SKYX Platforms NASDAQ: SKYX reported higher first-quarter revenue and improved gross margin, while management said the company remains focused on expanding its business-to-business pipeline with hotels and builders and growing its retail and e-commerce channels.
On the company’s earnings call for the first quarter of 2026, President Steve Schmidt said SKYX generated record quarterly revenue of $22 million, up 10% from $20 million in the first quarter of 2025. He said the result marked the company’s ninth consecutive quarter of year-over-year growth.
Schmidt said gross profit rose 16% to $7 million from $6 million a year earlier, while gross margin improved to 30% from 28%. Chief Executive Officer Lenny Sokolow said net loss per share narrowed to $0.07 from $0.09 in the prior-year quarter. Adjusted EBITDA loss per share, a non-GAAP measure, improved to $0.03 from $0.04.
The company also reported a stronger cash position. Sokolow said SKYX had $32 million in total cash equivalents and restricted cash as of March 31, 2026, compared with $10 million at the end of 2025. He said the company continues to benefit from rapid conversion of e-commerce sales into cash, referring to the approach as similar to the “Dell working capital model.”
Management said it believes the company has sufficient cash to pursue its goal of becoming cash flow positive exiting 2026.
Hotel and Builder Pipeline Remains a Key Focus
Schmidt said SKYX is focused on what management calls a “razor and blade model,” targeting B2B segments including hotels and builders, along with retail opportunities through e-commerce and big-box retailers. He said the company continues to grow despite a slow new-build market affecting smart home, lighting and home decor categories.
Schmidt highlighted a strategic partnership with European hotel and real estate developer Group OTT to deploy SKYX’s smart and AI platform technologies as a brand standard across hotel and building segments. He said Group OTT has developed more than 250 hotels and buildings across Europe.
The company said it will deploy its technologies at the Grand Hôtel de Bordeaux in France, described on the call as the first European hotel project under the relationship and a renovation of a historical architectural preservation hotel. Schmidt also said SKYX signed an additional agreement with Group OTT Heritage Hospitality Group to deploy and market its technologies to the European hotel market, which he said includes more than 132,000 hotels.
Schmidt said SKYX expects to supply its technologies to current and future projects in the U.S. and internationally, citing New York, North Carolina, Austin, San Antonio, South Florida, Europe, Saudi Arabia and Egypt among target locations. He also referenced Miami’s new $4 billion smart city.
During the question-and-answer session, Lake Street Capital Markets analyst Jacob Stephan asked how many construction projects had moved from signed agreements to active supply orders. Founder and Executive Chairman Rani Kohen said “a few projects” had moved to purchase orders and that the company expects to begin supplying products in the coming months to several locations, including Texas, New York, San Antonio and potentially the first European hotel it announced.
Kohen said the company is in discussions with additional developers and hotel developers, adding that management sees the B2B hotel and builder market as a “strong path” for SKYX. He said the company’s technology can reduce time and labor costs for certain renovations and installations by up to 90%.
Retail Growth and Turbo Heater Fan Expansion
Management also discussed retail momentum, particularly for SKYX’s patented turbo heater fan. Schmidt said sales of the product continue to grow despite warmer weather and that the company is working on additional products, designs and sizes as it expands the category into what it calls an all-season ceiling fan, providing heat in winter and cooling in summer.
Kohen said SKYX plans to introduce additional turbo heater fan models, including smaller and larger sizes. He said the company intends to offer the products in five colors and expects more announcements about new products and additional sales channels in the coming months.
In response to Roth Capital Partners analyst Tom Hayes, Kohen said management expects the winter season to provide a stronger demand opportunity for the product because space heaters typically sell most strongly from October through February. He said the company is nevertheless seeing growth during the summer, which he described as a “pleasant surprise.”
When asked by Stephan about potential orders from big-box retailers, Kohen did not quantify a single SKU order. However, he said broader store penetration with retailers such as Home Depot, Target and Lowe’s could become meaningful, particularly if the company expands beyond a few stores or a few hundred stores to more than 1,000 or 2,000 stores.
AI Website Upgrades and Product Roadmap
Management said SKYX is also upgrading its e-commerce platform using AI-driven software. Kohen said approximately 30% or more of the company’s websites have been merged into the AI-driven software, up from more than 20% on the prior call. He said the company expects to continue progress this quarter and hopes to complete the project during the third quarter.
In response to a question from Litchfield Hills Research analyst Barry Sine, Kohen said the quarter’s growth was driven by a combination of factors, including SKYX and SkyPlug products, the turbo heater fan, home decor and lighting products, and AI-driven website upgrades.
Kohen said the AI software helps identify customers faster, improve site navigation and better match customers with products they may be more likely to purchase. He said management expects the full rollout to provide more data and support further growth in the e-commerce business.
SKYX also discussed its Generation 3 All-in-One Smart Platform hub. Sokolow said the product remains on track for mid- to third-quarter production. Kohen said the platform is intended to serve multiple markets, including home security, home safety, smart home, communications, hospitality, cruise, elder living and hospitals. He said the product could support future recurring revenue opportunities, including monitoring subscriptions and AI services.
Standardization, Insurance and Manufacturing Updates
Management said SKYX continues to work toward safety-mandated standardization for its ceiling outlet receptacle technology. Kohen said the process is lengthy but that the company believes it is in the “final stages.” He said the company’s code team is led by Mark Earley, former head of the National Electrical Code and chief engineer of the National Fire Protection Association, along with Eric Jacobson, former president and CEO of the American Lighting Association.
Kohen said the company is holding meetings “almost every month now or even more than once a month” with relevant groups. He also said SKYX hopes to introduce products to insurance companies this year, citing potential safety benefits tied to reducing electrical hazards and ladder falls.
Asked by Maxim Group analyst Jack Vander Aarde about SKYX’s global licensing partnership with General Electric, Kohen said the agreement remains in place and that GE’s licensing division is now connected with Dolby. He said licensing could become more significant as the company progresses on standardization and insurance-related opportunities.
On manufacturing, Kohen said SKYX continues to work with Profab, a South Florida manufacturer of electronic boards, and sees an opportunity to develop a U.S. manufacturing channel for the All-in-One Smart Platform. He said the company is also working with or evaluating manufacturers in China, Taiwan, Cambodia, the Philippines, the U.S. and Vietnam, and believes its manufacturing partners are capable of producing millions of units.
Kohen closed the call by saying the company expects to continue sharing progress with investors, including potential announcements before its next earnings call if developments are ready to be disclosed.
About SKYX Platforms NASDAQ: SKYX
SKYX Platforms NASDAQ: SKYX provides comprehensive maintenance, repair and overhaul (MRO) services and operational support for commercial unmanned aerial systems (UAS). Through its digital platform, the company streamlines the booking, tracking and management of drone maintenance events, ensuring that operators maintain compliance with aviation regulations and industry best practices. SKYX Platforms’ offering is designed to reduce downtime, improve safety and extend the service life of UAS fleets across a wide range of applications.
The company’s service portfolio includes scheduled and unscheduled maintenance, component repair, spare parts provisioning, firmware and software updates, and field support.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider SKYX Platforms, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SKYX Platforms wasn't on the list.
While SKYX Platforms currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's list of seven best retirement stocks and why they should be in your portfolio.
Get This Free Report
