SKYX Platforms Q3 2026 Earnings Results & Report

SKYX Platforms EPS Results

• Actual EPS: -$0.05
• Consensus EPS: -$0.0471
• Beat/Miss: Missed by -$0.0029
• One Year Ago EPS: N/A
• EPS Beat Rate: 2 of last 8 quarters

SKYX Platforms Revenue Results

• Actual Revenue: $25.66 million
• Expected Revenue: $27.05 million
• Beat/Miss: Missed by -$1.39 million
• YoY Revenue Growth: N/A

SKYX Platforms (NASDAQ:SKYX) develops and markets technologies and products for smart homes and buildings. Its core platform is designed to make it easier to install and connect ceiling lighting and other electrical fixtures, including through plug-and-play products intended to simplify installation.

The company also offers lighting fixtures, ceiling fans and related home products through its e-commerce operations and retail brands. Its products serve residential and commercial customers, with sales focused primarily on the North American market.

SKYX was formerly known as SQL Technologies Corp. and adopted its current name as it expanded its focus on smart-home and building technologies. Founder Rani Kohen is associated with the company’s development and leadership.

SKYX Platforms Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: SKYX reported record Q3 revenue of $25.7 million, up 7.4% year over year, and record gross profit of $8.1 million, up 11%. Gross margin improved to 31.4% from 28.9% in Q2.
• Positive Sentiment: The SKYX–Deako combination expands the builder pipeline to approximately 4 million units, and the companies expect to supply more than 210,000 units across three announced builder programs. Management cited an expected average selling price of $50 per product over the next three to four years, though deliveries and timing remain forward-looking.
• Positive Sentiment: Management sees Deako’s plug-and-play wall platform and SKYX’s ceiling products creating opportunities for upgrades and potentially as much as five times Deako’s current revenue per home. The companies also described potential future AI, monitoring, and subscription offerings, which are still in development or discussion.
• Negative Sentiment: SKYX had $21 million in cash, cash equivalents, and restricted cash, but used $4.2 million in operating cash during the quarter and has not given a firm date for reaching cash-flow positive. Management said it expects burn to keep declining and cited possible cost savings and orders, but those outcomes are not assured.

Presentation

[Operator]

Good afternoon and Welcome to the SKYX Platforms Corp third quarter earnings conference call. Before we begin, I would like to remind everyone that during today's call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. For a discussion of these risks and uncertainties, please refer to SKYX Platforms Corp's filings with the Securities and Exchange Commission. The company undertakes no obligations to update any forward-looking statements, except as required by law. During today's call, management may also discuss certain non-GAAP financial measures. Where applicable, reconciliations to most directly comparable GAAP measures can be found in the company's earnings release and SEC filings.

[Operator]

I would now like to turn the call over to Rani Kohen, Founder and Executive Chairman of SKYX Platforms. Rani, please go ahead.

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

Good afternoon. Welcome to our third quarter earnings call. Today, we have here our President, Steve Schmidt, our CEO, Lenny Sokolow, and Derek Richardson, CEO of Deako and SKYX growth and builder segment, builder and hotel segment. Each one of them, including myself, will have a statement. Steve Schmidt will start the call. Thank you. Please, Steve.

[Steve Schmidt, President at SKYX Platforms]

Rani, thank you very much, and good afternoon to everyone. As you will hear today, we are significantly advancing and continuing our market penetration growth. Before I go through some growth and financial improvement highlights, I would like to say the following. Through my business career, I was involved with many public companies, including my CEO role of Nielsen and International President of Office Depot. But I must say, there is a total disconnect right now between our performance as a company to our stock price. With that said, as you will see, our growth and performance is outstanding since we have closed our merger with Deako, as well as prior months. With that said, let me share some business highlights. We are reporting record revenue of $25.7 million in Q3 2026, compared to $23.9 million in Q3 2025, and 11 consecutive quarters of growth year-on-year.

[Steve Schmidt, President at SKYX Platforms]

Gross profit rose in Q3 by 11% to a record $8.1 million as we continue to expand our market penetration. We maintain a strong cash position with $21 million in cash equivalents, and restricted cash as of September 30th, 2026. We believe we have sufficient cash to support our path to cash flow positive. SKYX-Deako merger expands the builder channel pipeline to approximately 4 million units, with an expected average selling price of $50 per product over the next three to four years. Since the merger, SKYX and Deako have announced we expect to supply more than 210,000 units to three prominent builders, including, first, Maronda Homes. We announced our first major builder program with more than 80,000 units of our smart home technologies to more than 1,000 homes, including projects in Ohio, Georgia, Maryland, and Pennsylvania. Second, Home Creations.

[Steve Schmidt, President at SKYX Platforms]

We announced the second major builder program with more than 60,000 units expected for more than 700 homes in Oklahoma and Texas. Third, Stone Martin. We announced a third builder program with approximately 70,000 units expected for more than 850 homes in Alabama and Georgia. We have also announced a signed agreement to supply our technologies to two 65-story luxury Trump Towers in Hyderabad, India, comprising more than 2 million square feet. The company expects to deploy tens of thousands of units in this project over the next couple of years. Lastly, on the business highlight side, our Turbo Heater ceiling fan.

[Steve Schmidt, President at SKYX Platforms]

We've reported that based on growing sales and winter demand of our patented all-in-one Turbo Heater ceiling fan, we will launch an additional four models in larger and smaller sizes and in five different colors, in addition to our original 24-inch model across national retailers and our e-commerce platform comprised of multiple websites in the fourth quarter. Retail channel includes The Home Depot, Lowe's, Target, Walmart, and Amazon. A lot of great things going on. With that, let me turn the call over to Len Sokolow, our CEO, who will give you more clarity around our financials. Len?

[Lenny Sokolow, CEO at SKYX Platforms]

Thank you very much, Steve. Appreciate it very much. Just again, very pleased with what we have to report this quarter. Revenue increased 7.4% to $25.7 million from 23.9% in the third quarter of 2025. Our gross profit increased 11% to $8.1 million from $7.3 million in the second quarter of 2026. Our gross margin increased 9% to 31.4% compared to 28.9% in the second quarter of 2026. We had $21 million in cash, as Dee stated, in cash equivalents, and restricted cash as of September 30, compared with $10 million on December 31st, 2025. A majority of our company's inventory payments to vendors are paid after the company receives payments from its customers, continuing to leverage its rapid conversion of its e-commerce sales into cash, advancing its cash position using the Dell Working Capital Model, and lowering our cost of capital.

[Lenny Sokolow, CEO at SKYX Platforms]

Net cash used in operating activities decreased by 15.5% to $4.2 million from $5 million in the third quarter of 2025. Again, management believes it has sufficient cash to support its path to cash flow positive. Interest-bearing debt, which is after debt discounts, decreased $3.6 million to $14.7 million, which matures in 2030 from $18.3 million at year-end. Adjusted EBITDA loss, which is a non-GAAP measure, decreased to 18.7% to $2.9 million from $3.5 million in the second quarter of 2026. Adjusted EBITDA loss per share, a non-GAAP measure, decreased to $0.02 compared to $0.03 in the second quarter of 2026. With that, Rani?

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

Yes. We will, in one minute, transfer it to Derek. I would like to say that since we have closed this merge, we have a lot of interest from major companies, both in the tech world and in the building world, that see eye to eye with us on our A to Z capability to control the electrical outlet boxes in every home. As we said before, we're going to be the only company that has an A to Z solution for all those boxes in the home. The average boxes today in the U.S. market are around 90 outlet boxes, electrical wall outlets, and ceiling outlets in a home. There's no one company today in the world that has the complete solution for all of those 90 boxes. Usually, it's three to four companies.

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

We're the only company that has the A to Z solution for all of those electrical outlet boxes. All our competitors that need to be three or four companies have a wire solution, would take them weeks to do what we can do with ours. With that being said, we're already experiencing, with Derek's leadership, a lot of interest to our products and to this A to Z solution. We are also working on some strategic relationships with major tech companies, as well as other builders that we hope to be able to talk about sometime soon. Actually, Derek Richardson is leading one of those discussions with a major player that sees the opportunity to join what Deako and SKYX are doing in the builder market and to be part of it. We hope we can talk about this more.

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

With that being said, I want to give Derek a lot of credit on his ability to penetrate the builder market and show the value proposition that Deako brings to the table. Now, on the plug-and-play concept, that it's a platform that can grow to much more once you install the wall switches with the same concept as the ceiling. The same builders that liked his concept a lot, Derek is doing a great job introducing it to the market with our product. We strongly believe here, all of us, with Derek's leadership, that there's a potential of increasing a home revenue from what Deako had to up to 5X. With that being said, I would like to please have Derek join us and give his overview on how he sees things and some background about Deako and what he's doing in the market and experiencing. Derek?

[Derek Richardson, Founder and CEO at Deako]

Thank you, Rani. I am so excited about this future of the combination of our two companies. As Rani said, I am Derek Richardson. I am the Founder and CEO of Deako. I started Deako about 11 years ago, and before that, I led sales, product, and engineering teams at Cypress Semiconductor, and I began my career as an engineer at BlackBerry. in the next few minutes, I would like to share what Deako does and why I am so excited about this merger. Deako makes plug-and-play smart switches and simple light switches with matching USB, GFCI, and standard outlets for builders of new single-family homes. During construction, the builder's electrician installs a Deako connector at every light switch location in the home and plugs in a smart or a simple switch.

[Derek Richardson, Founder and CEO at Deako]

Later, the homeowner can upgrade to additional smart switches, a simple dimmer, a motion sensor, or any of our other light switch products, and they can do this safely in seconds with no wiring and no electrician. We have shipped more than 32 million products in the past 11 years, and over the past year, we have extended our supply agreements with Stone Martin Builders, Maronda Homes, and America's largest single-family home builder, D.R. Horton. Builders choose Deako because we can easily transform homes to become smart, and we make installing and selling upgrades effortless. Every switch location is ready for an upgrade, so buyers can choose to upgrade to additional smart switches before or after they move in. Deako and our builder partners make high margins on those upgrades. It is a classic razor and blade business model, same as SKYX.

[Derek Richardson, Founder and CEO at Deako]

We sell the base when the home is built, and we earn again each time the homeowner upgrades for the entire life of the home. SKYX runs the same model from the ceiling, and together we have far more to offer. Now with SKYX, the merger complete, we are able to offer builders many more options, including the SkyPlug and outlet safety products, along with the SKYX smart lighting fixtures, fans, including the SkyHeater fan, and many more products that are under development. I see a significant opportunity to bring SKYX's products to single-family builders.

[Derek Richardson, Founder and CEO at Deako]

Together with SKYX and Deako's offerings, and the new products we plan to add, we both believe there is an opportunity to grow our revenue in each home to as much as five times what Deako is already earning. But what really excites me the most is the platform underneath. Deako's platform connector is in the wall.

[Derek Richardson, Founder and CEO at Deako]

SKYX's platform is in the ceiling. Together, they sit where power, control, and sensing naturally live in a home. Because it is all plug-and-play, we can offer almost anything through them, including delivering an intelligent home. Because, as we all know, AI is coming into the home. Today, most of us use AI in our phones and computers, but the next big move will be AI into the home itself, and the home becomes more intelligent. Our vision for the intelligent home needs sensors, speakers, and other devices in every room in the house. Our connectors are already at every light switch and soon every light fixture in the home, so new devices can plug in safely in seconds. We plan to play a big role in the AI intelligent home.

[Derek Richardson, Founder and CEO at Deako]

There's much more to this story than we can even cover at this point, but I'm confident you'll be able to see it in the near future. Thank you, Rani, for the opportunity.

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

Thank you, Derek, and really great job Derek's leadership is doing for us in so many aspects. We really not only excited about what Derek mentioned on penetrating the building, but lifetime upgrades with upgrades for fashion or for better lights or better smart features. Remember that we're also part of our mission here that we are very confident we'll accomplish is as we have this A to Z solution, the next stage is going to be recurring revenues from AI services, monitoring subscription, and security features that we are looking into down the road. This is just the beginning. I ask everyone to stay tuned.

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

There's a lot more to come, and we really feel that in the past, if you look at our press releases in the past 18 months, starting with the smart city in Miami, projects in Austin, Texas, and San Antonio, and in North Carolina and New York, and in many other places, those projects, we will take Deako with us to those projects as well. It's like Derek is taking us. Actually, Derek is going to take us to our projects too, because that's under his leadership, including the smart city in Miami. There's much more to come. The model is the razor and the blade. The razor starts with Deako's wall receptacles, SKYX's ceiling receptacles. Then the blades are all the products, and there's a lot of products. Derek mentioned some of them.

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

On the SKYX side and on the Deako side, there's much more to come in plug-and-play, because once it's plug-and-play and it's replaceable within seconds, a consumer can do so many things that some of them we shared, some of them we did not. That's the next blade. It's after the razor, those are the blades, and much more to come. After the blades, we have the residuals, that recurring revenues that we expect down the road to be a big factor in our business. That's the big picture here. We're progressing on many fronts, including with the mandatory, we're proceeding with this. We hope to get some good developments on several fronts, on hotels too. We're trying to become brand standards in more places.

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

The mandatory and down the road, we really feel and have discussions with insurance companies that the safety aspects of everything we mentioned here, we talked about how good those features are, how easy it is to replace, okay? And everything we're doing, including Deako, is major in safety, preventing the consumers to wire wall outlets and us preventing consumers to wire ceiling fixtures. The safety is big, and with all the safety features to come in the smart platform that we have and other things, we again emphasize that the insurance play can be quite significant for us down the road as well. With that being said, thank you very much, and we'll open for questions here. Thank you.

[Operator]

Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for the first question. The first question comes from Jacob Stephan with Lake Street Capital. Please proceed.

[Jacob Stephan, Analyst at Lake Street Capital]

Hey, guys. Thanks for taking the questions. Congrats on the transaction and all the recent wins. Maybe just first on the B2B side of things. In August last quarter, you guys said that first builder hotel deliveries were going to begin in Q3. Just kind of curious if you could confirm that, and maybe if you wanted to talk more specifically on which projects have begun shipping, that'd be helpful.

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

Yes. We actually have shipped, I believe, to two projects already in Texas, Austin, Texas, and Dallas area. We are hopefully starting to ship to a hotel this quarter. We're beginning to ship, and that's you're asking from SKYX perspective. Be aware that Deako is shipping their product consistently and every month before we acquired them and after the merger took place. Definitely, the shipment department today after this merger is actually picking up a lot. We're very happy in our progress on these fronts.

[Jacob Stephan, Analyst at Lake Street Capital]

Okay, great. Maybe just on Deako, I know the transaction closed after the quarter, but would you be willing to just talk high level what their revenue was or maybe margin profile as it relates to Q3 or even a run rate number?

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

We are very happy with the revenues. We did not disclose them yet. We will disclose them soon, but the first three quarters look good, and they are in a rhythm that satisfy what we announced earlier in last year's revenues. I think that this year, there is still the last quarter potential for some growth. We cannot say, but there is some potential. Again, it is a razor and the blade model. As Derek mentioned, the razors go first, and some of the smart plugs go immediately, but then Deako has the 12 and 24 packs of smart switches, and they have a whole team, an upgrade team that calls the consumers and helps them and guides them.

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

It is really, to see it is unbelievable how they ship a 12 or 24 box, and you just go unplug a switch, put a new one, okay, and you can do 12 switches or 24, then just go to your app, and everything is connected, and you can sit in one place and control your entire home. That is a significant part in Deako's business plan and model that they are going to utilize with the same upgrade team to SKYX projects or to their product with SKYX products, for example, on the heater fans, as Derek mentioned, there is interest. Other plug-and-play ceiling fans and smart products and fixtures that we can bring to the table. This upgrade division is really promising for us, and we are already starting to feel how significant it is.

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

Also what we like about this, it is direct to consumer, and our gross margins there are quite significant.

[Jacob Stephan, Analyst at Lake Street Capital]

Got it. Very helpful. Last one for me on the Turbo Heater launch. This is kind of the first big box winter that you guys are having with several different styles and sizes. Maybe if you could kind of help us think through Q3 as it relates to any sell-in to some of these larger department stores, and how does that compare to plan versus what's actually shipping? Thanks.

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

For our summer plan, we did way over what we expected during the summer, and now we're starting the winter plan. We can tell you that two big boxes are very interested and trying to put something for the winter together. We can't say names yet, and some people saw videos some places or other things. We can't talk about things until we don't get approvals or we don't get something that we can sign and talk about, but we're very happy. As you know, we increased, we added four models and five different colors. Today, we have a total of five models and five different colors as part of our assortment. That's actually today, it's not today. Weeks from today, it's going to be in the market, but it's already underway here, and we expect to launch it, and it's all based on demand.

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

We added, as we mentioned, we added the 20 in, we added the 44 in with a different model look, and 52 in, as well as the 60 in for big rooms. We had a lot of demand, and with customer service doing a great job on our e-commerce and others understanding what consumers are looking for, and some were asking for smaller rooms. Mostly people were asking for larger rooms, we came with a solution, and we have reservations for those solutions, so we're quite excited about this, and I think that's going to open even more big box opportunities. We're growing, we're happy with this, and we hope that this winter is going to be significant. Once we can, we'll talk about those things.

[Jacob Stephan, Analyst at Lake Street Capital]

Great. I appreciate it, guys. Thanks.

[Operator]

The next question comes from Joe Gomes with Noble Capital. Please proceed.

[Joe Gomes, Analyst at Noble Capital]

Good afternoon.

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

Good afternoon. How are you?

[Joe Gomes, Analyst at Noble Capital]

Good. Thanks for asking. Of the recently announced awards here on Deako's side, how much of that business is, pardon me, truly incremental versus was already in kind of Deako's backlog going into the merger?

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

For this year, I think it is part of Deako's backlog, if you would say. Next year, it is mixed. At the beginning, majority is going to be Deako, but as the year progresses, it is going to be more and more SKYX. Some builders have still inventory, some builders have some contracts, but those builders liked and actually loved the Deako plug-and-play solution, and they very much like our plug-and-play solution. It is just a matter of time, once it is going to be a complete package, 100% between the lighting and Deako's. As we start, the majority is still Deako, but as we progress with next year, we expect it to be equal. We do not know exactly timetable, but sometime next year, we think it is going to be equal numbers or equal percentage, if that answers your question.

[Joe Gomes, Analyst at Noble Capital]

Okay, thank you. If we look at the home-building market, there are some very weak numbers and very much cautiousness coming out of the National Association of Home Builders. Looking at 2027, how sensitive is the plan or is the outlook to if we do get weaker housing activity?

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

Yeah. It is a great question, and I will tell you what we experienced, and Derek is mentioning it to me as well, and he is really in the builder market, they are experiencing that today builders are trying to cut costs, okay? Let us say a builder wants, I am just giving an example, 20 smart switches, okay? He can start with 10, okay, and save a few dollars, and I am giving examples, but then he knows we approach the consumer and we can sell the upgrade. It is a win-win in some cases, as we sell directly to consumer, we get higher margins in some cases. Now Derek is applying the same concept with some builders that he discussed, and he tells them, "Listen, don't buy this cheap ceiling fan for now. Just put a receptacle there.

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

Let me sell this ceiling fan for you, or maybe a heater fan, or the chandelier." We are actually taking advantage instead of selling basic products, okay? In some cases, we will provide the receptacles, okay, with no fixture, okay, or just a regular switch on the wall, but then it is easier to call consumer with their upgrade team and upgrade it. The same with ceiling fans. We can go to a room, have a receptacle there, especially for a ceiling fan, and then we call the consumer and we show them a variety of ceiling fans, including our heater fan, and we can get a much higher dollar ticket plus a much higher gross margin. We are actually in the We are really taking advantage of that situation. I must say, Derek is leading that.

[Joe Gomes, Analyst at Noble Capital]

Okay. And one last one for me. I know goal has been to be cash flow positive exiting 2026. Is that still the goal?

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

Our goal is to reach cash flow positive as soon as possible. We are reaching there. You saw that we reduced our burn by around $1 million. We also still maintain a strong cash position after paying the $2.5 million to Deako and related costs. We think that the cutting and the savings that we have based on overlapping that we have between SKYX and Deako will result in, we said six, maybe even $8 million of savings. That is helping us as well. We also, as I said, we believe we can land some big orders on the heater fan, and once we do, all of this coming together, okay? We are planting a lot of seeds here, as you can see. All of this coming together with the upgrades, we are in good position to reach cash flow positive.

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

We want to be careful on exact dates, but we can If you look at our track record and our path, our burn will keep on going down, reducing our burn, and we need one good quarter to change the trajectory, and we feel that, and we believe we are getting very close to that.

[Joe Gomes, Analyst at Noble Capital]

Okay, great. Thanks for that. Appreciate it. Get back in queue.

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

Thank you very much. Great questions, team. I want to thank Steve Schmidt, our President, Lenny Sokolow, our CEO, and Derek. Really, a lot of credit to Derek, what he is doing in the builder field. Also, we have some discussions with tech companies, and hopefully we can discuss it soon, but I want to give a lot of credit. He is a tremendous asset. Besides Deako's disruptive technology and major clientele, we really feel that Derek is really quite significant here and a big power play for our growth here. You heard his excitement, and stay tuned. That is all we want to tell you, and hopefully we can talk about more things very soon.

[Operator]

Thank you. This does conclude today's teleconference. We thank you for your participation. You may now disconnect your lines, and have a great day.

Participants

Executives

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

Analysts

• Derek Richardson, Founder and CEO at Deako
• Jacob Stephan, Analyst at Lake Street Capital
• Joe Gomes, Analyst at Noble Capital