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SKYX Platforms Corp. (SKYX)·Q3 2025 Earnings Summary

Executive Summary

  • Record revenue and margin expansion: Q3 2025 revenue of $23.89M, up 4% QoQ and 8% YoY; gross profit rose to ~$8.0M with gross margin improving to 32% from 30% in Q2 .
  • Modest beat vs consensus: Revenue modestly above S&P Global consensus ($23.49M*) and EPS beat (-$0.07 vs -$0.078*); 6 revenue and 5 EPS estimates underpin consensus. Values retrieved from S&P Global.*
  • Liquidity and financing update: Cash, cash equivalents, restricted cash, and receivables totaled ~$13M at 9/30/25; raised $5M from lead shareholders and extended ~$11M of notes to 2030 .
  • Near-term catalysts: Launch of patented smart turbo heater fan and plug‑and‑play ceiling fans, AI-driven e-commerce software expected to lift conversion and sales by 30% (target full deployment by Q1/Q2 2026), expanding hotel/builders pipeline (Marriott demo, Austin project, Miami smart city, Middle East Global Ventures) .

What Went Well and What Went Wrong

What Went Well

  • Sequential and YoY growth with margin expansion: “record” Q3 revenue of $24M (reporting table $23.89M) and gross margin rising to 32% from 30% in Q2 .
  • Strategic wins and pipeline: Agreements spanning a $3B Miami smart city (expected 500,000 units), Austin (10,000+ units), and Middle East (hundreds of thousands of units) .
  • Management tone on AI/data: “AI-driven software for e‑commerce… expected to increase conversion rate and sales by 30%,” and positioning SKYX’s platform as the “integrated physical layer” enabling AI services across built environments .

What Went Wrong

  • Continuing losses despite improvement: Net loss of $(7.62)M and EPS of $(0.07), though improved from Q2; adjusted EBITDA still a loss (~$(2.25)M) .
  • Cash burn persists: Nine‑month operating cash flow of $(11.30)M; reliance on payables (Dell model) and external financing raises durability questions until B2B ramps in 2026 .
  • Timing risk on large projects: Management indicated major B2B/hotel/Middle East deployments largely 2026; near‑term unit targets rely on product launches and retail/pro channels .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$20,113,938 $23,061,655 $23,891,537
Net Loss ($USD)$(9,052,128) $(8,826,929) $(7,615,926)
Diluted EPS ($USD)$(0.09) $(0.08) $(0.07)
Gross Profit ($USD)$5.7M (disclosed, sequential increase) $7.0M ~$8.0M
Gross Margin (%)N/A30.3% 32.0%
Adjusted EBITDA ($USD)$(3,624,931) $(2,636,412) $(2,252,330)
Adjusted EBITDA per share ($USD)$(0.04) $(0.02) $(0.02)
Cash, Cash Equivalents, Restricted Cash + Receivables ($USD)$12.3M cash+restricted cash; receivables $2.81M $15.7M cash+restricted cash; receivables $2.33M ~$13M combined (cash, restricted cash, receivables)
Q3 YoY ComparisonQ3 2024Q3 2025
Revenue ($USD)$22,168,919 $23,891,537
Gross Margin (%)N/A32.0%
Net Loss ($USD)$(8,621,306) $(7,615,926)
Diluted EPS ($USD)$(0.08) $(0.07)
Consensus vs Actual (Q3 2025)
Revenue: $23.49M* (estimate, 6) vs $23.89M actual
Primary EPS: $(0.078)* (estimate, 5) vs $(0.07) actual
Note: Values retrieved from S&P Global.*

Segment breakdown: The company reports revenue including e‑commerce sales and smart and standard plug‑and‑play products but does not disclose formal segment revenue mixes for the quarter .

KPIs and Operating Indicators:

  • Deferred revenue increased sequentially in Q3 (indicator of e‑commerce sales in transit) per management commentary .
  • E‑commerce platform: 60 websites; AI‑driven software expected to increase conversion rate and sales by 30% .
  • Unit deployment targets: ~50,000 products into homes/units by end of Q4 2025 .
  • Financing: $5M additional capital raised; ~$11M notes extended to 2030 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash flow positiveFY 2025“cash flow positive in 2025” (Q1/Q2 communications) “cash flow positive exiting 2025” (Q3) Maintained (timing clarified)
Products deployed (units)Q4 2025“in 40,000 units/homes by end of Q3 2025” (prior quarter indicator) “expects to deploy over 50,000 products into homes/units by end of Q4 2025” Raised sequential target vs prior quarter milestone
Product launchesQ4 2025Demand surge ahead of turbo heater fan launch (Q2) Launch of patented turbo heater fan and variety of plug‑and‑play ceiling fans “during this month” (Nov) Formalized timing (near‑term)
AI e-commerce uplift2026N/A (set‑up in Q2) AI software expected to drive +30% conversion/sales; full merge targeted Q1/Q2 2026 New quantitative uplift expectation
Channel mix2026Building/pro segment ramp ongoing “Major growth will start in 2026” for B2B; retail still a contributor Clarified trajectory

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3 2025)Trend
AI/technology initiativesBuilding 60‑site e‑commerce platform; leadership hires (Huey Long) AI‑driven e‑commerce software expected to add 30% conversion/sales; AI services/data vision for built environments Expanding scope and quantifying impact
Supply chain/manufacturingU.S. strategic manufacturing (Profab); collaborations in Vietnam, Taiwan, China, Cambodia Tariffs pushed diversification; U.S. automation feasible for receptacle/smart boards; licensing options More optionality; emphasis on U.S. automated production
Product performance/launchesTurbo heater fan demand surge; expanding assortment (Q2) Launching heater fan and ceiling fans in Nov; exit/emergency lights landing; ASP uplift expected Near‑term SKU expansion; higher ticket items
Regional strategyMiami smart city 500k units (Q2) Middle East Global Ventures (hundreds of thousands units), Austin (10k+ units), Marriott hotel channel expansion Broader international and hospitality pipeline
Regulatory/legal (code standardization)NEC progress; ANSI/NEMA spec; insurance savings thesis Support from a “prominent leader”; continued progress; potential U.S. manufacturing linkage Continuing momentum; external engagement
Channel mix (Retail vs B2B)Retail + pro via e‑commerce and partners Retail remains primary in 2025; B2B major growth expected in 2026 Shift toward B2B in 2026

Management Commentary

  • “We have reported record revenue of $24 million in the Third Quarter 2025… Our revenues have now increased for seven consecutive quarters from Q1 2024 to Q3 of 2025.”
  • “We expect to launch our patented advanced and smart turbo heater fan and variety of plug‑and‑play ceiling fans during this month.”
  • “AI‑driven software for our e‑commerce platform of 60 websites [is] expected to increase our conversion rate and sales by 30%.”
  • “We are encouraged by… Miami smart city… Middle East… Austin… hotel segment expansion.”
  • “Gross margin increased sequentially by 4% to 32%… net loss per share decreased by $0.01 to $0.07 per share.”

Q&A Highlights

  • Units and ASP cadence: ~50,000 products targeted by year-end with mix shifting to higher-ticket items (ceiling fans, heater fans, emergency/exit lighting) .
  • AI website upgrade: Merge targeted by Q1/Q2 2026; uplift driven by AI targeting, UX, and uniqueness-led traffic acquisition .
  • Project timing: Marriott demo completed; Austin and Florida projects supplying “very soon”; Miami smart city and Saudi more likely 2026 .
  • Gross margin trajectory: Margin blend improves as own products scale; licensing could offer 85%+ margins longer term .
  • Regulatory/standardization: Tariffs forced creative sourcing; U.S. automated manufacturing feasible; government standardization progress continues .

Estimates Context

  • Q3 2025 vs S&P Global consensus: Revenue beat by ~$0.40M; EPS beat by ~$0.008. Participation breadth moderate (6 revenue, 5 EPS estimates). Values retrieved from S&P Global.*
  • Implications: Slight positive revision potential on near‑term revenue/EPS given margin improvements and SKU launches; larger estimate resets tied to B2B recognition timing in 2026 .

Key Takeaways for Investors

  • Margin mix is improving as proprietary products scale; watch heater fan/ceiling fan sell‑through and retail placements to validate sustained 30%+ GM .
  • Near‑term revenue catalysts are product launches and retail/pro channels; major B2B/hotel/Middle East contributions are more 2026‑weighted, tempering immediate step‑function growth .
  • Liquidity supported by e‑commerce cash cycle and vendor payables (Dell model), but operating cash burn still material—monitor conversion of pipeline to cash flows and note maturities extended to 2030 .
  • AI e‑commerce initiative (30% conversion uplift) could be a meaningful 2026 driver; execution and timing are critical to estimates .
  • Regulatory standardization remains a high‑impact optionality; continued progress could unlock licensing and U.S. automated manufacturing benefits .
  • Trading setup: Modest beat and margin improvement are supportive near term; proof points will be heater fan/fan launch velocity, retail adoption, and order visibility into 2026 B2B programs .

Notes:

  • Segment breakdown was not disclosed; revenue includes e‑commerce and smart/standard plug‑and‑play products .
  • Consensus estimate values are from S&P Global; asterisks denote S&P data in the table above.*