SKYX Platforms Corp. (SKYX)·Q2 2025 Earnings Summary

Executive Summary

• Record revenue of $23.1 million, up 15% sequentially vs. Q1 2025 ($20.1 million) and up 8% year over year vs. Q2 2024 ($21.4 million), driven by e-commerce and plug-and-play product traction .
• Gross margin expanded to 30.3% (from ~28.4% in Q1), and gross profit rose to ~$7.0 million; net cash used in operating activities fell 54% sequentially to $2.0 million, improving cash burn dynamics .
• Versus S&P Global consensus, revenue modestly beat, EPS was a narrow miss, and EBITDA was materially below consensus; management emphasized adjusted EBITDA loss improvement to $2.6 million ($0.02/share) . Revenue Consensus Mean $22.95M*, EPS Consensus Mean -$0.0775*, EBITDA Consensus Mean -$2.57M*; Actuals: Revenue $23.06M, EPS -$0.08, EBITDA -$6.74M* .
• Strategic catalysts: Miami $3B mixed-use smart city collaboration (expected 500,000 unit deployment), Q3 launch of patented all-in-one smart turbo heater & ceiling fan, and continued progress on safety code standardization; cash, cash equivalents, and restricted cash totaled $15.7 million at quarter-end .

What Went Well and What Went Wrong

What Went Well

• Revenue growth and margin expansion: “record Second quarter 2025 revenues of $23.1 million … gross margin … increased sequentially by 7% to 30.3%” .
• Cash burn improvement: “Net cash used in operating activities … decreased sequentially by 54% to $2.0 million compared to $4.3 million in the First quarter of 2025” .
• Management confidence and focus on cash flow: “Management believes it has sufficient cash to achieve its goals including being cash flow positive in 2025.” . On the call: “we believe we have sufficient cash to achieve our goal of becoming cash flow positive in 2025” .

What Went Wrong

• GAAP profitability remains challenged: Q2 net loss was $(8.83) million; total operating expenses rose to $30.58 million (vs. $27.83 million in Q1), reflecting higher G&A and selling/marketing .
• EPS narrowly missed consensus: -$0.08 actual vs. -$0.0775 consensus*, and EBITDA was well below S&P consensus (-$6.74M actual* vs. -$2.57M*), highlighting continued operating leverage and cost structure pressure .
• Interest expense remains elevated at ~$$1.31 million in Q2, sustaining drag on GAAP earnings .

Financial Results

Segment breakdown: The company does not provide formal segment reporting; revenues comprise e-commerce sales and smart/standard plug-and-play products .

KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We believe we have sufficient cash to achieve our goals including being cash flow positive in 2025.” .
• “The gross margin for the Second quarter … increased sequentially by 7% to 30.3%.” .
• “SKYX is expected to deliver over 500,000 units of its advanced and plug & play smart home technologies … for the entire smart city project.” .
• “Adjusted EBITDA loss … decreased to $2.6 million, or $0.02 per share, as compared to $3.6 million, or $0.04 per share, in the First quarter of 2025.” .
• On e-commerce capability: “Huey Long … has joined as head of SKYX’s e-commerce platform … to expand market penetration across 60 lighting and home décor websites.” .
• Call emphasis: “we hope that we can share some progress soon as a major Marriott developer” and reiteration of cash, gross margin improvements .

Q&A Highlights

• Path to cash flow breakeven: Management cited reduced cash expenses and upcoming product launches (smart heater fan) with retailer interest, expecting winter-driven revenue and margin uplift .
• Code standardization catalyst: Management outlined progress with government safety organizations and past NEC/ANSI/NEMA milestones; characterized outcome as a “when” rather than “if,” pending process completion .
• Parrot Uncle partnership & developer traction: Collaboration opens U.S. and global markets; developers showing increased interest following the smart city announcement, with expected updates as products become available .

Estimates Context

Notes:

• Management also reported adjusted EBITDA loss of $2,636,412 ($0.02/share), which excludes share-based payments, interest, and D&A; investors should reconcile GAAP vs. non-GAAP when comparing to consensus .
• Values retrieved from S&P Global.*

Key Takeaways for Investors

• Revenue and margin momentum: Sequential revenue (+15%) and margin expansion to 30.3% indicate improving unit economics; watch for sustained margin trajectory as mix shifts to higher-value products .
• Operating leverage path: Cash burn improved (net cash used in ops down to $2.0M); maintaining expense discipline and scaling e-commerce channels are critical to reaching 2025 cash flow breakeven .
• Catalysts: Q3 launch of the patented heater/fan, expanding Home Depot/Wayfair assortments, and the Miami smart city (>500k unit deployment) could drive order visibility and sentiment .
• Code standardization optionality: Continued NEC/ANSI/NEMA progress and potential insurance recommendations represent medium-term standardization upside, but timing remains uncertain; treat as a call option on safety-driven adoption .
• Estimate revisions: Slight revenue beat vs. consensus and EPS near in-line, but EBITDA below consensus suggests continued focus on cost structure and working capital; expect modest upward revenue revisions tied to Q3 product launch, with scrutiny on Opex trends.*
• Balance sheet watchpoints: Interest expense ($1.31M) and total operating expenses ($30.6M) still weigh on GAAP losses; monitor funding sources (preferred equity rounds, payables strategy) and cash conversion .
• Execution risks: Ramp into big-box retail and large-scale deployments requires supply chain coordination; management’s U.S. manufacturing partnership and patent moat help, but scale-up execution is key .