Joby Aviation, Inc. 10-K

Item 8. Financial Statements and Supplementary Data INDEX TO FINANCIAL STATEMENTS JOBY AVIATION, INC. Consolidated Financial Statements Reports of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) 49 Consolidated Balance Sheets 52 Consolidated Statements of Operations 53 Consolidated Statements of Comprehensive Loss 54 Consolidated Statements of Stockholders’ Equity (Deficit) 55 Consolidated Statements of Cash Flows 56 Notes to Consolidated Financial Statements 57 Note 1. Company and Nature of Business 57 Note 2. Summary of Significant Accounting Policies 57 Note 3. Fair Value Measurements 66 Note 4. Acquisitions 69 Note 5. Balance Sheet Components 72 Note 6. Leases 75 Note 7. Commitments and Contingencies 77 Note 8. Stock Warrants, Earnout Shares and Contingent Consideration 77 Note 9. Stockholders' Equity 79 Note 10. Revenue Recognition 81 Note 11 . Stock-based Compensation 82 Note 12. Income Taxes 86 Note 13. Related Party Transactions 88 Note 14. Net Loss per Share Attributable to Common Stockholders 89 Note 15. Segment Reporting 89 Note 16. Subsequent Events 90 48 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of Joby Aviation, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Joby Aviation, Inc. and its subsidiaries (the “Company”) as of December 31, 2025 and, 2024, the related consolidated statements of operations, comprehensive loss, stockholders ’ equity, and cash flows, for each of the three 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 three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 26, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting. 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 PCAOB and are required to be independent with respect to the Company in accordance with the US 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. 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. Critical Audit Matters The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Valuation of Certain Acquired Intangible Assets - Refer to Notes 2 and 4 to the financial statements Critical Audit Matter Description On August 29, 2025, the Company completed the acquisition of 100% of the outstanding equity of Blade Urban Air Mobility, Inc. ( “ Blade ” ), for total purchase consideration of approximately $92.4 million. The acquisition was accounted for as a business combination in accordance with Accounting Standards Codification 805, Business Combinations . Accordingly, the purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective fair values, including intangible assets of $17 million. Intangible assets acquired primarily related to exclusive rights to air transportation services and developed technology. Management estimated the fair value of the intangible assets using valuation techniques, which included a discounted cash flow model. The fair value determination of the acquired intangible assets required management to make significant estimates and assumptions, including revenue and Earnings Before Interest, Taxes, Depreciation, and Amortization ( EBITDA) forecasts and discount rate. We identified the valuation of certain acquired intangible assets as a critical audit matter given the level of judgment involved by management in developing certain valuation assumptions, and their use of a specialist to determine the fair values due to high complexity. Our audit procedures required a high degree of auditor judgment and increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s assumptions. The significant assumptions used to estimate the fair value of Blade’s intangible assets relate primarily to revenue and EBITDA forecasts and the discount rate applied to future cash flows. 49 Table of Contents How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the valuation of acquired intangible assets included the following, among others: • We tested the design and operating effectiveness of the Company’s internal controls over the valuation of certain acquired intangible assets. • We assessed the reasonableness of management’s forecasted revenues and EBITDA by comparing the projected growth rates to historical results, certain peer companies, and industry data. • We evaluated whether the forecasted revenues and EBITDA were consistent with evidence obtained in other areas of the audit. With the assistance of our fair value specialists, we evaluated management’s valuation of certain acquired intangible assets as follows: • Evaluated the reasonableness of the valuation models. • Tested the reasonableness of the valuation assumptions, including discount rate. Accounting for Stock Purchase Agreement – Refer to Note 9 to the financial statements Critical Audit Matter Description On October 1, 2024, the Company entered into a stock purchase agreement (SPA) (as amended and restated on May 22, 2025) providing for the issuance and sale by the Company to Toyota Motor Corporation of up to an aggregate of 99,403,579 shares of common stock at a purchase price of $5.03 per share. The SPA is structured in two equal tranches of $250.0 million each. The closing of each tranche is subject to the satisfaction of certain closing conditions set forth in the SPA, which include the parties negotiating and entering into various agreements and obtaining regulatory approvals. On May 22, 2025, the Company completed the initial closing of the first tranche under the SPA upon the satisfaction of initial closing conditions. The additional closing of the second tranche is subject to the satisfaction of additional conditions including, but not limited to, the execution of a strategic alliance agreement and certain other customary closing conditions. We identified management’s accounting evaluation and conclusion as to whether the additional closing of the second tranche under the SPA should be recognized for accounting purposes as of December 31, 2025, as a critical audit matter. This required a high degree of auditor judgment and an increased extent of effort, including the evaluation of management’s assertions regarding if the additional closing of the second tranche under the SPA is contractually binding or legally enforceable prior to the satisfaction of the additional closing conditions. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to management’s accounting evaluation and conclusion as to whether the additional closing of the second tranche under the SPA should be recognized for accounting purposes as of December 31, 2025, included the following, among others: • We tested the effectiveness of the Company’s internal control over management’s review of complex nonroutine transactions, which included the SPA. • We evaluated management’s accounting evaluation and conclusion as to whether the additional closing of the second tranche under the SPA is recognized for accounting purposes as of December 31, 2025. • We evaluated the assertions made by management supporting if the additional closing of the second tranche under the SPA is contractually binding or legally enforceable prior to the satisfaction of the additional closing conditions under the SPA, including inquiries and consideration of evidence from the Company’s legal counsel. • We evaluated the Company’s disclosures related to the SPA for conformity with the relevant requirements under U.S. GAAP. /s/ Deloitte & Touche LLP San Jose, California February 26, 2026 We have served as the Company’s auditor since 2020. 50 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Joby Aviation, Inc. Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Joby Aviation, Inc. and subsidiaries (the “Company") as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the Company and our report dated February 26, 2026, expressed an unqualified opinion on those financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting . Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the 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 audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte & Touche LLP San Jose, California February 26, 2026 51 Table of Contents JOBY AVIATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 240,810 $ 199,627 Short-term investments 1,167,106 733,224 Total cash, cash equivalents and short-term investments 1,407,916 932,851 Restricted cash 220 — Other receivables 7,139 16,044 Prepaid expenses and other current assets 30,479 20,710 Total current assets 1,445,754 969,605 Property and equipment, net 146,571 120,954 Operating lease right-of-use assets 31,837 28,689 Restricted cash 693 762 Intangible assets 18,859 8,127 Goodwill 89,422 14,322 Other non-current assets 61,933 61,006 Total assets $ 1,795,069 $ 1,203,465 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 3,604 $ 4,261 Operating lease liabilities, current portion 8,404 5,031 Accrued expenses and other current liabilities 48,018 38,842 Total current liabilities 60,026 48,134 Operating lease liabilities, net of current portion 26,167 26,178 Warrant liability 104,878 95,410 Earnout shares liability 156,692 117,416 Other non-current liabilities 37,593 3,964 Total liabilities 385,356 291,102 Commitments and contingencies (Note 7) Stockholders’ equity: Preferred stock: $ 0.0001 par value - 100,000,000 shares authorized at December 31, 2025 and 2024. No shares issued and outstanding at December 31, 2025 and 2024. — — Common stock: $ 0.0001 par value - 2,800,000,000 and 1,400,000,000 shares authorized at December 31, 2025 and 2024 respectively, 915,076,698 and 784,176,364 shares issued and outstanding at December 31, 2025 and 2024, respectively 91 78 Additional paid-in capital 4,193,684 2,768,605 Accumulated deficit ( 2,785,579 ) ( 1,855,737 ) Accumulated other comprehensive income (loss) 1,517 ( 583 ) Total stockholders’ equity 1,409,713 912,363 Total liabilities and stockholders’ equity $ 1,795,069 $ 1,203,465 The accompanying notes are an integral part of these consolidated financial statements. 52 Table of Contents JOBY AVIATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) Year Ended December 31, 2025 2024 2023 Revenue $ 53,425 $ 136 $ 1,032 Operating expenses: Cost of Revenue 29,328 67 200 Research and development 581,101 477,156 367,049 Selling, general and administrative 162,587 119,667 105,877 Total operating expenses 773,016 596,890 473,126 Loss from operations ( 719,591 ) ( 596,754 ) ( 472,094 ) Interest and other income, net 43,164 42,822 45,561 Loss on common stock issuance in private placement ( 40,258 ) — — Loss from change in fair value of warrants, earnout shares and contingent consideration ( 211,850 ) ( 53,973 ) ( 86,378 ) Total other loss, net ( 208,944 ) ( 11,151 ) ( 40,817 ) Loss before income taxes ( 928,535 ) ( 607,905 ) ( 512,911 ) Income tax expense 1,307 129 139 Net loss $ ( 929,842 ) $ ( 608,034 ) $ ( 513,050 ) Net loss per share, basic and diluted $ ( 1.13 ) $ ( 0.87 ) $ ( 0.79 ) Weighted-average common shares outstanding, basic and diluted 826,240,955 699,794,747 647,907,598 The accompanying notes are an integral part of these consolidated financial statements. 53 Table of Contents JOBY AVIATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In thousands) Year Ended December 31, 2025 2024 2023 Net loss $ ( 929,842 ) $ ( 608,034 ) $ ( 513,050 ) Other comprehensive gain (loss): Unrealized gain on available-for-sale securities 1,099 550 8,240 Foreign currency translation gain (loss) 1,001 ( 653 ) 126 Total other comprehensive gain (loss) 2,100 ( 103 ) 8,366 Comprehensive loss $ ( 927,742 ) $ ( 608,137 ) $ ( 504,684 ) The accompanying notes are an integral part of these consolidated financial statements. 54 Table of Contents JOBY AVIATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands, except share data) Common Stock Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Shares Amount Balance at January 1, 2023 622,602,815 $ 61 $ 1,908,179 $ ( 734,653 ) $ ( 8,846 ) $ 1,164,741 Net loss — — — ( 513,050 ) — ( 513,050 ) Other comprehensive loss — — — — 8,366 8,366 Issuance of common stock upon exercise of stock options 2,923,022 3 1,907 — — 1,910 Issuance of common stock upon vesting of restricted stock units 11,694,630 — — — — — Issuance of common stock in private placement 59,160,449 6 279,893 — — 279,899 Issuance of common stock under Employee Stock Purchase Plan 1,881,109 6,918 6,918 Vesting of early exercised stock options and common stock issued in private placement — — 523 — — 523 Stock-based compensation — — 85,055 — — 85,055 Balance at December 31, 2023 698,262,025 $ 70 $ 2,282,475 $ ( 1,247,703 ) $ ( 480 ) $ 1,034,362 Net loss — — — ( 608,034 ) — ( 608,034 ) Other comprehensive loss — — — — ( 103 ) ( 103 ) Issuance of common stock upon exercise of stock options 3,367,232 1 1,474 — — 1,475 Issuance of common stock upon vesting of restricted stock units 14,467,566 — — — — — Issuance of common stock in at-the-market public offering, net of issuance cost of $ 4,183 16,158,784 2 128,834 — — 128,836 Issuance of common stock in underwritten public offering, net of issuance cost of $ 10,446 46,000,000 5 221,849 — — 221,854 Issuance of common stock under Employee Stock Purchase Plan 2,600,522 11,200 — — 11,200 Issuance of common stock in acquisition 3,320,235 9,472 — — 9,472 Vesting of early exercised stock options and common stock issued in private placement — — 424 — — 424 Stock-based compensation — — 112,877 — — 112,877 Balance at December 31, 2024 784,176,364 $ 78 $ 2,768,605 $ ( 1,855,737 ) $ ( 583 ) $ 912,363 Net loss — — — ( 929,842 ) — ( 929,842 ) Other comprehensive gain — — — — 2,100 2,100 Issuance of common stock upon exercise of stock options and vesting of early exercised stock options 3,360,948 2 2,799 — — 2,801 Issuance of common stock in at-the-market public offering, net of issuance cost of $ 5,301 13,792,015 1 153,566 — — 153,567 Issuance of common stock in underwritten public offering, net of issuance cost of $ 15,081 35,075,000 4 575,931 — — 575,935 Issuance of common stock upon vesting of restricted stock units 14,199,687 — — — — — Issuance of common stock under Employee Stock Purchase Plan 2,308,333 12,073 — — 12,073 Issuance of common stock in private placement, net of issuance cost of $ 95 49,701,790 5 290,158 — — 290,163 Issuance of common stock upon exercise of private warrants 4,128,197 — 70,468 — — 70,468 Issuance of common stock upon exercise of public warrants 3,008,779 — 60,696 — — 60,696 Vesting of earnout shares — — 60,709 — — 60,709 Issuance of common stock in acquisition 5,325,585 1 76,202 — — 76,203 Stock-based compensation — — 122,477 — — 122,477 Balance at December 31, 2025 915,076,698 $ 91 $ 4,193,684 $ ( 2,785,579 ) $ 1,517 $ 1,409,713 The accompanying notes are an integral part of these consolidated financial statements. 55 Table of Contents JOBY AVIATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2025 2024 2023 Cash flows from operating activities Net loss $ ( 929,842 ) $ ( 608,034 ) $ ( 513,050 ) Reconciliation of net loss to net cash used in operating activities: Depreciation and amortization expense 40,158 35,572 30,493 Stock-based compensation expense 127,887 104,446 93,636 Loss from change in the fair value of warrants, earnout shares and contingent consideration 211,850 53,973 86,378 Loss on common stock issuance in private placement 40,258 — — Net accretion and amortization of investments in marketable debt securities ( 7,832 ) ( 15,821 ) ( 20,202 ) Changes in operating assets and liabilities Other receivables and prepaid expenses and other current assets 9,043 ( 11,803 ) ( 573 ) Other non-current assets 1,442 ( 545 ) 309 Accounts payable and accrued expenses and other liabilities ( 6,902 ) 6,116 6,442 Non-current liabilities 4,045 ( 171 ) 2,736 Net cash used in operating activities ( 509,893 ) ( 436,267 ) ( 313,831 ) Cash flows from investing activities Purchase of marketable securities ( 1,170,369 ) ( 603,777 ) ( 809,978 ) Proceeds from sales and maturities of marketable securities 745,418 715,157 920,879 Purchases of property and equipment ( 53,918 ) ( 40,617 ) ( 30,597 ) Acquisitions, net of cash 3,453 — — Net cash provided by (used in) investing activities ( 475,416 ) 70,763 80,304 Cash flows from financing activities Underwritten public offering gross proceeds 591,016 232,300 — Underwritten public offering commission and offering expenses ( 15,081 ) ( 10,446 ) — Proceeds from issuance of common stock in private placement, net 249,905 — 280,110 At-the-market public offering gross proceeds 158,868 133,019 — At-the-market public offering commission and offering expenses ( 5,301 ) ( 4,183 ) — Proceeds from the issuance of common stock under the Employee Stock Purchase Plan 12,073 11,200 6,918 Proceeds from the exercise of stock options and warrants issuance 36,791 1,659 2,055 Repayments of obligations under finance lease and tenant improvement loan ( 1,628 ) ( 2,435 ) ( 844 ) Net cash provided by financing activities 1,026,643 361,114 288,239 Net change in cash, cash equivalents and restricted cash 41,334 ( 4,390 ) 54,712 Cash, cash equivalents and restricted cash, at the beginning of the year 200,389 204,779 150,067 Cash, cash equivalents and restricted cash, at the end of the year $ 241,723 $ 200,389 $ 204,779 Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets Cash and cash equivalents $ 240,810 $ 199,627 $ 204,017 Restricted cash 913 762 762 Cash, cash equivalents and restricted cash in consolidated balance sheets $ 241,723 $ 200,389 $ 204,779 Non-cash investing and financing activities Cashless exercise of private warrants $ 85,159 $ — $ — Acquisitions in exchange for stock issuance $ 74,496 $ — $ — Unpaid property and equipment purchases $ 2,720 $ 6,536 $ 1,769 Property and equipment purchased through financing leases $ 4,424 $ 2,537 $ 5,221 Right-of-use assets acquired through operating leases $ 4,215 $ 5,115 $ 5,652 Net non-cash assets acquired $ — $ 9,472 $ — The accompanying notes are an integral part of these consolidated financial statements. 56 Table of Contents JOBY AVIATION, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 1. Company and Nature of Business Description of Business Joby Aviation, Inc. (“Joby Aviation” or the “Company”) is a vertically integrated air mobility company that is building a clean, quiet, fully electric vertical take-off and landing (“eVTOL”) aircraft to be used to deliver air transportation as a service. The Company is headquartered in Santa Cruz, California. Merger with RTP On August 10, 2021 (“Closing Date”), Reinvent Technology Partners, a Cayman Islands exempted company and special purpose acquisition company (“RTP”), completed the acquisition of Joby Aero, Inc., a Delaware corporation (“Legacy Joby”) pursuant to that certain Agreement and Plan of Merger (“Merger Agreement”), dated as of February 23, 2021, by and among RTP, RTP Merger Sub Inc., a Delaware corporation and wholly-owned subsidiary of RTP, and Legacy Joby. On the Closing Date, RTP was redomesticated as a Delaware corporation and changed its name to Joby Aviation, Inc. and Legacy Joby survived as a wholly-owned subsidiary of RTP (“Merger”). In connection with the execution of the Merger Agreement, RTP entered into separate subscription agreements with a number of investors (each a “PIPE Investor”), pursuant to which the PIPE Investors agreed to purchase, and RTP agreed to sell to the PIPE Investors, shares of Common Stock, in a private placement (“PIPE Financing”). The PIPE Financing closed substantially concurrently with the consummation of the Merger. The Merger, together with the other transactions described in the Merger Agreement and the PIPE Financing, are referred to herein as the (“Reverse Recapitalization”). The number of Legacy Joby common shares and redeemable convertible preferred shares for all periods prior to the Closing Date have been retrospectively increased using the exchange ratio that was established in accordance with the Merger Agreement. Significant Risks and Uncertainties Management expects losses and negative cash flows to continue for the foreseeable future, primarily as a result of continued research and development efforts. The Company historically funded its research and development efforts through equity and debt issuances. Failure to raise additional funding or generate sufficient positive cash flows from operations in the longer term could have a material adverse effect on the Company’s ability to achieve its intended business objectives. The Company operates in a dynamic high-technology industry. The Company is subject to a number of risks, including the possibility of the Urban Air Mobility (“UAM”) market not achieving its expected potential; potential competition from ground-based mobility solutions and other eVTOL developers and operators; the Company’s ability to secure adequate infrastructure; the possibility that its aircraft may not meet the required safety and performance standards; the Company’s ability to obtain relevant regulatory approvals for the certification and manufacture of its aircraft and the commercialization of its service in a timely manner or at all; the ability of the U.S. government to modify or terminate existing contracts; the Company’s ability to raise future capital when needed; and risks related to the Company’s vertically-integrated business model. The Company's foreign operations are subject to risks inherent in operating under different legal systems and various political and economic environments. Among the risks are changes in existing income tax and other laws, possible limitations on foreign investment and income repatriation, government pricing or foreign exchange controls, and restrictions on currency exchange. Note 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows for the periods presented. 57 Table of Contents Foreign Currency The Company determined that the local currency is the functional currency for its foreign operations. Assets and liabilities of each foreign subsidiary are translated to United States dollars using the current exchange rate at the balance sheet date. Income and expenses are translated using the average exchange rate during the period. Cumulative translation adjustments related to the Company’s foreign subsidiaries are presented within the accumulated other comprehensive loss line on the consolidated balance sheets. Net gains and losses resulting from foreign currency transactions are included in interest and other income, net in the accompanying consolidated statements of operations. Common Stock Warrants Liabilities The Company evaluates terms of its common stock warrants to conclude if warrants meet the criteria to be classified within stockholders’ equity. The agreements governing the common stock warrants may include provisions which could result in a different settlement value of the warrants depending on various inputs, for example depending on the registration status of the underlying shares, holder of warrants, or other events. If these inputs are not an input into the pricing of a fixed-for-fixed equity-linked instrument, and are not within the scope of allowed exceptions described in indexation accounting guidance, the common stock warrants are not considered to be indexed to the Company’s own stock. In such cases, the Company records these warrants as liabilities on the consolidated balance sheets at fair value, with subsequent changes in their respective fair values recognized in the consolidated statements of operations at each reporting date. Earnout Shares Liability In connection with the Reverse Recapitalization and pursuant to the Sponsor Agreement by and among the Company, Reinvent Sponsor, LLC (“Sponsor”) and RTP (“Sponsor Agreement”), Sponsor agreed to certain terms of vesting, lock-up and transfer with respect to the 17,130,000 common shares held by it (“Earnout Shares”). The terms of the Sponsor Agreement specify that the Earnout Shares will vest upon achieving certain specified Release Events, as further described in Note 8. In accordance with ASC 815-40, the Earnout Shares are not indexed to the Common Stock and therefore are accounted for as a liability (“Earnout Shares Liability”) as of the Closing Date and subsequently remeasured at each reporting date with changes in fair value recorded as a component of other income (loss), net in the consolidated statements of operations. The estimated fair value of the Earnout Shares Liability was determined using a Monte Carlo simulation using a distribution of potential outcomes on a monthly basis over the Earnout Period (as defined in Note 8) prioritizing the most reliable information available. The assumptions utilized in the calculation are based on the achievement of certain stock price milestones, including the current Company Common Stock price, expected volatility, risk-free rate, expected term and dividend rate. Determination of the fair value of the Earnout Shares Liability involves certain assumptions requiring significant judgment and actual results may differ from assumed and estimated amounts. Contingent Consideration The Company has contingent consideration arrangements under which additional consideration may become payable upon the achievement of specified earnings measures, including EBITDA-based targets. Contingent consideration that is not classified as equity is recorded as a liability at fair value at the acquisition date and remeasured to fair value at each reporting date until settlement. Changes in fair value are recognized in earnings within loss from change in fair value of warrants, earnout shares and contingent consideration in the consolidated statements of operations. Fair value is estimated using valuation techniques such as Monte Carlo simulation and incorporates significant assumptions, which may include projected financial performance, expected volatility, discount rates, and the probability and timing of achieving the applicable targets. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, expenses, and disclosure of contingent assets and liabilities. The most significant estimates are related to the assets and liabilities measured at fair value initially or on recurring basis where unobservable inputs are significant to the measurement of these assets or liabilities fair value, such as common stock warrants liabilities, earnout shares liability, contingent consideration, as well as estimates related to stock-based awards, long-lived assets and leases. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under related circumstances. The estimates form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. 58 Table of Contents Segments Operating segments are defined as components of an entity where discrete financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company determined its reportable segment using the management approach based on how the CODM evaluates the business. The Company operates as one operating segment because its CODM, who is its Chief Executive Officer, reviews Company’s financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company has no segment managers who are held accountable by the CODM for operations, operating results, and planning of components below the consolidated level. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, short-term investments, other receivables, accounts payable, accrued liabilities, short-term and long-term debt, common stock warrants, earnout shares liability and EBITDA earnout liability. The carrying amounts of cash and cash equivalents, short-term investments, other receivables, accounts payable, and accrued and other current liabilities approximate their fair values due to the short time to the expected receipt or payment. The carrying amount of the Company’s short-term debt approximates its fair value as the effective interest rate approximates market rates currently available to the Company. Common stock warrants which are initially recorded in equity at the value allocated to them are not subject to remeasurement in subsequent periods. At initial recognition, the Company recorded the common stock warrants liabilities, earnout shares liability and EBITDA earnout liability on the balance sheet at their fair value. The common stock warrants liabilities, earnout shares liability and EBITDA earnout liability are subject to remeasurement at each balance sheet date, with changes in fair value recognized as a component of other income, net in the consolidated statements of operations. Concentrations of Credit Risk Financial instruments that subject the Company to credit risk consist primarily of cash, cash equivalents and restricted cash, short-term investments and other receivables. At December 31, 2025 and 2024, cash and cash equivalents consisted of cash deposited with domestic and foreign financial institutions that are of high-credit quality. The Company is exposed to credit risk in the event of default by the domestic financial institutions to the extent that cash and cash equivalent deposits are in excess of amounts insured by the Federal Deposit Insurance Corporation. Foreign cash balances are not insured. The Company has not experienced any losses on its deposits since inception. Short-term investments consist of government and corporate debt securities and corporate asset backed securities that carry high-credit ratings and accordingly, minimal credit risk exists with respect to these balances. The Company has other receivables due from United States and foreign government agencies under the Company’s government grant contracts. At December 31, 2025 and 2024, those government agencies receivables accounted for 45 % and 81 % of the Company’s other receivables, respectively. The Company provides for uncollectible amounts on an expected credit loss basis by recording an allowance for doubtful receivables based on historical information, current conditions, and reasonable and supportable forecasts. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with remaining original maturity of three months or less from the date of purchase to be cash and cash equivalents. The recorded carrying amount of cash and cash equivalents approximates their fair value. At December 31, 2025 and 2024, restricted cash, primarily related to a security deposit for a lease obligation, was approximately $ 0.9 million and $ 0.8 million, respectively. Marketable Debt Securities The Company classifies marketable debt securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable debt securities, including those with maturities beyond twelve months, as current assets in the consolidated balance sheets. These marketable debt securities are carried at fair value and unrealized gains and losses are recorded in the accumulated other comprehensive income (loss), which is reflected as a component of stockholders’ equity (deficit). Realized gains and losses are reported in other income, net in the consolidated statements of operations. On January 1, 2022, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument s, as amended, on a modified retrospective basis. At each reporting period, the Company evaluates its marketable debt securities at the individual security level to determine whether there is a decline in the fair value below its amortized cost basis (an impairment). In circumstances where the Company intends to 59 Table of Contents sell, or are more likely than not required to sell, the security before it recovers its amortized cost basis, the difference between fair value and amortized cost is recognized as a loss in the consolidated statements of operations, with a corresponding write-down of the security’s amortized cost. In circumstances where neither condition exists, the Company then evaluates whether a decline is due to credit-related factors. The factors considered in determining whether a credit loss exists include the extent to which fair value is less than the amortized cost basis, changes in the credit quality of the underlying security issuers, credit ratings actions, as well as other factors. If the Company concludes that credit loss exists, to determine the portion of a decline in fair value that is credit-related, the Company compares the present value of the expected cash flows of the security discounted at the security’s effective interest rate to the amortized cost basis of the security. A credit-related impairment is limited to the difference between fair value and amortized cost, and recognized as an allowance for credit loss on the consolidated balance sheet with a corresponding adjustment to net income (loss). Any remaining decline in fair value that is non-credit related is recognized in other comprehensive income (loss), net of tax. Improvements in expected cash flows due to improvements in credit are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss. The Company did not record any allowance for credit losses during the year ended December 31, 2025. Property and Equipment, net Property and equipment, net is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are primarily recorded using the straight-line method over the estimated useful lives of the assets, generally two years to thirty years . Leasehold improvements and equipment finances under capital leases are amortized over the shorter of the estimated useful life of the asset or the remaining term of the lease. Asset Acquisitions and Business Combinations Upon an acquisition, the Company performs an initial test to determine whether substantially all of the fair value of the gross assets transferred is concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If that test suggests that the set of assets and activities is a business, the Company then performs a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test suggests that the acquired assets and activities constitute a business, the Company accounts for the transaction as a business combination. For transactions accounted for as business combinations, the Company allocates the fair value of acquisition consideration to the acquired identifiable assets and liabilities based on their estimated fair values. Acquisition consideration includes the fair value of any promised contingent consideration. The excess of the fair value of acquisition consideration over the fair value of acquired identifiable assets and liabilities is recorded as goodwill. Contingent consideration is remeasured to its fair value each reporting period with changes in the fair value of contingent consideration recorded in general and administrative expenses. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analyses. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Acquisition-related costs are expensed as incurred. For transactions accounted for as asset acquisitions, the cost, including certain transaction costs, is allocated to the assets acquired on the basis of relative fair values. No goodwill is recognized in asset acquisitions. Goodwill Goodwill is recorded when the consideration transferred for a business acquisition exceeds the fair value of net identifiable assets and liabilities acquired. Goodwill is measured and tested for impairment annually on the first business day of the fiscal fourth quarter and whenever events or changes in circumstances indicate the carrying amount of goodwill may exceed its implied fair value. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of goodwill’s reporting unit is less than its carrying amount, however the Company may determine to proceed directly to the quantitative impairment test. If the Company assesses qualitative factors and concludes that it is more likely than not that the fair value of goodwill’s reporting unit is less than its carrying amount or if the Company determines not to use the qualitative assessment, then a 60 Table of Contents quantitative impairment test is performed. The quantitative impairment test requires comparing the fair value of the reporting unit to its carrying value, including goodwill. The Company has identified that its business operates as a single operating segment which is also a single reporting unit for purposes of testing for goodwill impairment. An impairment exists if the fair value of the reporting unit is lower than its carrying value, and the Company would record a goodwill impairment loss in the fiscal quarter in which the determination is made. Intangible Assets Intangible assets include identifiable intangible assets, primarily developed technology and exclusive rights to air transportation services resulting from acquisitions (Note 4). Acquired intangible assets are initially recorded at fair value. The fair value of intangible assets is estimated either on the basis of replacement cost or the discounted cash flow model. Intangible assets are amortized on a straight-line basis over their estimated useful lives, generally three years to ten years . The Company’s estimates of useful lives of intangible assets are based on cash flow forecasts which incorporate various assumptions, including forecasted remaining useful life until technological obsolescence of software. Contractual Agreement The Company’s contractual agreement asset (Note 5) is classified as other non-current assets on the consolidated balance sheet. The Company will amortize the contractual agreement asset in proportion to the estimated incremental cash flows earned under the agreement over an estimated period of two years. The Company expects to begin generating incremental cash flows under the contractual agreement asset in 2026. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of the asset to future net cash flows expected to be generated by the asset. If the Company determines that the carrying value of the asset may not be recoverable, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. The Company did not record any impairment of long-lived assets in 2025, 2024 and 2023. Leases The Company accounts for leases in accordance with ASC 842. The Company determines whether an arrangement is a lease, or contains a lease, at inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the commencement date, the Company classifies leases as operating or finance leases. A lease is classified as a finance lease if any of the following criteria are met: (i) the lease transfers ownership of the underlying asset to the Company by the end of the lease term, (ii) the lease grants the Company an option to purchase the underlying asset that the Company is reasonably certain to exercise, (iii) the lease term is for a major part of the remaining economic life of the underlying asset, (iv) the present value of the sum of the lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset, or (v) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases not meeting any of these criteria are classified as operating leases. Leases with an initial term greater than 12 months are recognized on the balance sheet as right-of-use (“ROU”) assets and corresponding lease liabilities. The Company has elected not to recognize ROU assets and lease liabilities for leases with terms of 12 months or less. The lease term includes the non-cancellable period of the lease and renewal options that are reasonably certain to be exercised. The Company evaluates renewal options based on relevant facts and circumstances and reassesses lease term when events or changes in circumstances indicate the Company is reasonably certain to exercise (or not exercise) an option. ROU assets and lease liabilities are measured at commencement date based on the present value of lease payments over the lease term. Because most leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”), which is the estimated rate the Company would be required to pay for fully collateralized borrowing over a term similar to the lease term, to determine the present value of lease payments. Lease cost for operating leases is recognized on a straight-line basis over the lease term. Variable lease payments are excluded from the measurement of the lease liability and are recognized in expense as incurred. Lease incentives, including tenant improvement allowances, are reflected in the measurement of the ROU asset and are recognized as a reduction of lease cost over the lease term. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. 61 Table of Contents For lease agreements entered into or reassessed, the Company accounts for lease and non-lease components separately and does not combine such components. Certain agreements, such as capacity purchase agreements with third-party aircraft operators, may include embedded leases under ASC 842 when they provide the Company with the right to control the use of an identified aircraft and obtain substantially all of the economic benefits from its use. In those arrangements, the Company allocates consideration between lease and non-lease components and accounts for the lease component in accordance with ASC 842. Assumptions made at the commencement date are reassessed upon the occurrence of certain events, including a lease modification. A lease modification is accounted for as a separate contract when the modification grants an additional right of use not included in the original lease and the incremental lease payments are commensurate with the stand-alone price of the additional right of use. Modifications that do not result in a separate contract are accounted for as a remeasurement of the existing lease. Government Grants The Company receives payments from government entities primarily for research and development deliverables as part of ongoing development of the Company’s technology and future services offering. Under the Company’s accounting policy for government grants received as a payment for research and development services, grants are recognized on a systematic basis over the periods in which these services are provided and are presented as a reduction of research and development expenses in the consolidated statement of operations. A grant that is compensation for expenses or losses already incurred, or for which there are no future related costs, is recognized in the consolidated statement of operations in the period in which it becomes receivable, typically, as a reduction of research and development expenses. Revenue Recognition Identifying the customer The Company receives payments from U.S. and foreign government entities as part of the Company’s research and development and service arrangements with these entities as well as from passengers and other customers in connection with the passenger services business. The Company may also receive payments from commercial entities for customer demonstration and exhibition activities, and engineering services performed under contract. To evaluate if these arrangements are within the scope of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company first determines if counterparties meet ASC 606’s definition of a customer in the context of the arrangements (“Customer”). The arrangement’s counterparty is a Customer if it obtains goods or services that are an output of the Company’s ordinary activities in exchange for consideration. To determine if an arrangement with counterparty represents an exchange transaction, the Company analyses arrangements using the following indicators of an exchange transaction: • The arrangement represents a reciprocal transfer that results in counterparty acquiring assets or services. • Both the Company and counterparty agree on the amount of assets transferred in exchange for goods and services that are of commensurate value (versus counterparty having full discretion). • The funds to be received by the Company allow for performance at a profit (versus partial cost-reimbursement basis). • The goods or services provided by the Company directly benefit the counterparty or are for counterparty’s own use. • If there are potential public benefits, they are secondary to the potential direct benefit to the counterparty. • The counterparty obtains proprietary rights or other privileges and exclusive knowledge of research outcomes. • Contractual provisions of the arrangement provide for the assessment of penalties beyond the amount of assets transferred if the Company fails to perform (versus limited to delivery of assets/services already provided and the return of unspent funds). Recognizing revenue If the Company concludes that the arrangement’s counterparty is not a Customer, the Company accounts for this arrangement as described in Government Grants and Research and Development sections of this footnote. If the Company concludes that counterparty is a Customer and arrangement is not a lease, the Company records revenue in accordance with ASC 606 core principle at the time when counterparty obtains control of promised goods or services in the amount that reflects the consideration expected to be received by the Company in exchange for those goods or services. Passenger revenue primarily includes revenue generated from the transportation of passengers via helicopter or fixed wing aircraft, booked through the Company’s wholly owned subsidiary, Blade Urban Air Mobility, Inc. and its subsidiaries (“Blade”). Flights are typically booked through Blade associates, the Blade app, or third-party channels and paid for 62 Table of Contents principally via credit card transactions, wire transfers, checks, customer credits, and gift cards. Flight payments are typically collected at the time of booking before the performance of the related service, and revenue is recognized when the service is completed. Payments received in advance of performance, including advance payments, customer credit balances, and gift card purchases, are recorded as contract liabilities (deferred revenue) and recognized as revenue when the flight is flown. For flight passes, consideration is recognized as revenue ratably over the term of the pass. For itineraries that include more than one flight segment, each segment represents a separate performance obligation and revenue is recognized for each segment as travel occurs. Fees for add-on services and non-refundable seat changes or extensions are considered part of the passenger flight performance obligation and are recognized when the related travel occurs. Certain governmental taxes included in flight prices are collected and remitted to the appropriate governmental agencies and are excluded from revenue. The Company uses five-step model to recognize the revenue: (1) identify the contract with the Customer; (2) identify performance obligation(s); (3) determine transaction price for the contract; (4) allocate the transaction price to the separate performance obligations in the contract; and (5) recognize revenue when, or as, performance obligations are satisfied. Practical expedients, alternatives and policy elections Allocation of transaction price to optional goods or services: When a Customer has a material right to acquire future goods or services and those goods or services are similar to the original goods or services in the contract and are provided in accordance with the terms of the original contract, then the Company, as a practical alternative to estimating the standalone selling price of the option, allocates the transaction price to the optional goods or services by reference to the goods or services expected to be provided and the corresponding expected consideration. A material right exists if the Customer is only able to obtain these future goods or services by entering into the original contract and the option provides the Customer with the ability to obtain the additional goods or services at a discount that is incremental to a discount typically given to that class of customer. Immaterial promised goods or services: For promised goods or services that are immaterial in the context of the contract with the Customer, the Company does not assess whether these promises are performance obligations. If revenue related to such immaterial promises is recognized before related goods or services are transferred to the Customer, the Company accrues costs related to transfer of these goods or services. Incremental costs of obtaining a contract: The incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. Financing component adjustment: The promised amount of consideration is not adjusted for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a Customer and when the Customer pays for that good or service will be one year or less. Taxes collected on behalf of the customers: The Company made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by a governmental authorities when these taxes are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a Customer. Disclosure of remaining performance obligations: The Company does not disclose remaining performance obligations for contracts that have an original expected duration of one year or less. Cost of Revenue Cost of Revenue consist primarily of costs related to operators of aircraft and vehicles, flight support, maintenance personnel, expenses associated with support aircraft such as rent and fuel, depreciation of capitalized ground support equipment, and our aircraft fuel or electricity cost, landing fees, pilot salaries, as directly attributed to our performance of the flight services and customer demonstration and exhibition activities, and costs of providing engineering services. Flight services expenses do not include the costs of manufacturing our aircraft and aircraft parts as such costs are expensed when incurred as Research and Development expenses. Research and Development The Company expenses research and development costs as incurred. Research and development expenses consist primarily of personnel expenses, including salaries, benefits, and stock-based compensation, costs of consulting, equipment and materials, depreciation and amortization and allocations of overhead, including rent, information technology costs and utilities. Research and development expenses are partially offset by payments the Company received in the form of government grants, including the majority of those received under the U.S. Air Force’s transformative vertical lift program (“Agility Prime”). 63 Table of Contents Selling, General and Administrative Selling, general and administrative expenses primarily consist of personnel expenses, including salaries, benefits, and stock-based compensation, related to executive management, finance, legal and human resource functions. Other costs include business development, contractor and professional services fees, audit and compliance expenses, insurance costs and general corporate expenses, including allocated depreciation, rent, information technology costs and utilities. Advertising Expense The Company expenses advertising costs as incurred. Advertising expenses for the years ended December 31, 2025, 2024 and 2023 were $ 0.3 million, $ 0.2 million and $ 0.2 million, respectively, included in selling, general and administrative expenses in the consolidated statements of operations. Concentrations Major Customers Two customers accounted for more than 10 % or more of the Company’s revenue for the year ended December 31, 2025, Customer A represented approximately 14 % of total revenues, while Customer B represented approximately 12 % of total revenues. One customer accounted for 10 % or more of the Company’s revenue for the years ended 2024 and 2023. One customer accounted for 12 % of the Company’s other receivables as of December 31, 2025. No single customer accounted for 10% of the Company’s other receivables as of December 31, 2024. Income Taxes The Company uses the asset and liability method in accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax expense or benefit is the result of changes in the deferred tax asset and liability. Valuation allowances are established when necessary to reduce deferred tax assets where it is more likely than not that the deferred tax assets will not be realized. In evaluating the Company’s ability to recover deferred tax assets, the Company considers all available positive and negative evidence, including historical operating results, ongoing tax planning, and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. Based on the level of historical losses, the Company has established a full valuation allowance to reduce its net deferred tax assets to the amount that is more likely than not to be realized. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination by the taxing authorities, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related liabilities line in the consolidated balance sheets. Net Loss per Share Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, the redeemable convertible preferred stock, common stock warrants, common stock subject to repurchase, stock options and earnout shares are considered to be potentially dilutive securities. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss is attributed entirely to common stockholders. Because the Company has reported a net loss for the reporting periods presented, the diluted net loss per common share is the same as basic net loss per common share for those periods. 64 Table of Contents Comprehensive Loss Comprehensive loss includes all changes in equity (net assets) during the period from nonowner sources. The Company’s comprehensive loss consists of its net loss, its cumulative translation adjustments, and its unrealized gains or losses on available-for-sale debt securities. Stock-Based Compensation The Company measures and records the expense related to stock-based payment awards based on the fair value of those awards as determined on the date of grant. When the observable market price or volatility that the Company uses to determine grant date fair value does not reflect certain material non-public information known to the Company but unavailable to marketplace participants at the time the market price is observed, the Company determines whether an adjustment to the observable market price is required. The Company recognizes stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period and uses the straight-line method to recognize stock-based compensation, and accounts for forfeitures as they occur. The Company accounts for awards containing performance-based vesting condition based on the probability of achieving each of the performance goals at the end of each reporting period and recognizes expense over the requisite period, when achievement of the goal is determined to be probable, and adjusts the expense if the probability of achieving the goal later changes. The Company selected the Black-Scholes-Merton (“Black-Scholes”) option-pricing model as the method for determining the estimated fair value for stock options and employee stock purchase plan awards. The Black-Scholes model requires the use of highly subjective and complex assumptions, which determine the fair value of share-based awards, including the award’s expected term, expected volatility of the underlying stock, risk-free interest rate and expected dividend yield. Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. For public business entities, the guidance is effective for annual periods beginning after December 15, 2024. The Company adopted this ASU in the fourth quarter of 2025. The adoption had a disclosure only impact on the Company’s consolidated financial statements (Note 12). New Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (subtopic 220-40): Disaggregation of Income Statement Expenses , which requires public entities to disclose specified information about certain costs and expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (subtopic 220-40):Disaggregation of Income Statement Expenses , Clarifying the Effective Date. ASU 2024-03 applies to all public entities and ASU 2025-01 clarifies that the guidance in ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company expects the adoption to have a disclosure only impact on its consolidated financial statements. In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810) —Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity , which requires an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business to consider the factors in paragraphs 805-10-55-12 through 55-15 to determine which entity is the accounting acquirer. ASU 2025-03 applies to all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Company is currently evaluating the impact of ASU 2025-03 on its consolidated financial statements. In May 2025, the FASB issued ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenues from Contracts with Customers (Topic 606)—Clarifications to Share-Based Consideration Payable to a Customer . The amendments in this ASU revise the master glossary definition of the term performance condition for share-based consideration payable to a customer. Further, the amendments in this ASU clarify that share-based consideration encompasses the same instruments as share-based payment arrangements but the grantee does not need to be a supplier of goods or services to the grantor. Finally, the amendments in this ASU clarify that a grantor should not apply the guidance in Topic 606 on constraining estimates of variable consideration to share-based consideration payable to a customer. The amendments in this ASU are effective for all entities for annual reporting periods (including interim reporting periods 65 Table of Contents within annual reporting periods) beginning after December 15, 2026. Early adoption is permitted for all entities. The Company is currently evaluating the impact of ASU 2025-04 on its consolidated financial statements. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326) . The amendments in this ASU provide that in developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments in this ASU are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company is currently evaluating the impact of ASU 2025-05 on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) . The amendments in this ASU remove all references to prescriptive and sequential software development stages (referred to as “project stages”) throughout Subtopic 350-40 and requires an entity to start capitalizing software costs when (i) a company’s management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to-complete recognition threshold”). The amendments in this ASU are effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) . The amendments in this ASU (i) exclude from derivative accounting non-exchange-traded contracts with underlyings that are based on operations or activities specific to one of the parties to the contract and (ii) clarify that an entity should apply the guidance in Topic 606, including the guidance on noncash consideration in paragraphs 606-10-32-21 through 32-24, to a contract with share-based noncash consideration (for example, shares, share options, or other equity instruments) from a customer for the transfer of goods or services. The amendments in this ASU are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Company is currently evaluating the impact of ASU 2025-07 on its consolidated financial statements. In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832) . The amendments in this ASU establish the accounting for a government grant received by a business entity, including guidance for (1) a grant related to an asset and (2) a grant related to income. The amendments in this ASU are effective annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2025-10 on its consolidated financial statements. Note 3. Fair Value Measurements Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value represents 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: • Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; • Level 2 - Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and • Level 3 - Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. The Company’s financial assets consist of Level 1 and 2 assets. The Company classifies its cash equivalents and marketable debt securities within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. The Company’s fixed income available-for- 66 Table of Contents sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of the Company’s marketable debt securities were derived from non-binding market consensus prices that are corroborated by observable market data and quoted market prices for similar instruments. The Company’s financial liabilities measured at fair value on a recurring basis consist of Level 1, Level 2 and Level 3 liabilities. The Company’s Public Warrants (as defined in Note 8) are classified as Level 1 because they are directly observable in the market. The Company classifies the Private Placement Warrants (as defined in Note 8) within Level 2, because they were valued using inputs other than quoted prices which are directly observable in the market, including readily available pricing for the Company’s Public Warrants. The Company classifies Delta Warrant, Earnout Shares Liability (as defined in Note 8) and EBITDA Earnout liability (as defined in Note 4) within Level 3, because they were valued using unobservable inputs that are significant to the fair value measurement. The Delta Warrant, Earnout Shares Liability and EBITDA Earnout liability are measured at fair value on a recurring basis. Changes in fair value of Level 3 liabilities are recorded in total other income (loss), net, in the consolidated statements of operations. The following tables set forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy (in thousands): December 31, 2025 Level 1 Level 2 Level 3 Total Assets measured at fair value Money market funds $ 218,080 $ — $ — $ 218,080 Cash equivalents $ 218,080 $ — $ — $ 218,080 Term deposits $ — $ 30,937 $ — $ 30,937 Asset backed securities — 94,183 — 94,183 Government debt securities — 641,172 — 641,172 Corporate debt securities — 400,814 — 400,814 Available-for-sale investments — 1,167,106 — 1,167,106 Total fair value of assets $ 218,080 $ 1,167,106 $ — $ 1,385,186 Liabilities measured at fair value Common stock warrant liabilities (Public) $ 56,392 $ — $ — $ 56,392 Common stock warrant liabilities (Delta) — — 48,486 48,486 Warrant liability 56,392 — 48,486 104,878 Earnout Shares Liability — — 156,692 156,692 EBITDA Earnout Liability $ — $ — $ 13,424 $ 13,424 Total fair value of liabilities $ 56,392 $ — $ 218,602 $ 274,994 67 Table of Contents December 31, 2024 Level 1 Level 2 Level 3 Total Assets measured at fair value Money market funds $ 178,383 $ — $ — $ 178,383 Cash equivalents $ 178,383 $ — $ — $ 178,383 Term deposits — 31,179 — 31,179 Asset backed securities — 98,412 — 98,412 Government debt securities — 206,945 — 206,945 Corporate debt securities — 396,688 — 396,688 Available-for-sale investments — 733,224 — 733,224 Total fair value of assets $ 178,383 $ 733,224 $ — $ 911,607 Liabilities measured at fair value Common stock warrant liabilities (Public) $ 34,843 $ — $ — $ 34,843 Common stock warrant liabilities (Private) — 23,296 — 23,296 Common stock warrant liabilities (Delta) — — 37,271 37,271 Warrant liability 34,843 23,296 37,271 95,410 Earnout Shares Liability — — 117,416 117,416 Total fair value of liabilities $ 34,843 $ 23,296 $ 154,687 $ 212,826 The following is a summary of the Company’s available-for-sale securities (in thousands): December 31, 2025 Cost or Amortized Cost Unrealized Gains Unrealized Losses Allowance for credit losses Fair value Assets measured at fair value Term deposits $ 30,937 $ — $ — $ — $ 30,937 Asset backed securities 93,990 193 — — 94,183 Government debt securities 640,270 902 — — 641,172 Corporate debt securities 400,231 592 ( 9 ) — 400,814 Total $ 1,165,428 $ 1,687 $ ( 9 ) $ — $ 1,167,106 December 31, 2024 Cost or Amortized Cost Unrealized Gains Unrealized Losses Allowance for credit losses Fair Value Term deposits $ 31,179 $ — $ — $ — $ 31,179 Asset backed securities 98,277 135 — — 98,412 Government debt securities 206,779 166 — — 206,945 Corporate debt securities 396,410 352 ( 74 ) — 396,688 Total $ 732,645 $ 653 $ ( 74 ) $ — $ 733,224 The weighted-average remaining maturity of the Company’s investment portfolio was less than one year as of the periods presented. No individual security incurred continuous significant unrealized losses for greater than 12 months. There were no transfers between Level 1, Level 2 or Level 3 financial instruments in the years ended December 31, 2025 and 2024. The following table sets forth a summary of the change in the fair value, which is recognized as a component of total other loss, net within the consolidated statement of operations, of the Company’s Level 3 financial liabilities (in thousands): 68 Table of Contents Earnout Shares Liability Common stock warrant liabilities (Delta) EBITDA Earnout Liability Fair value as of January 1, 2025 $ 117,416 $ 37,271 $ — Issuance (Settlement) of liability ( 60,709 ) — 7,631 Change in fair value 99,985 17,008 5,793 Fair value as of December 31 2025 $ 156,692 $ 54,279 $ 13,424 The fair value of the Earnout Shares Liability and Common stock warrant liabilities (Delta) (see Note 8) and EBITDA Earnout liability (see Note 4) are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. Note 4. Acquisitions 2024 Acquisitions On May 31, 2024, the Company completed the acquisition of certain assets of an aerospace company that develops modular autonomy technology for aviation in exchange for 1,944,990 shares of the Company’s common stock with an aggregate acquisition date fair value of $ 9.5 million. The transaction is expected to contribute to development of autonomous capabilities of the Company’s aircraft and to accelerate the execution of the Company’s contract deliverables with the U.S. Department of Defense. The acquisition was accounted for as a business combination as the assets acquired constituted a business in accordance with ASC 805 Business Combinations . As part of the acquisition, the Company also issued 1,375,245 shares of the Company common stock subject to lock-up period of twelve month following the acquisition date (“Holdback Equity”). The number of shares of Holdback Equity to be released at the end of the lock-up period depends on the continuing employment of selected employees of the aerospace company, whose employment transitioned to the Company as a result of the acquisition, and the weighted volume average price of the Company’s common stock at the end of the lock-up period. The number of shares of Holdback Equity to be released may additionally be reduced to satisfy certain indemnification obligations, if any, of the seller. The Company accounted for the Holdback Equity under ASC 718 Compensation — Stock Compensation as a compensation arrangement separate from the business combination and will recognize $ 8.7 million as stock-based compensation expense over the lock-up period, commencing on the acquisition date. The purchase consideration of $ 9.5 million was preliminarily allocated to $ 7.4 million of total intangible assets comprising of $ 6.9 million of acquired developed technology and $ 0.5 million of contractual assets, $ 1.6 million of acquired fixed assets comprising of aircraft, related equipment and other long lived assets, $ 0.3 million of acquired goodwill, and $ 0.2 million of acquired current assets. The acquired goodwill is not tax deductible. It represents the excess of the purchase consideration over the aggregate preliminary fair value of identifiable assets acquired at the acquisition date and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. The fair values of the acquired assets are still provisional and subject to change within the measurement period. The Company completed its final determination of the fair values of the acquired assets and liabilities during the measurement period, which ended on May 31, 2025. No measurement-period adjustments were recorded, and the purchase price allocation remained unchanged from the preliminary amounts. 2025 Acquisition On August 29, 2025, the Company completed the acquisition of 100 % of the outstanding equity of Blade Urban Air Mobility, Inc., a wholly owned subsidiary of Strata Critical Medical, Inc, f/k/a Blade Air Mobility, Inc. (“Seller”). Blade Urban Air Mobility, Inc. and its subsidiaries (“Blade”) operate a technology-powered, global urban air mobility platform through which they provide air charter broker and other services. The transaction is expected to unlock immediate market access and infrastructure across key urban corridors in New York City and Southern Europe and allow the Company to combine its best-in-class technology with Blade’s experience of delivering premium customer transportation at scale. The Company acquired all assets and assumed liabilities of Blade for total purchase consideration of approximately $ 92.4 million, consisting of (i) 5,325,585 shares of the Company’s common stock with an aggregate fair value of $ 74.5 million, calculated net of $ 1.5 million attributed to the Company’s post-combination compensation expense, (ii) payments contingent upon the achievement of future Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) targets with a fair value of approximately $ 7.6 million (“EBITDA Earnout”), (iii) indemnity holdback amount of $ 10.0 69 Table of Contents million (“Indemnity Holdback”), and (iv) pre-combination-attributed fair value of substitution RSUs of approximately $ 0.3 million. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations , which requires that the assets acquired and liabilities assumed in a business combination be recognized at their estimated acquisition-date fair values. In connection with the acquisition, the Company agreed to make payments up to $ 17.5 million to the Seller, in cash or common stock at the Company’s election, subject to certain adjustments, payable 18 months following the acquisition date if certain key employees of Blade remain employed by the Company (“Retention Earnout”). The Company also issued substitution RSUs with an estimated post-combination-attributed fair value of $ 2.5 million to certain officers and employees of Blade. The substitution RSUs vest contingent upon each employee’s continued employment with the Company or its subsidiaries, and are recognized as stock-based compensation expense over the RSUs’ vesting terms, commencing on the acquisition date. The Retention Earnout and the substitution RSUs are accounted for as post-combination compensation expense within selling, general and administrative in the Company’s consolidated statements of operations. At December 31, 2025 the Retention Earnout liability amounted to $ 4.0 million (Note 5). The Company also entered into a transition services agreement (“TSA”) and Commercial Agreement (“CA”) with the Seller in connection with the acquisition. Under the TSA, the Company and the Seller will provide to each other certain transitional services, including technology support, safety and legal support, business unit and flight operations support, certain administrative services, and access to shared contracts and insurance arrangements. Costs incurred in connection with the TSA will be recognized as expense in the period incurred in the Company’s consolidated statements of operations. Under the CA, the Seller must generally offer the Company the right to provide certain medical transport services before engaging competing providers for a period of eight years from the closing date The EBITDA Earnout provides for payments of up to $ 17.5 million contingent upon the achievement of certain EBITDA targets over the first fiscal year following the acquisition date. The fair value of the EBITDA Earnout was calculated by a risk-neutral Monte Carlo simulation, using Geometric Brownian Motion (GBM), which included significant unobservable Level 3 inputs, such as projected adjusted EBITDA and a discount rate of 7.2 %. At December 31, 2025 the EBITDA Earnout liability amounted to $ 13.4 million (Note 5). As part of the acquisition, $ 10.0 million was retained by the Company to satisfy the Company’s post-closing indemnification claims, if any, against the seller. The Indemnity Holdback will be released and paid to the seller 18 months following the closing date, subject to reduction to satisfy indemnification obligations of the seller, if any. All or a portion of the Indemnity Holdback or the EBITDA Earnout may be paid, at the Company’s election, in cash or in shares of the Company’s common stock. 70 Table of Contents The following table summarizes the Company’s preliminary allocation of the purchase consideration to the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Assets Cash and cash equivalents $ 1,070 Restricted cash 813 Accounts and other receivables 4,194 Prepaid expenses and other current assets 7,126 Property and equipment, net 2,111 Operating lease right-of-use assets 4,964 Intangible assets 17,000 Other non-current assets 438 Goodwill 75,100 Total assets $ 112,816 Liabilities Accounts payable $ 1,600 Accrued expenses and other current liabilities 14,622 Operating lease liabilities, current portion 2,882 Operating lease liabilities, net of current portion 2,240 Other non-current liabilities 336 Total liabilities $ 21,680 Total net assets acquired $ 91,136 The fair values of the acquired assets are still provisional and subject to change within the measurement period. The final determination of the fair values of the acquired assets is expected to be completed as soon as practicable, but no later than one year from the acquisition date. The primary areas that are preliminary relate to net working capital adjustments, the fair values of goodwill, intangible assets, certain tangible assets and liabilities, and income taxes. During the three month period ended December 31, 2025 the Company recorded measurement-period adjustments of $ 1.3 million, net, consisting of a $ 1.6 million net working capital adjustment that reduced purchase consideration and net $ 0.3 million of other measurement-period adjustments that affected the provisional amounts assigned to net assets acquired and goodwill and did not change purchase consideration. Any additional changes to the preliminary estimates of the fair value during the measurement period will be recorded as adjustments to those assets and liabilities with a corresponding adjustment to goodwill. The following table summarizes the preliminary estimated fair value and useful lives of intangible assets acquired (in thousands): Estimated Useful Life (Years) Estimated Fair Value Exclusive rights to air transportation services 10 $ 8,800 Developed technology 2 6,200 Customer relationships 2 1,000 Trade name 2 1,000 Total intangible assets $ 17,000 Each of the intangible assets acquired fair values were evaluated with the following valuation methodology: • Exclusive rights to air transportation services agreements were evaluated using the Multi-period Excess Earnings Method, a form of the Income approach. Free cash flows were discounted using a discount rate of 9.5 %. Key assumptions include forecasted revenue, EBITDA, income tax rate, contributory asset charges, and discount rate. 71 Table of Contents • Developed technology was evaluated using the Cost to Recreate Method, a form of the Cost Approach. Key assumptions include direct and indirect developer costs, developer’s profit, and opportunity cost. • Customer relationships were valued using the With and Without Method, a form of the Income Approach, and then discounted to present value using a discount rate of 9.5 %. Key assumptions include forecasted free cash flows with and without the customers in place, income tax rate, and discount rate. • Trade names were evaluated using the Relief-from Royalty Method, a form of the Income Approach, and then discounted to present value using a discount rate of 9.5 %. Key assumptions include forecasted revenue, royalty rate, income tax rate, and discount rate. In connection with the acquisition, the Company recognized $ 75.1 million of goodwill, which represents the excess of the purchase price over the fair values of the net assets acquired and liabilities assumed. The acquired goodwill is tax deductible. It represents the excess of the purchase consideration over the aggregate preliminary fair values of identifiable assets acquired at the acquisition date and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. In connection with the acquisition, the Company recognized $ 6.0 million of transaction costs, which were related to financial advisory, legal, accounting and other professional fees and were included within selling, general and administrative in the Company’s consolidated statements of operations. Note 5. Balance Sheet Components Property and Equipment, Net Property and equipment, net consists of the following (in thousands): December 31, 2025 2024 Equipment $ 126,874 $ 103,694 Molds and tooling 33,077 22,409 Buildings 23,801 22,186 Leasehold improvements 22,831 20,569 Computer software 20,017 18,072 Land 6,270 6,270 Vehicles and aircraft 3,509 2,486 Furniture and fixtures 2,364 1,110 Construction in-progress 36,977 19,583 Gross property and equipment 275,720 216,379 Accumulated depreciation and amortization ( 129,149 ) ( 95,425 ) Property and equipment, net $ 146,571 $ 120,954 Depreciation and amortization expense of property and equipment for the years ended December 31, 2025, 2024 and 2023 was $ 33.5 million, $ 29.7 million and $ 24.4 million, respectively. Vehicles and aircraft includes utility automobiles used at the Company's various facilities and purchased aircraft to support the Company's air operations and training. 72 Table of Contents Intangible Assets, Net The intangible assets consist of the following (in thousands): December 31, 2025 2024 Developed technology $ 13,100 $ 6,900 Exclusive rights to air transportation services 8,800 — Automation platform software — 7,200 System simulation software technology — 4,600 Other intangibles 2,500 1,485 Gross intangible assets 24,400 20,185 Accumulated amortization ( 5,541 ) ( 12,058 ) Intangible assets, net $ 18,859 $ 8,127 Amortization expense related to intangible assets for the years ended December 31, 2025, 2024, and 2023, was $ 6.6 million, $ 5.9 million, and $ 6.1 million, respectively. As of December 31, 2025 the weighted-average amortization period of intangible assets was 5.25 years. The following table presents the estimated future amortization expense of acquired amortizable intangible assets (in thousands): Fiscal Year December 31, 2025 2026 $ 7,447 2027 4,641 2028 880 2029 880 2030 and thereafter 5,011 $ 18,859 Goodwill The changes in the carrying value of Goodwill are as follows: Goodwill Balance—December 31, 2023 $ 14,011 Additions associated with acquisitions 311 Balance—December 31, 2024 $ 14,322 Additions associated with acquisitions 75,100 Balance—December 31, 2025 $ 89,422 73 Table of Contents Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2025 2024 Prepaid equipment $ 2,278 $ 3,998 Prepaid software 9,263 7,794 Prepaid taxes 3,175 3,183 Prepaid insurance 6,151 3,565 Prepaid operators 4,218 — Other 5,394 2,170 Total $ 30,479 $ 20,710 Other non-current assets Other non-current assets consist of the following (in thousands): December 31, 2025 2024 Contractual agreement asset $ 59,611 $ 59,611 Long-term prepaid insurance 431 625 Other non-current assets 1,891 770 Total $ 61,933 $ 61,006 Accrued and other current liabilities Accrued and other current liabilities consist of the following (in thousands): December 31, 2025 2024 Vendor related accruals $ 26,589 $ 20,026 Payroll accruals 5,227 5,112 Contract liabilities under contracts with customers 7,003 5,161 Short-term finance lease liability 2,254 2,579 ESPP accrual 2,062 1,507 Deferred research and development credits — 1,712 Other accruals and current liabilities 4,883 2,745 Total $ 48,018 $ 38,842 Other non-current liabilities Other non-current liabilities consist of the following (in thousands): December 31, 2025 2024 Indemnity Holdback liability (Note 4) $ 10,000 $ — EBITDA Earnout liability (Note 4) 13,424 — Finance lease liabilities 7,447 3,859 Retention Earnout liability (Note 4) 4,006 — Other non-current liabilities 2,716 105 Total $ 37,593 $ 3,964 74 Table of Contents Note 6. Leases The Company leases various office and research and development facilities under operating lease agreements that expire at various dates through October 2073 and generally contain periodic rent increases and various renewal and termination options. Under the terms of the agreements, the Company is responsible for certain insurance, property taxes and maintenance expenses. In fiscal year 2022, the Company adopted ASC 842, recognizing operating lease right-of-use asset and liabilities on the consolidated balance sheet and continuing accreting rent expense on a straight-line basis over the term of the operating leases. Rent expense for 2025, 2024 and 2023 was $ 9.8 million, $ 7.7 million and $ 7.0 million, respectively. Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): December 31, 2025 December 31, 2024 Operating leases Assets Operating lease right-of-use assets $ 31,837 $ 28,689 Liabilities Operating lease liabilities, current $ 8,404 $ 5,031 Operating lease liabilities, non-current 26,167 26,178 Total operating lease liabilities $ 34,571 $ 31,209 Finance leases Assets Financing lease right-of-use assets $ 15,809 $ 11,351 Accumulated amortization ( 5,680 ) ( 3,860 ) Financing lease right-of-use assets, net $ 10,129 $ 7,491 Liabilities Finance lease liabilities, current $ 2,254 $ 2,579 Finance lease liabilities, non-current 7,447 3,859 Total finance lease liabilities $ 9,701 $ 6,438 December 31, 2025 December 31, 2024 Weighted-average remaining lease term (years) Operating leases 10.8 years 9.5 years Finance leases 2.9 years 3.4 years Weighted-average discount rate Operating leases 6.9 % 6.6 % Finance leases 5.2 % 7.5 % 75 Table of Contents Interest rates for the finance leases have ranged from 4.0 % to 15.0 % per annum. Maturities of lease liabilities were as follows: December 31, 2025 Operating Leases Finance Leases 2026 $ 10,909 $ 2,362 2027 8,961 3,957 2028 7,067 3,359 2029 3,725 98 2030 2,468 — 2031 and thereafter 18,384 — Total undiscounted lease payments $ 51,514 $ 9,776 Less: imputed interest ( 16,943 ) ( 75 ) Total lease liabilities $ 34,571 $ 9,701 Lease Costs The table below presents certain information related to the lease costs: Year Ended December 31, 2025 2024 2023 Operating lease cost $ 8,506 $ 6,613 $ 5,760 Finance Leases Amortization of right-of-use assets 1,820 1,787 1,063 Interest on lease liabilities 396 389 243 Other Lease Costs Short-term lease cost 2,548 2,583 2,342 Variable lease cost (1) 3,411 2,579 2,414 Total lease cost $ 16,681 $ 13,951 $ 11,822 (1) Consist primarily of common-area maintenance, taxes and utilities The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the consolidated statements of cash flows: Year Ended December 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ ( 8,528 ) $ ( 6,446 ) Operating cash flows used for finance leases $ ( 396 ) $ ( 389 ) Finance cash flows used for finance leases $ ( 1,486 ) $ ( 2,156 ) Right-of-use assets obtained in exchange for lease obligations: Operating lease liabilities $ 4,215 $ 5,115 Finance lease liabilities $ 4,424 $ 2,537 76 Table of Contents Note 7. Commitments and Contingencies Contingencies As of December 31, 2025, the Company had $ 11.8 million of unconditional purchase obligations with remaining terms in excess of one year. These obligations primarily relate to the Company’s purchase agreements for certain aircraft parts through 2028. In December 2023, Blade entered into a technology service agreement with a vendor for cloud computing services where Blade is committed to the remaining spend of $ 1.6 million for the year ending December 31, 2026. The Company has contractual relationships with various aircraft operators to provide aircraft service for the Blade chartered flights. Under these capacity purchase agreements (“CPAs”), the Company pays the operator contractually agreed fees (carrier costs) for operating these flights. The fees are generally based on fixed hourly rates for flight time multiplied by hours flown. Under these CPAs, the Company is also responsible for landing fees and other costs, which are either passed through by the operator to the Company without any markup or directly incurred by the Company. As of December 31, 2025, the Company has remaining unfulfilled obligations under agreements with various aircraft operators to provide aircraft service. The remaining unfulfilled obligation includes amounts within operating lease liability related to aircraft leases embedded within its capacity purchase agreements as included in the operating right-of-use asset and lease liability. These future unfulfilled obligations were as follows: For the Year Ending December 31, Total Unfulfilled Obligation 2026 3,214 2027 2,596 The Company is subject to claims and assessments from time to time in the ordinary course of business. Accruals for litigation and contingencies are reflected in the Consolidated Financial Statements based on management’s assessment, including the advice of legal counsel, of the expected outcome of litigation or other dispute resolution proceedings and/or the expected resolution of contingencies. Liabilities for estimated losses are accrued if the potential losses from any claims or legal proceedings are considered probable and the amounts can be reasonably estimated. Significant judgment is required in both the determination of probability of loss and the determination as to whether the amount can be reasonably estimated. Accruals are based only on information available at the time of the assessment due to the uncertain nature of such matters. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Company’s consolidated results of operations in a given period. As of December 31, 2025, and 2024, the Company was not involved in any material legal proceedings. Indemnifications In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but that have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. The Company has indemnified its Board of Directors and officers, to the extent legally permissible, against all liabilities reasonably incurred in connection with any action in which such individual may be involved by reason of such individual being or having been a director or officer, other than liabilities arising from willful misconduct of the individual. The Company currently has directors’ and officers’ insurance. The Company believes the estimated fair value of these obligations is minimal. The Company did not record any liabilities in connection with these possible obligations as of December 31, 2025 and 2024. Note 8. Stock Warrants, Earnout Shares and Contingent Consideration Private Placement and Public Warrants In connection with the Merger, each of the 17,250,000 publicly-traded warrants (“Public Warrants”) and 11,533,333 private placement warrants (“Private Placement Warrants” and, together with the Public Warrants, the “Common Stock Warrants”) issued to Reinvent Sponsor, LLC (“Sponsor”) in connection with RTP’s initial public offering and subsequent 77 Table of Contents overallotment were converted into an equal number of warrants that entitle the holder to purchase one share of the Company’s Common stock, par value $ 0.0001 (“Common Stock”) at an exercise price of $ 11.50 per share, subject to adjustments, and will expire five years after the completion of the Merger or earlier upon redemption or the Company’s liquidation. The Company may redeem the outstanding Common Stock Warrants subject to certain Common Stock price and other conditions as defined in the Warrant Agreement between RTP and Continental Stock Transfer & Trust Company (“Warrant Agreement”) and the Sponsor Agreement by and among the Company, Sponsor and RTP (“Sponsor Agreement”). The Private Placement Warrants were initially recognized as a liability on August 10, 2021, at a fair value of $ 21.9 million. On August 11, 2025, the Private Placement Warrants were fully exercised on cashless basis and 4,128,197 shares of common stock were issued upon this cashless exercise of 11,533,333 private placement warrants.The Private Warrant liability was remeasured to fair value during the years ended December 31, 2025, 2024 and 2023, resulting in loss of $ 47.2 million,$ 9.2 million and $ 8.5 million, respectively, which is included within the loss from change in the fair value of warrants, earnout shares and contingent consideration in the consolidated statements of operations. The Public Warrants were initially recognized as a liability on August 10, 2021 at a fair value of $ 32.8 million. The public warrant liability was remeasured to fair value based upon the market price as of December 31, 2025, 2024 and 2023, resulting in a loss of $ 47.6 million, $ 13.7 million and $ 12.8 million, respectively, which is included within the loss from change in the fair value of warrants, earnout shares and contingent consideration in the consolidated statements of operations. During the year ended December 31, 2025, 3,008,779 Public Warrants were exercised. Earnout Shares Liability In connection with the Reverse Recapitalization and pursuant to the Sponsor Agreement, Sponsor agreed to certain terms of vesting, lock-up and transfer with respect to the 17,130,000 common shares held by it (“Earnout Shares”). The terms of the Sponsor Agreement specify that the Earnout Shares will vest upon achieving certain specified release events. In accordance with ASC 815 Derivatives and Hed ging, the Earnout Shares are not indexed to the Common Stock and therefore are accounted for as a liability (“Earnout Shares Liability”) as of the Closing Date and subsequently remeasured at each reporting date with changes in fair value recorded as a component of total other income (loss), net in the consolidated statements of operations. Under the vesting schedule, 20 % of the Earnout Shares vest in tranches when the volume-weighted average price of the Company's common stock quoted on the NYSE is greater than each of $ 12.00 , $ 18.00 , $ 24.00 , $ 32.00 and $ 50.00 for any 20 trading days within a period of 30 trading days (each such occurrence a “Triggering Event”). After ten years following the consummation of the Merger (“Earnout Period”), any Earnout Shares which have not yet vested are forfeited. On July 17, 2025, the first Triggering Event occurred when the volume-weighted average price of the Company’s common stock quoted on the NYSE exceeded $ 12.00 for 20 trading days within a period of 30 consecutive trading days resulting in vesting of 3,426,000 Earnout Shares. Earnout Shares Liability at the closing of the Merger on August 10, 2021 was $ 149.9 million based on a Monte Carlo simulation valuation model using a distribution of potential outcomes on a monthly basis over the Earnout Period using the most reliable information available. During the years ended December 31, 2025, 2024 and 2023, the Company recognized a loss related to the change in the fair value of the Earnout Shares Liability of $ 100.0 million, $ 21.4 million and $ 51.9 million, respectively, which is included within the loss from change in the fair value of warrants, earnout shares and contingent consideration in the consolidated statement of operations. Assumptions used in the valuation are as follows: December 31, August 10, 2025 2024 2021 Expected volatility 76.10 % 74.80 % 62.20 % Risk-free interest rate 3.79 % 4.46 % 1.36 % Dividend rate 0.00 % 0.00 % 0.00 % Expected term (in years) 5.61 6.61 10.00 Delta Warrant In connection with the umbrella agreement that the Company entered with Delta Air Lines, Inc. (“Delta”) on October 7, 2022, the Company sold and issued to Delta, in private placement, 11,044,232 shares of the Company’s Common Stock, at the per-share purchase price of $ 5.4327 , for an aggregate cash consideration of $ 60.0 million. In addition, the Company 78 Table of Contents issued a warrant for Delta to purchase up to 12,833,333 shares of the Company's common stock in two tranches, subject to certain milestone achievement conditions (“Delta Warrant”). The first and the second tranches of the warrant permit Delta to purchase up to 7,000,000 and 5,833,333 shares of Common Stock at exercise prices of $ 10 and $ 12 , respectively, with each tranche becoming exercisable upon satisfaction of its applicable milestone and expiring on the ten year anniversary of the warrant issuance date. The number of shares and exercise price for both tranches is subject to value cap adjustment if the 30 day volume weighted average price per share of the Company’s stock exceeds 150 % of each respective tranche’s exercise price, but disregarding any price increases occurring within 10 business days after a public announcement of the achievement of an applicable milestone, if any. On January 12, 2026, following satisfaction of the applicable milestone on November 10, 2025, Delta exercised the first tranche of the Delta Warrant for 7,000,000 shares. The Company concluded that no assets or liabilities were transferred by either party beyond the Company’s issuance of common stock and warrants in exchange for the total cash consideration from Delta, that the umbrella agreement does not constitute a funded research and development agreement in the scope of ASC 730 Research and Development or a collaborative agreement in the scope of ASC 808 Collaborative Agreements , and that the Delta Warrant is a freestanding financial instrument not indexed to the Company’s own stock. Accordingly, the Company recognized the issuance of Common Stock as equity in additional paid-in capital on consolidated balance sheets and the Delta Warrant as liability on the consolidated balance sheets at fair value. The Delta Warrant issuance was initially recognized as a liability on October 7, 2022, at a fair value of $ 16.1 million based on a Monte Carlo simulation valuation model using the most reliable information available. The Delta Warrant’s liability was remeasured to fair value as of December 31, 2025, 2024 and 2023 resulting in a loss of $ 11.2 million, $ 9.5 million and $ 12.8 million, respectively, which is included within the loss from change in the fair value of warrants, earnout shares and contingent consideration in the consolidated statements of operations. Assumptions used in the valuation of Delta Warrants are as follows: December 31, October 7, 2025 2024 2022 Expected volatility 76.10 % 74.80 % 72.20 % Risk-free interest rate 3.92 % 4.51 % 3.89 % Dividend rate 0.00 % 0.00 % 0.00 % Expected term (in years) 6.80 7.80 10.00 EBITDA Earnout Liability In connection with the Company’s acquisition of Blade (Note 4), the Company recorded contingent consideration related to EBITDA Earnout. The EBITDA Earnout Liability at the closing of the acquisition on August 29, 2025 was $ 7.6 million based on a Monte Carlo simulation valuation model using the most reliable information available. During the three month period ended December 31, 2025, the Company recognized a loss related to the change in the fair value of the EBITDA Earnout Liability of $ 5.8 million which is included within loss from change in fair value of warrants, earnout shares and contingent consideration in the consolidated statements of operations. Assumptions used in the valuation are as follows: December 31, 2025 Expected volatility 35.70 % Risk-free interest rate 3.41 % Dividend rate 0.00 % Expected term (in years) 0.66 Note 9. Stockholders' Equity The Company’s Common Stock and Public Warrants trade on the NYSE under the symbol “JOBY” and “JOBY WS”, respectively. Pursuant to the terms of the Amended and Restated Certificate of Incorporation, the Company is authorized to issue the following shares and classes of capital stock, each with a par value of $ 0.0001 per share: (i) 2,800,000,000 shares of common stock; and (ii) 100,000,000 shares of preferred stock. 79 Table of Contents Preferred stock may be issued at the discretion of the Company’s Board of Directors, as may be permitted by the General Corporation Law of the State of Delaware, and without further stockholder action. The shares of preferred stock would be issuable for any proper corporate purpose, including, among other things, future acquisitions, capital raising transactions consisting of equity or convertible debt, stock dividends or issuances under current and any future stock incentive plans, pursuant to which the Company may provide equity incentives to employees, officers and directors, and in certain instances may be used as an antitakeover defense. As of December 31, 2025 and 2024, there were no preferred stock issued and outstanding. The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. The holders of common stock are not entitled to cumulative voting rights with respect to the election of directors, and as a consequence, minority stockholders are not able to elect directors on the basis of their votes alone. As of December 31, 2025 and 2024, no dividends have been declared to date. The Company had reserved common stock, on an as-converted basis, for future issuance as follows: December 31, 2025 Stock options outstanding under 2016 Stock Plan 6,462,574 Unvested RSU's under 2016 Stock Plan 1,513,837 Unvested RSU's under 2021 Stock Plan 42,068,294 Remaining shares available for future issuance under the 2021 plan 99,197,579 Common stock warrants 21,240,957 Shares available for issuance under the 2021 ESPP plan 13,409,644 Total common stock reserved 183,892,885 December 31, 2024 Stock options outstanding under 2016 Stock Plan 9,887,462 Unvested RSU's under 2016 Stock Plan 3,056,014 Unvested RSU's under 2021 Stock Plan 37,332,726 Remaining shares available for future issuance under the 2021 plan 85,140,199 Common stock warrants 28,783,069 Total common stock reserved 164,199,470 Stock Offerings On May 5, 2023, the Company issued 43,985,681 shares of common stock at a price of $ 4.10 per share in a registered direct offering to certain institutional investors for net proceeds of $ 180.2 million, after deducting offering expenses payable by the Company of $ 0.2 million. On June 29, 2023, the Company issued 15,037,594 shares of common stock at a price of $ 6.65 per share in a private placement to SKT for net proceeds of $ 99.9 million, after deducting offering expenses payable by the Company of $ 0.1 million. In connection with the investment, the Company entered into an agreement with SKT (the “Registration Rights Agreement”) with respect to the issued shares (the “Registrable Securities”) under which, subject to certain requirements and customary conditions, SKT may require the Company to register the Registrable Securities as described in the Registration Rights Agreement. The Registration Rights Agreement contains additional customary covenants between the Company and SKT and certain restrictions on transfer of the Registrable Securities. The registration rights will terminate at such time as Rule 144 is available for the sale of all of the Registrable Securities without limitation during a three-month period without registration and in certain events related to a change of control. On October 28, 2024, the Company issued 46,000,000 shares of common stock at a price of $ 5.05 per share in a underwritten public offering for net proceeds of $ 221.8 million, after deducting commission and offering expenses payable by the Company of $ 10.4 million. In December 2024, the Company entered into an Equity Distribution Agreement with Morgan Stanley & Co. LLC and Allen & Company LLC, under which the Company may offer and sell, from time to time at its sole discretion, up to an aggregate of $ 300.0 million of its common stock in an “at-the-market” offering (the “ATM Offering”).As of December 31, 2025, 29,950,799 shares of our common stock have been sold pursuant to the Equity Distribution Agreement for net 80 Table of Contents proceeds of $ 282.4 million . As of December 31, 2025, $ 8.1 million r emains available for sale under the Equity Distribution Agreement On October 9, 2025, the Company issued 35,075,000 shares of common stock at a price of $ 16.85 per share in a underwritten public offering for net proceeds of $ 575.9 million, after deducting commission and offering expenses payable by the Company of $ 15.1 million On October 1, 2024, the Company entered into a stock purchase agreement (as amended and restated on May 22, 2025, the “Stock Purchase Agreement”) by and between the Company and Toyota Motor Corporation (the “Toyota”) providing for the issuance and sale by the Company to Toyota in a private placement of up to an aggregate of 99,403,579 shares of common stock, par value $ 0.0001 per share, at a purchase price of $ 5.03 per share, upon the terms and conditions set forth in the Stock Purchase Agreement (the “Toyota Private Placement”). The Toyota Private Placement is structured in two equal tranches of $ 250.0 million each. The closing of each tranche is subject to the satisfaction of certain closing conditions set forth in the Stock Purchase Agreement. The first tranche closing occurred on May 22, 2025. The second tranche is subject to conditions including, but not limited to: the execution of a strategic alliance agreement relating to, among other things, manufacturing arrangements, by the Company and Toyota (“Strategic Alliance Agreement”) and certain other customary closing conditions. The agreements to be entered into in connection with such conditions are subject to the receipt of regulatory approvals, the parties negotiating and entering into definitive agreements and the conditions included within the applicable definitive documents. The Company evaluated the terms of the Stock Purchase Agreement and concluded that it does not represent a financial instrument, as defined under U.S. GAAP, until the Restated Collaboration Agreement for the first tranche and the Strategic Alliance Agreement for the second tranche are executed by the Company and Toyota. The execution of the Strategic Alliance Agreement, which is subject to negotiation and finalization between the Company and Toyota, did not occur as of December 31, 2025. Note 10. Revenue Recognition Disaggregated Revenue Disaggregated revenue was as follows (in thousands): Year Ended December 31, 2025 2024 2023 Passenger $ 34,822 $ — $ — Other 18,603 136 1,032 Total Revenue $ 53,425 $ 136 $ 1,032 Passenger revenue primarily includes revenue generated from the transportation of passengers via helicopter or fixed wing aircraft, booked through the Company’s wholly owned subsidiary, Blade Urban Air Mobility, Inc. and its subsidiaries (“Blade”), which operates as an air charter broker. Flights are typically booked through Blade associates, the Blade app, or third-party channels and paid for principally via credit card transactions, wire transfers, checks, customer credits, and gift cards. Flight payments are typically collected at the time of booking before the performance of the related service, and revenue is recognized when the service is completed. Other revenue primarily includes revenue from government flight services, customer demonstration and exhibition activities, and engineering services. Government flight services revenue primarily includes consideration for the Company’s performance of customer-directed flights and on-base operations for various U.S. Department of Defense (DOD) agencies. Demo activities revenue primarily includes consideration for the Company’s performance of customer-directed demonstration and exhibition activities using its aircraft, which may include demonstration flights and related support services performed for counterparties for their benefit. The other revenue is recognized (i) over time, as the performance obligations are satisfied, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services, typically measured based on flight hours, service hours, milestones, or other relevant metrics; 81 Table of Contents or (ii) at a point in time, upon termination of a contract, if applicable, when the Company has fulfilled its obligations and no further performance is required. Contract Liabilities Contract liabilities are defined as entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. As of December 31, 2025 and 2024, the Company’s contract liability balance is $ 7.0 million and $ 5.2 million respectively, classified within accrued and other current liabilities in the condensed consolidated balance sheets. These balances consist of payments from Blade customers and payments for government flight services received in advance of the actual flight, prepaid monthly and annual flight passes, customer credits for flight reservations that were cancelled for good reason by the customer, and prepaid gift card obligations. Customers have one year to use the credit as payment for a future flight with the Company. Revenue recognized out of the beginning balance of contract liability was $ 5.2 million and $ 0.1 million for the year ended December 31, 2025 and 2024, respectively. Addition to contract liability as a result of acquisition (see Note 4) was $ 7.4 million for the year December 31, 2025. Note 11. Stock-based Compensation Equity Compensation Plans In November 2016, the Company’s Board of Directors adopted the 2016 Stock Option and Grant Plan (“2016 Plan”) under which officers, employees, directors, consultants and other key persons of the Company or its affiliates may be granted incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock and restricted stock units. On August 10, 2021, the Company’s Board of Directors amended the 2016 Plan to provide that no new awards could be granted under the 2016 Plan. Under the 2016 Plan, stock options were generally granted with an exercise price equal to the estimated fair value of the Company’s common stock, as determined by the Company’s Board of Directors on the date of grant. Options generally have contractual terms of ten years . Outstanding options generally vest over six years , contain a one year cliff, are exercisable immediately and, upon early exercise, are subject to repurchase by the Company at the original exercise price. If an incentive stock option (“ISO”) is granted to an optionee who, at the time of grant, owns more than 10 % of the voting power of all classes of capital stock, the term of the ISO is five years . Options issued under the 2016 Plan must be priced at no less than the fair value of the shares on the date of the grant provided, however, that the exercise price of an option granted to a 10 % stockholder is not less than 110 % of the fair value of the shares on the date of grant. The Board of Directors determines the exercisability provisions of a stock option agreement at its sole discretion. The fair value of the RSU’s granted under the 2016 Plan was determined by the Company’s Board of Directors on the date of grant. Generally, RSUs granted under the 2016 Plan have a six year vesting period. On August 10, 2021, the Company adopted the 2021 Equity Incentive Plan (“2021 Plan”). Under the 2021 Plan, the Company can grant incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards to employees, directors and consultants. The number of shares available for issuance under the 2021 Plan will be increased on the first day of each fiscal year, beginning on January 1, 2022, in an amount equal to the lesser of (i) a number of shares equal to four percent ( 4 %) of the total number of shares of all classes of common stock of the Company outstanding on the last day of the immediately preceding fiscal year, or (ii) such number of shares determined by the Company’s Board of Directors. Generally, RSUs granted under the 2021 Plan have a three-year or four-year vesting period. On December 31, 2025, the number of shares available for issuance under 2021 Plan was 99,197,579 . On January 1, 2026, the number of shares available for issuance under 2021 plan increased by 36,603,068 shares. 82 Table of Contents Stock Options Activity The summary of stock option activity is as follows: Stock Option Activity Number of Options Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Balances—December 31, 2024 9,887,462 $ 0.75 5.09 $ 72,936 Options canceled and forfeited ( 81,330 ) $ 0.96 Options exercised ( 3,379,622 ) $ 0.74 Balances—December 31, 2025 6,426,510 $ 0.76 4.19 $ 79,949 Vested and expected to vest 6,426,510 $ 0.76 4.19 $ 79,949 Options exercisable 5,609,242 $ 0.69 4.10 $ 70,165 No options were granted in the years ended December 31, 2025, 2024 and 2023. The total intrinsic value of options exercised was $ 33.7 million, $ 18.0 million and $ 15.2 million respectively, during the years ended December 31, 2025, 2024 and 2023. Restricted Stock Units A summary of RSU activity is as follows: (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Per Share Aggregate Intrinsic Value (in thousands) Balances—December 31, 2024 40,388,740 $ 5.94 $ 328,360 Granted 24,703,532 $ 10.03 Vested ( 14,199,687 ) $ 6.00 Forfeited ( 7,288,035 ) $ 6.49 Balances—December 31, 2025 43,604,550 $ 8.14 $ 575,580 The total fair value of RSUs vested for the years ended December 31, 2025, 2024 and 2023 was $ 85.2 million, $ 90.9 million and $ 60.6 million, respectively. On February 27, 2023, the Company’s Compensation Committee of the Board of Directors (“Compensation Committee”) approved a performance-based bonus program under which RSUs were awarded in connection with the achievement of specified goals in 2023 (“2023 Bonus Plan”). The RSU awards were granted when the achievement of each goal was approved by the Compensation Committee in 2023, and the RSUs vested in equal installments in each of January, February, March and April 2024 provided the employee or consultant continued to be a service provider through the relevant vesting dates. The target bonus opportunity was equal to 30 % of the employee’s base salary as of the applicable grant date, with stretch bonus goals that were one-third higher than the target amounts unless otherwise established by the Compensation Committee. In accordance with ASC 718 Compensation - Stock Compensation , awards under 2023 Bonus Plan were classified as a liability until such time that the respective milestones were met, at which point the liability was reclassified to equity. If it was determined that a milestone could not be met, the liability was reversed. On February 12, 2024, the Compensation Committee approved a performance-based program under which RSUs are awarded. Each RSU represents the right to receive, upon vesting, up to 1.25 shares of the Company’s common stock, based on the achievement of certain specified objectives tied to five goals during 2024 (“2024 Bonus Plan”). Each goal had criteria for achievement of a minimum, target or maximum achievement level, expressed as a percentage, and vesting percentage was determined by summing the actual achievement percentages as of December 31, 2024. Under the 2024 Bonus Plan, the maximum possible vesting percentage was 125 %. Achievement at exactly the minimum or target levels would result in 45 % or 100 % vesting , respectively. The RSUs awarded under the 2024 Bonus Plan vested in equal installments on each of January 14, 2025, February 10, 2025, March 4, 2025 and April 7, 2025. In accordance with ASC 718 Compensation - Stock Compensation , the Company determined that the 2024 Bonus Plan awards were equity awards with a performance condition, and classified them as equity. 83 Table of Contents On February 4, 2025, the Compensation Committee approved a performance-based program under which RSUs are awarded. Each RSU represents the right to receive, upon vesting, up to 1.25 shares of the Company’s common stock, based on the achievement of certain specified elements tied to five goals during the first half of calendar year 2025 (“H1 2025 Bonus Plan”). Each goal has criteria for achievement of a minimum, target or maximum achievement level, expressed as a percentage, and the amount of the awards that will vest is calculated by summing the actual achievement percentages as of June 30, 2025. The maximum possible amount that will vest is 125 %. If exactly the minimum or target levels are achieved, 50 % and 100 % of the awards, respectively, will vest. The RSUs awarded under the H1 2025 Bonus Plan will vest in equal installments on each of January 12, 2026, February 9, 2026 and March 9, 2026, subject in each case to the participant’s continued status as a service provider through the respective vesting date. In accordance with ASC 718 Compensation - Stock Compensation , the Company has determined that the H1 2025 Bonus Plan awards are equity awards with a performance condition, and has classified them as equity. On July 28, 2025, the Compensation Committee approved a performance-based program under which RSUs are awarded. Each RSU represents the right to receive, upon vesting, up to 2 shares of the Company’s common stock, based on the achievement of certain specified elements tied to six goals during the period from July 1, 2025 to February 18, 2026 (“H2 2025 Bonus Plan”). Each goal has criteria for achievement of a target or maximum achievement level, expressed as a percentage, and the amount of the awards that will vest is calculated by summing the actual achievement percentages as of February 18, 2026. The maximum possible amount that will vest is 200 %. If exactly the target levels are achieved, 100 % of the awards will vest. For five of the six goals, the achievement percentage shall be equal to the target achievement percentage of 100 % if the goal is achieved on the target date of December 31, 2025 (“Target Date”). If the goal is achieved earlier or later than the Target Date, the achievement percentage shall be increased or decreased on a pro rated basis for each day, up to 200 % if the goal is achieved on or before November 11, 2025, or 0 % if the goal is achieved on or after February 19, 2026, respectively. For the sixth goal, achievement is determined by the number of elements achieved on or before December 31, 2025. The RSUs awarded under the H2 2025 Bonus Plan will vest in equal installments on each of March 9, 2026 and April 7, 2026, subject in each case to the participant’s continued status as a service provider through the respective vesting date. In accordance with ASC 718 Compensation - Stock Compensation , the Company has determined that the H2 2025 Bonus Plan awards are equity awards with performance condition, and classified them as equity. On June 21, 2023, the Compensation Committee approved long-term incentive performance-based RSU awards (“LTI Awards”) to certain employees of the Company. The LTI Awards vest in a single installment on June 21, 2026, provided that (i) certain performance conditions are met on or prior to that date and (ii) the employee continues to be a service provider through the vesting date. The Company considers the probability of achieving each of the performance goals at the end of each reporting period and recognizes expense over the requisite service period when achievement of the goal is determined to be probable, and adjusts the expense if the probability of achieving the goal later changes. On June 2, 2025, the Compensation Committee approved long-term incentive performance-based RSU awards (“2025 LTI Awards”) to certain employees of the Company. The 2025 LTI Awards vest provided that (i) certain performance conditions are met on or prior to the dates stated in the 2025 LTI Awards agreements and (ii) the employee continues to be a service provider through the achievement of such performance conditions. The Company considers the probability of achieving each of the performance goals at the end of each reporting period and recognizes expense over the requisite service period when achievement of the goal is determined to be probable, and adjusts the expense if the probability of achieving the goal later changes. On February 12, 2024, the Compensation Committee approved a long-term performance-based RSU awards (“LPA Awards”) to certain employees of the Company. The LPA Awards have the same performance conditions as the awards granted under the 2024 Bonus Plan and will vest in three equal annual installments on the anniversary of the grant date, provided that performance conditions are satisfied and the employee continues to be a service provider through the respective vesting dates. In accordance with ASC 718 Compensation - Stock Compensation , Management has determined that these LPA Awards are equity awards with performance and service conditions, and classified them as equity. The Company recorded stock-based compensation expense in relation to its Bonus Plans and LTI awards of $ 20.6 million, $ 18.1 million and $ 31.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. Employee Stock Purchase Plan On August 10, 2021, the Company adopted the 2021 Employee Stock Purchase Plan (“2021 ESPP”). Under the 2021 ESPP, participating employees may be offered the option to purchase shares of the Company’s Common Stock at a purchase price which equals 85 % of the fair market value of the Company’s common stock on the enrollment date or on the exercise date, whichever is lower. Under the terms of 2021 ESPP, if the closing price of the Company’s shares on the exercise date falls below the closing price of the Company’s shares on the enrollment date for an ongoing offering, the ongoing offering will terminate immediately following the purchase of ESPP shares on the exercise date and participants in 84 Table of Contents the terminated offering will automatically be enrolled in the new offering (“ESPP Reset”), potentially resulting in an additional modification to stock-based compensation expense to be recognized over the new offering period. Due to the changes in the Company’s stock price, an ESPP Reset occurred on May 15, 2024, resulting in incremental stock-based compensation expense recognized over the offering period that ended on May 15, 2025. The number of shares of common stock available for issuance under the 2021 ESPP will be increased on the first day of each fiscal year beginning on January 1, 2022, in an amount equal to the lesser of (i) a number of shares of common stock equal to half percent ( 0.5 %) of the total number of shares of all classes of common stock of the Company on the last day of the immediately preceding fiscal year, or (ii) such number of shares determined by the Company’s Board of Directors. On December 31, 2025, the number of shares available for issuance under 2021 ESPP was 13,409,644 . On January 1, 2026, the number of shares available for issuance under 2021 ESPP increased by 4,575,383 shares. During the year ended December 31, 2025, the Company issued 2,308,333 shares under the 2021 ESPP. The stock-based compensation expense recognized for the 2021 ESPP was $ 6.4 million, $ 6.5 million and $ 3.7 million for the year ended December 31, 2025, 2024 and 2023, respectively. The assumptions in the Black-Scholes option-pricing models used to determine the fair value of 2021 ESPP awards granted were as follows: Year Ended December 31, 2025 2024 Expected volatility 78.7 % - 91.8 % 56.1 % - 77.0 % Expected dividend yield — % — % Expected term (in years) 0.5 - 1.0 0.5 - 1.0 Risk-free interest rate 3.7 % - 4.3 % 4.3 % - 5.4 % Expected volatility - We estimate the expected volatility of our common stock on the date of grant based on the historical stock price volatility of our own common shares within the same length of period as the expected term. Risk-free interest rate - The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the awards. Expected dividend yield - The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock. Expected term - The expected term represents the period these stock awards are expected to remain outstanding and is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules, and expectations of future employee behavior. Stock-based compensation expense The following sets forth the total stock-based compensation expense for the Company’s stock options included in the Company’s consolidated statements of operations (in thousands): Year Ended December 31, 2025 2024 2023 Research and development expenses $ 96,180 $ 83,063 $ 73,160 Selling, general and administrative expenses 31,707 21,383 20,476 Total stock-based compensation expense $ 127,887 $ 104,446 $ 93,636 As of December 31, 2025, total unrecognized compensation cost related to stock awards was $ 302.0 million to be recognized over a weighted average remaining requisite service period of approximately 2.5 years. Shares Subject to Repurchase The Company allows certain option holders to exercise unvested options to purchase shares of common stock. Common shares received from such early exercises are subject to a right of repurchase at the original issuance price. The Company’s repurchase right with respect to these shares lapses as the shares vest. These awards are typically subject to a vesting period of six years . As of December 31, 2025 and 2024, 708,731 and 1,154,146 shares, respectively, were subject to repurchase at 85 Table of Contents a weighted average price of $ 0.04 per share and $ 0.05 per share, respectively, and $ 0.0 million and $ 0.1 million, respectively, was recorded within the other non-current liabilities on the Company’s consolidated balance sheets. In addition, upon completion of the Reverse Recapitalization 2,677,200 shares of Legacy Joby preferred stock which were subject to time-based vesting conditions were converted to shares of restricted common stock. As of December 31, 2025 and 2024, the number of such shares that were subject to repurchase was 668,384 and 1,114,380 . Note 12. Income Taxes The components of loss before taxes are as follows (in thousands): Year Ended December 31, 2025 2024 2023 United States $ ( 910,122 ) $ ( 597,424 ) $ ( 506,243 ) International ( 18,413 ) ( 10,481 ) ( 6,668 ) Loss before income taxes $ ( 928,535 ) $ ( 607,905 ) $ ( 512,911 ) The provision for income taxes is as follows (in thousands): Year Ended December 31, 2025 2024 2023 Current Federal $ — $ — $ — State — 14 6 Foreign 1,307 115 133 Total current provision $ 1,307 $ 129 $ 139 Deferred Federal — — — State — — — Total deferred benefit — — — Total provision (benefit) $ 1,307 $ 129 $ 139 A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows: Year Ended December 31, 2025 (in thousands) % Tax at U.S. Statutory Rate $ ( 194,992 ) 21.0 % State and Local Income Taxes ( 2 ) — % Foreign Tax Effects Effect of Foreign Operations 4,096 ( 0.4 ) % Tax Credits Research and development tax credits ( 31,180 ) 3.4 % Changes in Valuation Allowances 177,069 ( 19.2 ) % Nontaxable and Nondeductible items Share-based compensation, net (1) ( 11,839 ) 1.3 % Other Adjustments 12,499 ( 1.3 ) % Change in Fair Value of Derivative 44,488 ( 4.8 ) % Changes in Unrecognized Tax Benefits 1,168 ( 0.1 ) % Effective Tax Rate $ 1,307 ( 0.1 ) % 86 Table of Contents (1) Includes amounts related to non-deductible stock-based compensation, including non-deductible executive compensation, in addition to excess tax benefits or shortfalls from stock-based compensation. Our tax provision includes $ 13 million of excess tax benefits for 2025. A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows: Year Ended December 31, 2024 2023 % % Tax at federal statutory rate ( 21.0 ) % ( 21.0 ) % State taxes, net of federal benefit — % ( 1.6 ) % Permanent differences 3.5 % 16.8 % Change in valuation allowance 22.4 % 9.0 % Tax credits ( 4.9 ) % ( 3.2 ) % Effective income tax rate 0.0 % 0.0 % Significant components of the Company’s net deferred tax assets (in thousands): December 31, 2025 2024 2023 Deferred tax assets: Net operating loss carryforwards $ 403,606 $ 190,451 $ 138,735 Research and development credits 165,103 115,651 55,492 Accruals and reserves — 567 2,479 Property and equipment 3,277 2,892 3,110 Stock-based compensation 14,075 6,094 16,396 Goodwill 3,921 2,965 4,311 Intangibles 207 2,769 2,234 Lease Liability 642 515 664 Capitalized R&D 160,300 173,217 88,985 Other 12 — — Total deferred tax assets 751,143 495,121 312,406 Valuation allowance ( 736,003 ) ( 481,760 ) ( 295,740 ) Net deferred tax assets $ 15,140 $ 13,361 $ 16,666 Deferred tax liabilities Contractual agreement ( 15,479 ) ( 13,361 ) ( 16,666 ) Total deferred tax liabilities ( 15,479 ) ( 13,361 ) ( 16,666 ) Net deferred tax assets $ ( 339 ) $ — $ — The following shows the changes in the gross amount of unrecognized tax benefits as follows (in thousands): Year Ended December 31, 2025 2024 2023 Unrecognized tax benefits, beginning of the year $ 42,045 $ 20,241 $ 14,571 Increases related to prior year tax positions 563 6,925 684 Decreases related to prior year tax positions — — ( 1,037 ) Increases related to current year tax positions 16,335 14,879 6,023 Unrecognized tax benefits, end of year $ 58,943 $ 42,045 $ 20,241 87 Table of Contents The Company has adopted the accounting policy that interest and penalties recognized are classified as part of its income taxes. As of December 31, 2025 and 2024 , the Company has accrued $ 0.4 million and $ 0.0 million interest and penalties, respectively. As of each of December 31, 2025 and 2024, the Company has unrecognized tax benefits that, if recognized, would impact its effective tax rate by $ 0.8 million and $ 0.0 million, respectively. In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Due to the uncertainty of the business in which the Company operates, projections of future profitability are difficult and past operating results are not necessarily indicative of future profitability. Management does not believe it is more likely than not that the deferred income tax assets will be realized; accordingly, a full valuation allowance has been established on net deferred income tax assets. The valuation allowance increased by $ 254.2 million during the year ended December 31, 2025, and by $ 186.0 million during the year ended December 31, 2024. As of December 31, 2025, the Company had federal net operating loss carryforwards (“NOLs”) of $ 1,662.0 million, of which approximately $ 15.8 million will begin to expire in 2036 and the remainder do not expire. As of December 31, 2024, the Company had federal net operating loss carryforwards (“NOLs”) of $ 817.6 million of which approximately $ 1.3 million will begin to expire in 2036 and the remainder do not expire. As of December 31, 2025 and 2024, the Company had state NOLs of $ 601.0 million and $ 156.2 million, respectively, that will begin to expire in 2032. In addition, the Company had foreign NOLs of $ 58.4 million and $ 28.0 million as of December 31, 2025 and 2024, respectively. At December 31, 2025, the Company had federal research and development credits of $ 105.1 million and California research and development credits of $ 60.0 million. The federal credits will expire beginning 2036, while California credits have no expiration. At December 31, 2024, the Company had federal research and development credits of $ 101.6 million and California research and development credits of $ 66.6 million. The federal credits will expire beginning 2036, while California credits have no expiration. The realizability of the deferred tax assets is primarily dependent on our ability to generate sufficient taxable income in future periods. The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more-likely-than-not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified. Based on cumulative taxable income, projections for future taxable income, and the timing of reversal of deferred tax liabilities, the Company has recorded a valuation allowance against certain deferred tax assets. Note 13. Related Party Transactions The Company’s Chief Executive Officer and founder has ownership interests in certain vendors that provide services to the Company. Services purchased from these vendors include rent of office space and certain utilities and maintenance services related to the property on which the rented premises are located, and an aircraft charter. Expenses and related payments to these vendors totaled $ 0.7 million, $ 0.6 million and $ 0.6 million during the years ended December 31, 2025, 2024 and 2023, respectively. The Company owed these vendors $ 0.0 million and $ 0.0 million as of December 31, 2025 and 2024, respectively. Toyota Motor Corporation (“Toyota”) is a beneficial owner of more than 10 % of the voting interests of the Company and has the right to designate a director for election to the Company’s Board of Directors. Toyota is developing prototypes and supplying parts and materials for some of the Company’s manufactured subassembly components. The Company made payments to Toyota for these parts and materials totaling $ 1.1 million, $ 0.7 million and $ 1.3 million during the years ended December 31, 2025, 2024 and 2023, respectively. In addition, the Company recognized revenue from Toyota related to demonstration flights and related support services amounting to $ 6.3 million during the three month period ended December 31, 2025. Additionally, the Company identified an embedded finance lease within the Company’s purchase and sale agreement with Toyota for subassembly components in the amount of $ 7.2 million, $ 4.1 million and 3.8 million as of December 31, 2025, 2024 and 2023, respectively. The Company owed Toyota $ 0.1 million and $ 0.0 million as of December 31, 2025 and 2024, respectively. In October 2024, the Company and Toyota signed a stock purchase agreement pursuant to which Toyota committed to invest up to an additional $ 500 million, subject to the satisfaction of certain closing conditions. In May 2025, the Company completed initial closing under this stock purchase agreement and issued 49,701,790 shares at the per share purchase price of $ 5.03 , for an aggregate purchase price of 250,000,000 (“Initial Closing”). The Company recorded a noncash loss of $ 40.3 million in relation to the Initial Closing to account for the difference between the amount of aggregated purchase price and the fair value of shares issued as of the date of issuance. The fair value of the stock as of the date of issuance was determined based on the market price of the Company’s shares adjusted for a lack of marketability discount, as issued 88 Table of Contents shares were not registered with the SEC. The loss was presented in the loss on common stock issuance in private placement line within other loss, net, in the consolidated statements of operations during the year ended December 31, 2025. Note 14. Net Loss per Share Attributable to Common Stockholders Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Because the Company reported a net loss for 2025, 2024 and 2023, the number of shares used to calculate diluted net loss per common share is the same as the number of shares used to calculate basic net loss per common share for those periods presented because the potentially dilutive shares would have been antidilutive if included in the calculation. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2025 2024 2023 Numerator: Net loss attributable to common stockholders $ ( 929,842 ) $ ( 608,034 ) $ ( 513,050 ) Denominator: Weighted-average shares outstanding 826,240,955 699,794,747 647,907,598 Net loss per share attributable to common stockholders, basic and diluted $ ( 1.13 ) $ ( 0.87 ) $ ( 0.79 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Year Ended December 31, 2025 2024 2023 Common stock warrants 21,240,957 28,783,069 28,783,333 Unvested restricted stock awards 668,384 1,114,380 1,561,599 Unvested restricted stock units 43,582,131 40,388,740 31,076,699 Unvested early exercised common stock options 708,731 1,154,146 1,988,511 Options to purchase common stock 6,462,574 9,887,462 13,574,585 Total 72,662,777 81,327,797 76,984,727 Note 15. Segment Reporting The Company has one operating and reportable segment, air transportation and related services (“Services”). The Services segment includes research and development and related activities to research, develop, test, and manufacture the Company’s eVTOL aircraft and supporting systems, which are managed and evaluated on a consolidated basis. The Services revenue primarily includes consideration received for (i) facilitation of passenger transportation via helicopter or fixed wing aircraft primarily in the Northeast United States and Southern Europe, (ii) performance of customer-directed flights and on-base operations for various DOD agencies, and (iii) other services related to the Company’s core operations. The accounting policies of the services segment are the same as those described in the summary of significant accounting policies. As the Company has a single reportable segment and is managed on a consolidated basis, the measure of segment profit or loss is consolidated net loss as reported in the consolidated statement of operations. The measure of segment assets is the total assets as reported in the consolidated balance sheet. The Company does not have intra-entity sales or transfers. 89 Table of Contents The following table presents the segment disclosures required under U.S. GAAP (in thousands): Services segment Year Ended December 31, 2025 Year Ended December 31, 2024 Revenue: $ 53,425 $ 136 Operating expenses: People related costs, excluding stock based compensation expense ( 371,130 ) ( 316,485 ) Loss from change in fair value of warrants, earnout shares, and contingent consideration ( 211,850 ) ( 53,973 ) Stock-based compensation expense ( 127,887 ) ( 104,446 ) Other segment items (1) ( 272,400 ) ( 133,266 ) Net loss $ ( 929,842 ) $ ( 608,034 ) (1) Other segment items comprise primarily of depreciation and amortization, materials used in research & development activities, government grants (presented as a reduction of research and development expenses), professional services, other overhead expenses, and interest and other income, net. Geographic Information Revenue by geography is based on the location where the underlying services are provided. Long-lived assets, net includes property and equipment, net and operating right-of-use assets. Summary financial data attributable to various geographic regions for the periods indicated is as follows (in thousands): Year Ended December 31, 2025 2024 2023 Revenue United States $ 35,751 $ 136 $ 1,032 Japan 8,134 — — Europe 6,768 — — Other 2,772 — — $ 53,425 $ 136 $ 1,032 December 31, 2025 2024 Long-lived assets United States $ 160,299 $ 135,597 Other 18,109 14,046 $ 178,408 $ 149,643 Note 16. Subsequent Events On January 12, 2026, Delta exercised the first tranche of the Delta Warrant (described in Note 8) to purchase 7,000,000 shares of common stock at $ 10 per share for $ 70.0 million in cash proceeds, following achievement of the applicable milestone. On January 28, 2026, the Company entered into an underwriting agreement to issue and sell 52,863,437 shares of common stock at a public offering price of $ 11.35 per share and granted the underwriters a 30‑day option to purchase up to an additional 7,929,515 shares of common stock. The issuance of the 52,863,437 shares was completed on February 2, 2026, and the Company received net proceeds of approximately $ 576.0 million, after deducting underwriting discounts and commissions and estimated offering expenses. On January 28, 2026, the Company also entered into a separate underwriting agreement relating to the offer and sale (including short sales) of up to 5,286,343 shares of the Company’s common stock in connection with market activities relating to the Company’s 0.75 % convertible senior notes due 2032. These transactions involved existing shares of the Company’s common stock. On February 2, 2026, the Company issued $ 690.0 million aggregate principal amount of 0.75 % convertible senior notes due 2032 (the “2032 Notes”), including the full exercise of the initial purchasers’ option to purchase an additional $ 90.0 90 Table of Contents million principal amount. The Company received net proceeds of approximately $ 670.4 million, after deducting underwriting discounts and commissions and estimated offering expenses. The 2032 Notes are senior, unsecured obligations and bear interest at 0.75 % per year, payable semiannually in arrears on February 15 and August 15 (beginning August 15, 2026), and mature on February 15, 2032, unless earlier repurchased, redeemed or converted. The 2032 Notes are convertible into cash, shares of common stock or a combination of cash and shares, at the Company’s election, subject to customary conversion conditions, including based on stock price and trading price triggers, upon certain corporate events, or during the final conversion period beginning November 17, 2031. The Company may redeem the notes for cash on or after February 20, 2029, subject to specified conditions. The initial conversion rate is 70.4846 shares per $1,000 principal amount (initial conversion price is approximately $ 14.19 per share), subject to customary anti-dilution adjustments and potential increases upon certain make-whole events. If a fundamental change occurs, holders may require the Company to repurchase the notes for cash at 100 % of principal plus accrued interest. The indenture contains customary covenants and events of default. In connection with the issuance of the 2032 Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions at an aggregate cost of approximately $ 63.3 million. The capped call transactions are expected to reduce potential dilution from conversion of the 2032 Notes and/or offset certain cash payments the Company would be required to make in excess of the principal amount upon conversion. The capped call transactions initially have a strike price of approximately $ 14.19 per share and an initial cap price of $ 22.70 per share (each subject to customary adjustments). The capped call transactions provide for net share settlement as the default settlement method, with cash settlement applicable only if elected under the terms of the confirmations. 91 Table of Contents Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures None.