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SKYX Platforms (SKYX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 12, 2026

Source: earnings call transcript

Executive summary

SKYX Platforms Corp. Q2 FY26 — Strong Revenue Growth and Strategic Partnerships

SKYX Platforms reported robust revenue growth in Q2 FY26, driven by strategic partnerships and increasing market penetration despite broader market headwinds. The company is focused on expanding its technology deployment in the hotel and builder segments, alongside progressing its safety code standardization initiatives. Management expressed confidence in achieving cash flow positivity by year-end and meeting unit deployment targets, while also addressing gross margin fluctuations through product mix optimization.

Highlights

5

  • Revenue grew 14% to $25.3 million in Q2 FY26 compared to Q1 FY26, marking 10 consecutive quarters of year-over-year growth.

  • Cash and cash equivalents increased to $27.7 million as of June 30, 2026, up from $10.1 million at year-end 2025.

  • Net cash used in operating activities reduced by approximately 39% to $3.7 million in Q2 FY26 from $6 million in Q1 FY26.

  • Secured significant strategic partnerships, including technology becoming brand standard for European Hotel Developers Group OTT (over 250 hotels) and a licensing agreement with global lighting company Euroface.

  • Progressed towards the goal of delivering over 100,000 units by the end of 2026 and deploying over 1 million units in future projects.

Concerns

3

  • Gross profit margin in Q2 FY26 was 29%, down from 30% in Q1 FY26, attributed to product mix.

  • Real estate and home decor markets continue to decline, posing a headwind to market penetration.

  • Launch of Gen 3 smart device is dependent on external code approvals (UL, FCC), with no firm timetable.

Guidance & targets

CategoryTargetConfidence
Cash flow positive
Cash flow positive
high materiality
High
Units to deliver
over 100,000 units
medium materiality
High
Units to deploy
over 1 million units
medium materiality
High
Gross Margin
grow
medium materiality
Medium

Orderbook & backlog

Units in pipeline 1 million units Q2 FY26

Starting to supply some projects this quarter and continuing in Q4 and Q1 2027.

Product announcements

ProductTypeDetails
Turbo Heater Fan (smaller version)launch
Turbo Heater Fan (bigger version)launch
Gen 3 All-in-One Smart Devicemilestone
AR-driven softwarelaunch

Deals & partnerships

Marriott City Center Hotel Supply technologies for renovation.

Supply technologies during a renovation of a Marriott City Center Hotel in Durham, North Carolina.

European Hotel Developers Group, OTT Technology to become brand standard.

Technology will become brand standard for OTT, developer of over 250 hotels and buildings across Europe.

Group OTT Heritage Hospitality Group Deploy and market technologies.

Signed an additional agreement to deploy and market technologies to the vast European hotel market.

Grand Hotel du Parc (formerly Grand Medicis Hotel) Deploy technologies for renovation.

Deploy technologies to first European hotel in France during a renovation of an historical architectural preservation hotel.

Accor Hospitality Group (Ozark Prague) Deploy technologies for renovation.

Deploy technologies to a five-star Accor Hospitality Group hotel in Prague.

Euroface (global lighting company) License agreement for advanced technologies.

Signed a license agreement for advanced technologies with operations in the US, Canada, and globally.

Risks & headwinds

Declining Real Estate and Home Decor Markets ongoing

continuing to decline

Mitigation:Continued market penetration and focus on builder/hotel segments.

Regulatory Approvals for Gen 3 Device near-term

not up to us, the timetable

Mitigation:Software and hardware are in very good condition, company is ready for mass production once approvals are granted.

Slow Pace of Safety Code Standardization long-term

very slow to get something standardized mandate

Mitigation:Strong case based on life-saving aspects, meeting all conditions (ANSI NEMA, NEC votes), and ongoing progress with safety organizations.

What to watch in Q3 FY26

Gross Margin Trajectory

next coming quarters (Q3 FY26)
Current 29% (Q2 FY26)
Target Growth, higher than Q2 FY26

Why it matters

Indicates successful product mix shift towards higher-margin products and overall profitability improvement.

the blend of revenue on this side will grow and blend the products with higher gross margins. will be much higher and we expect to grow that segment as we continue in the next coming quarters.

Find out whether SKYX delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquired about the Q2 gross margin of 29% (down from 30% in Q1) and the factors influencing gross margin in the second half of the year, correlating with comments on stronger H2.

Management attributed the Q2 margin to product mix and expects gross margins to grow in the second half due to an increasing blend of higher-margin products, specifically the turbo heater fan and other products supplied to the builder and hotel segments.

“This is a mixture of our products. As we continue our growth with the turbo heater fan and other products that we'll supply to our builder and hotel segment, the blend of revenue on this side will grow and blend the products with higher gross margins. will be much higher and we expect to grow that segment as we continue.”

asked by Jacob Stephan · answered by Ran Kohen

2 min read 5 chapters

Detailed narrative

Strategic Expansion in Hospitality and Licensing

SKYX Platforms is significantly expanding its footprint in the European hotel market, with its technology becoming a brand standard for OTT Group, encompassing over 250 hotels. This includes specific deployments in France (Grand Hotel du Parc) and Prague (Accor Hospitality Group). Furthermore, a key licensing agreement was signed with Euroface, a global lighting company, for advanced technologies, indicating a broader market adoption strategy across the US, Canada, and globally.

Product Development and Market Penetration

The company continues to innovate with its patented turbo heater fan, expecting sales to grow significantly towards the fall and winter seasons. New designs and sizes, including smaller versions launching by next quarter and larger versions in Q4, are planned to meet diverse market demands. This product expansion is seen as a driver for future recurring revenues through interchangeability, upgrades, AI services, monitoring, and subscriptions.

Safety Code Standardization Progress

SKYX is making steady progress towards its goal of achieving safety-mandated standardization for its life-saving ceiling outlet and receptacle technology. The team believes they are getting closer, noting that the generic name WSCR (weight support ceiling receptacle) is already part of the code books. Discussions with insurance companies are also underway, recognizing the safety elements of their products, which management views as a promising future segment.

Financial Health and Operational Efficiency

The company reported a strong cash position of $27.7 million as of June 30, 2026, a significant increase from $10.1 million at year-end 2025. Net cash used in operating activities was reduced by approximately 39% to $3.7 million in Q2 FY26 from $6 million in Q1 FY26. Management expressed confidence in becoming cash flow positive by the end of 2026, supported by continued market penetration and strategic initiatives, alongside a $2 million reduction in interest-bearing debt.

E-commerce and Future Growth Opportunities

SKYX is in the final stages of launching its AR-driven software on its e-commerce platform, with plans to enhance the platform for builder and hotel segments. This digital expansion, coupled with ongoing discussions for additional projects in areas like Miami's $4 billion smart city, New York, and Saudi Arabia, highlights the company's focus on leveraging technology for growth and capturing new opportunities in key market segments.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.