SKYX Platforms Corp. Q3 FY2025 earnings call

• Record revenue of $24 million in Q3 2025 compared to $23 million in Q2 2025, with 7 consecutive quarters of revenue growth.
• Signed an agreement with Global Ventures Group to deploy advanced smart home technologies to Middle East projects including Saudi Arabia and Egypt, expecting to deploy hundreds of thousands of units.
• Supplying technologies to a 278-apartment project in Austin, Texas with over 10,000 units of Smart Plug & Play technologies.
• Established a major collaboration with a $3 billion mix-use Urban Smart Home City project in Miami, expecting to supply over 500,000 units of Smart Home Plug & Play platform technologies.
• Successful Marriott hotel renovation demo opens doors for expanding the hotel segment.
• Plan to grow by developing over 50,000 products into homes and units by end of Q4 2025 through Retail and Pro segments.
• Upcoming launch of AI-driven software for e-commerce platform to increase conversion rate by 30%.
• Cash position as of September 30, 2025, was $13 million, with recent $5 million capital raise from leading shareholders.

In the third quarter of 2025, SKYX reported record revenue of $24 million, an increase from $23 million in the second quarter. Gross profit for the third quarter ending September 30 increased sequentially by 8% to $8 million, with a gross margin of 32% compared to 30% in the second quarter. Deferred revenue, primarily from the e-commerce platform, showed growth, indicating an acceleration of revenues from that segment. The company's revenue has increased for 7 consecutive quarters from Q1 '24 through Q3 of '25.

• Expect to deploy over 50,000 of their products into homes and units by the end of Q4 2025 through Retail and Pro segments.
• Anticipate launching patented Advanced & Smart Turbo heater fan and variety of Plug & Play ceiling fans during November.
• AI-driven software for e-commerce platform expected to increase conversion rate in sales by 30%.
• Growth in B2B and Pro segments anticipated, with significant business opportunities in Middle East, hotel, and smart city projects.
• Leveraging relationships with manufacturers to fund operations through a model similar to the Dell Working Capital model.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, as detailed in Form 10-Q and other SEC filings.
• Market uncertainties and competition in the smart home and building technology space could impact business growth and revenue.

Q: Could you provide more color on the near-term revenue outlook, specifically the expected 50,000 units by end of Q4 and average selling price?

A: It's a Razor & Blade model. Razors (ceiling receptacles) open doors for various fixtures. Anticipate 50,000 units by end of Q4, with mix including higher ticket items like ceiling fans and heater fans. Growth with more products and software upgrade.

Q: Can you elaborate on the software upgrade for the website and when we might see revenue effects?

A: Software merging in process, expected to be done by Q1 or Q2 2026. Combines with new products to increase conversion rate via AI methods. Focus on B2B and Pro segments joining online.

Q: Which customer announcements are currently shipping and which are yet to come?

A: Marriott demo opened doors, local projects starting to supply, Austin and Florida projects soon. Miami smart city and Saudi projects more next year. Razor & Blade model means some projects are future.

Q: What's the visibility on billing for the upcoming ceiling heater fan and its impact on adjusted EBITDA breakeven in Q4?

A: Some visibility, but focus on landing products. Anticipate landing in November, but delays possible. Once landed, will have better picture.

Q: How does the revenue mix look between consumer sales on websites and B2B partnerships moving forward?

A: Currently mainly B2B to builders, but Pro and Builder segments joining online. Anticipate significant growth in B2B starting 2026.

Q: Discuss the gross margin and further upside with new products and software?

A: More own products and new software will boost gross margins. New software and product mix expected to continue growing gross margins.

Q: Talk about the Middle East opportunity and if the Turbo Heater Fan will be in Home Depot?

A: Middle East has fast adoption of advanced tech, agreement with Global Ventures. Turbo Heater Fan anticipated on website and in accounts like Home Depot, but details to be announced.