Sky Harbour Group (SKYH) Financials

Sky Harbour Group’s latest quarter shows a business that is still growing revenue, but profitability and cash generation remain inconsistent. In Q1 2026, revenue increased to $8.7 million from $8.1 million in Q4 2025 and $5.6 million in Q1 2025, but the company posted a $9.0 million net loss and negative operating cash flow of $3.9 million.

The broader trend over the last four quarters is mixed. Revenue has generally improved year over year, but operating expenses and “other” expenses have kept Sky Harbour in the red. Cash from operations has also swung around sharply, which suggests the business is still at an early stage of scaling and has not yet established stable self-funding operations.

Key takeaways for investors:

• Revenue continued to grow year over year, with Q1 2026 revenue up from $5.6 million in Q1 2025 to $8.7 million.
• Gross profit improved in Q1 2026 to $3.2 million, up from $620,000 in Q1 2025.
• The company ended Q1 2026 with $12.1 million in cash and equivalents, giving it some near-term liquidity.
• Financing activity provided a large cash inflow in Q1 2026, including $179.0 million of debt issuance.
• Property, plant and equipment remained substantial at $374.8 million, showing continued investment in the core asset base.
• Noncontrolling interests remain significant at $40.8 million, which affects the amount of earnings attributable to common shareholders.
• Q1 2026 net loss was $9.0 million, compared with net income of $6.7 million in Q4 2025.
• Operating cash flow was negative in Q1 2026 at $3.9 million, after being positive in Q4 2025.
• The company remains heavily leveraged, with long-term debt of $359.3 million at the end of Q1 2026.
• Other operating expenses were very large in Q1 2026 at $6.5 million, which continues to pressure margins.

From a margin perspective, Sky Harbour is still struggling to convert revenue into operating profit. In Q1 2026, total operating expenses of $10.2 million exceeded gross profit of $3.2 million, producing an operating loss of $7.0 million. That was actually better than some prior periods, but still not close to break-even.

Interest expense also remains meaningful, and the company’s income statement is sensitive to non-operating items. Q4 2025 and Q2 2025 benefited from strong other income, while Q1 2026 had a much weaker other-income line, contributing to the loss. That means reported earnings may continue to be volatile quarter to quarter.

Balance sheet growth has been rapid over the last year, with total assets rising to $764.5 million in Q1 2026 from $553.7 million in Q1 2025. However, liabilities also climbed sharply, reaching $599.5 million, so equity growth has not kept pace with the asset expansion. For investors, that suggests expansion is being funded largely with debt and other obligations rather than internally generated cash.

Overall: Sky Harbour is still a growth story rather than a proven earnings story. Revenue is moving in the right direction and the asset base is expanding, but the company continues to post losses, burn cash from operations, and rely on financing to support growth. Investors should watch for sustained improvement in operating margins and recurring operating cash flow before getting more constructive on the stock.