Good morning, ladies and gentlemen, and welcome to the Blade Air Mobility Fiscal Second Quarter 2025 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this call is being recorded. I would now like to turn the conference call over to Matt Schneider, Vice President of Investor Relations and Strategic Finance. Matt, you may now begin. Thank you for standing by and welcome to the Blade Air Mobility Conference Call and Webcast for the quarter ended June 30th, 2025. We appreciate everyone joining us today. Before we get started, I would like to remind you of the company's forward-looking statement and safe harbor language. Statements made in this conference call that are not historical facts, including statements about future time periods, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, and actual future results may differ materially from those expressed or implied by the forward-looking statements. We refer you to our SEC filings, including our annual report on Form 10-K filed with the SEC, for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements provided during this conference call are made only as of the date of this call. As stated in our SEC filings, Blade disclaims any intent or obligation to update or revise these forward-looking statements except as required by law. During today's call, we will also discuss certain non-GAAP financial measures, which we believe may be useful in evaluating our financial performance. A reconciliation of the most directly historical, comparable, consolidated GAAP financial measures to those historical non-GAAP financial measures is provided in our earnings press release and investor presentation. Our press release, investor presentation, and our Form 10-Q and 10-K filings are available on the Investor Relations section of our website at ir.stratacritical.com. These non-GAAP measures should not be considered in isolation or as substitutes for financial results prepared in accordance with GAAP. Hosting today's call are Rob Wiesenthal, Founder and Chairman of Blade, Will Heyburn, Co-CEO and Chief Financial Officer, and Melissa Tompkins, Co-CEO and General Counsel. I'll now turn the call over to Rob. Thank you, Matt, and good morning, everyone. Yesterday, we announced the sale of the Blade passenger business to Joby Aviation for up to $125 million. This transaction is transformational for both the Blade passenger business and Blade's medical division, which will remain a standalone publicly traded company and be renamed Strata Critical Medical. It will be a pure-play contractual medical business operating in rapidly growing markets, uniquely situated to enjoy organic growth as well as an aggressive acquisition strategy. We strongly believe that this is the best path forward to create long-term value for all stakeholders, including employees, customers, partners, and shareholders. Blade's medical business has grown from 12% of revenue in 2020 to approximately 60% of revenue in 2024, while accounting for approximately 85% of our segment's adjusted EBITDA. Fundamentally, the passenger and medical businesses have different growth, investment, and investor profiles. The strength and awareness of Blade as a consumer brand simply overshadow the high growth and highly profitable nature of our medical business, and this transaction will unlock the full potential of each business over the coming years. The Blade passenger sale includes all our passenger operations in the U.S. and Europe, including lounges, terminals, as well as the Blade brand. Blade's mission since inception has been to accelerate the transition from traditional rotorcraft to electric aircraft. There is no stronger company than Joby Aviation to help make this mission a reality for the benefit of all stakeholders. Our medical division has long been our fastest growing and most profitable business line. With no direct reimbursement risk, limited economic sensitivity, and an attractive multi-year growth profile, we believe the standalone Blade Medical will have appeal with a broader set of investors versus the historical combined company structure. I am confident that the pure-play nature of Strata, combined with a cash war chest that should more than double in size, will enable our stock to enjoy a valuation that represents the strength we have today, coupled with the numerous opportunities we have ahead. We have a clear value creation strategy for Strata over the coming years, driven by strong underlying organic growth and a highly focused and disciplined capital allocation strategy, supported by approximately $200 million of cash on the balance sheet for a requirement for the upfront portion of the Blade passenger sale, in addition to up to $35 million to be received within 12- 18 months based on certain employee retention and financial metrics. Trinity Medical Solutions, the company's operating business in the medical segment and one of the largest air transporters of human organs for transplant in the United States, will remain Strata's wholly owned subsidiary. I will join Joby Aviation as CEO of Blade Air Mobility when the transaction closes, and as the largest individual shareholder of our parent company, I will also serve as Chairman of Strata at closing. Melissa Tompkiel and Will Heyburn have overseen our medical division for many years and will serve as Co-CEOs of Strata while retaining their General Counsel and CFO roles respectively, providing a seamless transition for our customers, suppliers, and employees. We are very lucky to have them as our Co-CEOs. Importantly, the financial impact of the divestiture is expected to be adjusted EBITDA and free cash flow neutral on a go-forward annualized basis, supported by approximately $7 million in estimated corporate cost efficiencies. I am also confident that even more economic streamlining opportunities lay ahead. Will and Melissa will talk more about Strata's value creation strategy in a few moments. Lastly, we're announcing this transformation from a position of strength that is reflected in our strong Q2 2025 financial results as medical revenue accelerated its growth to 18% in Q2 2025 versus the prior year period. With that, I'll turn the call over to Will. Thank you, Rob. I'm excited for the opportunity to lead Strata alongside Melissa Tompkiel and this exciting next phase of growth for the company. We are laser-focused on executing a multi-year value creation strategy built on, first, continued share gains and product line extensions in the rapidly growing non-correlated markets we serve. Second, a disciplined capital allocation strategy supported by approximately $200 million of cash on the balance sheet from the upfront proceeds from the Blade passenger sale. The company may also receive up to an additional $35 million to be received within 12- 18 months from closing based on certain employee retention and financial metrics. In our core organ transplant market, we expect strong organic growth over the coming years, driven by increasing transplant volume supported by technology adoption and regulatory change, continued new customer acquisition, and growth in ancillary businesses, including ground and organ placement. As we've talked about before, we see several additional growth opportunities both within our core organ transplant market and in adjacent markets. There is also considerable opportunity to deploy capital towards strategic acquisitions that strengthen our core business growth potential and earnings power. We're looking forward to providing more detail around our value creation strategy and our actionable M&A pipeline at an investor day this fall. Before I walk through the financial results, I'll turn it over to Melissa for a few remarks. Thanks, Will. I'm thrilled to help guide Strata as we enter this new phase of growth. Our end-to-end time-critical air logistics platform is second to none and is trusted by more organ transplant hospitals than any other provider. We will remain relentless in supporting our customers, all of whom are engaged in life-saving work every day. Our 100% contracted customer retention rate over the last 12 months is a testament to the unwavering commitment to the healthcare providers we serve. We're also setting ourselves up for future success as technology continues to revolutionize the art of the possible in organ transplantation. As part of this transaction, Strata is entering into a long-term partnership with Joby, through which we will gain access to Joby eVTOL aircraft for medical use anywhere they have operations. We expect that the quiet capabilities of Joby's aircraft, coupled with its potential to operate at lower costs than traditional helicopters and other shorter-range aircraft, will provide value to Strata customers and a competitive advantage for the company. In the meantime, we will provide the industry-leading service we are known for using conventional aircraft, managing costs down, and improving call-out times for the hospitals we serve by moving aircraft closer to their facilities. We'll also continue to broaden our support for all the incredible new organ preservation technologies that are available and becoming available soon. Our partnership with Orgonox is a great example of the lengths we will go to to ensure we can always say yes to our customers' requests to accommodate new technology. We're excited about the multiple avenues for organic growth in the medical business, including broadening our service offering within our core organ transplant market. We launched POP, our organ placement service, in late 2023, and we introduced a hand-carry logistics service offering targeted at kidneys, a segment of the market that we have limited participation in historically. This business has grown significantly year to date. I look forward to meeting with many of you over the coming weeks and months to discuss our plans for value creation and the unique opportunities ahead. With that, I'll turn it over to Will to discuss the financial results. Thanks, Melissa. I'll now walk through the financial highlights from the quarter, starting with medical. Medical revenues rose 17.6% year-over-year to a record setting $45.1 million in Q2 2025. After a slow start to the year, we saw a strong rebound in the second quarter, driven primarily by new transplant center customers, along with strengthened demand from third-party service providers. Ground and POP, our organ placement service, also contributed to revenue growth ahead of the average for the rest of the business this year. Medical segment-adjusted EBITDA margin rose to 13.4% in Q2 2025 versus 11.4% in Q1 2025, but declined 100 basis points compared with 14.4% in Q2 2024. This was expected as maintenance downtime and costs remain elevated in the second quarter, driven by the timing of scheduled maintenance events on our own fleet. To provide context, on average, our fleet of 10 aircraft has had approximately three major inspections, which are called G inspections, and two engine overhauls per year. In 2025, we had four G inspections and five engine overhauls scheduled, but these maintenance events weighted towards the first half of the year. Given that our own fleet provides the best unit economics on both a P&L and cash basis, elevated maintenance downtime had two negative impacts on our financial results. First, though we continue to perform all trips for our customers as contracted, we must substitute higher cost aircraft from our asset light network. Second, lower hours on our own fleet result in fixed costs under absorption and a higher fully loaded average cost per flight hour. It's important to recognize that scheduled maintenance downtime will vary from year to year, with elevated maintenance downtime in some years and below normal downtime in other years, resulting in the opposite effect: higher fleet uptime and improved fixed cost absorption. We continue to expect an improvement in fleet uptime and medical segment-adjusted EBITDA margins in the second half of the year, and we'll provide more detail on the outlook shortly. Turning to our passenger business, excluding Canada, which we exited in August 2024, short-distance revenue decreased 5.5% year-over-year, driven primarily by lower revenue in the U.S. short-distance segment, partially offset by strength in Europe. U.S. short-distance revenue was impacted by the New York tourist helicopter incident in April 2025, along with inclement weather in June, which was an outlier versus previous Junes, both of which we viewed as transitory. Concurrently, we've seen meaningful improvements in U.S. short-distance performance in July relative to Q2 2025. Following the restructuring of our European operations last fall, we've seen two consecutive quarters of strong revenue growth. We attribute the improving fundamentals in Europe to the realignment of interests with our local partners, along with important operational and commercial changes that have reinvigorated growth and improved the customer experience. Yet another, revenue decreased 2% year-over-year, driven by a modest reduction in flight volume and revenue per flight compared with the year-ago period. Despite lower revenue, we continue to see a significant improvement in passenger segment profitability in Q2 2025, driven by improving flight margins and lower segment-adjusted SG&A. Passenger segment flight margin rose 580 basis points year-over-year to 30.5% in Q2 2025, driven by margin expansion in short distance, including the restructuring in Europe and our exit from Canada, along with margin improvement in yet another. Passenger segment-adjusted SG&A fell 17% year-over-year, driven by lower marketing spend in the U.S., the restructuring in Europe, and the discontinuation of Canada. Passenger segment-adjusted EBITDA tripled year-over-year from $0.8 million- $2.4 million. Moving to adjusted unallocated corporate expense and software development, we continue to focus on cost efficiencies across the business, and during the quarter, expenses declined 2.1% year-over-year. Turning to cash flow, given our strong sequential revenue growth in Q2 2025 of 30% versus Q1 2025, we saw a proportionate increase in working capital during the period. The difference between our Q2 2025 adjusted EBITDA of $3.2 million and cash from operations of - $3.1 million in the quarter was primarily driven by a $7 million increase in working capital, partially offset by an increase in deferred revenue. It's important to notice that our collections remain healthy, with day sales outstanding down to 32 days in Q2 2025 compared with 34 days in the year-ago period. Capital expenditures, inclusive of capitalized software development costs, were $2.7 million in the quarter, driven primarily by capitalized aircraft maintenance of approximately $1.8 million and capitalized software development of $0.4 million. Our owned aircraft fleet is unchanged at 10 aircraft, and we remain focused on optimizing the financial and operational performance of the fleet. Given the significant strategic and financial benefits of our owned aircraft, it's possible that we'll add a low single-digit number of aircraft to the fleet over the next year or two, but we are not currently in the process of buying any new aircraft. We ended the quarter with no debt and $113.4 million of cash in short-term investments. Moving on to the outlook, we expect the sale of our passenger business to be neutral to adjusted EBITDA and free cash flow on a go-forward basis. We expect the loss of passenger segment-adjusted EBITDA to be offset by a reduction in unallocated costs associated with the passenger business. The seasonality of the passenger business, where Q3 is typically the strongest quarter of the year, followed by a seasonally weak Q4, could create a modest timing impact in 2025, depending on the exact timing of the transaction close. We will update our revenue and adjusted EBITDA guidance for 2025 after the close of the transaction. For our medical segment specifically, revenue growth accelerated in Q2 2025, driven by new customer additions, and we've seen this strength continue into July. We expect mid-teens revenue growth in the second half of the year. As discussed previously, medical segment-adjusted EBITDA margins were impacted by elevated scheduled maintenance downtime and costs in the first half of 2025. We continue to expect improved owned fleet uptime and medical segment-adjusted EBITDA margins in the second half of the year, with margins of approximately 15%. Given uncertainty on the exact closing time for the passenger divestiture, we are reaffirming our 2025 guidance on a full company basis, including the impact of the divestiture. We expect revenue between $245 million and $265 million with double-digit adjusted EBITDA. We will provide guidance for the standalone medical business following the close of the transaction. With that, we'll turn it back over to the operator for Q&A. Yes, thank you. At this time, we'll conduct the question-and-answer session. To ask a question, you'll need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile our Q&A roster. Your first question comes from the line of Laura Lee of Deutsche Bank. Your line is now open. Thank you for taking my question. My first question is about, with that, you know, up to $125 million processed from Joby, what are your current priorities for capital allocation to help your, like, either organic or inorganic growth? Also, how confident are we to meet that required milestones or metrics for the $35 million or not? Hi, it's Rob Wiesenthal. How are you? I think that in terms of deployment of capital, we see a lot of opportunities in terms of M&A, opportunities that I believe are actionable and can really sustain the kind of growth that, you know, we hope we're kind of going forward. On the organic side, we're well aware of what we're doing with POP, we're well aware of what we're doing with other types of verticals, such as critical cargo. This is the kind of capital base that I think we really need to get the company to where it needs to be in terms of really scaling in an exponential way, which is a real opportunity because there aren't a lot of companies out there. I think I can be as nimble as that's the kind of balance sheet that we have to, you know, in a very forward way, in a quick way, to try to get the kind of M&A deals under our belt that we see out there. I'm happy about that. In terms of the metrics for some of the holdbacks, when I evaluated and the board evaluated the transaction, obviously, you know, we felt those were achievable when we viewed this as a transaction that is a $125 million transaction. There is potential risk there, obviously, but if we didn't think we could do it, we wouldn't have agreed to it. Laura, just some detail on that. About half of the $35 million holdback is related to retention, mostly related to Rob specifically, and the other half is related to financial performance that is really tagged around just continuing the status quo performance we've had. We do believe these are achievable. Obviously, nothing's without risk. Okay, just another follow-up on that. Do you see any operational impacts around the divestiture to the medical segment, like in terms of infrastructure, lesser relationship, or the operating team, etc.? No. We think we're set up for success as a standalone company. On the vertical takeoff and landing side, we're entering into a long-term agreement with Joby both to continue providing access to helicopters in the markets where we're using today, but also, on a much more exciting note, providing access to the Joby aircraft for medical use in any market that they roll out to. We think that's actually going to be a huge value add for our customers, given the expected quiet operation of these aircraft, expected lower costs, and also could provide us with a competitive advantage. We're really excited about the long-term partnership. These were always two distinct businesses. In fact, if you take a look at what we're saying about EBITDA remaining consistent here, I think there's a lot of opportunity to kind of streamline the operation. Obviously, the operations are based in Arizona, and we're happy about that. I think in terms of the kind of business overhead that we need to run the business, I think we really have the opportunity to be extremely lean and efficient. We feel pretty good about that. Definitely, I see you on the side of it. Okay, gotcha. Yeah, I appreciate it. Thank you. Your next question comes from the line of Bill Peterson with J.P. Morgan. Your line is now open. Good morning, everyone. Thanks for the information thus far, and congrats on the transaction. I have a few questions. First, starting off, if we think about the passenger business sale, why now versus when maybe at a later point it could have been more profitable? I understand you wanted to bolster the medical, but how long were discussions ongoing to sell this piece of the business? Were there any concerns on your prior announced sort of eVTOL partnerships, maybe that they'd be too late, or just any sort of additional context on the sale, please? Sure. I think that, you know, why now? I think that, frankly, when I take a look at the stock and listen to investors, it was clear that they were discounting the value of the passenger business. We were not getting value for it. At the same time, we were unable to invest the kind of capital that I think it needs to grow without hampering the overall earnings of the company. It just was a too confusing story on the investor side. I think the opportunity to really be a pure-play medical kind of M&A machine here and to roll up IVF with you is a pretty fragmented business with high growth and high margin prospects, was the right move to create shareholder value. With respect to the why Joby, I think early on, we identified them as the company that we felt had the best path to certification, the capital to execute in the right technology, and that would be first to market. I'm unequivocal about that. Up to this point, we were agnostic. We've watched all the other companies out there in terms of what they've been able to get to and what milestones they've hit. I do believe they have a, you know, to your question, I do think they have much more of a head start with respect to getting to the point of flying. We'll be flying in Dubai next year, and hopefully in the U.S. thereafter. Does that answer your question, Bill, or do you have any follow-ups? That answers that part of the question. I want to pivot to the medical business a bit. I realize you're planning an investor day, and we'll get a lot more information. I want to try to get a sense, as you look at it today, on how you think the growth outlook would look, let's say, first from an organic point of view and then inorganic. I guess, how should we think about, you know, revenue growth, CAGR, steady state margins? Just trying to get a sense of your latest snapshot view there. Yeah, Bill, we're still incredibly enthusiastic about the growth prospects in this industry, broadly, and for us specifically, seeing organic growth in transplant in the long term. We're psyched about seeing that digital relative supported by all the new technology that we've been talking about on our prior calls. We're seeing more and more providers of organ preservation technology come into the fold, starting to flow into a lot of the hospitals that use that kind of technology. We've also seen some new therapies, as we talked about, like NRP, normothermic regional perfusion. It's giving more access to those donation after circulatory donors, which previously had been pretty expensive and somewhat risky in terms of actually being able to successfully complete the transplant prospects for folks to go after those kinds of organs. All of those things we believe are still in the early innings of playing out and in the early innings of becoming more broadly available at an affordable cost for hospitals. We expect to continue to see that strong growth in the number of people that are getting successful transplants in America. When we think about the specific opportunity for us, this quarter is a great testament to our ability to provide a better value proposition than the competition and win new customers and continue to gain share in this very fragmented market. I think still lots of opportunity there. The last piece of it is just our ability to provide other services to those same customers or provide other services like what we're already doing to folks outside of the direct transplant community that we're serving today. We talked about it in the script, how we've seen faster growth in our POP program and our ground program than we are in the overall business on average. We're going to continue to see those things help us accelerate our growth. All of those things come together to help us get to our long-term high-teens adjusted EBITDA margin target, which we still think is readily achievable. Now that we've built a business with more operating leverage from the owned aircraft, the more we fly, the less it's going to cost for us. Long-term thesis very much intact and couldn't be more excited about our opportunities ahead. If I can just finish up on a near-term and housekeeping question. I guess just on the medical business, how should we think about any seasonality in the business in the third quarter? Just trying to get a sense if there is seasonality as you see it today. How is the business trending quarter to date? On the housekeeping side, can you speak to any tax implications of the transaction? Sure, Bill. On the seasonality, you know, look, I wouldn't call it a seasonal business. You do occasionally see a little bit of a slowdown in the summer months driven just by kind of staffing of folks being on vacation. We've not seen that quarter to date. We had a great July, continued to see similar trends that we saw in Q2. We have seen in years past, you know, a moderate slowdown in kind of the late summer, but have not seen that show up in our numbers yet. On the tax side, we have enough NOLs to offset the capital gain associated with the passenger divestiture. Assuming we receive that full $125 million of proceeds, we'd use about a third of the NOLs that we have. That would leave us with just under $15 million remaining. Can't offset 100% with NOLs, as you know, under the rules, but we would expect the cash tax impact to be a couple million dollars, something immaterial. We think we're in a great shape on that front. Okay, thanks for that detail. I'll pass it on. Again, congratulations on the transaction and best wishes going forward to the full team. Thank you, Bill. Thank you. As a reminder, to ask a question, you'll need to press star 11 on your telephone and wait for your name to be announced. The next question comes from the line of Bill Khaliv with Lake Street Capital Markets. Your line is now open. All right, thanks for taking my questions. I echo the sentiments. Congratulations on the successful divestiture here. The first question is around the process with the divestiture. I'm curious, Rob, you noted how specifically advantaged you believe Joby is in this world. I'm wondering the extent to which the process was a sweeping one where you considered all possible strategics and financial buyers, or if you really had a laser-focused view that Joby would be best able to be a successful partner in this divestiture. Yeah, I think thanks for your question. I think since we started this company, the name of the company was never Blade Helicopters, always Blade Urban Air Mobility. We knew we had to make this transition at some point. We were a bit agnostic. We've met and worked with pretty much every single OEM out there, both from the major companies out there, like Boeing and others, as well as the detail manufacturers. I would say it was definitely a sweeping process that I was personally involved in. It went from everywhere from OEMs to luxury good companies to private equity, you name it. It was clear that the right move for us was doing something with Joby because we truly believe that their time to market, capital, and technology is going to get them, and especially with this transaction, to market much sooner than others. As important for the medical side, I wanted to make sure that we had a partner where there was an actionable strategy in terms of eVTOL because I really think it can change the financial architecture of how we fly surgeons and organs in kind of short to mid-term, short to mid-range flights. It really was a two-part decision there. Got it. That's helpful and good to hear. The second question, I'll get back in queue, is around the $7 million of corporate efficiency that you've noted are going to be going away. Can you kind of characterize what these expenses were? Is this personnel that's going to be going to Joby? Is this internal development cost that you're just kind of backing away from? Any context there would be great. Hey, Ben, this is Matt. These are just costs that are really associated with the passenger segment that were in unallocated expenses. Everything from staff costs to IT costs to a portion of the lease costs. Several different categories of costs are closely related to the operation of the passenger business. Okay, very good. I appreciate that. Thanks, Matt. Thanks, Rob. Congratulations again to all. I'll get back in queue. Thanks, Ben. Thank you. This concludes the question-and-answer session. Thank you for your participation on today's conference. This does conclude the program, and you may now disconnect.