SRTAW

• Transformational transactions: Closed divestiture of passenger business and acquisition of Keystone, rebranded to Strata Critical Medical.
• Revenue growth: Q3 revenue up 36.7% YOY to $49.3M; excluding Keystone, up 29%; organic growth from Air Logistics and Organ Placement Services.
• Margin improvement: Medical segment adjusted EBITDA margin 15.1% in Q3 2025 excluding Keystone, up from 12.5% in H1.
• Keystone integration: Launched clinical services division, end-to-end organ recovery platform; NRP adoption increasing; supported new technologies like OrganOx's FDA approval.
• Cash flow: Generated ~$2M free cash flow from continuing operations, ~$2.7M before aircraft/engine acquisitions; Keystone acquisition had accounting impact leading to negative operating cash flow.
• Joby transaction: $80M upfront consideration in stock monetized for ~$70M cash; $10M difference due to stock price decline.
• Legal provision: Booked legal provision for ongoing litigation related to go-public transaction.

• Raised 2025 revenue guidance range to $185M-$195M.
• Reaffirmed adjusted EBITDA guidance range $13M-$14M.
• Medical segment adjusted EBITDA margins expected to rise sequentially in Q4 due to Keystone mix impact.
• Adjusted unallocated corporate expenses expected ~$3.5M in Q4.
• Inaugural Investor Day on Nov 17 to introduce 2026 guidance and medium-term targets.

Revenue in Q3 2025 was $49.3 million, up 36.7% year-over-year. Excluding Keystone, revenue increased 29% versus the prior year period. Organic revenue growth in Q3 was driven by strength in Air Logistics, with new and existing customers contributing, and Organ Placement Services revenue more than doubling year-over-year. Keystone, which closed on September 16, had a 0.5 month revenue contribution of $2.8 million during Q3, and in September, its revenue increased over 40% year-over-year. The Medical segment adjusted EBITDA margin was 15.1% in Q3 2025, excluding Keystone, up from 12.5% in the first half of the year, driven by improved fleet performance.

• Accounting complexities related to Keystone's capital structure and Joby transaction.
• Seasonality in transplant volumes impacting revenue sequentially.
• Legal risks from ongoing litigation related to go-public transaction.

Q: Could you provide a bit of a disaggregation of where the growth came from in terms of the revenue here during Q3?

A: It was a pretty even mix of new customer acquisition, taking market share, and some strength within existing customers where they took new services. We've broadened the suite of services we offer.

Q: Do you see the growth as coming from similar directions in the future? Are the growth drivers similarly weighted as you see it?

A: Yes, we continued to add new customers in the quarter and see an attractive opportunity to consolidate market share in a fragmented marketplace with our stronger offering. Also, the underlying industry growth trajectory with new technology and evolving regulations creates attractive growth.

Q: What should we expect in terms of fleet margin kind of the remainder of the year downtime impact? Any moving pieces that's changed because of the maintenance schedule earlier this year?

A: We did see scheduled maintenance events come down into the third quarter and continue into the fourth quarter. We expect margins to increase sequentially within the Medical segment, and we'll talk more about margin expectations moving forward at the Investor Day.

Q: Is the relocation things associated with Keystone relatively de minimis in terms of expenses that we should factor in?

A: I don't think it's anything you need to factor into the SG&A. It's more about aligning our resources so that we're not flying people across the country when we don't have to deliver these services.

Q: With the Keystone acquisition, could you give us a sense of how many individual separate customers you are serving now?

A: Keystone has almost 250 different customers across the country across both the cardiac care business and the transplant business. There's a really great geographic diversity. There's only about 10% overlap of the transplant customers between the legacy Strata business and Keystone.

Q: Is there any customer that's like 5% or more now of revenues? Any one customer that's that large?

A: We don't break out the customers on a business line by business line basis, but it's a very diversified business given that 250 customers for the revenue base there.

Q: You said you got a new customer right at the end of the quarter?

A: On the logistics business, we added a new customer on the logistics side for organ procurement organization. Those contracts tend to be a little more focused on the ground than on the air, but they'll do a little bit of both. And we also added a new customer for organ placement as well.

Q: As far as on the logistics side or the organ transplant side, is air still predominantly the larger part?

A: Air is still a much larger part of the business, though Keystone is weighted more towards some of the organ procurement organization customers which do have a lot of ground business. But it won't create a material shift in the logistics business in terms of the weighting between air and ground.

Q: Why don't you take the question about the seasonality that we saw in the third quarter with transplant volumes down mid-single digits?

A: This is something we expected, and we've seen it in the industry volumes the last 3 years or so in a row. At the end of the day, there's a supply and availability of transplant surgeons factor that drives the amount of volumes that can take place in the industry. But given our market share growth, our new offerings and expanded service lines, we're growing right through that seasonality.

Q: With the Keystone acquisition, could you give us a sense of how the acquisition is going so far?

A: We're getting real good positive reaction from our customers on the Keystone acquisition, and it's really a great team of people that we're thrilled to have join us. With Keystone surgical recovery and NRP capabilities, it truly makes us an end-to-end organ recovery platform.