Earnings call transcript: SKYX Platforms Q2 2025 sees steady revenue growth

SKYX Platforms Corp reported its Q2 2025 earnings, showcasing a steady financial performance with revenues slightly surpassing forecasts. The company reported earnings per share (EPS) of -$0.08, matching analyst expectations, while revenue reached $23.1 million, slightly above the forecast of $22.94 million. Following the announcement, SKYX’s stock price rose 1.72% to $1.18 in after-hours trading, reflecting a positive market reaction. According to InvestingPro data, the company maintains a FAIR financial health score of 1.85, with particularly strong relative value metrics despite current profitability challenges.

Key Takeaways

• SKYX Platforms’ revenues increased by 15% from the previous quarter.
• Gross profit grew by 23%, with a gross margin of 30.3%.
• The company secured 8 new patents, bolstering its intellectual property portfolio.
• SKYX is targeting cash flow breakeven in 2025, supported by product launches and strategic partnerships.
• The stock price saw a 1.72% increase post-earnings announcement.

Company Performance

SKYX Platforms demonstrated robust performance in Q2 2025, with a 15% increase in revenue compared to the previous quarter. The company is making significant strides in the smart home technology sector, focusing on innovative products and strategic partnerships. With a strong leadership team and collaborations with major retailers, SKYX is positioning itself as a leader in safety-first smart home solutions.

Financial Highlights

• Revenue: $23.1 million, up 15% from the previous quarter.
• Gross profit: $7 million, a 23% increase.
• Gross margin: 30.3%, up 7%.
• Cash and cash equivalents: $15.7 million, up from $12.3 million.
• Net cash used in operating activities decreased by 54% to $2 million.

Earnings vs. Forecast

SKYX Platforms reported an EPS of -$0.08, meeting analyst expectations. Revenue came in at $23.1 million, slightly exceeding the forecast of $22.94 million, resulting in a revenue surprise of 0.7%.

Market Reaction

Following the earnings announcement, SKYX’s stock price increased by 1.72% to $1.18 in after-hours trading. The stock has shown mixed performance, with a notable 9.26% gain over the past week despite a significant 40.1% decline over the last six months. The stock has traded between $0.80 and $2.13 over the past 52 weeks. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, with analysts setting price targets ranging from $2 to $5. Discover more insights and 8 additional ProTips about SKYX with an InvestingPro subscription.

Outlook & Guidance

Looking forward, SKYX is targeting cash flow breakeven in 2025, driven by new product launches and expanding partnerships. The company is also focusing on mandatory safety code standardization, which could open up new market opportunities. Revenue forecasts for upcoming quarters suggest continued growth, with expectations of $26.9 million for Q3 2025 and $28.4 million for Q4 2025.

Executive Commentary

Ronnie Cohen, Founder and Executive Chairman, emphasized the company’s commitment to safety, stating, "Everything we invent here in SKYX has to do with safety first, a massive TAM addressable market and with a global application." CEO Lenny Soccolo added confidence in achieving financial goals, saying, "We believe we have sufficient cash to achieve our goal of becoming cash flow positive in 2025."

Risks and Challenges

• Market saturation in the smart home technology sector could limit growth.
• Supply chain disruptions may affect product availability and cost.
• Regulatory changes in safety standards could impact operational strategies.
• Intense competition from established players in the smart home market.
• Economic downturns may reduce consumer spending on non-essential technology.

Q&A

During the earnings call, analysts inquired about the company’s path to cash flow breakeven and the potential for safety code standardization. Executives highlighted the Miami Smart City project as a significant proof point for future collaborations and discussed the strategic hire of Huey Long from Amazon to lead e-commerce initiatives.

Full transcript - SKYX Platforms Corp (SKYX) Q2 2025:

Conference Operator: Please be advised that this conference call will contain statements that are forward looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated.

Please note this event is being recorded. I would now like to turn the conference over to Ronnie Cohen, Founder and Executive Chairman. Please go ahead.

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Good afternoon, everyone. We’re happy to have you all here in our Q2 earnings call 2025. We will start with our President, Steve Schmidt with a general overview about some highlights of this quarter. Thank you, Steve.

Steve Schmidt, President, Skyaxis: Ronnie, thank you and good afternoon everyone on the call and it’s my pleasure to be with you here What I’m going to do is kind of cover just briefly in a very high level some very good results from a quarter standpoint on the financial side and then talk to you about some key updates relative to the business and progress we’ve been making. As an overview on kind of the key financials for the quarter, our revenue position was up $3,400,000 growing significantly versus prior quarter. And our gross profit was up 23%, which shows significant progress on that side of the financial ledger. And our net cash used was down significantly, down 54%, primarily due to some favorability in payables and the improvement in gross profit.

Glenn Sakelo, our Chief Executive Officer, will be going into more detail on the financials here in just a little bit. So let’s talk now about kind of the business perspective and kind of the key progress we’ve made. During the quarter, and it’s important to talk about our patents and significant progress was made. And we have granted eight newly issued U. S.

And global patents, and we now have over 100 patents and pending applications with 45 issued patents, which is absolutely critical to maintaining the momentum of our business. It’s very important that I mentioned to everyone and note that each of our 100 patents and pending applications is based on three major factors: safety, massive addressable market, the TAM and global applications, all of which will drive future growth for this company. We also continue our collaboration with Home Depot, which I’ve spoken about in our past updates with our advanced and smart plug and play products. And we are in the process of growing our product assortment in Home Depot to offer a variety of our advanced plug and play smart products, including the ceiling fans, heating fans, light fixtures, exit signs, emergency lights, ceiling outlets, recessed lights, downlights indoor, outdoor, you name it, we’ve got it. And we’re very pleased that this growth continues as we expand our retail presence.

We expect our products to be in over 40,000 unit size homes by the 2023 in The U. S. And Canada through retail and pro segments. As I mentioned, we raised, and we talked this last quarter, the $15,000,000 led by the Shaner Group, owner and developer of more than 70 hotels, including 60 Marriotts. Important to add that we’re making progress with this segment, and we hope that we can share some progress soon as a major Marriott developer.

Our safety code standardization team, a very important area of focus for us, continues to make progress and is receiving significant support from a new prominent leader with its government safety organization process for safety mandatory standardization in homes and buildings of ceiling outlets and the receptacle technology. We also if you recall last quarter, we announced and said to you that we’d have some major announcements relative to a major collaboration, and we did. So we have announced that major collaboration with the Miami $3,000,000,000 mixed use urban smart home city project, a significant opportunity for the company, and we are working on some additional large projects that we hope to be able to talk to you soon about. So a lot of progress being made and good financial results. So with that, what I’m going to ask Ronnie to do is come back on and really speak more granular regarding the patents, the code and the Miami Smart City.

So let me turn it back to Ronnie. Ronnie?

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Thank you, Steve. As Steve mentioned, we’re happy with additional patents here. And I think most important aspect is everything we invent here in Skyaxis has to do with safety first, a massive TAM addressable market and with a global application, and we’re proud to have over 100 patents that all fit and goes through categories that is a contingency for anything we invent here. And that’s our core foundation. This is why I think we got a lot of support from tremendous leaders.

Steve is one of them. But as you know, former CEOs of Home Depot and President of Disney World Parks, Hotel, Cruiser to the Resorts and many other key members, including the National Electrical Code head and American Lighting Association head and all of those good people are joining us here. Additionally, with the code, we are making some progress, and we have found out that there’s two safety government safety organizations that are really one of them in charge on ladder falls and falls in general and another one in charge of electrical and electronics. And according to our co team, their general criteria is to save lives, mitigate injuries and property damages. And we are pursuing those aspects according to the criteria they probably need to find us too.

But we’re working on this, and we have some made some progress behind the scenes that hopefully we will be able to share with you sometimes, hopefully, sooner than later. But that’s quite significant progress that we our co team feels that we are doing, behind the scenes with the mandatory application for our ceiling outlet receptacle, all based on safety. And then last but not least here for now is the smart city. We’re very proud to really announce that collaboration. It’s a major milestone for us, for the company.

And we’re just sharing a picture here of this entire footprint in the heart of Miami. The ones that have it online, they can see downtown, they can see South Beach, and they can see Wynwood. And just next to Wynwood and the Art Basel area, that’s where that smart city is located from West Of I-ninety 5 all the way to US-one. Huge footprint is a two hundred year lease from the city of Miami. And if they had to do it the old way to wire the entire community, it would take them probably several years or several maybe several years more, but much more, several times more than what that will take with our product.

And in addition to this, they were also save not only a lot of time here, but I think we can do it in a much more cost efficient way for them. And I think we’re bringing here the future, our all in one smart platform. We hope to have in production in the next coming months. That’s going to be a big factor here. As Steve mentioned, we expect to deploy 500,000 units between our smart and advanced products, all plug and play.

And that’s going to include from smart all in one smart home platforms to other smart products and recess light, exit signs, emergency lights, it’s all going to be part of that urban city. And this is really a major milestone in the fact that we were able to compete in probably one of the leading cities in America here and land probably one of the largest smart cities in America, too, based on our technology, with those prominent developers that have a background of many huge projects, but this is their probably landmark project for them and for sure for us. And to collaborate with prominent developers, SDV Holdings and all their partnership is really we’re not taking it for granted, and we’re here doing together a project that I think is going to be a landmark in Miami. And there’s a lot of excitement around the city and with the mayors and everyone around that project because this really is going to redefine Miami as a city. And again, we’re very proud to be part of it.

So with that being said, as Steve mentioned, we’re progressing with Home Depot, progressing other things. We launched recently a plug ins very advanced and also smart heater. We announced that we hope to have it very soon in the market here for this coming winter. It’s an all in one product that provides the air the cool air for summertime and heat for winter. And we also announced that we had some global collaborations on this, and there’s some excitement around this product.

And we’re happy to say it’s in production, and we expect that product to land here soon. So some more slides of the smart city here before we wrap up. There’s a train station as the ones that have a screen can see parks, restaurants, malls, hotels. We understand they’re going to have a Home Depot there and Publix and it’s really it’s an urban smart city, huge train station with the bright line in Miami. Again, tremendous really, achievement for the team.

And I thank our team here for making that happen. Again, it’s based on the razor and the blade model that we like to discuss. You have the razor, what we say the ceiling receptacles for the ones that can see the slide. And once you have a ceiling receptacle, you can decide what you want to plug in. If it’s a smart fixture or a smart platform, ceiling fan, light fixture or any other type of fixture.

And really proud that we’re able to deploy and lead that project. So with that being said, I want to pass it to our CEO here, Lenny Soccolo, with some additional financial highlights. Thank you, Lenny.

Lenny Soccolo, CEO, Skyaxis: Great. And thank you, Ronnie. Appreciate that and that update. We have, as Steve mentioned, reported an increase of 15% with a record second quarter twenty twenty five revenues of 23,100,000.0 compared to $20,100,000 for the 2025. And we continue to grow our market penetration in The U.

S. And Canadian markets. Further to that, our growth has been has increased six comparable quarters from Q1 twenty twenty four to the Q2 twenty twenty five. So that’s been really good progress for us. With respect to cash, just to reiterate, as of June 30, the company reported $15,700,000 in cash and cash equivalents and restricted cash as compared to $12,300,000 as of 03/31/2025.

And as a common company such as ours when sales are converted into cash rapidly, We often refer to that as the Dell working capital model. We leverage our trade payable to finance our operations and to enhance our cash position and to lower our cost of capital. We have we basically leveraged our e commerce platform of our 60 websites among other methods to support this approach as well as support from strategic investors and insiders. We believe and we’ve said this before that we have sufficient cash to achieve our goal of becoming cash flow positive in 2025. To that end, our net cash used in operating activities for the second quarter ending 06/30/2025 decreased sequentially by 54% to $2,000,000 compared to $4,300,000 in the 2025.

And contributing to that was that the gross profit for the second quarter ending June 30 increased sequentially by 23% to 7,000,000 compared to the first quarter ending 03/31/2025. And as the beginning of, we hope, positive momentum, the gross margin for the second quarter ending 06/30/2025 increased sequentially by 7% to 30.3% compared to the first quarter ending 03/31/2025. And finally, the adjusted EBITDA loss for the second quarter, which is a loss before interest, taxes, depreciation and amortization, and we adjust for share based payments, which of course is a non GAAP measure, decreased to $2,600,000 or $02 per share as compared to 3,600,000.0 or $04 per share in the 2025. So Ronnie, if I could maybe turn it over to you.

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Thank you, Lenny. And then we can open it up for Q and A. I think we have Gary Sweeney here from Roth Capital and then you can go ahead, Gary, and any questions, we’re here for you. Gary?

Gary Sweeney, Analyst, Roth Capital: Gary Yes.

Pat McCain, Analyst, Noble: Is my line open now?

Conference Operator: Yes. You may proceed.

Pat McCain, Analyst, Noble: Hey, guys. Well, thanks for taking my call and good afternoon. Couple of questions. I mean, you highlighted being cash flow breakeven this year and it looks like you’re making some headway there. Can you maybe give us a little bit of a bridge from where we are today to cash flow breakeven?

Is this accelerating sales? Did or is it a little bit of we also had some G and A was up a little bit in the quarter, but just want to understand how we go get to cash flow breakeven by the end of the year.

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Yes, we are as you can see, as Lenny mentioned here, we reduced some cash expenses on our end and that by itself is major step that we want to continue, and we believe we will continue in that direction. And additionally, we expect to launch a few products very soon. One of them is the all in one and advanced and smart heater plug and play that, as I mentioned, has a ceiling fan for the summer, but more important has a heater. As we mentioned related to our patents, we always think about safety. That’s a product that really is safe rather than having space heaters on the floor.

You can have it in a safe location in the ceiling that warms up the entire room. And there’s great demand to that product from some big box retailers and others, and we hope to let everyone know once we launch them. But based on these things, based on some things we’re doing with our e commerce platform, we feel that this winter can be a significant increase in revenues and in gross margins, and that’s what we believe and anticipate to happen in the next coming months.

Pat McCain, Analyst, Noble: Got it. And the code standardized code or the mandatory standardization of the code, I mean, that’s always been like a huge potential catalyst for you guys. And I know there’s been some movement on this over the last six months in different options and you did highlight I think the two, I think, government agencies where there could be some help in maybe achieving that. Could you give us a little bit more detail, as much as possible, as to what’s going on there and maybe the path forward?

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Yes. I’m sharing an interesting slide now, the ones that can see the slides, but this those are prominent mandatory safety, mandatory standardizations that I think almost everyone knows. The the plug and play the plug for the wall, the Edison bulb that was wires that we mentioned many times became the the bulb socket, the GFCI that are in the bathrooms. Something we maybe didn’t mention before, for example, but every hair dryer in The US over twenty years ago was forced to change the plug that goes to the wall to a block that a plug that the very big plug with the GFCI receptacle, on it, and that became mandatory as well. Exit signs in buildings became mandatory, emergency lights in buildings became mandatory and airbags and seatbelts.

And many that joined us, all our leadership here that people know we have top Fortune one CEOs and executives here that invested with us several rounds and joined us all believe that this is just a matter of time. It’s not an if, it’s more when because we met all the contingencies, including the ANSI, NEMA, including we got a generic name WSCR. We got also NFPA NEC, 10 votes, 10 segments into voted to the National Electrical Code. So we met all the conditions and now we believe there’s some government organizations that can help expedite that process. Many of us believe it’s more a win than an if and this is really the law.

They forced every hair dryer to change a plug and they had a plug, okay? And the lighting industry, the smart home industry, you don’t have even a plug. You go on ladders and you touch hazardous wires. So I think that we’re under the radar for a long time. But based on recent progress, we strongly believe that we’re getting closer to this and eventually will happen, as we said, hopefully sooner than later.

And we hope to have some news about this as soon as possible. But again, we need to wait and see.

Pat McCain, Analyst, Noble: Got it. And just one more maybe question for me. A big hire on your e commerce platform from Amazon. Just any details on maybe some changes that are going there or tweaking or the opportunity that they bring to that to the e commerce platform? Thanks.

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Yes. We have a great e commerce team and we have our Executive Chairman, Todd Johnson, that was wanting to show, and now he’s focused on major platform changes. And we felt that the e commerce, we can bring a prominent leader in that industry, Huey Long. And Huey was really started as a buyer and Circuit City became a business owner and with a sourcing company overseas. And his biggest customer was Amazon, decided to sell it to the CEO of Circuit City, the business, and then announcing it to their biggest customer, Amazon and Bezos, said, what are you doing?

Come join us. And what Huey did for them is really established the first Amazon brand is basic. Today, Amazon has 50 brands, I think, but the largest one and the most famous one is Amazon Basic. And really, they started their own brand by sourcing around the world. Position, he also was running marketing and e commerce for Walmart and then recently for Ashley Furniture growing their business to $1,000,000,000 online.

Ashley Furniture is not only the stores that everyone knows, it’s probably the biggest furniture wholesale company in America. They sell to most of the furniture names you know and projects, and they’re multibillion dollar company. And the e commerce platform became a $1,000,000,000 business and Huey led it. So Huey was excited from what we’re doing here from the disruptive perspective, game changing plug and play. And we wanted someone more on the offense to help us here.

And we have two great talented people that are running the show, Huey as the CEO, running the offense very strongly, very strong on defense too. And we have Todd our Chairman, Todd Johnson, that’s there forever as supporting Huey and everything we’re doing. So we really are blessed to have we also have the founders of Bellamy that are working with us and also helping the company. And we have really a tremendous team there. And Huey here is the icing on the cake.

And stay tuned with this. Hopefully, we’ll have some more announcements when it comes to the e commerce and some of the things we’re doing there.

Pat McCain, Analyst, Noble: I appreciate it, Ronnie. Always a pleasure talking to you.

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Thank you, Jerry. Thank you. Pleasure talking to you as well.

Conference Operator: Thank you. Ladies and gentlemen, that was Gary Sweeney with ROTH Capital. We have our next And we have

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: now Pat McCain from Noble.

Gary Sweeney, Analyst, Roth Capital: Hey, thanks guys for taking my questions. First, I wanted to just touch on the Perrot Uncle manufacturing partnership for the ceiling heaters and fans. And I guess I was wondering if you could talk about to what extent getting that product available, are there any new partnerships as far as with developer? You mentioned that that would be something that the big box retailers would want in their stores and want to be able to start selling once it’s available. But I’m also wondering, you know, are there any sort of any partnerships with other developers that might potentially hinge on that product becoming available?

What other opportunities might that open up, if any?

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Yes. So we are working on several channels with that advanced and smart plug and play heater all in one and including global. And that collaboration with parallel encol opens markets here in The U. S, but definitely global markets. They have great businesses in Europe and Asia and we think that can be a global product.

There’s many places that people don’t use AC or don’t have AC or don’t want the central AC, heat in one room in a safe way and the same for the summer. So many seeing that product with some great potential. And yes, we are working with several big boxes and other channels that we hope to be able to announce soon once those heater fans land towards the winter here. And definitely working also with some builders and developers that like our entire assortment and also very much like our the smart heater, fan and other products as well. So we hope to have some announcements in the coming weeks or months with projects, but with some channels new channels we’re opening up.

Gary Sweeney, Analyst, Roth Capital: Excellent. And I was also wondering with regard to the Smart City development. Does that collaboration serve as a bit of a proof point for other developers that maybe would not have necessarily considered working with you previously, but upon seeing you be involved in that project, you’re hitting other developers’ radar screens and are you seeing any extra traction with new partnerships with builders that you might think is a direct result of making that such a large announcement and being part

Steve Schmidt, President, Skyaxis: of such a big project?

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Thank you, Pan. That’s a perfect question for us because we must say we’re all smiling here in the room when we listen to you to that question. But yes, we are getting great interest and we’re working, as Steve mentioned, Steve said, as I mentioned, for some good major news for us. And that last quarter call, He said that and he said we came with the smart city. So he’s as he said here earlier, we’re working on some other major aspects that are related to this.

And yes, we got a lot of recognition and a lot of good discussions, and we’re exploring many opportunities based on that Smart City announcement. So perfect question for us, and it’s absolutely yes.

Gary Sweeney, Analyst, Roth Capital: Excellent. Well, I’ll end on a high note. I appreciate all the extra color.

Lenny Soccolo, CEO, Skyaxis: Thank you, guys.

Ronnie Cohen, Founder and Executive Chairman, Skyaxis: Okay. So let me see if there’s can you show me the other screen? Okay. So I think we’re great with the questions here. We very much appreciate everyone’s time.

And we’re looking forward for our next call with you guys or other updates in between those calls. Thank you, Steve Schmid, our President Lenny Sakhalow, CEO. Thank you very much. And hopefully, we’ll see you or talk to you soon in the next call. Thank you.

Conference Operator: Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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