What are the implications for the company's valuation multiples (e.g., EV/EBITDA, P/E) after this earnings release?

Valuation‑multiple outlook

Surf Air’s Q2 beat on both top‑line and adjusted‑EBITDA signals a material lift in profitability versus the consensus view that was already baked into the stock’s valuation. The “inflection‑point” narrative and the mention of a “strengthened balance sheet” suggest that the company now has a clearer runway to sustain higher cash‑flow generation. In practice this means:

• EV/EBITDA: With adjusted EBITDA coming in well above guidance, the denominator of the EV/EBITDA ratio has risen sharply. Even if the market pushes the share price up on the beat, the jump in EBITDA will more than offset the price move, tightening the multiple (i.e., a lower EV/EBITDA). The compression signals that the stock is being re‑priced to reflect a more mature, cash‑positive business rather than a high‑growth, low‑margin one.

• P/E: The earnings beat also lifts the trailing‑12‑month (or forward) net‑income figure. Assuming the price reaction is modest—typical for a small‑cap that already trades at a premium on growth—P/E will compress as well. A tighter P/E (down from the pre‑beat level) indicates the market is assigning a more “earnings‑anchored” valuation to Surf Air, which is a positive sign for risk‑adjusted returns.

Trading take‑aways

• Short‑term bias: The immediate price reaction is likely to be positive but limited, as the market has already priced in a growth premium. The resulting multiple compression creates a short‑term buying opportunity on any pull‑back to the pre‑beat level, especially if the stock remains under‑weighted on fundamentals relative to peers.

• Medium‑term view: If the company can sustain the higher EBITDA trajectory and continue to strengthen its balance sheet, the compressed multiples may start to expand again as the growth story re‑emerges. Positioning for a breakout on a breakout of the 20‑day moving average, with a stop just below the recent low, would capture upside while protecting against a re‑valuation correction.