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SKYX Platforms Corp. (SKYX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $20.11M, up 6% YoY, with a slight miss vs S&P Global consensus $20.25M, while diluted EPS of ($0.09) beat consensus ($0.10) loss; gross margin and gross profit improved sequentially versus Q4 2024 (+4.8% pts and +2% respectively) . Results reflect continued penetration of advanced/smart plug-and-play products and e-commerce .
  • Management reiterated expectation to become cash flow positive in 2H 2025 and highlighted a 17% YoY reduction in G&A (to $6.60M) as operating discipline improves .
  • Strategic progress included a U.S. manufacturing partnership with Profab (automation to mitigate tariff/cost risk), and ~ $4M in new preferred equity within a ~$15M round led by The Shaner Group (Marriott owner), adding balance sheet flexibility .
  • Near-term catalysts: standardized safety code progress support from high-profile safety leaders, accelerating retail/e-commerce rollouts (Home Depot, Wayfair), and builder/hospitality deployments; management targets 30,000 homes by end of Q2 2025 and “tens of thousands” more in 2H 2025 .

What Went Well and What Went Wrong

  • What Went Well

    • Sequential margin recovery: gross margin up 4.8% pts and gross profit up 2% vs Q4 2024; adjusted EBITDA loss improved YoY to ($3.62M)/($0.04) per share from ($4.53M)/($0.05) per share .
    • Operating discipline: G&A down 17% YoY to $6.60M; net cash used in operations improved sequentially to ($4.32M) from ($6.11M) in Q4 2024 .
    • Strategic momentum and tone: “We are progressing with significant projects and orders that will enable us to become cash flow positive in the second half of 2025,” and “We expect our products to be in 30,000 U.S. and Canadian homes by the end of the second quarter of 2025” (Steven Schmidt) .

  • What Went Wrong

    • Seasonal step-down from Q4 highs: revenue declined sequentially from $23.7M in Q4 2024 to $20.11M; management noted Q4 is “traditionally stronger” .
    • Slight top-line miss vs consensus: $20.11M vs $20.25M consensus; EPS beat was modest (−$0.09 vs −$0.0975) [GetEstimates: Q1 2025, values from S&P Global]*.
    • Continued losses and interest burden: net loss of ($9.05M) and interest expense of $1.38M in the quarter underscore ongoing funding costs pending scale-up and mix shift to higher-margin “blades” .

Financial Results

Q1 2025 vs Q1 2024 vs Consensus

MetricQ1 2024Q1 2025Consensus (Q1 2025)
Revenue ($USD Millions)$18.98 $20.11 $20.25*
Diluted EPS ($)($0.10) ($0.09) ($0.0975)*
Gross Profit ($USD Millions)N/A$5.70 N/A
G&A Expense ($USD Millions)$7.94 $6.60 N/A
Adjusted EBITDA ($USD Millions)($4.53) ($3.62) N/A
Adjusted EBITDA per share ($)($0.05) ($0.04) N/A
  • EPS beat: ($0.09) vs ($0.0975) consensus; revenue slight miss: $20.11M vs $20.25M. Bold implications: EPS beat, revenue marginally under. Values with asterisks are from S&P Global consensus estimates.
  • S&P Global disclaimer: Values retrieved from S&P Global.*

Sequential Comparison (Q4 2024 → Q1 2025)

MetricQ4 2024Q1 2025
Revenue ($USD Millions)$23.70 $20.11
Net Cash Used in Operating Activities ($USD Millions)($6.11) ($4.32)
Gross Margin / Gross ProfitGross margin + gross profit increased sequentially by 4.8% pts and 2% (narrative) Gross profit $5.70M
  • Note: Management highlighted Q1 is seasonally softer than Q4; sequential margin improvement despite lower revenue is positive .

Operating Expenses and Other P&L Items (Q1 2025 vs Q1 2024)

Metric ($USD Millions)Q1 2024Q1 2025
Selling & Marketing$6.53 $6.83
G&A$7.94 $6.60
Total Operating Expenses (net)$27.87 $27.83
Loss from Operations($8.89) ($7.71)
Interest Expense (net)($0.79) ($1.34)
Net Loss($9.68) ($9.05)

KPIs and Balance Sheet Highlights

KPIQ4 2024Q1 2025
Cash, Cash Equivalents & Restricted Cash$15.50M (12/31/24) $12.30M (3/31/25)
Cash and Cash Equivalents (ex-restricted)$12.64M (12/31/24) $9.44M (3/31/25)
Homes/Units with SKYX Products (management target)20,000 by end of Q1 2025 (target) 30,000 by end of Q2 2025 (target)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash Flow Positive TimingFY 2025Expect cash flow positive in 2H 2025 Expect cash flow positive in 2H 2025 Maintained
Homes/Units with SKYX ProductsMid-202520,000 by end of Q1 2025 30,000 by end of Q2 2025; “tens of thousands” more in 2H 2025 Raised/extended
Gross Margin Trajectory1H 2025Higher as “blades” blend in; Q4 dip framed as mix/seasonality with improvement expected Q1 gross margin improved +4.8% pts sequentially; continued focus on higher-margin products Improving as planned
OpEx (G&A) DisciplineOngoingReduced $5.7M in 2024 vs 2023 Down 17% YoY in Q1 2025; continued focus Improving

No explicit revenue/EPS numeric guidance was provided. Management emphasizes product rollouts, channel expansion, and mix shift to support 2H 2025 cash-flow breakeven .

Earnings Call Themes & Trends

TopicQ3 2024 (Nov-24)Q4 2024 (Mar-25)Q1 2025 (May-25)Trend
Safety code standardization10 NEC segments; pursuing mandatory; strong code team (Earley/Jacobson) Exploring organizations to expedite; confidence from high-level leaders “Receiving support from a new significant leader” in govt safety process; reiterates path to mandatory Increasing momentum, broader support
Manufacturing/tariffsDiversifying beyond China to Vietnam/Taiwan; mitigate tariff risk Mitigation via non-China factories; minimal impact expected U.S. Profab partnership; automation to narrow cost gap; flexible sourcing as tariffs evolve Improved resilience and localization
Retail/e-commerce channelsCollaborations with Home Depot, Wayfair; >60 websites Continued ramp; leadership hires (Huey Long, Greg St. John) to scale channels Ongoing product onboarding; expect broader assortment online and in stores Broadening distribution and execution
Builder/hospitality channelInitial wins; high-rise/hotel value prop (install days vs months) Multiple projects (Forte, Baron); JIT distribution Expect significant orders; hotel channel linked to Shaner; assortment expansion underway Pipeline building toward 2H ramp
Gross margin mixQ3 GM ~30.9%; up 1% pt QoQ Q4 margin dip discussed; expected rebound with “blades” Q1 GM +4.8% pts QoQ; GP +2% QoQ Improving sequentially
Licensing (GE) / AI/data5-year GE licensing; platform enables AI/data, subscriptions Reinforced standardization/GE path Reiterates recurring revenue model (subscriptions/monitoring) Longer-term optionality intact

Management Commentary

  • “We recorded first quarter sales in 2025 of $20.1 million… This is our fifth consecutive quarter of year-over-year revenue growth… We expect our products to be in 30,000 U.S. and Canadian homes by the end of the second quarter of 2025. We are progressing with significant projects and orders that will enable us to become cash flow positive in the second half of 2025.” — Steven Schmidt .
  • “Our gross profit for the first quarter… increased sequentially… Net cash used in operating activities… decreased sequentially by 29%… Adjusted EBITDA loss… decreased to $3.6 million or $0.04 per share.” — Leonard Sokolow .
  • “Our goal [with Profab] is to fully automate many of our products… fully automated can be very competitive… and it’s made in the U.S.” — Ran(i) Kohen .
  • “Our technologies provide opportunities for recurring revenues through interchangeability, upgrades, monitoring, and subscriptions. We are focused on the Razor & Blade model.” — Steven Schmidt .

Q&A Highlights

  • Manufacturing localization and tariffs: Management aims to automate U.S. production with Profab to narrow cost gaps; maintains multiple-country sourcing optionality (China back “in play” as tariffs ebb/flow) .
  • Financing and hospitality channel: ~$4M additional preferred within ~$15M round led by Shaner; hospitality deployments anticipated as the full assortment arrives (recessed lights, exit/emergency lights, fans) .
  • Safety standardization timeline: Multiple organizations can influence mandatory adoption; emphasis on decision date (effective date typically 18–24 months later) .
  • Retail rollouts: Home Depot/Wayfair assortments expanding as inbound containers arrive; store presence expected to grow alongside online traction .
  • Path to 2H 2025 cash-flow positive: Mix shift to higher-margin “blades,” significant projects/orders, and operating control underpin the target .

Estimates Context

  • S&P Global consensus vs actual (Q1 2025):
    • Revenue: $20.25M consensus vs $20.11M actual — slight miss* .
    • EPS: ($0.0975) consensus vs ($0.09) actual — beat* .
    • Number of estimates: 4 for revenue and 4 for EPS*.
  • Implication: Modest EPS beat reflects OpEx control and sequential margin improvement; minor top-line shortfall modest given seasonal Q1 softness and ongoing channel build.
  • S&P Global disclaimer: Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Modest quality beat: EPS beat on controlled G&A and better sequential margins; revenue essentially in line amid seasonal Q1 softness .
  • Execution toward profitability: Reaffirmed 2H 2025 cash flow positive target; improved operating cash burn ($4.32M vs $6.11M in Q4) supports trajectory .
  • Channel catalysts: Expanding Home Depot/Wayfair assortments and >60 owned sites, plus builder/hospitality pipelines, should support 2H acceleration as “blades” arrive .
  • Manufacturing risk mitigation: U.S. Profab partnership and multi-country sourcing enhance supply resilience and cost flexibility vs tariff volatility .
  • Code/standardization optionality: Growing support from safety leaders may accelerate standardization pathways — a structural demand catalyst if realized .
  • Balance sheet support: ~$4M new preferred as part of ~$15M round led by Shaner strengthens liquidity while interest expense remains a watch item until scale benefits arrive .
  • Monitoring points: pace of retail SKU additions/in-store adoption, builder/hotel order conversion, gross margin mix inflection, and updates on safety standardization efforts .

Footnotes:

    • S&P Global estimates used for consensus comparisons; values retrieved from S&P Global.
  • All other figures and quotations are sourced from SKYX filings, press releases, and transcripts: Q1 2025 8-K/press release [9], Q1 2025 call [6], Q4 2024 materials [14] [12], Q3 2024 8-K/call [32] [31], financing/manufacturing press releases [10] [11].