SKYX Platforms Corp. Q1 FY2026 earnings call

• Core Business Strategy

  • The company remains focused on its razor-and-blade business model across B2B (hotels and builders) and retail segments, with a goal of generating future recurring revenue from product upgrades, AI services, and monitoring subscriptions
  • The company has achieved nine consecutive quarters of year-over-year revenue growth
  • Management highlighted that growth continues despite weakness in the overall new construction market that impacts smart home, lighting, and home decor segments

• Strategic Partnerships and Market Expansion

  • Entered into a strategic partnership with European hotel and real estate developer Group OT to deploy SKYX's smart and AI platform technologies as a brand standard across the partner's 250+ European hotels and buildings
  • Signed an additional agreement with Heritage Hospitality Group to deploy and market SKYX technologies to the 132,000+ hotel European market
  • Announced a collaboration with NVIDIA's AI Ecosystems Connect program, with plans to expand the partnership into future smart home projects
  • Has upcoming projects in major global markets including New York, North Carolina, Texas (Austin, San Antonio), South Florida (Miami's $4 billion smart city development), Europe, Saudi Arabia, and Egypt
  • The company expects to deploy over 1 million total product units across upcoming projects, and over 100,000 units to homes through pro and retail segments by the end of 2026

• Product Development

  • The patented Turbo Heater Fan product continues to grow sales even amid warmer-than-expected weather, and the company is expanding the product line into an all-season ceiling fan category (providing heating in winter and cooling in summer). New sizes (18 inch, 28 inch, 42 inch, 54 inch, 60 inch) will be launched in 5 different colors
  • Generation 3 all-in-one smart platform hub, which adds smoke detectors, CO detectors, emergency lighting, 911 calling, and night light safety features, is on track for production launch in mid-to-third quarter 2026
  • The company's safety code standardization team continues progressing toward achieving mandated safety standardization for SKYX's life-saving ceiling outlet receptacle technology
  • Approximately 33% of the company's 60 websites have been upgraded to new AI-driven customer profiling and e-commerce software, with the full upgrade project on track for completion in Q3 2026

• Financial Highlights

  • Total cash, cash equivalents, and restricted cash improved significantly to $32 million as of March 31, 2026, up from $10 million at the end of 2025
  • Net loss per share decreased to $0.07 per share in Q1 2026 from $0.90 per share in Q1 2025
  • Adjusted EBITDA loss per share decreased 3 percentage points to $0.03 per share in Q1 2026 from $0.04 per share in Q1 2025

• Manufacturing Strategy

  • Partnered with U.S.-based ProFab, a leading manufacturer of sophisticated printed circuit boards for military, aviation, and medical industries, for development and potential U.S. production of the Generation 3 smart platform. The company maintains a diversified manufacturing base across China, Taiwan, Cambodia, the Philippines, Vietnam, and the U.S. to avoid supply concentration risk

SKYX Platforms Corp. does not break out detailed financial performance by product segment in this call. The company reports total consolidated Q1 2026 revenue of $22 million, a 10% year-over-year increase from $20 million in Q1 2025. Gross profit was $7 million, a 16% year-over-year increase from $6 million in Q1 2025, with gross margin expanding 2 percentage points to 30% from 28% in the prior year quarter. The two core business segments are B2B (hotels and builders) and retail/e-commerce, with no specific revenue contribution percentages or absolute figures provided for each segment in this call.

• Management reaffirms its existing target to achieve cash flow positive status by the end of 2026, and states that the current $32 million cash position is sufficient to reach this goal
• The full upgrade of the company's 60 websites to AI-driven software is on track to be completed by Q3 2026
• Generation 3 all-in-one smart platform hub remains on schedule to enter production in mid-to-third quarter 2026
• Management expects the expanded all-season Turbo Heater Fan product line to drive significant sales growth starting in the 2026 winter season, with unexpected growth already occurring in the warmer summer season

• The overall slowdown in the new construction market negatively impacts the company's operating environment for its smart home and construction-related product lines
• The process to achieve mandated safety standardization for SKYX's receptacle technology is slow, though the company has been working toward this goal for 14 years and has achieved key milestones
• Geopolitical and regional instability could impact the company's planned projects in the Middle East (Saudi Arabia and Egypt), though management notes projects remain on schedule with no current disruptions
• Over-reliance on a single manufacturing region could create supply chain risks, which the company has mitigated by maintaining a diversified network of manufacturing partners across multiple countries

Q: An analyst asked how many signed developer/hotel projects have converted to active supply orders, provided an update on the timing of key projects including Austin, New York, and Miami, and asked for color on the size of revenue potential for Turbo Heater Fan at major big-box retailers. / A: Management confirmed several projects have already converted to purchase orders, with product supply to start in the coming months for projects in Austin, New York, San Antonio, and the first European hotel. Management noted the B2B developer and hotel pipeline is strong, driven by the product value proposition of cutting 90% of installation time and labor costs. For big-box retail, despite warm weather, Turbo Heater Fan sales are growing, and penetration across 1,000 to 2,000 retail stores would represent a major turning point for the product line.

Q: An analyst asked for drivers of the year-over-year gross margin expansion, and what the breakdown of Q1 revenue growth was between website upgrades, contract shipments, and Turbo Heater sales. / A: Management stated revenue growth came from a combination of all three areas: growth of core SKYX/SkyPlug products, Turbo Heater sales, and benefits from the new AI-driven website software. The AI upgrades improve customer profiling, site navigation, and product targeting, which increases conversion rates; management expects further benefits once the full rollout is complete. Gross margin expansion was driven by the mix of new products across e-commerce and big-box retail combined with the efficiencies of the new AI e-commerce software.

Q: An analyst asked for an update on the 2023 GE global licensing partnership, and whether the Generation 3 all-in-one platform will unlock recurring revenue. / A: Management confirmed the partnership remains active after GE merged its licensing division with Dolby, and expects licensing to become a significant revenue stream once mandatory safety standardization is achieved. The Generation 3 platform remains on track for mid-to-third quarter 2026 production, and will open recurring revenue opportunities from monitoring subscriptions and AI services across multiple end markets including home safety, elder care, hospitality, cruise lines, and hospitals.

Q: A private investor asked for an update on the ProFab U.S. manufacturing partnership, whether the company can scale production to meet demand for 1 million units, and if Middle East projects have been disrupted by regional conflict. / A: Management said ProFab is a key long-term partner for U.S. product development and testing, with plans to produce some Generation 3 units in the U.S. Fully automated PCB manufacturing eliminates most labor cost differences between U.S. and Asian production. The company's diversified global manufacturing network can already support production of millions of units annually, so there is no capacity concern. Middle East projects in Saudi Arabia and Egypt remain in planning and are moving forward with no disruptions.