitalization. The net assets of JCIC will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization will be those of Legacy Bridger in future reports of Bridger. Legacy Bridger was determined to be the accounting acquirer as of the Closing Date based on evaluation of the following facts and circumstances: • Legacy Bridger equity holders had a relative majority of the voting power of Bridger; • Bridger’s board of directors (the “Board”) had nine members, and representatives or designees of the Legacy Bridger equity holders comprise the majority of the members of the Board; • Legacy Bridger’s senior management comprised the senior management roles and were responsible for the day-to-day operations of Bridger; • Bridger assumed Legacy Bridger’s name of business; • The strategy and operations of Bridger continued Legacy Bridger’s former strategy and operations; and • The Reverse Recapitalization created an operating public company, with management continuing to use Legacy Bridger operations to grow the business. The Sponsor Earnout Shares are determined to be equity classified instruments of Bridger and the Public Warrants and Private Placement Warrants are determined to remain liability classified instruments upon the Closing. In accordance with guidance applicable to these circumstances, the equity structure has been recast in all comparative periods up to the Closing to reflect the number of shares of Common Stock issued to Legacy Bridger’s stockholders in connection with the Reverse Recapitalization. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Bridger’s common stock prior to the Reverse Recapitalization have been retroactively recast as shares of Common Stock using the Exchange Ratio. On January 25, 2023, shares of the Company’s Common Stock began trading on the Nasdaq Global Market under the ticker symbol “BAER.” 72 Table of Contents NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Variable Interest Entities The Company follows ASC 810-10-15, Consolidation , guidance with respect to accounting for variable interest entities (“VIE”). These entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support from other parties or whose equity investors lack any of the characteristics of a controlling financial interest. A variable interest is an investment or other interest that will absorb portions of a VIE’s expected losses or receive portions of its expected returns and are contractual, ownership, or pecuniary in nature and that change with changes in the fair value of the entity’s net assets. A reporting entity is the primary beneficiary of a VIE and must consolidate it when that party has a variable interest, or combination of variable interests, that provide it with a controlling financial interest. A party is deemed to have a controlling financial interest if it meets both of the power and loss/benefits criteria. The power criterion is the ability to direct the activities of the VIE that most significantly impact its economic performance. The losses/benefits criterion is the obligation to absorb losses from, or right to receive benefits from, the VIE that could potentially be significant to the VIE. The VIE model requires an ongoing reconsideration of whether a reporting entity is the primary beneficiary of a VIE due to changes in the facts and circumstances. Northern Fire Management Services, LLC (“NFMS, LLC”): The Company assisted in designing and organizing NFMS, LLC with a business purpose of employing Canadian aviation professionals to provide services to the Company. A master services agreement exists between NFMS, LLC, the Company, and Bridger Air Tanker, LLC, a wholly-owned subsidiary of the Company, to transfer all annual expenses incurred to the Company in exchange for the Canadian employees to support the Company’s water scooper aircraft. NFMS, LLC is 50 % owned by a Canadian citizen, and 50 % owned by Bridger Aerospace Group, LLC. NFMS, LLC was determined to be a VIE primarily due to the entity’s lack of sufficient equity investment at risk and the Company was determined to be the primary beneficiary of the VIE primarily attributable to the Company’s responsibility for all decisions related to NFMS, LLC’s expenditures. Accordingly, NFMS, LLC has been consolidated by the Company for the years ended December 31, 2025 and 2024 and all intercompany expenses associated with NFMS, LLC and its service agreement have been eliminated in consolidation. For the years ended December 31, 2025 and 2024, NFMS, LLC’s assets and liabilities were immaterial to the Company’s financial statements. Bridger Aerospace Europe, S.L.U. (“BAE”) and MAB Funding, LLC (“MAB”): On November 17, 2023, we entered into a series of agreements designed to facilitate the purchase and return-to-service of four Spanish Scoopers originally awarded to our wholly-owned subsidiary, BAE, in September 2023 via a public tender process from the Government of Spain for € 40.3 million. Under the terms of the agreements, we agreed to sell the entire outstanding equity interest in BAE to MAB and purchase $ 4.0 million of non-voting Class B units of MAB. We also entered into a services agreement with MAB whereby we will manage the return to service upgrades of the Spanish Scoopers through our wholly-owned Spanish subsidiary, Albacete Aero, S.L., while they are owned and funded by MAB. The service agreement also provides that we have the right, but not the obligation, to acquire each Spanish Scooper as it is ready to be contracted and returned to service. On December 23, 2025, we purchased two of the Spanish Scoopers from MAB for an aggregate purchase price of $ 50.0 million, allocated $ 25.0 million per aircraft. The Company assessed both MAB and BAE for variable interest entity accounting under ASC 810-10-15 and determined that MAB is a voting interest entity and BAE is a variable interest entity. However, neither entity is consolidated in the Consolidated Financial Statements as the Company does not have a controlling financial interest in MAB and the Company is not the primary beneficiary of BAE. Accordingly, neither of these entities have been consolidated in the Consolidated Financial Statements of the Company for the years ended December 31, 2025 and 2024. Refer to “Note 17 – Commitments and Contingencies” included in this Annual Report on Form 10-K for additional details. Use of Estimates The preparation of financial statements in conformity with GAAP, requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities, disclosure of gain or loss contingencies as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include: (a) excess and aging aircraft support parts reserves, (b) allowance for doubtful accounts, (c) useful lives of property, plant and equipment, net, (d) allocation of the purchase price to the fair value of assets acquired and liabilities assumed, (e) impairment of long-lived assets, goodwill and other intangible assets, (f) disclosure of fair value of financial instruments, (g) variable interest entities, (h) accounting for Series A Preferred Stock, (i) revenue recognition, (j) estimates and assumptions made in determining the carrying values of goodwill, other intangible assets and contingent consideration, (k) Public Warrants and Private Placement Warrants, (l) accounting for income taxes including the related valuation allowance on the deferred tax asset and (m) determination of the fair value of the property related to the sale-leaseback transaction. In the future, the Company may realize actual results that differ from the current reported estimates and if the estimates that the Company has used change in the future, such changes could have a material impact on the Company’s consolidated financial position, results of operations and cash flows. 73 Table of Contents Cash and Cash Equivalents Cash and cash equivalents consist of cash and all highly liquid, readily convertible investments with a maturity of three months or less. Cash equivalents are placed primarily in time deposits and money market funds due in three months or less. At times, deposits in these institutions exceed the federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash. Restricted Cash Restricted cash includes cash and cash equivalents that are not readily available for use in the Company’s operating activities. These funds are held in a demand deposit account or highly rated money market fund. As of December 31, 2025, there was no restricted cash. As of December 31, 2024, the restricted cash amounts relate to the Series 2022 Bonds. Fair Value of Financial Instruments In accordance with ASC 820, Fair Value Measurement (“ASC 820”), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are determined within a framework that establishes a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company’s business. Unobservable inputs reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. ASC 820 classifies the inputs used to measure these fair values into the following hierarchy: Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs and quoted prices in active markets for similar assets and liabilities. Level 3 — Unobservable inputs and models that are supported by little or no market activity. In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety has been determined based on the lowest level of input that is significant to the fair value measurement. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. During the years ended December 31, 2025 and 2024, the Company did not experience losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. Accounts Receivable Accounts receivable consist of amounts due from our customers. The Company maintains an allowance for doubtful accounts equal to the estimated losses expected to be incurred based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. For the years ended December 31, 2025 and 2024, the Company did not record any bad debt expense as accounts receivable have historically been collected in accordance with the policy and there is no history of write-offs. Aircraft Support Parts Aircraft support parts consist of repairables and expendables that are used for servicing aircraft and support parts for universal application amongst the aviation fleet. Aircraft support parts are tracked by serial number and capitalized at cost in the Consolidated Balance Sheets and expensed in the Consolidated Statements of Operations when used in operations. 74 Table of Contents Property, Plant and Equipment, net Property, plant and equipment, net owned by the Company is depreciated over the estimated useful lives of individual assets. Depreciation for aircraft, engines, and rotable parts is recorded over the estimated useful life based on flight hours and is recorded in Cost of revenues in the Consolidated Statements of Operations. Depreciation for vehicles and equipment, buildings, and leasehold improvements is computed using the straight-line method over the estimated useful lives of the property, plant and equipment and is recorded in Selling, general and administrative expense in the Consolidated Statements of Operations. Airplane hangars located on leased airport property are considered leasehold improvements with useful lives determined based on the estimated life of the underlying ground lease. The table below summarizes depreciable lives by asset cate gory: Estimated Useful Life Aircraft, engines and rotable parts 1,500 – 6,000 flight hours Vehicles and equipment 3 – 5 years Buildings 50 years Leasehold improvements 10 years Aircraft undergo maintenance activities including routine repairs, inspections, part replacements and overhauls as required by regulatory authorities or manufacturer specifications. Costs of routine maintenance of aircraft are expensed as incurred as Cost of revenues in the Consolidated Statements of Operations. Costs that increase the value of the aircraft are capitalized as Property, plant and equipment, net in the Consolidated Balance Sheets and are depreciated over the asset’s useful life. Costs related to planned major overhauls of aircraft are capitalized using the built-in overhaul method. Under the built-in overhaul method, costs of planned maintenance and overhauls are capitalized and depreciated by the Company over the expected period until the next scheduled major maintenance event is required. Interest on long-term debt for the development or manufacturing of Company assets is capitalized to the asset until the asset enters production or use, and thereafter all interest is charged to expense as incurred. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment in accordance with ASC Topic 360, Property, Plant and Equipment, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, or an adverse action or assessment by a regulator. When indicators of impairment are present, we evaluate the carrying value of the long-lived assets in relation to the operating performance and future undiscounted cash flows of the underlying assets. We adjust the net book value of the long-lived assets to fair value if the sum of the expected future cash flows is less than book value. Investments The Company holds equity securities without a readily determinable fair value, which are only adjusted for observable price changes in orderly transactions for the same or similar equity securities or any impairment. As of December 31, 2025 and 2024, the Company had $ 5.5 million and $ 5.0 million of cost method investments included in Other noncurrent assets in the Consolidated Balance Sheets. Business Combinations The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations . Under the acquisition method of accounting, amounts paid for the acquisition are allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition inclusive of identifiable intangible assets. Acquisition consideration includes contingent consideration with payment terms based on the achievement of certain targets of the acquired business. The estimated fair value of identifiable assets and liabilities, including intangibles, are based on valuations that use information and assumptions available to management. The Company allocates any excess purchase price over the fair value of the tangible and identifiable intangible assets acquired and liabilities assumed to goodwill. Significant management judgments and assumptions are required in determining the fair value of assets acquired and liabilities assumed, particularly acquired intangible assets, including estimated useful lives. The valuation of purchased intangible assets is based upon estimates of the future performance and discounted cash flows of the acquired business. Each asset acquired or liability assumed is measured at estimated fair value from the perspective of a market participant. 75 Table of Contents Contingent consideration represents an obligation of the acquirer to transfer additional assets or equity interests to the seller if future events occur or conditions are met and is recognized when probable and reasonably estimable. Contingent consideration recognized is included in the initial cost of the assets acquired. Subsequent changes in the estimated fair value of contingent consideration are recognized as Selling, general and administrative expenses within the Consolidated Statements of Operations. Intangible Assets In accordance with ASC Topic 350, Intangibles - Goodwill and Other , the Company classifies intangible assets into two categories: (1) intangible assets with finite lives subject to amortization and (2) intangible assets with indefinite lives not subject to amortization. Separately, the Company tests intangible assets with finite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include an economic downturn in a geographic market or a change in the assessment of future operations. The Company records an impairment charge when the carrying value of the finite lived intangible asset is not recoverable by the cash flows generated from the use of the asset. The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors considered when determining useful lives include the contractual term of any agreement, the history of the asset, the Company’s long-term strategy for the use of the asset, any laws or other local regulations that could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have finite lives are amortized, generally on a straight-line basis, over their useful lives, ranging from one to 15 years. Intangible assets consist of finite-lived intangible assets acquired through the Company’s historical business combinations and software developed for internal-use. In accordance with ASC Topic 350-40, Software - Internal-Use Software , the Company capitalizes certain direct costs of developing internal-use software that are incurred in the application development stage, when developing or obtaining software for internal use. The Company assesses impairment related to software in accordance with ASC Topic 985-20, Software – Costs of Software To Be Sold, Leased, or Marketed. Once the internal use software is ready for its intended use, it is amortized on a straight-line basis over its useful life. Refer to “Note 10 – Goodwill and Intangible Assets, Net” included in this Annual Report on Form 10-K. Acquired intangible assets are initially recorded at fair value and subsequently amortized over their useful lives using the straight-line method, which reflects the pattern of benefit, and assumes no residual value. Intangible assets with definite lives are reviewed for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. The remaining estimated useful lives of definite-lived intangible assets are routinely reviewed and, if the estimate is revised, the remaining unamortized balance is amortized over the revised estimated useful life. Goodwill Goodwill represents the excess of purchase price over fair value of the net assets acquired in an acquisition. Refer to “Note 10 – Goodwill and Intangible Assets, Net” included in this Annual Report on Form 10-K. The Company assesses goodwill for impairment as of October 1 annually or more frequently upon an indicator of impairment. Goodwill is tested for impairment at the reporting unit level using a fair value approach. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, based on a review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative assessment is performed, and the fair value of the reporting unit is determined. If the carrying value of the reporting unit exceeds its fair value, an impairment loss equal to the excess is recorded. Debt Issuance Costs Debt issuance costs consist of expenditures associated with obtaining debt financing, principally legal and bank commitment fees, on drawn and undrawn instruments. Such costs are deferred and amortized over the term of the related credit arrangements using the straight-line method, which approximates the effective interest method. Debt issuance costs are included in the Consolidated Balance Sheets as a direct deduction from the carrying amount of long-term debt and are included in Interest expense in the Consolidated Statements of Operations. The payment of debt issuance costs is recorded under financing activities in the Consolidated Statements of Cash Flows. 76 Table of Contents Deferred Offering Costs Deferred offering costs primarily consist of capitalized legal, accounting and other third-party costs incurred that are related to the Reverse Recapitalization and subsequent securities offerings. As of December 31, 2025 and 2024, the Company recorded $ 19.6 million to Stockholders’ deficit in the Consolidated Balance Sheets. Deferred Financing Costs Deferred financing costs include origination, arrangement, legal and other fees to issue or amend the terms of the Revolving Credit Facility (“Revolver”) and Delayed Draw Term Loan (“DDTL”). In our consolidated balance sheets, unamortized deferred financing costs related to the DDTL are reported as other non-current assets. Deferred financing costs are recognized in our consolidated statements of operations as interest expense by amortizing the costs over the related financing using the straight-line method, which approximates the effective interest method . Revenue Recognition Aerial firefighting revenues The Company enters into short, medium and long-term contracts with customers, primarily with government agencies during the firefighting season, to perform aerial firefighting services (fire suppression and aerial surveillance). The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers (“ASC 606”). The majority of the Company’s aerial firefighting contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, are not distinct. The Company primarily performs the following activities on contracts as part of a stand-ready obligation: (i) providing our aircraft, pilot, and field maintenance personnel necessary to operate the aircraft and (ii) performing the services required on the contract, whether it be fire suppression or aerial surveillance services. The integrated firefighting services that we perform under each contract represent a single performance obligation satisfied over time, as a series of distinct time increments. Our firefighting contracts generally provide for payment on a day rate basis. Such activities consist of standby and flight time. Standby rates are charged daily when aircraft is available for use at a fire base, awaiting request from the customer for flight deployment. Flight time is charged hourly when the engines of the aircraft are started and stopped upon request of the customer. The amounts billed to the customer are determined based on varying rates applicable to the specific activities performed on a daily basis. Such consideration is allocated to the distinct daily increment it relates to within the contract and therefore, recognized as we perform the daily firefighting services on the contract. We measure progress in a manner that depicts the performance of transferring control to the customer. As such, we utilize the output method to recognize revenue over time as this depicts the Company’s performance toward complete satisfaction of the performance obligation. As the Company has a right to consideration from customers in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date, the Company has applied the practical expedient to recognize revenue in the amount to which we have the right to invoice. We have elected to exclude from the transaction price all taxes assessed by governmental and foreign authorities. Maintenance, Repair, and Overhaul (“MRO”) revenues Maintenance repair revenue consists of maintenance repair and return to service work performed on customer aircraft. The Company commonly contracts with third-parties to perform certain repair and return to service work. The Company considers itself the principal in these arrangements as we control the timing and nature of the services ultimately provided by the third-party to the customer. Each maintenance contract consists of integrated repair and return to service activities that are highly interdependent, and therefore, represent a single performance obligation. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected-cost-plus-margin approach, under which the Company forecasts the expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The Company satisfies the underlying performance obligations over time as either the customer obtains control or receives benefits as work is performed on the contract, or the products we are building are assets with no alternative use and we have an enforceable right to payment. As a result, under ASC 606, revenue is recognized over time using the cost-to-cost method (cost incurred relative to total estimated cost at completion). 77 Table of Contents Contract estimates Actual revenues and project costs may vary from previous estimates due to changes in a variety of factors. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers, and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the availability of materials, and the effect of any delays on our project performance. We periodically review our job performance, job conditions, estimated profitability, and final contract settlements, including our estimate of total costs and make revisions to costs and income in the period in which the revisions are probable and reasonably estimable. We bear the risk of cost overruns in most of our contracts, which may result in reduced profits. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. Contracts can be modified to account for changes in contract specifications and requirements. Contract modifications are considered to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Total cumulative catch-up adjustments were not material for the years ended December 31, 2025 and 2024. Other revenues Other revenues primarily consists of training services and lease revenue when we lease our owned aircraft to third parties, typically on an hourly or daily basis. For the years ended December 31, 2025 and 2024, we had other revenue of $ 4.1 million and $ 4.9 million, respectively. Contract assets & liabilities The timing of revenue recognition, customer billings, and cash collections results in a contract asset or contract liability at the end of each reporting period. For instances where we recognize revenue prior to having an unconditional right to payment, we record a contract asset. When amounts are dependent on factors other than the passage of time in order for payment from a customer to be due, we record a contract asset which consists of costs incurred where revenue recognized over time using the cost-to-cost model exceeds the amounts billed to customers. Contract assets are recorded within Accounts receivable in the Consolidated Balance Sheets. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are recorded as deferred revenue within Accrued expenses and other current liabilities in the Consolidated Balance Sheets. Certain customers make advance payments prior to the satisfaction of our performance obligations on the contract. These amounts are recorded as contract liabilities until such performance obligations are satisfied over time as costs are incurred. Contract assets and contract liabilities are determined on a contract-by-contract basis. Payment terms vary by customer and type of revenue contract. The Company generally expects that the period of time between payment and transfer of promised goods or services will be less than one year. In such instances, the Company has elected the practical expedient to not evaluate whether a significant financing component exists. Net contract (liabilities) assets are as follows: As of December 31, dollars in thousands 2025 2024 Net Change Contract assets $ 2,250 $ 1,746 $ 505 Contract liabilities 3,434 858 2,577 Net contract (liabilities) assets $ ( 1,184 ) $ 888 $ ( 2,072 ) The receivables balance was $ 4.1 million, the contract assets and contract liabilities balances were zero , as of January 1, 2024. For the year ended December 31, 2025, the Company recognized revenues of $ 0.9 million that was previously included in the contract liabilities that existed at December 31, 2024. Changes in the balances of the Company’s contract assets and liabilities primarily result from timing differences between revenue recognition and customer billings and/or payments. There were no significant impairment losses related to any receivables or contract assets arising from the Company’s contracts with customers during the years ended December 31, 2025 and 2024. 78 Table of Contents Remaining performance obligations The Company calculates revenues from remaining performance obligations as the dollar value of the remaining performance obligations on executed contracts. As of December 31, 2025, the Company has remaining unsatisfied performance obligations of $ 14.0 million, of which approximately 91 % is expected to be recognized as revenue within the next twelve months and 9 % thereafter. Contract costs The Company has not incurred incremental costs for obtaining contracts with customers. In addition, the Company evaluates whether or not it should capitalize the costs of fulfilling a contract. Such costs would be capitalized when they are not within the scope of other standards and: (1) are directly related to a contract; (2) generate or enhance resources that will be used to satisfy performance obligations; and (3) are expected to be recovered. The Company has elected to use the practical expedient detailed in ASC 340-40, Other Assets and Deferred Costs-Contracts with Customers , to expense any costs to fulfill a contract as they are incurred when the amortization period would be one year or less. Revenue Disaggregation The following table presents the disaggregation of revenue by service: For the years Ended December 31, dollars in thousands 2025 2024 Fire suppression $ 79,840 $ 66,765 Aerial surveillance 17,426 13,062 MRO 21,498 13,918 Other services 4,066 4,868 Total revenues $ 122,830 $ 98,613 For the Years Ended December 31, dollars in thousands 2025 2024 United States $ 108,843 $ 88,527 Spain 13,987 10,086 Total revenues $ 122,830 $ 98,613 Concentration Risk The Company had three customers who individually accounted for 66 %, 11 %, and 10 % of total revenues for the year ended December 31, 2025 and two customers who individually accounted for 61 % and 12 % of total revenues for the year ended December 31, 2024. The Company had two customers who individually accounted for 57 % and 12 % of total trade accounts receivable as of December 31, 2025 and three customers who individually accounted for 42 %, 17 % and 13 % of total trade accounts receivable as of December 31, 2024. Hedging Transactions and Derivative Financial Instruments The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as “market risks.” The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The Company manages interest rate risk through the use of derivative instruments, such as swap agreements. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. The Company does not enter into derivative financial instruments for trading purposes. The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationships. The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in Accumulated other comprehensive income and are reclassified into the line item in the Consolidated Statements of Comprehensive Income (Loss) in which the hedged items are recorded in the same period the hedged items affect earnings. In addition, settlements on cash flow hedges are recorded in the same section of the Consolidated Statement of Cash Flows as the underlying nature of the hedged item. 79 Table of Contents The Company formally assesses whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument’s change in fair value is immediately recognized into earnings. The fair value is based on prevailing market data and using standard valuation models based on reasonable estimates about future relevant market conditions. Refer to “ Note 13 – Interest Rate Swap ” included in this Annual Report on Form 10-K. The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of the Company’s exposure to the financial risks described above. Income Taxes For periods prior to the Reverse Recapitalization, Bridger Aerospace Group Holdings, LLC is a partnership for federal income tax purposes. Consequently, federal income taxes were not payable or provided for by Legacy Bridger. Members were taxed individually on their pro rata ownership share of the Legacy Bridger’s earnings. Legacy Bridger’s net income or loss was allocated among the members in accordance with the Company’s operating agreement. Subsequent to the Reverse Recapitalization, Bridger Aerospace Group Holdings, Inc. became the successor of Legacy Bridger as discussed in “ Note 1 – Organization and Basis of Presentation ” included in this Annual Report on Form 10-K. Bridger is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to net taxable income or loss and any related tax credits of the Company. Bridger is also subject to taxes in foreign jurisdictions in which it operates. The Company provides for income taxes and the related accounts under the asset and liability method. Income tax benefit, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes predominantly in the U.S. These tax laws are often complex and may be subject to different interpretations. Deferred income taxes arise from temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities and are measured using the enacted tax rates expected to be in effect during the year in which the basis difference reverses. In evaluating the ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence. If based upon all available positive and negative evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if Bridger determines that it is more likely than not that all or part of the deferred tax asset will become realizable. On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. In accordance with ASC 740, Accounting for Income Taxes, the impacts of the OBBBA are reflected in the Company’s results for the year ended December 31, 2025. However, the changes did not affect the Company’s U.S. deferred tax assets or liabilities, as the Company continues to maintain a full valuation allowance against those balances. Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation . The Company along with the Board established and approved and assumed the Omnibus Plan which allowed the Company to grant restricted stock units (“RSUs”) to Bridger employees (the “Participants”). Upon satisfying the vesting conditions, each RSU provides the Participants the right to receive one share of Common Stock. The fair value of RSUs is determined based on the number of shares granted and the quoted market price of the Common Stock on the date of grant. Compensation cost for the RSUs is recognized as the performance condition of the Closing of the transaction was met and over the requisite service period based on the graded-vesting method. The Company accounts for forfeitures as they occur. Stock-based compensation is included in both Cost of revenues and Selling, general and administrative expense in the Consolidated Statements of Operations. Loss Per Share Basic loss per share is based on the weighted average number of shares of Common Stock outstanding during the period. Diluted loss per share is based on the weighted average number of shares of Common Stock used for the basic loss per share calculation, adjusted for the dilutive effect of RSUs, Warrants and Incentive Units, if any, using the “treasury stock” method, the Series A Preferred Stock that is convertible into shares of Common Stock, and the Sponsor Earnout Shares that will fully vest upon certain stock price metrics being achieved. In addition, loss for diluted loss per share is adjusted for the after-tax impact of changes to the fair value of the Warrants, to the extent they are dilutive. Loss per share is calculated based on the weighted average number of shares of Common Stock outstanding. 80 Table of Contents Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). This update modernizes the accounting for internal-use software, removes all references to software development stages, and requires capitalization of software costs when management has committed to a software project and it is probable the software will be completed and perform its intended use. ASU 2025-06 will be effective for annual and interim periods beginning January 1, 2028. Early adoption is permitted. The Company is currently evaluating the timing and method of adopting the new accounting guidance on the Company’s Consolidated Financial Statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (“ASU 2024-03”) . This update enhances annual and interim disclosures, in the notes to financial statements, of specified information about certain costs and expenses. ASU 2024-03 will be effective for annual periods beginning January 1, 2027 and interim periods beginning January 1, 2028. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new accounting guidance on the Company’s Consolidated Financial Statements. Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). This update enhances the transparency and decision usefulness of income tax disclosures to provide investors information to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The Company adopted ASU 2023-09 during the year ended December 31, 2025 and applied the guidance prospectively. Refer to “ Note 21 – Income Taxes ” included in this Annual Report on Form 10-K. The update did not have a material impact on the Company’s consolidated financial position, results of operations, and/or cash flows. NOTE 3 – SUPPLEMENTAL CASH FLOW INFORMATION For the Years Ended December 31, dollars in thousands 2025 2024 Cash paid for interest $ 28,839 $ 23,137 Cash paid for income taxes, net of refunds 430 — Fixed assets in accounts payable 15 — Non-cash investing and financing activities: Series A Preferred Stock - adjustment to maximum redemption value $ 27,078 $ 25,339 Recognition of new right-of-use assets and corresponding operating lease liabilities 30,582 1,262 Derecognition of right-of-use assets and corresponding operating lease liabilities 4,567 — Recognition of new right-of-use asset and corresponding financing lease liability 69 — Derecognition or modification of right-of-use assets and corresponding finance lease liabilities 13 — Purchase consideration of Ignis acquisition paid in Common Stock (Note 12) 1,191 4,038 Purchase consideration of FMS acquisition paid in Common Stock — 14,179 81 Table of Contents NOTE 4 – CASH EQUIVALENTS Cash equivalents consist of the following: As of December 31, 2025 2024 dollars in thousands Carrying Value Cash equivalents: Money market fund $ 25,035 $ 36,305 Restricted cash: Money market fund $ — $ 13,747 There were no proceeds from sales of available-for-sale securities and gross realized gains included in earnings for the year ended December 31, 2025. For the year ended December 31, 2024, such proceeds and realized gains were $ 1.1 million and $ 16,000 , respectively. The Company determines gains and losses using the first-in first-out method. For the year ended December 31, 2024, the Company reclassified out of Accumulated other comprehensive income a loss of $ 30,000 . NOTE 5 – ACCOUNTS RECEIVABLE Accounts receivable consist of the following: As of December 31, dollars in thousands 2025 2024 Trade accounts receivable $ 835 $ 3,213 Contract assets 2,250 1,746 Foreign tax receivable 105 986 Total accounts receivable $ 3,190 $ 5,945 Substantially all accounts receivable at December 31, 2025, are expected to be collected in 2026. The Company does not believe it has significant exposure to credit risk, as accounts receivable and the contract assets amounts are primarily from contracts associated with the U.S. Government. Foreign tax receivable consists primarily of value-added taxes charged by the Spanish government. Refer to “Note 2 – Summary of Significant Accounting Policies” for further discussion on Contract assets. NOTE 6 – AIRCRAFT SUPPORT PARTS Aircraft support parts consist of the following: As of December 31, dollars in thousands 2025 2024 Repairables and expendables $ 623 $ 593 Other 1,031 264 Total aircraft support parts $ 1,654 $ 857 NOTE 7 – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: As of December 31, dollars in thousands 2025 2024 Deposits $ 1,639 $ 1,044 Prepaid insurance 1,546 1,472 Prepaid subscriptions 518 1,229 Other 291 179 Total prepaid expenses and other current assets $ 3,994 $ 3,924 82 Table of Contents NOTE 8 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consist of the following: As of December 31, dollars in thousands 2025 2024 Aircraft $ 262,013 $ 185,877 Less: Accumulated depreciation ( 48,607 ) ( 38,210 ) Aircraft, net 213,406 147,667 Vehicles and equipment 7,049 5,921 Buildings 1,200 1,054 Leasehold improvements 645 35,504 Licenses 235 235 Finance lease right-of-use asset 117 101 Capitalized software and development costs 35 35 Construction-in-progress - leasehold improvements — 5 Less: Accumulated depreciation ( 3,873 ) ( 6,753 ) Leasehold improvements and equipment, net 5,408 36,102 Total property, plant and equipment, net $ 218,814 $ 183,769 For the year ended December 31, 2025, the Company recorded $ 13.0 million and $ 1.1 million of depreciation expense in Cost of revenues and Selling, general and administrative expense, respectively. For the year ended December 31, 2024, the Company recorded $ 14.5 million and $ 2.3 million of depreciation expense in Cost of revenues and Selling, general and administrative expense, respectively. Asset groups are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. As of the year ended December 31, 2025, the Twin Commander did not generate revenues and as such the Company performed a market approach assessment, and determined the fair value of the Twin Commander aircraft was lower than the net book value and as such, recorded an impairment charge of $ 0.2 million in the Consolidated Statements of Operations. For the year ended December 31, 2024, the Company recorded no impairment charges. For the years ended December 31, 2025 and 2024, the Company recorded a gain on disposals of assets of $ 0.1 million and a loss of disposals of assets of $ 0.4 million, respectively, in Selling, general and administrative expense in the Consolidated Statements of Operations. NOTE 9 – ACQUISITION ACTIVITY 2024 Acquisition Activity On June 28, 2024, the Company completed the acquisition of all the outstanding equity interests of Flight Test & Mechanical Solutions, Inc. (“FMS” and the “FMS Acquisition”), a turn-key provider of integration solutions for government and commercial customers including instrumentation, flight testing and airworthiness certification, for total initially estimated fair value consideration of $ 21.2 million, payable in unregistered shares of Bridger’s Common Stock, with $ 19.0 million fair value of Common Stock consideration paid at closing and upon settlement of certain post-closing purchase price adjustments to the former stockholders of FMS (consisting of 3,867,289 restricted shares of Common Stock determined based upon a volume-weighted average per-share price (“VWAP”) of the Common Stock for the 90 consecutive trading days ended June 27, 2024). The shares issued at close were issued at the fair value upon the closing date. The remaining $ 2.2 million of fair value Common Stock consideration is contingent upon the achievement of certain earnout conditions and, assuming achievement of such conditions, will be issued to the former stockholders of FMS in 2026 and 2027 based on the 2025 and 2026 results, respectively, with the price per share determined based upon a trailing 90-day VWAP of the Common Stock at the time of each issuance. During the measurement period, the Company revised the total purchase consideration of the FMS Acquisition due to changes in working capital adjustments, closing price adjustments and a deferred tax liability adjustment. As a result, total consideration decreased by $ 4.8 million. These adjustments resulted in a corresponding decrease in goodwill of $ 3.9 million. The maximum number shares of Common Stock issuable to the former FMS stockholders as contingent earnout consideration will not exceed 5,754,165 shares in the aggregate. All of the shares of Common Stock to be issued in the FMS Acquisition will be subject to transfer restrictions for an 18-month period after each issuance, with the transfer restrictions expiring with respect to 1/18th of the total shares of Common Stock each month over the 18-month period following such issuance. 83 Table of Contents None of the shares of Common Stock issued or issuable in connection with the FMS Acquisition were registered under the Securities Act of 1933, as amended (the “Securities Act”), on the FMS Acquisition date in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. Recipients of shares of Common Stock in connection with the FMS Acquisition will have customary resale registration rights with respect to such shares of Common Stock pursuant to the terms and conditions of the FMS Acquisition. The Company accounted for the FMS Acquisition under the acquisition method of accounting and has reported the results of operations of the FMS Acquisition as of the respective date of the FMS Acquisition. The Company based the estimated fair values of intangible assets on an income approach utilizing the relief from royalties and excess earnings methods. The income approach utilizes management’s estimates of future operating results and cash flows using a weighted average cost of capital that reflects market participant assumptions. For all other assets acquired and liabilities assumed, the fair value reflects the carrying value of the asset or liability due to their short maturity. The Company recorded the excess of the fair value of the consideration transferred in the FMS Acquisition over the fair value of net assets acquired as goodwill. The goodwill reflects our expectations of favorable future growth opportunities. The Company has not presented pro forma combined results for the FMS Acquisition because the impact on previously reported statements of operations was not material. As of March 31, 2025, the Company finalized the purchase accounting for the FMS Acquisition. The following table summarizes the final purchase price allocation: dollars in thousands As of March 31, 2025 Common Stock $ 13,061 Working Capital Excess Shares 174 Closing Cash Shares Adjustment 143 Accrued Dividends Payable Adjustment 800 Earnout Shares 2,164 Total purchase price $ 16,342 dollars in thousands As of December 31, 2024 Adjustments As of March 31, 2025 Cash and cash equivalents $ 2,592 $ — $ 2,592 Accounts receivable 1 2,701 — 2,701 Aircraft support parts 265 — 265 Prepaid expenses and other current assets 124 — 124 Property, plant and equipment 1,014 — 1,014 Intangible assets 3,900 — 3,900 Other noncurrent assets 1,854 — 1,854 Accounts payable ( 259 ) — ( 259 ) Dividends payable ( 800 ) — ( 800 ) Deferred revenue ( 180 ) — ( 180 ) Accrued expenses and other current liabilities ( 170 ) ( 139 ) ( 309 ) Operating right-of-use current liability ( 56 ) — ( 56 ) Operating right-of-use noncurrent liability ( 960 ) — ( 960 ) Deferred tax liability ( 1,269 ) — ( 1,269 ) Total identifiable net assets 8,756 ( 139 ) 8,617 Goodwill 7,586 139 7,725 Total purchase price $ 16,342 $ — $ 16,342 1 Balance includes $ 1.0 million in unbilled receivable. Fair value of accounts receivable approximates the contractual amount. Purchase price allocation adjustments related primarily to net working capital, closing price and deferred tax liability adjustments. 84 Table of Contents Goodwill of $ 7.7 million arising from the FMS Acquisition is primarily attributable to the assembled workforce of FMS and expected synergies from combining operations. None of the acquired goodwill is expected to be deductible for income tax purposes. Acquired intangible assets consist of the following: • Trade name: expected to be amortized over its useful life of 9.5 years as of the date of the FMS Acquisition. The fair value of the trade name was determined using the relief from royalty method. • Customer relationships : expected to be amortized over its useful life of 3.5 years as of the date of the FMS Acquisition. The fair value of the customer relationships were determined using the multi-period excess earnings method. • Contracts : expected to be amortized over its useful life of 5.5 years when placed into service. The fair value of the contracts were determined using the multi-period excess earnings method. The transaction costs related to the acquisition were not material. The operating results of the acquisition have been included in the Company’s results of operations from the effective date of the acquisition. NOTE 10 – GOODWILL AND INTANGIBLE ASSETS, NET As of December 31, 2025 and 2024, goodwill was $ 20.9 million and $ 20.7 million, respectively. As of December 31, 2025 and 2024, goodwill of $ 2.4 million was allocated to the Company’s BAGH reporting unit, which has a negative carrying amount of net assets as of December 31, 2025 and 2024, due to the inclusion of the mezzanine equity, refer to “Note 18 – Mezzanine Equity.” There were no impairment charges recorded for goodwill for the years ended December 31, 2025 and 2024. Changes in the carrying amount of goodwill for years ended December 31, 2025 and 2024 were as follows: dollars in thousands Goodwill As of December 31, 2023 $ 13,163 Addition from FMS Acquisition 11,578 Measurement period adjustment ( 3,992 ) As of December 31, 2024 $ 20,749 Measurement period adjustment 139 As of December 31, 2025 $ 20,888 Intangible assets consisted of the following: As of December 31, 2025 dollars in thousands Estimated Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount In-process research and development (“IPR&D”) 5 $ 4,109 $ ( 926 ) $ 3,183 Contracts 5.5 3,400 ( 927 ) 2,473 Trade name 9.5 300 ( 47 ) 253 Internal-use software 3 297 ( 297 ) — Customer relationships 3.5 200 ( 86 ) 114 Licenses 10 68 ( 68 ) — Total intangible assets $ 8,374 $ ( 2,351 ) $ 6,023 As of December 31, 2024 dollars in thousands Estimated Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Contracts 5.5 $ 3,400 $ ( 309 ) $ 3,091 IPR&D 5 2,783 ( 260 ) 2,523 Trade name 9.5 300 ( 16 ) 284 Internal-use software 3 297 ( 297 ) — Customer relationships 3.5 200 ( 29 ) 171 Licenses 10 68 ( 61 ) 7 Total intangible assets $ 7,048 $ ( 972 ) $ 6,076 85 Table of Contents IPR&D is the historical know-how, software, formula protocols, designs and procedures expected to be needed to complete the development of the technology asset and receive regulatory approval. The Company amortizes the IPR&D over its useful life of five years when placed into service. As of December 31, 2025 and 2024, the Company capitalized costs of $ 1.3 million and $ 1.2 million related to IPR&D, respectively. Amortization expense for intangible assets and other noncurrent assets was $ 1.4 million and $ 0.7 million for the years ended December 31, 2025 and 2024, respectively. Amortization expense is included in Selling, general and administrative expense in the Consolidated Statements of Operations. Future amortization expense for intangible assets subject to amortization is expected to be as follows: dollars in thousands Expected Amortization 2026 $ 1,502 2027 1,502 2028 1,445 2029 1,445 2030 34 Thereafter 95 Total $ 6,023 NOTE 11 – OTHER NONCURRENT ASSETS Other noncurrent assets consisted of the following: As of December 31, dollars in thousands 2025 2024 Operating lease right-of-use asset $ 31,416 $ 7,951 Deferred debt issuance costs 4,150 — Investment in MAB 4,000 4,000 Deposits 1,937 338 Investment in Overwatch Imaging, Inc. 1,000 1,000 Prepaid expenses 986 1,543 Interest rate swap — 1,075 Other 873 499 Total other noncurrent assets $ 44,362 $ 16,406 NOTE 12 – ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: As of December 31, dollars in thousands 2025 2024 Warrant liabilities $ 5,330 $ 1,066 Deferred revenue 3,434 858 Contingent consideration 2,743 6,219 Accrued salaries, wages and bonuses 2,548 1,635 Deferred underwriting fee payable 1,500 1,500 Accrued foreign tax 925 925 Finance right-of-use liability 96 37 Accrued interest expense 52 6,487 Other 742 718 Total accrued expenses and other liabilities 17,370 19,445 Less: Current accrued expenses and other current liabilities ( 9,794 ) ( 14,057 ) Total long-term accrued expenses and other noncurrent liabilities $ 7,576 $ 5,388 86 Table of Contents Warrant liabilities The warrant liabilities consist of the following Warrants issued by the Company in connection with the Reverse Recapitalization: Public Warrants The Company issued Public Warrants to purchase 17,250,000 shares of Common Stock at an exercise price of $ 11.50 per share in exchange for the 17,250,000 JCIC warrants originally issued by JCIC in its initial public offering. The Warrants may only be exercised for a whole number of shares of Common Stock. The exercise price and number of shares of Common Stock issuable upon exercise of the Warrants may also be adjusted in certain circumstances including in the event of a share dividend, recapitalization, reorganization, merger or consolidation. In no event will the Company be required to net cash settle any Warrant. The Warrants became exercisable 30 days following the Reverse Recapitalization and will expire January 24, 2028. Under certain circumstances, the Company may elect to redeem the Public Warrants at a redemption price of $ 0.01 per Public Warrant at any time during the term of the warrant in which the Common Stock trading price has been at least $ 18.00 per share for 20 trading days within the 30 trading-day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the Warrant holders. If the Company elects to redeem the Public Warrants, it must notify the Public Warrant holders in advance, who would then have at least 30 days from the date of notification to exercise their respective warrants. If the warrant is not exercised within that 30 -day period, it will be redeemed pursuant to this provision. The Company may also elect to redeem the outstanding Warrants at a redemption price of $ 0.10 per Warrant at any time during the term of the Warrant in which the Common Stock trading price is between $ 10.00 per share and $ 18.00 per share (as adjusted for share splits, share dividends, rights issuances, subdivisions, reorganization, recapitalizations and the like) for any 20 trading days within the 30 trading-day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the Warrant holders. In such case, the Warrant holders will be able to exercise their Warrants on a cashless basis prior to the redemption for a number of shares of our Common Stock determined based on the redemption date and the fair market value of the Common Stock. As of December 31, 2025 and 2024, 17,249,874 Public Warrants remain outstanding. The Public Warrants are liability-classified with a balance of $ 3.4 million and $ 0.7 million, respectively, and a fair value of $ 0.20 and $ 0.04 per warrant as of December 31, 2025 and 2024, respectively. Private Placement Warrants The Company issued Private Placement Warrants to purchase 9,400,000 shares of Common Stock at an exercise price of $ 11.50 per share in exchange for the 9,400,000 JCIC warrants originally purchased in a private placement by JCIC Sponsor, LLC (“JCIC Sponsor”) contemporaneously with JCIC’s initial public offering. JCIC Sponsor, or its permitted transferees, has the option to exercise the Private Placement Warrants on a cashless basis. If the Private Placement Warrants are held by holders other than JCIC Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company in all redemption scenarios and exercisable by the holders on the same basis as the Public Warrants. As of December 31, 2025 and 2024, the Company had 9,400,000 outstanding Private Placement Warrants to purchase 9,400,000 shares of Common Stock. The Private Placement Warrants are liability-classified with a balance of $ 1.9 million and $ 0.4 million, respectively, and a fair value of $ 0.20 and $ 0.04 per warrant as of December 31, 2025 and 2024, respectively. 87 Table of Contents Contingent consideration The Company assumed contingent consideration as part of prior year acquisition activity. The Company is required to make contingent payments to the sellers based on the achievement of certain operational milestones or certain earnout conditions. The fair value of the liability for the contingent payments was recognized upon acquisition as part of the purchase accounting opening balance sheet. The initial cost was recognized at fair value on the closing date with subsequent changes in estimated fair value recognized as Selling, general and administrative expenses in the Consolidated Statements of Operations. As part of the 2023 Ignis Acquisition, the Company agreed to pay contingent consideration based on the achievement of certain operational milestones. The final milestone was completed during 2024, which triggered a series of three annual contingent consideration payments. The first payment was made as of the quarter ended June 30, 2024. During the second quarter of 2025, the Company issued 617,189 restricted shares of Common Stock to the Ignis shareholders (determined based upon a trailing 120-day VWAP of the Common Stock for the 120 consecutive trading days ended June 30, 2025). The shares were issued at fair value, resulting in a total issuance value of approximately $ 1.2 million. This amount was previously recognized as part of the contingent consideration liability as of March 31, 2025, and the issuance did not result in any additional expense during the period. The remaining $ 1.9 million of Common Stock consideration will be issued to the Ignis shareholders in 2026, with the price per share determined based upon a trailing 120-day VWAP of the Common Stock at the time of such issuance. The liability for the remaining contingent consideration has been recorded at fair value and is classified as a current liability on the Consolidated Balance sheet. Pursuant to the agreement, the maximum number of shares of Common Stock issuable to the Ignis shareholders as contingent earnout consideration will not exceed 8,399,198 shares in the aggregate. All of the shares of Common Stock to be issued in the Ignis Acquisition will be subject to transfer restrictions for a 12-month period after each issuance, with 1/12th of the total shares of Common Stock vesting each month over the one-year period after each issuance. None of the shares of Common Stock issued or issuable in connection with the Ignis Acquisition were registered under the Securities Act on the Ignis Acquisition date in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. Recipients of shares of Common Stock in connection with the Ignis Acquisition will have customary resale registration rights with respect to such shares of Common Stock pursuant to the terms and conditions of the Ignis Acquisition. In addition, as it relates to the 2024 FMS Acquisition and the related earnout, based on revised forecasts and updated expectations regarding the acquired business’s performance against the applicable earn-out metrics, the Company reduced the fair value of the contingent consideration liability by $ 2.1 million during the three months ended June 30, 2025. No changes were made subsequently in 2025. As of December 31, 2025 and 2024, the Company recognized $ 2.0 million and $ 3.4 million, respectively, in Accrued expenses and other current liabilities and $ 0.7 million and $ 2.8 million, respectively, in Long-term accrued expenses and other noncurrent liabilities in the Consolidated Balance Sheets. The change in contingent consideration for the years ended December 31, 2025 and 2024 was as follows: dollars in thousands 2025 2024 Contingent consideration, beginning of period $ 6,219 $ 8,486 Addition of contingent consideration from FMS Acquisition — 2,164 Change in fair value of contingent consideration ( 2,285 ) ( 393 ) Settlement of contingent consideration ( 1,191 ) ( 4,038 ) Contingent consideration, end of period $ 2,743 $ 6,219 NOTE 13 – INTEREST RATE SWAP The Company assesses interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. The Company entered an interest rate swap with Rocky Mountain Bank, now known as UMB Bank (“UMB”) on March 12, 2020 to reduce risk related to variable-rate debt from the term loan, which was subject to changes in market rates of interest as discussed in “Note 15 – Long-Term Debt” included in this Annual Report on Form 10-K. The interest rate swap was designated as a cash flow hedge. The Company recorded its corresponding derivative asset on a gross basis in Other noncurrent assets at fair value on the Consolidated Balance Sheets. 88 Table of Contents Each month, the Company made interest payments to UMB under its loan agreement. Effective July 1, 2023, LIBOR was replaced by 1-month CME Term Secured Overnight Financing Rate (“SOFR”) plus 0.11448 % tenor spread adjustment plus the 2.5 % contractual SOFR margin then in effect with respect to the term loan. At the end of each calendar month, the Company receives or makes payments on the interest rate swap difference, if any, based on the received interest rate set forth in the table below. Interest payments on the Company’s term loan and payments received or made on the interest rate swap were reported net on the Consolidated Statements of Operations as interest expense. The Company accounted for the interest rate swap as a cash flow hedge for accounting purposes under GAAP. The Company had the following interest rate swap designated as a cash flow hedge (dollars in thousands) for the year ended December 31, 2024: As of December 31, 2024 Effective Date Maturity Date Notional Amount Fair Value Pay Fixed Receive Rate 4/15/2020 3/15/2030 $ 9,822 $ 1,075 3.887 % 1 Month LIBOR + 2.61448 % Concurrent with the October 2025 Refinancing, refer to “Note 15 – Long-Term Debt,” a portion of the proceeds from the refinancing transaction were used to pay off the amount outstanding under the Company’s prior variable-rate debt with UMB for the construction of the Company’s airplane hangars, dated September 30, 2019. As such, the remaining obligation to make any further payments under the swap agreement was terminated. Fair value adjustments were historically recorded within Other comprehensive income. Upon termination of the interest rate swap in October 2025, the life-to-date accumulated gain of $ 0.7 million related to the interest rate swap was reclassified from Accumulated other comprehensive income to Other income on the Consolidated Statements of Operations for the year ended December 31, 2025. NOTE 14 – FAIR VALUE MEASUREMENTS Long-term debt As of December 31, 2025, the Company had $ 0.1 million of fixed rate and of $ 222.4 million variable rate debt outstanding. The Company’s debt approximates fair value based on current rates and terms available to the Company for similar debt as of December 31, 2025. Debt financing activities and loan agreements are further described in “Note 15 – Long-Term Debt” in this Annual Report on Form 10-K for additional details. As of December 31, 2024, the Company had $ 160.2 million of fixed rate and $ 48.3 million, of variable rate debt outstanding. Based on current market rates, the fair value of the fixed rate debt as of December 31, 2024, was estimated to be $ 173.2 million, respectively. The Company estimated the fair value of the fixed rate debt using quoted market prices (Level 2 inputs) within the fair value hierarchy. When valuing fixed rate debt, the fair value is capped at par value. The variable rate debt approximates fair value based on the closing or estimated market prices of similar securities comparable to the Company’s debts as of December 31, 2024. Recurring Fair Value Measurement Our cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current assets and liabilities (excluding derivative instruments) are carried at amounts which reasonably approximate their fair values due to their short-term nature. The following tables summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy: As of December 31, 2025 dollars in thousands Level 1 Level 2 Level 3 Assets Cash $ 31,381 $ — $ — Total Assets $ 31,381 $ — $ — Liabilities Warrant liabilities - Public Warrants $ 3,450 $ — $ — Warrant liabilities - Private Placement Warrants — 1,880 — Contingent consideration — — 2,743 Total liabilities $ 3,450 $ 1,880 $ 2,743 89 Table of Contents As of December 31, 2024 dollars in thousands Level 1 Level 2 Level 3 Assets Cash $ 39,336 $ — $ — Restricted Cash: Money market fund 13,747 — — Total restricted cash 13,747 — — Interest rate swap — 1,075 — Total Assets $ 53,083 $ 1,075 $ — Liabilities Warrant liabilities - Public Warrants $ 690 $ — $ — Warrant liabilities - Private Placement Warrants — 376 — Contingent consideration — — 6,219 Total liabilities $ 690 $ 376 $ 6,219 Interest Rate Swap As discussed in “Note 13 – Interest Rate Swap,” as of October, 2025, the Company terminated the swap agreement. As such, the following is only applicable for the year ended December 31, 2024. The Company’s derivative financial instruments are measured at fair value on a recurring basis based on quoted market prices or using standard valuation models as described in “Note 13 – Interest Rate Swap” included in this Annual Report on Form 10-K. The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described in “Note 2 – Summary of Significant Accounting Policies” included in this Annual Report on Form 10-K. The fair value of the Company’s interest rate swap agreement was determined based on the present value of expected future cash flows using discount rates appropriate with the terms of the swap agreement. The fair value indicates an estimated amount the Company would be required to receive if the contracts were canceled or transferred to other parties. The Company calculates the fair value of interest rate swap agreement quarterly based on the quoted market price for the same or similar financial instruments. Warrant Liabilities The Company issued Warrants in connection with the Reverse Recapitalization. The Company classifies the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. The warrant liabilities are subject to remeasurement at each balance sheet date until exercised, and any change in fair value are recorded in earnings through Selling, general and administrative expense on the Consolidated Statements of Operations. The Public Warrants are publicly traded under the symbol “BAERW,” and the fair value of the Public Warrants at a specific date is determined by the closing price of the Public Warrants as of that date. Therefore, the Public Warrants are classified as Level 1 of the fair value hierarchy. The Public Warrants are redeemable at any time during the term of the warrant in which the Common Stock share trading price has been at least $ 18.00 per share for 20 trading days within the 30 trading-day period. JCIC Sponsor can redeem both the Private Placement Warrants and the Public Warrants when the stock price is between $ 10.00 to $ 18.00 . As such, it is economically beneficial for the Company to redeem the Private Placement Warrants any time before the stock price crosses the $ 18.00 threshold. Therefore, the Warrants have similar economic value, hence Private Placement Warrants are deemed to have the same value as the Public Warrants and are classified Level 2 of the fair value hierarchy. Refer to “ Note 12 – Accrued Expenses and Other Liabilities ” included in this Annual Report on Form 10-K for additional details. 90 Table of Contents Contingent Consideration In connection with prior year acquisition activity, the Company is required to make contingent payments to the sellers based on the achievement of certain operational milestones or based on the achievement of certain earnout conditions. The fair value of the liability for the contingent payments totaled $ 2.7 million and $ 6.2 million as of December 31, 2025 and 2024, respectively. The fair value of the contingent consideration was determined using the Monte-Carlo simulation-based model discounted to present value. Assumptions used in this calculation are equity volatility, estimated future stock prices and various probability factors, including management’s estimate of the likelihood of meeting certain operational milestones and earnout conditions. The ultimate settlement of the contingent consideration could deviate from current estimates based on the actual results of these financial measures. This liability is considered to be a Level 3 financial liability that is remeasured each reporting period. Changes in estimated fair value of contingent consideration are recognized as Selling, general and administrative expenses within the Consolidated Statements of Operations. Refer to “Note 12 – Accrued Expenses and Other Liabilities” included in this Annual Report on Form 10-K for additional details. Non-Recurring Fair Value Measurements The Company measures certain assets at fair value on a non-recurring basis, including long-lived assets and goodwill and cost method investments, which are evaluated for impairment. Long-lived assets include property, plant and equipment, net, and certain intangible assets. The inputs used to determine the fair value of long-lived assets are considered Level 3 measurements due to their subjective nature. As of December 31, 2025 and 2024, the Company did not have any significant assets or liabilities that were remeasured at fair value on a non-recurring basis in periods subsequent to initial recognition. NOTE 15 – LONG-TERM DEBT Series 2022 Bonds On July 21, 2022, the Company closed on the Series 2022 Bonds, upon which the Company received aggregate proceeds of $ 135.0 million on July 21, 2022 and $ 25.0 million on August 10, 2022. The proceeds were designated to redeem in full the 2021 Bonds and the Series A Preferred shares, to finance the construction and equipping of the Company’s third and fourth aircraft hangar in Belgrade, Montana and to fund the purchase of additional CL-415EAF aircraft. The Series 2022 Bonds had a maturity date of September 1, 2027, with an annual interest rate of 11.5 % payable semiannually on March 1 and September 1 of each year, commencing on September 1, 2022. Debt issuance costs for the Series 2022 Bonds were $ 4.2 million. The Series 2022 Bonds were subject to optional redemption in whole or in part, at par plus accrued interest, and a 3 % premium if such redemptions are made after September 1, 2025. At the Company’s direction, the Series 2022 Bonds were redeemed by Gallatin County on October 28, 2025. UMB Bank (“UMB”)- UMB Loan (Aircraft Hangar) On September 30, 2019, the Company entered into a credit facility with UMB to finance the construction of airplane hangars for $ 12.9 million, established as a 10 -year maturity, 6-month draw period, first 6 months interest only payments monthly, then 10-year term principal plus interest due monthly on a 20 -year amortization at the rate of 1 month SOFR plus 2.61448 %. Debt issuance costs for this loan were $ 0.1 million. Live Oak Bank Credit Facilities (BAT 1 and BAT 2) In 2020, the Company entered into two separate credit facilities brokered through Live Oak Bank (“LOB”) and backed by the US Department of Agriculture for the completed purchase of the Company’s first two CL-415EAF aircraft. The Company issued two $ 19.0 million promissory notes to LOB, established as 15 -year maturity, first two years interest only payments monthly, then 13 -year term principal plus interest due monthly at the rate of the greater of prime plus 1.5 % or 4.75 % per annum. The first of these notes was issued on August 21, 2020 and the second was issued October 1, 2020 to BAT1, LLC and BAT2, LLC, respectively. Debt issuance costs for BAT1 and BAT2 were $ 1.0 million and $ 0.9 million, respectively. October 2025 Refinancing On October 28, 2025, the Company completed the refinancing of its then outstanding $ 160.0 million Series 2022 bonds with a Credit Agreement (“the Credit Agreement”), consisting of $ 210.0 million Initial Term Loans (the “Initial Term Loans”), a $ 21.5 million Revolving Credit Facility (the “Revolver”), and a $ 100.0 million Delayed Draw Term Loan (“the DDTL”). The Company incurred debt issuance costs of $ 4.9 million and lender fees of $ 4.2 million associated with the Credit Agreement. The Company has drawn $ 210.0 million under the Initial Term Loans and $ 10.3 million under the DDTL, with $ 89.7 million remaining in borrowing capacity on the DDTL, as of December 31, 2025. The Company has no t drawn on the Revolver as of December 31, 2025. 91 Table of Contents The proceeds from the refinancing, along with $ 9.3 million of restricted cash reserved for debt servicing on the Series 2022 Bonds were used to refinance existing debt, pay associated transaction costs and the 3 % prepayment penalty on the Series 2022 Bonds. The proceeds were used to prepay in full the Series 2022 Bonds, the UMB loan, with a principal balance of $ 9.3 million, and the two credit facilities with Live Oak Bank with principal balances of $ 16.8 million and $ 16.9 million, respectively. The Company evaluated the transaction under the guidance in ASC 470-50, Debt—Modifications and Extinguishments , and determined that the refinancing resulted in extinguishment accounting, as the Credit Agreement was entered into with a new lending group. In connection with the repayment the Company incurred a loss on the extinguishment of debt of $ 7.8 million, which includes a $ 3.0 million write-off of unamortized debt issuance costs. The loss was recorded as a loss on extinguishment of debt within “Other expense, net” in the condensed consolidated statements of operations for the year ended December 31, 2025. 2025 Credit Agreement The Credit Agreement is secured by first-priority security interests in substantially all tangible and intangible assets, including aircraft, real property, and intellectual property of the Company and subsidiary guarantors. The Credit Agreement requires annual prepayment from an Excess Cash Flow assessment, requiring prepayment of a percentage of annual excess cash flow, as defined within the Credit Agreement, with an assessment date beginning with the fiscal year ending December 31, 2026, and from certain asset sales above a specific threshold, with certain reinvestment provisions. The Credit Agreement requires the Company to pay a prepayment premium on certain voluntary or mandatory prepayments of the term loans equal to (i) 3.0 % if repaid on or prior to the first anniversary of the closing date, (ii) 2.0 % if repaid after the first anniversary but on or prior to the second anniversary, and (iii) 1.0 % if repaid after the second anniversary but on or prior to the third anniversary. After the third anniversary, no prepayment premium applies. Typical events of default include nonpayment, covenant breach, insolvency, and cross-defaults, which may result in acceleration and obligation to pay all outstanding principal, accrued interest, and fees. The Credit Agreement contains certain covenants, which include, but are not limited to, restrictions on indebtedness, liens, fundamental changes, restricted payments, asset sales, and investments, and places limits on various other payments. The Company was in compliance with the covenants contained in the Credit Agreement as of December 31, 2025. The Credit Agreement is also subject to financial covenants requiring the Company to maintain (i) a Total Leverage Ratio not exceeding specified limits on various compliance dates, e.g., 7.00 x through December 31, 2026, decreasing to 6.00 x from March 31 2027 through December 31, 2027, decreasing to 5.50 x from March 31, 2028, onwards (generally calculated as the ratio of consolidated total debt outstanding (calculated as consolidated total debt net unrestricted cash) to consolidated adjusted EBITDA (calculated as per the terms of the credit agreement)) and (ii) a minimum operating cash flow of not less than $ 30.0 million (generally calculated as consolidated adjusted EBITDA (calculated as per the terms of the credit agreement) minus consolidated capitalized expenses (calculated as per the terms of the Credit agreement)). The Company was in compliance with the financial covenants as of December 31, 2025 and management anticipates the Company will remain in compliance with the such covenants at future quarterly measurement periods during the next 12 months. Initial Term Loans The Initial Term Loans consist of an original principal of $ 210.0 million, maturing on October 28, 2030. Borrowings under the Credit Agreement bear interest at either (i) Term SOFR rate plus 6.00 % or (ii) an Alternative Base Rate (“ABR”), plus 5.00 %. The ABR is determined as the greatest of (a) the federal funds effective rate, plus 0.50 %, (b) adjusted term SOFR plus 1.00 %, (c) the prime rate and (d) 2.00 %. The Company elected the SOFR rate plus 6.00 % for the Initial Term Loans as of the commencement date. The Initial Term Loans require quarterly principal payments equal to 0.25 % of the original principal amount, with the remaining outstanding balance payable at maturity. Interest is payable at the end of the interest period, and any unpaid and accrued interest is due at the time of final repayment. 92 Table of Contents Revolver The Revolver provides for borrowings, repayments, and re-borrowings up to a total commitment of $ 21.5 million. Revolving loans bear interest at the same rate options applicable to the Initial Term Loans. The Revolver matures on October 28, 2030. The Revolver requires payment of a commitment fee of 0.50 % per annum based on the average daily amount of the unused Revolver. The fee is payable quarterly in arrears on the last business day of March, June, September, and December. Commitment fees totaled $ 19,000 for the year ended December 31, 2025 and are included in interest expense. As of December 31, 2025, the Company has no t drawn on the Revolver. The Company recorded $ 0.9 million of upfront fees and issuance costs allocated to the Revolver as a deferred asset. DDTL The DDTL facility permits the Company to draw up to ten tranches, each in a minimum amount of $ 2.5 million and increments of $ 250,000 , subject to customary conditions, up to $ 100.0 million. The DDTL will remain available until October 28, 2027. Amounts drawn under the DDTL mature on October 28, 2030. The DDTL bears interest at the same rate options applicable to the Initial Term Loans. The DDTL requires payment of a commitment fee of 1.00 % per annum based on the average daily amount of the unused DDTL Commitment. The fee is payable quarterly in arrears on the last business day of March, June, September, and December. Commitment fees totaled $ 0.2 million for the year ended December 31, 2025 and are included in interest expense. On December 17, 2025, the Company drew $ 10.3 million from the DDTL, to fund the purchase of two Pilatus. The Company has elected the SOFR rate plus 6.00 % for the DDTL as of the draw. The Company recorded $ 3.8 million of upfront fees and issuance costs allocated to the DDTL as a deferred asset, of which $ 0.4 million were reclassified as a discount to the $ 10.3 million drawn. The DDTL requires quarterly principal payments equal to 0.25 % of the original principal amount, with the remaining outstanding balance payable at maturity. Interest is payable monthly, and any unpaid and accrued interest is due at the time of final repayment. Other Indebtedness UMB Loan - UMB Kodiak Aircraft On February 3, 2020, the Company entered into a credit facility with UMB to finance in part the purchase of four Daher Kodiak aircraft. A promissory note was issued for $ 5.6 million, established as a 7 -year maturity, first 8 months interest only payments monthly, 60 day draw period, then 76 -month term plus principal interest due monthly on a 10 -year amortization at the rate of 1-month SOFR plus 2.61448 %. Debt issuance costs for this loan was $ 0.1 million. The UMB loan is subject to financial covenants requiring the Company to maintain a debt service coverage ratio, calculated as the ratio of adjusted EBITDA (as defined in the applicable note agreements) to the amount of interest and principal payments for the fiscal year ending on the compliance date, that exceeds 1.25 x for the Company. This loan is also subject to financial covenants requiring the Company to maintain a Senior Leverage Ratio on a quarterly basis not to exceed 5.50 to 1.00 after Quarter 3, 2025 and thereafter. This is calculated as Total Funded Senior Debt (as defined in the applicable note agreements) less municipal debt, divided by adjusted EBITDA (as defined in the applicable note agreements). The Company was in compliance with such financial covenants as of December 31, 2025. On February 24, 2026, the Company obtained an amendment from the lender pursuant to which the December 31, 2025 financial covenants and all future financial covenant requirements under the loan were permanently removed through maturity. Other loans The Company maintains various other term loan agreements with aggregate outstanding principal balances not material to the consolidated financial statements. These loans commenced as early as September 9, 2021, bear interest at fixed rates ranging from 3.89 % to 5.5 % per annum, and mature as late as November 17, 2027. Debt Issuance Costs Amortization of debt issuance costs was $ 1.1 million and $ 0.9 million for the years ended December 31, 2025 and 2024, respectively. Unamortized debt issuance costs and original issue discounts are presented as a direct deduction from the carrying amount of the associated debt obligations in the balance sheet. These costs are amortized to interest expense over the life of the related debt using the straight-line method, which approximates the effective interest method. Pledged Assets As of December 31, 2025, the Company pledged or restricted substantially all of the assets (consisting principally of including aircraft, real property, and intellectual property of the Company and subsidiary guarantors) as collateral for the outstanding debt related to the 2025 Credit Agreement. 93 Table of Contents Long-term debt consisted of the following: As of December 31, dollars in thousands 2025 2024 Series 2022 Bonds $ — $ 160,000 Live Oak Bank - BAT 1 — 17,532 Live Oak Bank - BAT 2 — 17,604 UMB Loan (Aircraft Hangar) — 9,822 Initial Term Loan 209,475 — DDTL 10,224 — UMB Loan (Kodiak Aircraft) 2,697 3,255 Other 96 174 Loans payable 222,492 208,387 Less: noncurrent debt issuance costs ( 7,276 ) ( 2,746 ) Less: current debt issuance costs ( 1,910 ) ( 1,002 ) Less: current portion of long-term debt, net of debt issuance costs ( 926 ) ( 2,170 ) Total long-term debt, net of debt issuance costs $ 212,380 $ 202,469 Principal maturities of the outstanding debt as of December 31, 2025 are as follows: dollars in thousands Maturities 2026 $ 2,836 2027 4,363 2028 2,203 2029 2,203 2030 210,887 Thereafter — Total $ 222,492 NOTE 16 – LEASES Under ASC 842, leases are separated into two classifications: operating leases and financial leases. Lease classification under ASC 842 is relatively similar to ASC 840. For a lease to be classified as a finance lease, it must meet one of the five finance lease criteria: (1) transference of title/ownership to the lessee, (2) reasonably certain to exercise a purchase option, (3) lease term for major part of the remaining economic life of the asset, (4) present value represents substantially all of the fair value of the asset and (5) asset specialization. Any lease that does not meet these criteria is classified as an operating lease. ASC 842 requires all leases to be recognized on the Company’s balance sheet. Specifically, for operating leases, the Company recognizes a right-of-use asset and a corresponding lease liability upon lease commitment. Company as a lessee The Company is the lessee in a lease contract when the Company obtains the right to use the asset. The right-of-use asset represents the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligations to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company has also elected the short-term lease exception whereby leases with a term of 12 months or less at inception are not recorded on the Consolidated Balance Sheets and are expensed on a straight-line basis over the lease term in our Consolidated Statements of Operations. The Company determines the lease term by agreement with the lessor. Options to renew are considered in lease terms if reasonably expected to be exercised. ASC 842 requires a lessee to use the rate implicit in the lease whenever that rate is readily determinable, otherwise the incremental borrowing rate (“IBR”) should be used. Given the nature of the Company’s lease portfolio, which consists of leases of hangar spaces, aircraft, vehicles, copiers, buildings, aircraft equipment, the implicit rate is often unavailable. In such cases, the Company uses its incremental borrowing rate as the discount rate. The IBR is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The determination of the IBR requires judgment and is determined based on the Company’s credit rating and term of the lease adjusted for the effects of collateral. 94 Table of Contents Sale-Leaseback Transaction The Company completed a sale-leaseback transaction on October 28, 2025. As such, we assessed the sale-leaseback arrangement to determine whether a sale has occurred under Accounting Standards Codification (“ASC”) Topic 606: Revenue from Contracts with Customers (“ASC 606”), as well as assess whether the classification of the lease and/or the terms preclude sale accounting under ASC 842, Leases (“ASC 842”). These assessments involve a determination of whether or not control of the underlying property has been transferred to the buyer. If we determine control of the underlying property has been transferred to the buyer, we account for the arrangement as a sale and leaseback transaction. If we determine control of the underlying property has not been transferred to the buyer, we account for the arrangement as a financing transaction. The determination of the fair values of the properties related to our sale-leaseback arrangement requires subjectivity and estimates, including the use of valuation techniques and uncertain inputs, such as market price per square foot, where applicable. The valuation method used was the depreciated cost method. Where real estate valuation expertise is required, we obtain independent third-party appraisals to determine the fair value of the underlying asset. While determining fair value requires a variety of input assumptions and judgment, we believe our estimates of fair value are reasonable. On October 28, 2025, the Company closed on a sale-leaseback transaction with an unrelated third party. Under this transaction the Company terminated and ultimately reassigned its previous ground leases with the Gallatin Airport Authority and sold three properties with a combined net book value of $ 30.0 million for gross proceeds of $ 49.3 million, which was reduced by transaction costs of $ 2.5 million for net cash proceeds of approximately $ 46.8 million. The properties in the sale-leaseback transaction are comprised of three hangars located in Bozeman, MT, totaling approximately 120,000 square feet of hangar and office space. The lease agreement has a stated ten-year term. The lease includes an option to terminate after seven years without penalty and a five-year renewal option at the end of the initial term. In determining the lease term for accounting purposes, the Company concluded it is reasonably certain not to exercise the termination option and therefore included the full ten-year stated term in the lease term. The Company is not reasonably certain to exercise the renewal option, and accordingly, the renewal period is excluded from the lease term. We recognized a gain of $ 16.9 million on this transaction, which is included in Gain on sale-leaseback transaction in Other income in the Consolidated Statements of Operations. Right-of-use assets and lease liabilities recognized related to this sale-leaseback transaction were $ 28.0 million, respectively. Components of the Company’s operating and finance lease assets and liabilities as of December 31, 2025 and 2024 are as follows: As of December 31, dollars in thousands Financial Statement Line Item 2025 2024 Assets Operating lease right-of-use asset Other noncurrent assets $ 31,416 $ 7,951 Finance lease right-of-use asset, net Property, plant and equipment, net 92 36 Liabilities Operating lease right-of-use liabilities (current) Operating right-of-use liability (current) $ 2,384 $ 1,835 Finance lease right-of-use liabilities (current) Accrued expenses and other current liabilities 23 11 Operating lease right-of-use liabilities (non-current) Operating right-of-use liability (noncurrent) 29,163 6,083 Finance lease right-of-use liabilities (non-current) Accrued expenses and other noncurrent liabilities 73 26 The Company leases various property and premises on a short-term basis and leases some of its premises under non-cancelable operating leases that expire on various dates through October 2035. The Company recorded $ 3.5 million and $ 2.1 million of expenses associated with these operating leases in Cost of Revenues and Selling, general and administrative expense in the Consolidated Statements of Operations for the years ended December 31, 2025 and 2024. The Company recorded expenses associated with finance leases in Cost of revenues and Selling, general and administrative expense in the Consolidated Statements of Operations. 95 Table of Contents Supplemental cash flow information related to leases is as follows: Year Ended December 31, dollars in thousands 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,486 $ 2,222 Operating cash flows from finance leases 10 18 Financing cash flows from finance leases 10 3 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 30,582 $ 1,262 Operating lease from purchase consideration of FMS acquisition — 1,016 Finance leases 69 — As of December 31, 2025, future minimum lease payments are as follows: dollars in thousands Operating Leases Finance Leases Year Ending December 31: 2026 $ 4,723 $ 32 2027 4,713 31 2028 4,545 31 2029 4,662 22 2030 4,243 — Thereafter 22,086 — Total lease payments 44,972 116 Less: interest ( 13,425 ) ( 20 ) Total lease liabilities $ 31,547 $ 96 Weighted average remaining lease term: 9.4 years 3.9 years Weighted average discount rate: 8.0 % 10.6 % NOTE 17 – COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, the Company is subject to various litigation and other claims in the normal course of business. No amounts have been accrued in the Consolidated Financial Statements with respect to any matters. Due to the nature of our business, we may become, from time to time, involved in routine litigation or subject to disputes or claims related to our business activities. In the opinion of our management, there are no pending litigation, disputes or claims against us which, if decided adversely, will have a material adverse effect on our financial conditions, cash flows or results of operations. In the ordinary course of its operations, the Company will continue to vigorously enforce its legal and contractual rights to ensure that its business and operations continue on an unimpaired basis. 96 Table of Contents Contingencies On November 17, 2023, the Company entered into a series of agreements with MAB and its subsidiary designed to facilitate the purchase and return to service of four Spanish Scoopers originally awarded to the Company in September 2023 via a public tender process from the Government of Spain. The terms of the agreements provide that the Company will manage the return to service upgrades of the Spanish Scoopers while they are owned and funded by MAB. The Company has the right, but not the obligation, to acquire each plane as it is ready to be contracted and returned to service. In the event that Bridger does not purchase the aircraft within the time periods set forth in the agreements, then either party may initiate a sales process for the sale of all aircraft that have not been purchased by the Company, which sales process the Company will oversee and manage. If the aircraft are sold to a third party through such process, then the Company must pay MAB’s subsidiary a cash fee equal to the amount, if any, by which the aggregate price of the Company’s purchase options for such aircraft exceeds the consideration paid by the third-party purchaser for the same aircraft, not to exceed $ 15.0 million in aggregate. If the aircraft are not sold to a third party and MAB’s subsidiary has not otherwise entered into an operating lease with a third party for the aircraft, then the Company must pay MAB’s subsidiary $ 15.0 million. On December 23, 2025, we purchased two of the Spanish Scoopers from MAB for an aggregate purchase price of $ 50.0 million, allocated $ 25.0 million per aircraft. Accordingly, no liability has been recorded in the Consolidated financial statements as of December 31, 2025. The Company will continue to monitor the situation and assess the need for recognition or further disclosure in future periods. NOTE 18 – MEZZANINE EQUITY The Company’s Series A Preferred Stock are convertible at the election of the holders into shares of Common Stock, without the payment of additional consideration by the holders into such number of shares of Common Stock as determined by dividing the original issue price, plus accrued interest by a conversion price equal to $ 11.00 per share at the time of conversion. Shares of Series A Preferred Stock are mandatorily redeemable by the Company on April 25, 2032 at a redemption amount that is equal to the stated value, plus accrued but unpaid interest. Accrued interest for the Series A Preferred Stock was $ 27.1 million and $ 25.3 million during the years ended December 31, 2025 and 2024, respectively. Shares of Series A Preferred Stock are also redeemable upon certain triggering events outside of the control of the Company, including that shares of Series A Preferred Stock may be redeemed by the Company (a) on or after April 25, 2027 or (b) in connection with the consummation of a fundamental change in the Company’s voting and governance structure such as the sale of the Company or its subsidiaries representing more than 50% of the Company’s voting stock or a similar liquidity event. Shares of Series A Preferred Stock may be redeemed by the holder upon the consummation of a fundamental change, such as the sale of the Company or a similar liquidity event. Given the conversion feature is considered substantive, the mandatory redemption on April 25, 2032 is not certain and accordingly, the Series A Preferred Stock are classified as mezzanine equity. As of December 31, 2025, it is probable that the Series A Preferred Stock may become redeemable on April 25, 2032. The Company has elected to recognize changes in redemption value immediately, adjusting the preferred stock to the maximum redemption value at each reporting date. Upon Closing, the Series A Preferred Stock had both a carrying value and redemption value of $ 332.7 million, the 50 % multiplier, valued at $ 156.4 million, was removed. As of December 31, 2025 and 2024, the Series A Preferred Stock had both a carrying value and redemption value of $ 407.3 million and $ 380.2 million, respectively. Refer to table below. As of December 31, 2025 and 2024, the fair value of the embedded derivative related to the event of default is zero , as there have been no triggering events. The Company determined the fair value of the other features requiring bifurcation, both individually and in the aggregate were immaterial at December 31, 2025 and 2024. The fair value of these features will be assessed at each reporting date and will be recognized and remeasured at fair value, if material. 97 Table of Contents Redeemable Series A Preferred Stock dollars in thousands Shares Amounts Balance as of December 31, 2024 315,789.473684 $ 380,179 Adjustment to maximum redemptions value — 27,078 Balance as of December 31, 2025 315,789.473684 $ 407,257 Balance as of December 31, 2023 315,789.473684 $ 354,840 Adjustment to maximum redemptions value — 25,339 Balance as of December 31, 2024 315,789.473684 $ 380,179 NOTE 19 – STOCKHOLDERS’ DEFICIT Common Stock In connection with the Reverse Recapitalization, the Company issued 43,769,290 shares of Common Stock, of which 39,081,744 shares were issued to Legacy Bridger Common shareholders, 2,084,357 shares were issued to the public shareholders of JCIC and 2,603,189 shares were issued to JCIC Sponsor and independent directors of JCIC upon Closing. Of the shares issued to Legacy Bridger Common shareholders and JCIC Sponsor, 233,323 and 855,000 shares are subject to continuing vesting conditions, respectively. Restricted Stock Units In January 2023, in connection with the Closing, the Company and its Board established and approved and assumed the Omnibus Plan, which allowed the Company to grant RSUs to Bridger employees (the “Participants”). RSUs are settled in shares of Common Stock as the RSUs vest. The RSUs accrue dividend equivalents associated with the underlying shares of Common Stock as the Company declares dividends. Dividends are paid to holders of RSUs in cash upon the vesting date of the associated RSU and are forfeited if the RSU does not vest. For the purposes of calculating compensation expense, the fair value of RSUs is the closing stock price on the date of grant. Generally, RSUs vest over a period of six years , subject to the participant’s continued employment. Upon vesting of each RSU, the Company will issue one share of Common Stock to the RSU holder. RSU activity for the years ended December 31, 2025 and 2024 is as follows: Number of Awards Weighted average grant date fair value Outstanding as of December 31, 2024 4,472,950 $ 6.94 Granted 3,011,632 2.16 Vested ( 1,322,352 ) 4.93 Forfeited/Cancelled ( 635,565 ) 4.78 Outstanding as of December 31, 2025 5,526,665 $ 5.06 Outstanding as of December 31, 2023 6,624,459 $ 8.30 Granted 1,682,538 4.47 Vested ( 2,064,083 ) 7.47 Forfeited/Cancelled ( 1,769,964 ) 9.04 Outstanding as of December 31, 2024 4,472,950 $ 6.94 The total fair value of RSUs vested during the years ended December 31, 2025 and 2024 was $ 2.8 million and $ 10.2 million, respectively, based on the closing stock price on the date of vesting. For the years ended December 31, 2025 and 2024, the Company recorded stock-based compensation expense related to RSUs of $ 1.3 million and $ 1.7 million, respectively, within Total cost of revenues and $ 5.8 million and $ 14.4 million, respectively, within Selling, general and administrative expense on the Consolidated Statements of Operations. As of December 31, 2025 and 2024, there was $ 11.6 million and $ 15.2 million, respectively, of unrecognized total compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.0 years and 2.8 years, respectively. 98 Table of Contents Incentive Units Prior to the adoption of the Omnibus Plan, during the year ended December 31, 2022, the Company granted Incentive Units to selected board members and executives. Within each grant, 80 % of the Incentive Units vest annually over a four-year period subject to continued service by the grantee (the “Time-Vesting Incentive Units”), and the remaining 20 % of the Incentive Units vest upon a qualifying change of control event (the “Exit-Vesting Incentive Units”). For the Time-Vesting Incentive Units, compensation cost is recognized over the requisite service period on a straight-line basis. For the Exit-Vesting Incentive Units, expense is recognized when a qualifying change of control event is considered probable, which has not occurred as of December 31, 2025. As of December 31, 2025 and 2024, 40,404 Exit-Vesting Incentive Units, with a weighted average grant date fair value of $ 0.01 , remain outstanding. Upon vesting of each Incentive Unit, the Company will issue 0.96246 shares of Common Stock to the Incentive Unit holder. 2025 At-the-Market (“ATM”) Offering On March 18, 2025, the Company entered into a sales agreement (“2025 ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated (“Stifel”) and Canaccord Genuity LLC (together with Stifel, the “2025 Agents”) under which we may offer and sell, from time to time, shares of our Common Stock (the “2025 ATM Shares”) having an aggregate offering price of up to $ 100.0 million through the 2025 Agents in negotiated transactions that are deemed to be an “at the market offering” (the “2025 ATM Offering”). The ATM offering was registered under the Securities Act, pursuant to our shelf registration statement on Form S-3 (Registration Statement No. 333-276721), as previously filed with the SEC and declared effective on February 6, 2024, under which the Company filed a new prospectus supplement with the SEC with respect to the 2025 ATM Offering on March 19, 2025. Under the 2025 ATM Agreement, the 2025 Agents may sell the 2025 ATM Shares by any method permitted by law and deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act, including sales made directly on or through the Nasdaq Global Market, or any other existing trading market for the 2025 ATM Shares or in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices. Actual sales will depend on a variety of factors to be determined by the Company from time to time, including, among other things, market conditions, the trading price of the Common Stock, capital needs and determinations by the Company of the appropriate sources of funding for the Company. The Company is not obligated to make any sales of the 2025 ATM Shares under the 2025 ATM Agreement. The offering of the 2025 ATM Shares pursuant to the 2025 ATM Agreement will terminate upon the termination of the 2025 ATM Agreement by the 2025 Agents or us, as permitted therein. The 2025 ATM Agreement contains customary representations, warranties and agreements by the Company, and customary indemnification and contribution rights and obligations of the parties. The Company agreed to pay the 2025 Agents an aggregate commission of up to 3.0 % of the aggregate gross proceeds from each sale of the 2025 ATM Shares. The Company also agreed to reimburse the 2025 Agents for certain specified expenses in connection with entering into the 2025 ATM Agreement. During the year ended December 31, 2025, the Company did not sell any shares of Common Stock under the 2025 ATM Agreement. 2024 ATM Offering On January 26, 2024, the Company entered into a sales agreement (“2024 ATM Agreement”) with Stifel and Virtu Americas LLC (together with Stifel, the “Agents”) under which we could offer and sell, from time to time, shares of our Common Stock having an aggregate offering price of up to $ 100.0 million through the Agents in negotiated transactions that are deemed to be an “at the market offering.” The offering was registered under the Securities Act, pursuant to our shelf registration statement on Form S-3 (Registration Statement No. 333-276721), as previously filed with the Securities and Exchange Commission (“SEC”) and declared effective on February 6, 2024. We filed a prospectus supplement, dated February 6, 2024, with the SEC that provides for the sale of shares of Common Stock having an aggregate offering price of up to approximately $ 22.2 million. We filed a prospectus supplement, dated April 16, 2024, with the SEC that reduces the amount of potential shares of Common Stock that may be sold under our shelf registration statement on Form S-3 (Registration Statement No. 333-276721) to shares having an aggregate offering price of up to approximately $ 5.9 million (“2024 ATM Shares”). 99 Table of Contents Under the 2024 ATM Agreement, the Agents may sell the 2024 ATM Shares by any method permitted by law and deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act, including sales made directly on or through the Nasdaq Global Market, or any other existing trading market for the 2024 ATM Shares or in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices. Actual sales will depend on a variety of factors to be determined by the Company from time to time, including, among other things, market conditions, the trading price of the Common Stock, capital needs and determinations by the Company of the appropriate sources of funding for the Company. The Company was not obligated to make any sales of the 2024 ATM Shares under the 2024 ATM Agreement. The offering of the 2024 ATM Shares pursuant to the 2024 ATM Agreement was terminated in connection with the 2025 ATM Agreement. During the year ended December 31, 2024, the Company sold an aggregate of 33,798 shares of Common Stock at a weighted-average price of $ 5.13 per share for net proceeds of $ 0.2 million, net of fees of $ 5,000 under the 2024 ATM Agreement. Registered Direct Offering On April 15, 2024, the Company entered into securities purchase agreements (each a “Purchase Agreement” and, collectively, the “Purchase Agreements”) with certain accredited investors (the “Purchasers”), pursuant to which the Company agreed to sell and issue to the Purchasers, severally, an aggregate of 2,183,366 shares of Common Stock registered under the Company’s shelf registration statement on Form S-3 (Registration Statement No. 333-276721), in a registered direct equity offering (the “Registered Direct Offering”). 808,080 of the shares in the Registered Direct Offering were sold to certain directors and executive officers of the Company at an offering price of $ 4.95 per share, which was the closing bid price for shares of the Common Stock on the Nasdaq Global Market on April 15, 2024. The remaining 1,375,286 shares were sold in the Registered Direct Offering at an offering price of $ 4.25 per share. The aggregate net proceeds to the Company from the Registered Direct Offering were approximately $ 9.2 million, after deducting fees payable to the placement agent and other offering expenses payable by the Company. The Company agreed to pay the placement agent fees in an amount of 6.0 % of the gross proceeds raised in the Registered Direct Offering. The Company also agreed to reimburse the placement agent for its out-of-pocket legal expenses in connection with the Registered Direct Offering in an amount not to exceed $ 75,000 . NOTE 20 – RELATED PARTY TRANSACTIONS During the year ended December 31, 2025, the Company engaged Venable LLP, a law firm at which Dean Heller, a member of our Board of Directors, serves as a Senior Policy Advisor, for corporate litigation and regulatory compliance services. Mr. Heller recused himself from all related approval discussions. The aggregate fees paid totaled approximately $ 0.4 million for the year ended December 31, 2025. The Company had approximately $ 0.4 million in Accrued expenses related to professional services as of December 31, 2025. As of May 28, 2025, Mr. Timothy Sheehy, the Company’s founder and former Chief Executive Officer, President and director, has placed his ownership interests in the Company into an independently managed blind trust. Blind trusts are governed by legal agreements that assign full investment and voting discretion to independent trustees who are neither affiliated with the Company nor under the influence or control of the beneficiaries. In accordance with ASC 850, the Company evaluated whether the beneficiaries of the blind trusts retain the ability to exercise significant influence over the Company through their ownership or other means. Based on the structure of the blind trusts, including the absence of decision-making authority or access to information regarding trust-held assets, management has concluded that such trusts do not meet the criteria of a related party under GAAP. Accordingly, no related party transactions or balances were identified with respect to these blind trusts after the transfer date. Transactions with the Company prior to the transfer are included in these related party disclosures for the periods presented. The Company incurred related party training expenses, provided by an entity in which Mr. Timothy Sheehy has partial ownership, of $ 0.6 million and $ 0.9 million for the years ended December 31, 2025 and 2024, respectively, and zero and $ 0.1 million in related outstanding accounts payable as of December 31, 2025 and 2024, respectively. The Company earned revenues related to charter rentals of the Company’s aircraft by the U.S. Senate campaign of Mr. Timothy Sheehy of zero and $ 0.2 million for the years ended December 31, 2025 and 2024, respectively. 100 Table of Contents On November 17, 2023, the Company entered into a series of agreements designed to facilitate the purchase and return to service of the Spanish Scoopers originally awarded to our wholly-owned subsidiary, Bridger Aerospace Europe, S.L.U. (“BAE”), in September 2023 via a public tender process from the Government of Spain for € 40.3 million. Under the terms of the agreements, we agreed to sell the entire outstanding equity interest in BAE to MAB and purchase $ 4.0 million of non-voting Class B units of MAB. ASSF Holdings LP (“Avenue Investor”) made capital contributions totaling $ 13.0 million in exchange for 13,031 voting Class A Units of MAB. Avenue Investor holds approximately 10 % of Bridger’s outstanding convertible Series A Preferred Stock which represents approximately 6.6 % interest in BAER Common Stock on a fully diluted basis. On July 10, 2023, the Company entered into two operating lease agreements, each for a Pilatus under the ownership of Mr. Timothy Sheehy. The Company related party lease expense of approximately $ 0.7 million and $ 1.7 million for the years ended December 31, 2025 and 2024, respectively. The Company recorded approximately $ 5.1 million of right-of-use assets, $ 1.3 million of right-of-use current liabilities, and $ 3.8 million of right-of-use noncurrent liabilities as of December 31, 2024. On July 21, 2022, the Company closed on the Series 2022 Bonds, upon which the Company received aggregate proceeds of $ 135.0 million on July 21, 2022 and $ 25.0 million on August 10, 2022. In connection with the original issuance, three senior executives of the Company purchased approximately $ 10.0 million of the Series 2022 Bonds, which purchases were entered into on an arm’s length basis during the public offering for the Series 2022 Bonds, and on the same terms and conditions that were offered to all Bond purchasers. One of the related parties of the Company left the Company during the period ended June 30, 2024 and was no longer deemed a related party following his departure. The two other related parties of the Company disposed of their holdings as of October 1, 2024. The Company paid approximately $ 1.1 million in interest to these bond holders during the year ended December 31, 2024, respectively. Refer to “Note 15 – Long-Term Debt” included in this Annual Report on Form 10-K for additional information on the Series 2022 Bonds. NOTE 21 – INCOME TAXES The components of our income (loss) before income taxes for the years ended December 31, 2025 and 2024, are as follows: For the Years Ended December 31, dollars in thousands 2025 2024 Domestic $ 3,199 $ ( 15,566 ) Foreign 726 ( 763 ) Income (loss) before income taxes $ 3,925 $ ( 16,329 ) The components of the current tax provision and deferred tax benefit for the years ended December 31, 2025 and 2024, are as follows: For the Years Ended December 31, dollars in thousands 2025 2024 Current tax provision: U.S. Federal $ — $ — State and local 285 ( 47 ) Foreign ( 127 ) 427 Total current tax provision $ 158 $ 380 Deferred tax benefit: U.S. Federal $ — $ ( 1,269 ) State and local — 127 Foreign ( 373 ) — Total deferred tax benefit $ ( 373 ) $ ( 1,142 ) Income tax benefit $ ( 215 ) $ ( 762 ) Effective rate of tax ( 5.5 ) % 4.7 % 101 Table of Contents Effective Rate Reconciliation The reconciliation between the statutory federal income tax rate and the effective income tax rate for the year ended December 31, 2025, are as follows: dollars in thousands 2025 Income tax - at US statutory tax rate $ 824 21.0 % State and local taxes - net of federal 1 226 5.8 % Foreign tax effects Spain Stock Based Compensation ( 651 ) ( 16.6 ) % Other ( 2 ) ( 0.1 ) % Nontaxable or nondeductible items Stock Based Compensation 1,183 30.1 % Warrant Mark-to-Market Adjustment 895 22.8 % Contingent Liability ( 480 ) ( 12.2 ) % Other ( 38 ) ( 1.0 ) % Changes in valuation allowance ( 2,116 ) ( 53.9 ) % Other Deferred Remeasurement ( 56 ) ( 1.4 ) % Effective rate of tax $ ( 215 ) ( 5.5 ) % 1 State taxes in Alabama made up the majority (greater than 50 percent) of the tax effect in this category . The reconciliation between the statutory federal income tax rate and the effective income tax rate for the years ended December 31, 2024, are as follows: 2024 Income tax - at U.S. statutory tax rate 21.0 % State and local taxes - net of federal 4.9 % Stock-based compensation ( 34.5 ) % Warrant mark-to-market adjustment 5.8 % Valuation allowance 10.9 % Return to provision ( 1.6 ) % Other ( 1.8 ) % Effective rate of tax 4.7 % In addition to the US federal statutory income tax rate, significant recurring items that affect the Company’s income tax rate are state and local income taxes, nondeductible officer compensation, and change in valuation allowance recognition. 102 Table of Contents Deferred tax assets and liabilities The components of the total net deferred tax assets and liabilities as of December 31, 2025 and 2024, consisted of the following: As of December 31, dollars in thousands 2025 2024 Deferred tax assets: Net operating losses $ 26,609 $ 24,117 Partnership 4,027 11,638 Interest expense limitation - 163(j) 12,413 11,568 Stock-based compensation 3,067 3,492 Other 1,609 123 Total deferred tax assets 47,725 50,938 Valuation allowance for deferred tax assets ( 45,845 ) ( 49,748 ) Net deferred tax assets 1,880 1,190 Deferred tax liabilities: Intangibles ( 1,507 ) ( 1,190 ) Total deferred tax liabilities ( 1,507 ) ( 1,190 ) Net deferred tax assets $ 373 $ — Income taxes paid The components of the income taxes paid as of December 31, 2025, consisted of the following: dollars in thousands 2025 Federal $ — State Alabama 118 Texas 38 Other 7 Foreign Spain 267 Total Income Taxes Paid $ 430 The total deferred tax liability presented in the financial statements as of December 31, 2025 is subject to certain significant estimates. The valuation allowance recorded as of December 31, 2025 is reliant on the scheduling of future taxable income. This is highly subjective in nature and may materially change within the next 12 months. As of December 31, 2025, the Company had tax effected federal net operating loss carryforwards of $ 21.9 million available, and all have an unlimited carryforward period. Future federal NOL utilization is limited to 80% of taxable income on an annual basis. As of December 31, 2025, the Company had $ 4.7 million of tax-effected state net operating loss carryforwards available. If not utilized, the state NOL carryforwards will expire at various dates beginning in 2033. As of December 31, 2025, the Company had $ 12.4 million of tax-effected interest expense limitation available, and all of the limitation has an unlimited carryforward period. Future interest expense utilization is limited to 30% of taxable income on an annual basis. The Company records interest and penalties through income tax expense relating to uncertain tax positions. As of December 31, 2025, the Company has not recognized any liabilities for uncertain tax positions nor has the Company accrued interest and penalties related to uncertain tax positions. The Company’s federal, state and foreign income tax returns are subject to audit. The Company is not currently under audit by federal or foreign taxing authorities. The years open to examination include years ending 2022 to 2024 for federal income tax purposes, years ending 2022 to 2024 for state income tax purposes, and years ending 2022 to 2024 for foreign income tax purposes. 103 Table of Contents Due to uncertainty regarding future utilization, a valuation allowance has been recorded in respect of all federal and state deferred tax assets, inclusive of federal and state net operating loss carryforwards and state credit carryforwards. Management determined that it is more likely than not that the benefit of such loss and credit carryforwards will not be fully realized. The Company recorded a valuation allowance of $ 45.8 million and $ 49.7 million as of December 31, 2025 and 2024, respectively. The valuation allowance decreased by $ 3.9 million. NOTE 22 – LOSS PER SHARE Loss per share of Common Stock is calculated in accordance with ASC 260, Earnings per share. Loss per share – basic is calculated by dividing Loss attributable to Common Stockholders - basic and diluted by the Weighted average Common Stock outstanding - basic. Loss per share – diluted is based on the weighted average number of shares of Common Stock used for the Loss per share - basic calculation, adjusted for the weighted-average number of common share equivalents outstanding for the period determined using the treasury stock method and if-converted method, as applicable. Loss attributable to Common Stockholders – basic and diluted is adjusted for the impact of changes in the fair value of the Public Warrants and Private Placement Warrants, to the extent they are dilutive. Loss per share calculations for all periods prior to the Closing have been retrospectively adjusted by the Exchange Ratio for the equivalent number of shares outstanding immediately after the Closing to effect the Reverse Recapitalization. Subsequent to the Closing, Loss per share is calculated based on the Weighted average Common Stock outstanding. The following table sets forth the computation of the Company’s Loss per share: For the years ended December 31, (dollars in thousands, except per share amounts) 2025 2024 Net income (loss) $ 4,140 $ ( 15,567 ) Adjustments to Net Income (loss): Series A Preferred Stock—adjustment to maximum redemptions value ( 27,078 ) ( 25,339 ) Loss attributable to Common stockholders – basic and diluted $ ( 22,938 ) $ ( 40,906 ) Weighted average Common Stock outstanding - basic and diluted 54,283,410 50,524,996 Loss per share – basic and diluted $ ( 0.42 ) $ ( 0.81 ) The following table summarizes the potentially dilutive common shares that were excluded from diluted Loss per share - diluted computations because the effect would have been anti-dilutive: For the years ended December 31, 2025 2024 Series A Preferred Stock 37,023,378 34,561,722 Unvested Restricted Stock Units 5,526,665 4,472,950 Public Warrants 17,249,874 17,249,874 Private Placement Warrants 9,400,000 9,400,000 Unvested Legacy Bridger Incentive Units 40,404 40,404 Sponsor Earnout Shares 855,000 855,000 104 Table of Contents NOTE 23 – SEGMENT AND GEOGRAPHIC INFORMATION The Company operates as a single operating segment . Our revenues are primarily derived from aerial wildfire management, relief and suppression and the delivery of specialty aviation services. The Company’s Chief Executive Officer is the Company’s Chief Operating Decision Maker (“CODM”), who reviews the financial performance of the Company on a consolidated basis. The CODM uses consolidated revenues, income (loss) before income taxes and Adjusted EBITDA to assess financial performance and allocate resources. Additionally, significant expenses, such as cost of revenues and selling, general & administrative expenses, are closely monitored as part of the performance evaluation and resource allocation process. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow revenues and operating margin and the allocation of budget between cost of revenues and selling, general & administrative expenses. The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2025 and 2024: For the years ended December 31, dollars in thousands 2025 2024 Revenues $ 122,830 $ 98,613 Cost of revenues: Flight operations 31,933 31,016 Maintenance 39,214 26,459 Total cost of revenues 71,147 57,475 Gross income 51,683 41,138 Selling, general and administrative expense 36,283 35,820 Interest expense 23,263 23,714 Other income 11,788 2,067 Income (loss) before income taxes 3,925 ( 16,329 ) Income tax benefit 215 762 Net income (loss) $ 4,140 $ ( 15,567 ) See the Consolidated Financial Statements for other financial information regarding the Company’s operating segment. Total United States revenues were $ 108.8 million and $ 88.5 million for the years ended December 31, 2025 and 2024, respectively. Refer to “Note 2 – Summary of Significant Accounting Policies” included in this Annual Report on Form 10-K for additional information about revenue by geographic location. The Company had three customers who individually accounted for 66 %, 11 %, and 10 % of total revenues for the year ended December 31, 2025, and two customers who individually accounted for 61 % and 12 % of total revenues for the year ended December 31, 2024. The Company’s long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets were located as follows: As of December 31, dollars in thousands 2025 2024 United States $ 198,301 $ 190,560 Spain 51,928 2,017 NOTE 24 – SUBSEQUENT EVENTS Management has evaluated subsequent events and transactions that occurred after December 31, 2025 up to the date of issuance of these Consolidated Financial Statements. On March 3, 2026, the Company entered into a purchase agreement for a King Air aircraft of $ 11.4 million. The aircraft is expected to be delivered in 2027. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. None. 105 Table of Contents