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    SKYX
    Earnings call· Jun 2026(Q2 FY26)

    SKYX Platforms Q2 FY26 earnings call SKYX

    Aug 12, 2026 Source

    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

    4
    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

    Operational metrics

    11
    Revenue growth
    14vs Q1 FY26
    Q2 FY26

    Sales grew 14% to $25.3 million in Q2, compared to $22.1 million in Q1, 2026.

    Revenue growth
    10vs Q2 FY25
    Q2 FY26

    An increase of 10% compared to $23 million for the second quarter of 2025, representing 10 consecutive quarters of growth year over year.

    Revenue
    $47.4Mup 10% vs H1 FY25
    H1 FY26

    Revenues for six months ended June 30, 2026 increased 10% to a record $47.4 million compared to $43.2 million for the six months ended June 30, 2025.

    Cash and cash equivalents
    $27.7Mvs $10.1M as of Dec 31, 2025
    as of June 30, 2026

    Reporting over $27.7 million in cash and cash equivalents as of June 30, 2026. This is compared to $10.1 million as of December 31, 2025.

    Gross profit growth
    4vs Q2 FY25
    Q2 FY26

    The gross profit for the second quarter ending June 30 increased comparatively for the second quarter of 2025 by 4% to $7.3 million.

    Gross profit growth
    10vs H1 FY25
    H1 FY26

    Gross profit for the six months ended June 30, 2026 increased by 10% to $13.9 million compared to the $12.7 million for the six months end of June 30, 2025.

    Net cash used in operating activities reduction
    39vs Q1 FY26
    Q2 FY26

    Our net cash used in operating activities was reduced by approximately 39% to $3.7 million in the second quarter of 2026 from $6 million in the first quarter of 2026.

    Interest-bearing debt reduction
    $2M
    as of June 30, 2026

    The company reduced interest bearing debt by 2 million as of June 30, 2026.

    Gross margin
    29down from 30% in Q1 FY26
    Q2 FY26

    Q2 at 29% was down from kind of 30% in Q1.

    European hotel market size
    132000
    current

    to the vast European hotel market of over 132,000 hotels.

    OTT Group hotels/buildings
    250
    current

    European Hotel Developers Group, OTT, developer of over 250 hotels and buildings across Europe.

    Industry KPIs

    1
    MetricValueDetails
    Backlog by segment end market1 millionunits

    Orderbook & backlog

    1
    Units in pipeline1 million unitsQ2 FY26

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

    Product announcements

    4
    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

    6
    Marriott City Center HotelSupply technologies for renovation.

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

    European Hotel Developers Group, OTTTechnology to become brand standard.

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

    Group OTT Heritage Hospitality GroupDeploy 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

    3
    Declining Real Estate and Home Decor Marketsongoing

    continuing to decline

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

    Regulatory Approvals for Gen 3 Devicenear-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 Standardizationlong-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

    4

    Gross Margin Trajectory

    next coming quarters (Q3 FY26)
    Current29% (Q2 FY26)
    TargetGrowth, 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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.