Skyx targets 500,000 smart platform unit deployment with Miami smart city project and highlights 15% quarterly revenue growth

Earnings Call Insights: SKYX Platforms Corp. (SKYX) Q2 2025

MANAGEMENT VIEW

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Stephen M. Schmidt, President, stated that revenue was up 15% versus Q1, cash position increased by $3.4 million, gross profit rose 23%, and net cash used declined 54%, attributing improvements to payables and gross profit. Schmidt described, "We have granted 8 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." He also highlighted ongoing collaboration with Home Depot to expand product assortment and anticipated products being in over 40,000 homes by the end of Q3 2023 in the U.S. and Canada.

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Ran Roland Kohen, Founder and Executive Chairman, emphasized, "Everything we invent here in SKYX 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 in those 2 categories." Kohen underscored progress with safety code standardization and detailed the major collaboration with a $3 billion Miami mixed-use smart city project, describing it as "a major milestone for us for the company" that is expected to deploy 500,000 units between smart and advanced products.

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Kohen announced the recent launch of a plug-and-play advanced smart heater and anticipated it landing in the market for the coming winter.

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Leonard Jay Sokolow, Co-CEO, reported, "We reported an increase of 15% with a record second quarter 2025 revenues of $23.1 million compared to $20.1 million for the first quarter of 2025." Sokolow highlighted that cash and equivalents were $15.7 million as of June 30, compared to $12.3 million as of March 31, and cited net cash used in operations declining to $2 million from $4.3 million, while gross profit increased to $7 million and gross margin rose to 30.3%. The adjusted EBITDA loss was $2.6 million or $0.02 per share compared to $3.6 million or $0.04 per share in Q1.

OUTLOOK

* Management reiterated the expectation to become cash flow positive in 2025. Kohen referenced the upcoming launch of the advanced smart heater plug-and-play, foreseeing "significant increase in revenues and in gross margins" for the coming winter. Schmidt projected product presence in over 40,000 homes by the end of Q3.

FINANCIAL RESULTS

* Sokolow stated, "We reported an increase of 15% with a record second quarter 2025 revenues of $23.1 million compared to $20.1 million for the first quarter of 2025." Cash and equivalents stood at $15.7 million as of June 30, up from $12.3 million. Gross profit reached $7 million, and gross margin improved by 7% to 30.3%. Net cash used in operations decreased to $2 million, and adjusted EBITDA loss narrowed to $2.6 million or $0.02 per share.

Q&A

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Gerard J. Sweeney, ROTH Capital Partners: "Can you maybe give us a little bit of a bridge from where we are today to cash flow breakeven. Is this accelerating sales?... I just want to understand how we go get to cash flow breakeven by the end of the year?" Kohen responded, "We reduced some cash expenses on our end, and that by itself is a major step that we want to continue... we expect to launch a few products very soon... we feel that this winter can be a significant increase in revenues and in gross margins."

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Sweeney: "The code, standardized code or the mandatory standardization of the code... 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?" Kohen explained, "We met all the contingencies, including the NEC, NEMA... now we believe there's some government organizations that can help expedite that process. Many of us believe it's more a when than an if."

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Sweeney: "A big hire on your e-commerce platform from Amazon. Just any details on maybe some changes that have gone there or tweaking or the opportunity that they bring to that -- to the e-commerce platform?" Kohen highlighted hiring Huey Long, who "established the first Amazon brand is Basic," and noted Long's background in scaling Ashley Furniture's online business to $1 billion, stating, "Huey as CEO running the offense very strongly."

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Patrick Joseph McCann, NOBLE Capital Markets: "I was wondering if you could talk about to what extent getting that product available. Are there any new partnerships... any partnerships with other developers that might potentially hinge on that product becoming available?" Kohen responded, "That collaboration with Parrot Uncle opens markets here in the U.S., but definitely global markets... we are working with several big boxes and other channels."

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McCann: "With regard to the smart city development. Does that collaboration serve as a bit of a proof point for other developers... Are you seeing any extra traction with new partnerships...?" Kohen replied, "Yes, we are getting great interest and... we're exploring many opportunities based on that smart city announcement."

SENTIMENT ANALYSIS

* Analysts focused on the path to cash flow breakeven, standardization progress, and the impact of recent hires, with a tone of cautious optimism and pressing for more detail.
* Management maintained a confident tone, frequently emphasizing progress and future opportunities, often using phrases such as "we believe" and "we hope" while acknowledging some elements remain to be seen.
* Compared to the previous quarter, analysts maintained a similar tone of constructive inquiry, while management's confidence increased with tangible progress on the Miami project and patent portfolio.

QUARTER-OVER-QUARTER COMPARISON

* The current quarter featured a 15% revenue increase and stronger gross profit and margin performance versus Q1, alongside a reduced adjusted EBITDA loss.
* Management's tone shifted to greater confidence, citing landmark achievements like the Miami smart city project and new product launches, whereas the previous quarter focused more on pipeline development and manufacturing partnerships.
* Analysts continued to highlight standardization and commercialization milestones, but the smart city win in Miami became a new focal point for questions about future growth and proof of concept.
* Strategic focus expanded from primarily building out manufacturing and product assortment to leveraging large-scale deployments and global partnerships.

RISKS AND CONCERNS

* Management noted ongoing dependency on achieving mandatory safety code standardization, describing it as "more a when than an if" but acknowledging timing uncertainty.
* Cash flow positivity remains a key target with success tied to new product launches and retail uptake.
* Analysts probed the scalability and timing of partnerships, with particular interest in whether the Miami project would accelerate broader adoption.

FINAL TAKEAWAY

Management outlined significant progress with robust revenue growth, higher gross margins, and reduced cash burn, underpinned by a major smart city collaboration in Miami targeting 500,000 unit deployments and a stronger patent portfolio. The company continues to pursue cash flow positivity in 2025, bolstered by upcoming product launches and expanded retail presence, while actively working toward safety code standardization and leveraging key hires to scale its e-commerce operations and global reach.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/skyx/earnings/transcripts]

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