SKYX

• Core Growth & Financial Progress • Achieved 10 consecutive quarters of year-over-year revenue growth, with overall Q2 2026 revenue growth of 14% quarter-over-quarter and 10% year-over-year, despite ongoing declines in the broader real estate and home decor markets. • Reduced net cash used in operating activities by 39% to $3.7 million in Q2 2026 from $6 million in Q1 2026, and paid down $2 million in interest-bearing debt as of June 30, 2026. • Holds $27.7 million in total cash and equivalents, which management confirms is sufficient to achieve the company's near-term goals.

• Strategic Commercial Wins • Secured multiple new hotel deployment projects: a Marriott City Center Hotel renovation in Durham, NC; the first European hotel deployment at the historical Grand Hotel du Parc in France; and a second European hotel deployment at the 5-star Hotel Mozart Prague under Accor Hospitality Group. • Established OTT Hospitality Group as a brand standard partner for European hotel developers covering over 250 European properties, and signed an additional agreement with OTT Heritage Hospitality to deploy and market SKYX technologies across the 132,000-property European hotel market. • Signed a global technology license agreement with Eurofase, a leading global lighting company with operations in the U.S., Canada and Europe. • Has a pipeline of future projects across the U.S. (North Carolina, Austin, San Antonio, South Florida including Miami's $4 billion new Smart City, New York), Europe, Saudi Arabia and Egypt.

• Product Development • Patented turbo heater fan product continues to grow sales even during record hot summer weather, with new size variants (smaller for small rooms, larger for large rooms) scheduled to launch by Q4 2026 to meet unmet demand. • Gen 3 advanced monitoring smart device production samples are complete and testing successfully, with regulatory approvals (U.S. FCC, code approvals) pending to launch mass production. • In final stages of launching AI-driven software for the company's e-commerce platform, with plans to enhance the platform to serve the fast-growing builder and hotel segments.

• Standardization & New Opportunity Progress • The safety code standardization team for the company's life-saving ceiling outlet and receptacle technology continued to make meaningful progress in Q2 2026, after 14 years of development, meeting all required industry criteria. • In active discussions with insurance companies around the safety benefits of SKYX products, with promising collaborative opportunities for future growth.

• Management reaffirms the company is on track to achieve cash flow positive operations by the end of 2026.
• Management maintains the full-year 2026 target of deploying over 100,000 SKYX units across pro and retail segments, and expects a total of over 1 million units to be deployed across the full project pipeline, with the majority of deployments rolling out after 2026.
• Management expects turbo heater fan sales to grow significantly in the fall and winter 2026 seasons, and expects higher-margin product lines (including turbo heater fan and builder/hotel segment products) to increase overall gross margin in the second half of 2026.
• Gen 3 product mass production and delivery is targeted for Q4 2026, dependent on completion of regulatory approvals that are outside of management's direct control.
• Management expects additional licensing agreements similar to the Eurofase agreement as the company's builder and hotel market penetration grows.

SKYX Platforms does not break out full segment-level financials with absolute revenue and contribution percentages in this call. Management notes that the builder and hotel segments are the company's core growing segments, with the pro and retail segments serving as additional channels for product deployment. The turbo heater fan product line, sold through retail partners including Home Depot, saw continued summer sales growth despite headwinds from seasonal demand, and management expects significant sales increases in the fall and winter 2026 seasons. Overall company Q2 2026 total revenue grew 14% quarter-over-quarter to $25.3 million, and 10% year-over-year compared to $23 million in Q2 2025. Six-month 2026 total revenue grew 10% year-over-year to $47.4 million. Q2 2026 gross profit was $7.3 million, up 4% year-over-year, with a gross margin of 29% in Q2 2026, down from 30% in Q1 2026. Total cash, cash equivalents and restricted cash as of June 30, 2026 was $27.7 million, up from $10.1 million at December 31, 2025.

• The timing of regulatory and code approvals for new products (including Gen 3) and mandatory safety standardization of the company's core ceiling receptacle technology is controlled by external regulators and standards bodies, so exact timelines cannot be guaranteed.
• The broader real estate and home decor markets are currently in decline, which could create headwinds for the company's core builder segment growth.
• All forward-looking statements regarding project timelines, unit deployment targets, cash flow positivity and standardization are subject to inherent uncertainties that could cause actual results to differ materially from expectations, as noted in the company's SEC filings.

Q: With Q2 gross margin dipping to 29% from 30% in Q1, what should we expect for gross margin in the second half of 2026? / A: The current gross margin mix reflects the current product sales blend. As higher-margin products including the turbo heater fan and builder/hotel segment products grow their share of total revenue, overall gross margin will increase in back half 2026 and coming quarters.

Q: How confident is management that it will hit the target of 100,000 deployed units by the end of 2026? How are turbo heater fan sales tracking at Home Depot and other retailers? / A: Deployment of 100,000 units by end of 2026 is currently on track, and management strongly expects to meet the goal. Turbo heater fan sales are outperforming expectations even in the low-demand summer season; new size variants will launch in Q4 to meet unmet customer demand, and management expects strong sales growth this winter.

Q: Can you share an update on the Gen 3 monitoring product launch, which was previously targeted for mid-Q3 2026 production? / A: Gen 3 production samples are complete and testing very well, with all internal hardware and software development finalized. Final U.S. FCC and other regulatory approvals are still pending, and the timeline for these approvals is outside of SKYX management's control. Mass production and delivery are targeted for next quarter if approvals come through as expected, and there is already strong growing demand for the product.

Q: How is the Eurofase license agreement progressing, and is this a one-off deal or the start of a broader licensing strategy? / A: The Eurofase agreement aligns with SKYX's long-term licensing strategy to support safety standardization of its core technology, which requires broad licensing to avoid monopoly concerns. Eurofase is a large leading lighting company with deep existing connections to the builder and hotel channels that SKYX is currently growing into. Management expects more similar licensing agreements as SKYX grows its commercial penetration in the pro and hotel segments.