Air T, Inc. (NASDAQ: AIRT) reported a quarterly loss per share of $(5.86) for its fiscal 2027 first quarter ended June 30, 2026, a significant widening from the $(0.61) loss per share recorded in the same quarter of the prior fiscal year. Despite the deterioration in earnings per share, the company logged strong top-line growth, with revenues rising 63% year-over-year to $115.5 million (reported precisely as $115.461 million in new data). This revenue surge contrasts sharply with the expanded operating loss of $12.8 million, compared to an operating income of $0.8 million in the prior-year period.

The shift in profitability was primarily driven by transaction and integration costs associated with Crestone Air Partners' acquisition of Arena Aviation Partners, alongside non-cash depreciation charges from the fair-value step-up of the Rex aircraft fleet. The adjusted EBITDA decreased 45% to $0.8 million in the quarter, down from $1.5 million in the prior-year period.

Financial Performance Overview

On a trailing twelve-month basis, revenues increased 25% to $371.7 million. While the twelve-month operating loss widened to $24.9 million from an income of $3.3 million in the prior period, trailing adjusted EBITDA grew 19% to $9.5 million.

Crestone Completes Arena Acquisition

On June 10, Crestone completed the acquisition of Arena Aviation Capital for $33.9 million, comprising $21.7 million in cash and $12.2 million in contingent consideration. Blue Owl contributed $10.0 million for Class B preferred units representing 10.25% of the platform, leaving Air T with an 83.9% ownership stake. The combined platform manages $3.0 billion in assets under management and has $0.6 billion committed under letters of intent, covering 124 aircraft and 17 engines.

In the final 21 days of the quarter post-close, the segment generated $1.4 million in fees but reported a $3.5 million operating loss. This loss was largely attributed to $3.0 million in acquisition-related transaction costs. The segment also recorded a $0.3 million adjusted EBITDA loss, reflecting fixed general and administrative costs against limited transaction closings during the short period.

Rex Operational Update

Rex generated $55.9 million in revenue and $1.9 million in adjusted EBITDA during the quarter, while reporting an operating loss of $7.7 million. The operating loss was primarily driven by $8.8 million in depreciation and amortization charges resulting from the revaluation of the fleet at acquisition. Air T noted that this is a non-cash item stemming from the $111.2 million bargain purchase gain recognized upon closing, which led to a write-up of Rex assets.

Operational constraints continue to affect aircraft availability due to unscheduled engine removals and third-party maintenance turnaround times. Rex currently operates 32 active aircraft, with 30 scheduled on regular flying lines. Management emphasized that restoring network connectivity to remote and rural Australia remains a top priority.

What the Numbers Show

A significant divergence exists between Air T's revenue growth and its profitability metrics in Q1 FY27. While revenue expanded by 63%, adjusted EBITDA contracted by 45% and EPS losses widened nearly tenfold from $(0.61) to $(5.86). This disconnect highlights the immediate impact of acquisition-related integration costs and non-cash accounting adjustments rather than core operational inefficiencies. Specifically, the $12.8 million operating loss contrasts sharply with the $115.5 million revenue base, indicating that current profitability is heavily suppressed by one-time transaction expenses and purchase accounting depreciation rather than underlying business performance.

Balance Sheet and Shareholder Returns

Air T ended the quarter with $21.7 million in cash and restricted cash, alongside $42.4 million in available funds under its lines of credit. Since October 2013, the company has repurchased 840,855 shares net of issuances, representing 31% of shares outstanding. The company will hold its annual meeting on August 25, 2026, in Minneapolis.

Air T has entered into an At-The-Market (ATM) offering agreement to sell up to $8M of its common stock. The company intends to use the net proceeds from the offering for general corporate purposes, which may include working capital and capital expenditures.

Under the agreement, Air T may sell the shares from time to time through the sales agent or directly to the market. The sales will be made at prevailing market prices, meaning the actual price per share will fluctuate based on trading conditions at the time of each sale.

There is no guarantee that the company will sell the full amount authorized under the agreement. The offering is structured to provide flexibility, allowing Air T to access capital markets opportunistically without the need for a traditional underwritten offering.

Key Details of the Offering