SKYX Platforms Q1 2025 Earnings Report

SKYX Platforms EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.10
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: N/A

SKYX Platforms Revenue Results

• Actual Revenue: $20.10 million
• Expected Revenue: $20.25 million
• Beat/Miss: Missed by -$150.00 thousand
• YoY Revenue Growth: N/A

SKYX Platforms Announcement Details

• Quarter: Q1 2025
• Date: 5/14/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 14, 2025
• Conference Call Time: 4:30PM ET

SKYX Platforms (NASDAQ:SKYX) is a technology company focused on advancing smart-home and building technology through its “Smart Home” and “Smart Platform” product offerings. The company develops plug-and-play electrical and smart-home solutions designed to improve the installation, connectivity, functionality and safety of lighting fixtures and other ceiling-based devices.

Its product portfolio includes smart ceiling receptacles, smart platforms, lighting products and related technologies intended to simplify the installation of smart lighting and enable additional connected-home features. SKYX’s solutions are designed for use in residential, commercial and hospitality environments and may support functions such as remote control, automation and integration with smart-home systems.

SKYX Platforms was founded by Rani Kohen, who serves as the company’s founder and chief executive officer. The company markets its technologies in the United States and internationally and has pursued patent protection and industry adoption through relationships involving lighting manufacturers, distributors, builders and other participants in the electrical and smart-home sectors.

SKYX Platforms Q1 2025 Earnings Call Transcript

Key Takeaways

• We recorded Q1 2025 sales of $20.1 M, up 6% year-over-year, marking our fifth straight quarter of revenue growth and targeting installation in 30,000 homes by end of Q2.
• General and administrative expenses fell 17% year-over-year while gross margin and gross profit sequentially improved by 4.82% from Q4 2024, reflecting enhanced cost control.
• As of March 31, cash and equivalents totaled $12.3 M (down from $15.5 M a year ago) and we secured $4 M of additional equity financing, part of a $15 M round led by The Shaner Group and strategic insiders.
• Our safety code standardization team, bolstered by industry veterans, is advancing toward mandatory standardization of our electrical ceiling outlet technology, which could drive regulatory adoption.
• We partnered with Profab Electronics to explore domestic manufacturing automation, improving supply chain resilience and mitigating tariff risks while maintaining competitive costs.

Presentation

[Operator]

Before we begin, please note that today's call may contain forward-looking statements based on current expectations and assumptions. These are subject to risk and uncertainties, and actual results may differ materially. For a more complete discussion, please refer to our Form 10-Q for the quarter ending March, 31st of 2025, filed with the SEC. Please note this event is being recorded. I would now like to turn the conference over to SKYX's Founder and Executive Chairman, Mr. Rani Kohen. Please go ahead, sir.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Thank you. Good afternoon, everyone. Happy to be here again, as we continue to progress with our business goals. We will have, and I'll pass it to our President, Steve Schmidt, to start our conference. Steve?

[Steve Schmidt, President at SKYX Platforms]

Hey, Rani, thank you very much. You know, as I think about the comments I'm about ready to make, I think several things stand out. First of all, we are making great progress, and we're excited about the momentum that we have in the business right now. We really see significant activity going on that's gonna really move us forward to really become something very, very significant. It's an exciting time at SKYX. It really is. Let's jump into kind of our key highlights that we've got. We recorded first-quarter sales in 2025 of $20.1 million compared to $18.9 million for the first quarter of 2024. We continue to grow our market penetration of our advanced and smart platform products in both the U.S. and Canadian markets. This is our fifth consecutive quarter of year-over-year revenue growth, and we hope that that will continue.

[Steve Schmidt, President at SKYX Platforms]

We expect our products to be in 30,000 U.S. and Canadian homes by the end of the second quarter of 2025. We are progressing with significant projects and orders that will enable us to become cash flow positive in the second half of 2025. Our G&A expenses decreased by 17% compared to the first quarter of 2024, and gross margin and gross profit improved by 4.8% and 2% in the first quarter of 2025, sequentially from the fourth quarter of 2024. Very important regarding our safety code standardization team is receiving support from a new significant leading individual with our government safety organization process for a safety mandatory standardization of our electrical ceiling outlet and receptacle technology, and more to come. As of March 31st, 2024, we reported $12.3 million in cash, cash equivalents, and restricted cash as compared to $15.5 million as of March 31st, 2024.

[Steve Schmidt, President at SKYX Platforms]

We recently secured approximately $4 million in additional equity, mainly through preferred stock investments representing $2 per share of common stock with no warrants, part of a broader financing round totaling approximately $15 million to date, led by the Shaner Group, owner and developer of more than 70 hotels worldwide. The $15 million broader round included substantial participation from company insiders, including myself and Co-CEOs Lenny Sokolow and John Campi, underscoring their continued confidence in SKYX's strategic vision and growth trajectory. As you can see, we are continuing to raise money from strategic investors that understand the depth of our strategic vision and our significant value proposition for builders, insurance companies, and others.

[Steve Schmidt, President at SKYX Platforms]

As common with companies such as ours, when sales are converted into cash rapidly, often referred to as the Dell Working Capital model, we leverage our trades payable to finance our operations to enhance our cash position and lower our cost of capital. We strongly believe our products can save insurance companies many billions of dollars annually by reducing fires, ladder falls, and electrocutions. We expect once we complete an entire range of variation of our safe plug and play products, we will start being recommended by insurance companies. Our technologies provide opportunities for recurring revenues through interchangeability, upgrades, monitoring, and subscriptions.

[Steve Schmidt, President at SKYX Platforms]

We are focused on the Razor and Blade model, and our product range includes our advanced ceiling electrical outlet, the Razor, and our advanced smart home plug and play products, the Blade, including our advanced smart home plug and play platform products, lighting, recessed lights, downlights, exit signs, emergency lights, ceiling fans, chandeliers, pendants, holiday kits, you name it, outdoor and indoor lights, among other things. You can think it, we've got it. Our plug and play technology enables an installation of lighting, fans, and smart home products in high-rise buildings and hotels within days rather than months. Our total addressable market, our TAM in the U.S., is roughly $500 billion, with over 42 billion ceiling applications in the U.S. alone. Expected revenue streams from our retail and professional segments include product sales, royalties, licensing, subscriptions, monitoring, and the sale of global country rights.

[Steve Schmidt, President at SKYX Platforms]

We continue to utilize our e-commerce platform of over 60 websites for lighting and home decor to educate, enhance our market penetration to both retail and the professional segments. As I said, great progress, a lot going on, and significant, more information to come. With that, let me introduce our Co-CEO, Lenny Sokolow, who will walk you through the financials. Lenny, all yours.

[Lenny Sokolow, Co-CEO at SKYX Platforms]

Thank you, Steve. Thank you very much. And welcome everyone again. The, just if I could run through some select first quarter 2025 financial results. Our revenue in the first quarter of 2025 increased 6% to $20.1 million in revenues, including e-commerce sales as well as smart and standard plug and play products, as compared to $18.9 million in the first quarter of 2024. Our gross profit for the first quarter ending March 31, 2025, increased sequentially, 2%, to $5.7 million. And as discussed, our gross margin increased 4.8% as compared to the fourth quarter of 2024. Net cash used in operating activities for the first quarter ending March 31 decreased sequentially by 29% to $4 million compared to $6.1 million in the fourth quarter of 2024.

[Lenny Sokolow, Co-CEO at SKYX Platforms]

For the first quarter of 2025, Adjusted EBITDA loss, which is the loss before interest, taxes, depreciation, and amortization, as adjusted for share-based payments, which is a non-GAAP measure, decreased to $3.6 million or $0.04 per share as compared to $4.5 million or $0.05 per share in the first quarter of 2024. You know, we would like to emphasize that we have sufficient cash to achieve our goals, including being cash flow positive in 2025. As we reported, we realized the reduction in the general administrative expenses by 17% by $1.3 million to $6.6 million in the first quarter of 2025, from $7.9 million in the first quarter of 2024. Again, emphasizing that our gross margin and gross profit for the first quarter increased in both events by 4.8% and 2% compared to the quarter ending December 31, 2024.

[Lenny Sokolow, Co-CEO at SKYX Platforms]

Our net loss per share decreased by 1% to $0.09 per share in the first quarter compared to $0.10 per share loss in the first quarter of 2024. As reported, our EBITDA loss decreased to $0.04 per share in the first quarter compared to $0.05 per share in the first quarter of 2024. We continue to grow our market penetration of our advanced and smart plug and play products, and we expect our products to be in 30,000 U.S. and Canadian homes by the end of the second quarter. Our penetration continues. We expect our products to be in tens of thousands of additional homes in the second half of 2025. We also expect to continue to increase our units and grow our revenue to the professional and builder segments.

[Lenny Sokolow, Co-CEO at SKYX Platforms]

As previously announced, we entered into a U.S. strategic manufacturing partnership with ProFab Electronics, a premier electronic contract manufacturer based in Pompano Beach, Florida. This collaboration marks a significant step in SKYX's commitment to building a resilient, efficient, and localized supply chain for our innovative product lines. This partnership, if I can emphasize, is in addition to manufacturing collaborations that SKYX has in Vietnam, Taiwan, China, and Cambodia. If I may, hand it back to Rani, our Founder and Executive Chairman.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Thank you very much, Lenny and Steve. As you know, we're progressing, and as you heard, we're progressing nicely on several fronts. I think that, and we hope that, in the very near future, we can share a few additional items that we're working on and show some more significant or even more significant progress. We intend to launch a few new patented products, and we're just getting ready for that production. Once we are, we will be able to share that with the public. We're also working on some major projects. As Steve mentioned and emphasized, we are doing some tremendous progress with adding significant leading and prominent leaders to our code team led by Mark Earley, former head of the National Electrical Code, and Eric Jacobson, former President and CEO of American Lighting Association.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

We have, in addition to that team, on a very high level that will help our team and is already working with us and our team, and ways to expedite our standardization of safety to a mandated position that we all hope and our management team and our leadership, code leadership, strongly believe that we met all the conditions and the significant life-saving aspects as thousands of people per day in the U.S. fall from ladders, get electrocuted, and fires happen on a daily basis. It's millions of hazardous incidents annually happen that we can probably mitigate, if not prevent completely in many cases. We are excited in our progress, and we hope that we'll be able to share some of those aspects in the next coming months or hopefully sooner.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

I think, in general, we're very happy to, you know, where we are. And, as Steve and Lenny both mentioned, we believe we can be with our products in 30,000 homes by the end of this quarter. We also expect to have a much more significant growth towards the second half of the year, with homes and units that we penetrate with our products. That's a general overview here that you got from us with some details. We'll be happy to share, to answer any questions you have. With that being said, I'll transfer it to Q&A.

[Operator]

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Yes. I see here, Pat from Noble.

[Operator]

Okay. Your line is open.

[Pat McCann, Research Analyst at Noble]

Hey, guys. Thanks for taking my question.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Hey, Pat.

[Pat McCann, Research Analyst at Noble]

First of all, I wanted to ask about the manufacturing, the U.S. partnership that you guys recently announced. You know, given the tenuous tariff situation, what is the current state of manufacturing as far as where that is mostly occurring now? And then with regard to the U.S. partnership, what's the cost difference between that versus your partnership with Roy? You know, if you were to ignore the tariffs, you know, how much more expensive might that be? If you could kind of give a little bit of an overview of that.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Yeah, Pat, it's a great question. What we're doing here is actually part of our collaboration with ProFab Electronics, a prominent leader here in Florida and also a player nationwide, is that our goal is together with them to fully automate many of our products and production that's fully automated. The cost difference is not significant. This is our goal, and we have a few ways to achieve that goal. Working with them, it's an extremely advanced facility, 60,000 sq ft. I think we shared that in the press release we had a couple months ago, or 45 days ago, probably. Their machinery and their sophistication level of production is very high. There are many major products that we intend to launch that we can, with time, fully automate their production here in the U.S.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

By this, we mitigate most of the differences and it's made in the U.S. I don't wanna promise it's gonna be cheaper, but, you know, fully automated, can be very competitive.

[Pat McCann, Research Analyst at Noble]

Thanks. And then, I also wanted to just to ask a little bit about the additional investment from, primarily from the Shaner Group. Is there room to continue to add to that source of funds through the preferred, the preferred offering? And also, as long as we're on that topic, I was curious if you could maybe give a little bit of an update on the hotel distribution channel as well. As I would imagine that would be a potential partnership with the Shaner Group there as well.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Yeah. With the last, approximately $4 million that we raised, came from strategic investors. And, and that's part of our broader round, led by the Shaner Group. You know, we always welcome strategic people that believe in us and would like to invest. It's always good to take, you know, investments or to accept investments, from strategic people that can help and are interested to, to help us growing the company. That is something that when we have the right opportunity, you know, we will do. It really depends where we are from a market standpoint. We feel today, where the stock is today, it's a very compelling, you know, offering from our perspective. It's a great win-win for investors, because they strongly believe in our future, and they strongly believe in many cases that the mandate, standardization, might happen.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

It, it, they wanna be involved. And, they also really understand, as Steve mentioned, the value proposition we have in real estate, and also for insurance companies that once we have the entire assortment here, we think that might become, and we're getting more and more products as we're rolling. We expect to launch this quarter, announce a few additional new products here. The more product we get in, that, that we expect to start working with insurance companies here. Your second question regarding hotels is kind of same answer here. We are rolling, production or started production with, with all the products that we need. If we're talking about recessed lights, that, that we mentioned before is a multi-billion unit market, globally.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

The U.S. is a very big market, and still it's a small fixture, but the plug and play is not only safer, it saves a lot of time and significant cost on the installation, probably 90% if not more. It's easy to replace because this is LED embedded. LED embedded is significant for our growth because today, light bulbs are becoming less and less important in the market, as everything is converting into LED integrated. Those are electronic chips that give light, provide light. When they burn or the driver burns, the only way to replace them is really to replace the fixture. That is the most significant growth in the market, LED embedded. It goes on recessed lights and chandeliers and many other products.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

If it goes wrong, the driver burns or the light bulb burns, the only solution is to replace the entire fixture. That helps us a lot. We are in production here, including exit signs and emergency lights that are key for hotels. Wall sconces are key for hotels, indoor and outdoor, that we started receiving. Once we have the entire assortment, that is going to include ceiling fans that we hope very soon to launch, towards the summer and even before the summer. Once we have the entire assortment, it will position us to go forward with hotels. We are looking forward to that. This quarter, we have a lot of expectations of a product that started production and will arrive. Our goal is to have the entire assortment here by the end of this quarter.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Once we have it, I think, next half of the year, we're gonna have some more updates regarding the pro and builder market. With that being said, the pro and builder market is a major emphasis of our business plan that we're looking forward to grow.

[Pat McCann, Research Analyst at Noble]

Great. I appreciate all the additional color. I'll jump back in the queue. Congrats on the quarter.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Okay. And then we have Jack from Maxim Group.

[Jack Aarde, Senior Equity Research Analyst at Maxim Group]

Hey, Rani. Thanks for the update. I appreciate it. Good to hear the continued growth momentum and looks like a solid control over the OpEx in this kind of challenging environment here. You know, a follow-up question on the manufacturing and tariff mitigation. You know, with the recent announcement of ProFab to establish a domestic supply chain, and any other moves you're making, maybe you're making to establish domestic manufacturing, do you have a goal for what percentage of products will be manufactured domestically? The second part is, you mentioned you're working with ProFab to increase automation of production. How long will that take until it's kind of like fully up to scale, at capacity and utilization to get to, you know, whatever the envisioned automation is of the production ramp? Just curious to hear your update there.overall source of, of domestic manufacturing and then also how long will it take to get to automation?

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Yes. Jack, thank you for your question, the broader question. You know, as everyone knows, it's a day-to-day situation here with the tariffs, right? If you asked me this question three days ago, I'd probably answer it differently than I'm gonna answer it now. The good news is we really have four significant relationships here in the U.S. ProFab are also investors and long-term investors with us. They're very talented and very capable, extremely capable. We are exploring what the right product is and when is the right time to do things in the U.S. It's definitely a goal we have, and this is, you know, we're exploring it.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

As we're exploring it, you know, the announcement on tariffs going down again in China now, you know, brought the Chinese manufacturers back to the picture where they kind of were out or some of them that we have good relationship with them already have sources in Vietnam and Cambodia and in Taiwan. So where they're not out, but China was out for now and now is back in play. You know, for us, it's the more solutions we have, the more options we have, we're situated better. We're obviously always calculating where's the best place to produce, and the future goal is really to get a lot of production here in the U.S. because we believe that's the best thing to do, from the company, for the company, for the country. That's a good thing that we can achieve.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

We're definitely looking into it, more than ever. In the short term, we'll explore the best possibilities to get the product as fast as possible. In the long term, and maybe even shorter term, we're looking for some solutions to start production here in the US. We just announced it 45 days ago. Product is, we like to say, it's product. It's not a bakery here, so it takes a bit more time, between tooling and other things that we're working on. The good news is really we have all those options open to us, and all of them are very good options that we have on the table.

[Jack Aarde, Senior Equity Research Analyst at Maxim Group]

Okay. Great. I appreciate the color there. And then, a kind of two-part second question, then I'll hop back in the queue. Can you maybe just, questions kind of just to clarify again or remind us of the safety code, mandatory standardization process of the ceiling receptacle? And then just given the growing additions to the team of, you know, very well-connected personnel. So two things. I believe the earliest or next possible vote to receive mandatory standardization is around September 2026. So the question's really, will you get an indication in advance of that date? And then the second part is, what would you expect, would you expect a ramp of actual product orders to come in, in advance of that date as well? Thanks.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

It the date, you know, there's so what we're exploring now and what we said recently, there are several government organizations that, their criteria is to save lives, mitigate injuries, and property damages. There's more than one organization that can influence a mandatory standardization. What we are saying here at this point, we can't say more than this, but we are finding that there is ways to expedite some of the gov, there's some non-profit and some government associations that that's actually their obligation to find products like what we have that will save lives, injuries, and property damages or mitigate property damages and injuries in a significant way. The good news is that we are today exploring our possibilities, similar like what I said with the manufacturers.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

What we're finding recently is that there are several organizations that really their mandate is to save lives, mitigate injuries, and property damages. That is in addition to what you mentioned. Also important to say is a mandate will happen. The date the mandate, if you mentioned the date, and I, I don't want to go to details and dates because there's different ways. But, when you mention the date, the most important date is a decision date because there's the mandate or effective date of situations like this is usually 18 months or 24 months ahead. If you get a product mandated, what happened many times, with seat belts and airbags and GFCI that you have in your bathrooms. Another famous one is hair dryers. Someone knows how a hair dryer plug looks. It has a big lock on it with the GFCI.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

When there's a decision to mandate a product like this, it gives the market some time. The decision date of a mandate is extremely important. Okay? Again, we're exploring ways to expedite it because our co-team strongly believes that they met all the conditions, our product met all the conditions, to become mandate. We're being looked at in a different angle recently.

[Jack Aarde, Senior Equity Research Analyst at Maxim Group]

Okay. Great. No, that's really helpful color. I appreciate that, Rani. I'll hop back in the queue. I may have a few more later. Thanks.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Okay. Yeah, I think today we're taking calls only from analysts. If you have another question, please do it. If not, if there are investors that want to call us, feel free to call our Co-CEO, Leonard Sokolow, or email him through our PCG, our IR firm, and they will be happy to arrange a call with investors that want to talk to us. If there are more analysts that want to ask questions, we'll be happy to take them. If not, we're looking forward to the next call or hopefully some announcements prior to that next call.

[Operator]

Again, if you have a question, please press star, then one. There seems to be no more questions for today. I would like to turn the conference back over to Mr. Rani Kohen for any closing remarks.

[Rani Kohen, Founder and Executive Chairman at SKYX Platforms]

Thank you. Thank you everyone, Steve and Lenny, for your comments and highlights here. Thank you to the team. Thank you to all of you on the call. We're progressing and we look forward to share, hopefully, more good things soon. Thank you very much.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Rani Kohen, Founder and Executive Chairman
• Steve Schmidt, President
• Lenny Sokolow, Co-CEO

Analysts

• Pat McCann, Research Analyst at Noble
• Jack Aarde, Senior Equity Research Analyst at Maxim Group