GlobalX Q2 2025 Update – Cash Flow Quality vs. Market Narrative

Why the headlines obscure what really matters in GlobalX’s fundamentals.

Disclaimer: I own shares of Global Crossing Airlines Group Inc. and stand to benefit if they rise in price. I may decide to purchase or sell shares at any time without prior notice. Do your own research and size positions appropriately if you invest. Nothing here is meant to be understood as investment or financial advice. AI tools assist my research and writing process, enhancing analytical efficiency and clarity.

TL;DR

• Thesis: GlobalX reported its second consecutive profitable quarter, but modest revenue growth masked a strategic and profitable shift towards ACMI contracts.

• Hidden Strength: The balance sheet shows a shareholder deficit, but the cash conversion cycle is excellent, meaning customers and suppliers are funding the company's growth.

• Valuation: When adjusting for lease accounting, the company trades at an attractive free cash flow yield in the mid-teens. Fleet growth, a potential air freight market improvement, plus an additional free growth option, provide additional upside potential.

Photo by Michał Mancewicz on Unsplash

Introduction

Global Crossing Airlines (GlobalX) just released its Q2 2025 results, marking its second profitable quarter in a row. On the surface, the mid-single-digit revenue growth might seem uninspiring and cause investors to glance over the report. However, that would be a mistake. Digging beneath the headline numbers reveals a company successfully executing a strategic pivot, generating significant underlying free cash flow, and laying the groundwork for substantial growth. In this update, I will dissect the quarter's performance, revisit the balance sheet and cash flows with a critical eye, and update the valuation to see if this remains a compelling investment. For your reference, the last article was

[EDITED] Catching Lightning in a Bottle: GlobalX's Discovery Moment

Q2 Performance

Materials

• Earnings call transcript

• Press Release

• 10-Q

• Investor Presentation

Balance Sheet

Looking at the latest Balance Sheet, we directly see that since the start of the year, the shareholders’ deficit was reduced by $2.5M, which is good.

Of course, the Balance Sheet may still scare some investors:

• $190M of total liabilities compared to $165M in total assets leads to a shareholders’ deficit…

  • But that is trending in the right direction

• Current liabilities are almost triple the current assets…

  • This remains the main point of uneasiness, but the Cash Conversion Cycle Analysis below remedies the situation, I believe.

Income Statement

Despite fleet expansion during the last year and growth in block hours of 12.8%, the quarterly revenues grew only in the mid-single digits. That is explained by the strategic shift towards emphasizing the ACMI revenue model. ACMI has a lower revenue per block hour than the Charter service, but the company does not assume certain pass-through revenue items (and costs). Due to that shift, a simplistic look at revenue growth is misguided. Looking at the operating income, we see that the quarterly EBIT grew 28.9% year on year. The following table illustrates the strategic emphasis on ACMI vs Charter: while the fleet grew, charter block hours shrank by 37% and ACMI block hours grew by 32%.

This shift is key to understanding the investment thesis: GlobalX is intentionally trading lower-margin charter revenue for higher-margin ACMI revenue. Ultimately, the company delivered 28.9% year-on-year growth in quarterly EBIT.