SKYX Platforms Q2 2026 Earnings Call - Record Revenue Growth and European Hotel Expansion

Rob, Conference Call Moderator, SKYX Platforms Corporation: Good afternoon, and welcome to the SKYX Platforms Corporation second quarter 2026 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 obligation to update any forward-looking statements except as required by law. During today’s call, management will also discuss certain non-GAAP financial measures. Where applicable, reconciliations to the most directly comparable GAAP measures can be found in the company’s earnings release and SEC filings.

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

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Thank you, Rob. Good afternoon. Welcome to our 2026 second quarter call. As you will see, we made tremendous progress here, and we will start with our President, Steven Schmidt. Steve?

Steven Schmidt, President, SKYX Platforms Corporation: Ronnie, thank you very much. First of all, good afternoon to everyone, and welcome to our second quarter 2026 earnings call. As you will see today, we are continuing to execute on all our priorities in the second quarter of 2026, as well as in the weeks that followed. First, a few financials. In Q2, our sales grew 14% to $25.3 million, compared to $22.1 million in Q1 2026, representing 10 consecutive quarters of growth year-over-year as we continue to grow our market penetration. All of this despite the real estate and home décor markets continuing to decline. Next, we are also reporting over $27.7 million in cash and cash equivalents as of June 30, 2026. We believe we have sufficient cash to achieve our goals, including becoming cash flow positive as we exit 2026.

Now let’s talk about many of the key initiatives and our progress to date. We recently announced that we will supply our technologies during a renovation of a Durham Marriott City Center hotel in Durham, North Carolina. In May, we announced our technology will become brand standard for European hotel developers Group OTT, developer of over 250 hotels and buildings across Europe. Next, in May, we also announced that we will deploy our technologies to our first European hotel in France during a renovation of an historical architectural preservation hotel, the Grand Hotel du Parc, formerly the Grand Médicis Hotel. In June, we announced that we will deploy our technologies to our second European hotel during a renovation of a five-star Accor Hospitality Group hotel, The Mozart Prague.

Next, we signed an additional agreement with Group OTT Heritage Hospitality Group to deploy and market our technologies to the vast European hotel market of over 132,000 hotels. Importantly, in May 2026, we signed a license agreement for our advanced technologies with a global lighting company, Eurofase, with operations in the U.S., Canada, and globally. Next, we expect to deploy over 1 million units of our products, including our advanced smart home plug-and-play technologies, during the course of our projects, and to deliver over 100,000 units by the end of 2026 through our pro and retail segments. Our future projects in the U.S. and globally, which we’ve announced, include projects in North Carolina, Austin, San Antonio, South Florida, including Miami’s new $4 billion smart city, New York, Europe, Saudi Arabia, and Egypt. Next.

Despite record hot summer weather, our sales of our patented SKYFAN & Turbo Heater are continuing to grow, and we expect sales to significantly grow towards fall and winter seasons, and we will provide additional products in new designs and sizes. Our technologies expansion provides additional opportunities for future recurring revenues through interchangeability, upgrades, AI services, monitoring, subscriptions, and more. Next, our enhanced safety code standardization team continues its progress towards its goal of a safety-mandated standardization in homes and buildings of our life-saving ceiling outlet receptacle technology. A tremendous amount of success and progress in Q2. With that, let me now turn the call over to Len Sokolow, our CEO, to provide additional details on our financial performance. Len?

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Great. Thank you very much, Steve.

Len Sokolow, CEO, SKYX Platforms Corporation: As Steve mentioned, we generated an increase of 14% in revenues to a record $25.3 million in the second quarter of 2026. This is compared to $22.1 million in revenues in the first quarter of 2026, and an increase of 10% compared to $23 million for the second quarter of 2025. As of June 2026, we reported $27.7 million in total cash equivalents, and restricted cash. This is compared to $10.1 million as of December 31, 2025. Revenues for six months ended June 30, 2026, increased 10% to a record $47.4 million, compared to $43.2 million for the six months ended June 30, 2025. The gross profit for the second quarter ending June 30 increased comparatively to the second quarter of 2025 by 4% to $7.3 million.

Gross profit for the six months ended June 30, 2026, increased by 10% to $13.9 million, compared to the $12.7 million for the six months ended June 30, 2025. Our net cash used in operating activities was reduced by approximately 39% to $3.7 million in the second quarter of 2026, from $6 million in the first quarter of 2026. The company reduced interest-bearing debt by $2 million as of June 30, 2026. With that, if I could turn it over to Rani, please.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Thank you, Lenny. Thank you, Steve. As you can see, and as you see, we continue our progress with 10 consecutive year-over-year quarters of growth. Our builder and hotel segments are continuing to grow. Our value proposition is very strong in those two segments of hotels and builders. We save up to 90% of time, and by this, of insulation or renovation, and by this, up to 90% of cost of renovation and installations. These million units that we have in our pipeline and expected to be supplied are not only going to generate revenue for us, it’s important to say that those can create recurring revenues through AI services, monitoring, subscription, interchangeability, upgrades for style or season or renovations. This is just the beginning, what you see here, but this is definitely a segment we’re very focused on.

We believe that very soon we’ll have more to say in those segments. We are also progressing with our code, mandatory standardization. We’re making progress. Our code team believes that we’re getting closer to our goal. Again, it’s a long progress of 14 years now that we met all the conditions and beyond, and we expect this to keep on progressing in the next coming months. We are also making progress with insurance companies based on the safety elements of our products. We have interests and discussions with insurance companies, and we believe that as we continue our progress, we will have ability to collaborate with insurance companies. That segment looks promising for our future.

With that being said, we are also in final stages of launching our AI-driven software on our e-commerce platform, and we expect in the near future to also enhance our e-commerce platform towards the builder and hotel segments, as that is where we see tremendous growth opportunities for us, and we are in several discussions on additional projects in this area. With that being said, we will open now for Q&A. We welcome your questions. Thank you.

Rob, Conference Call Moderator, SKYX Platforms Corporation: Thank you, Rani. At this time, we will be conducting 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, please, while we poll for questions. Our first question comes from Jacob Stephan with Lake Street Capital Markets. Your line is now live.

Jacob Stephan, Analyst, Lake Street Capital Markets: Hey, guys. Appreciate you taking the questions. Congrats on a good quarter here. Maybe just first touching on the gross margin front. Q2 at 29% was down from 30% in Q1. I guess, when we look at the second half, and correlating that with your comments on a stronger second half, what specifically are you factoring into a gross margin front as we look at the back half of the year?

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: This is a mixture of our products. As we continue our growth with the SKYFAN & Turbo Heater and other products that we will supply to our builder and hotel segments, the blend of revenue on this side will grow, and the blend of products with higher gross margins will be much higher, and we expect to grow that segment as we continue in the next coming quarters.

Jacob Stephan, Analyst, Lake Street Capital Markets: Okay. And I guess on the B2B front, we’ve kind of talked about the 1 million units reserved for several quarters now. I guess, can you provide any detail on what has shipped kind of in the first half and what you are kind of expecting in the back half of the year?

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: We are starting to supply some projects this quarter and continuing in Q4 and Q1 and 2027 in general. We have a pipeline, and we’re starting to supply to some of those buildings and hotels mentioned in our segment.

Jacob Stephan, Analyst, Lake Street Capital Markets: Got it. And last one for me. On Gen-3, you guys have talked about a mid kind of Q3 production. I guess, I didn’t see anything about it in the press release, but maybe where does that launch stand today?

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: With the SKYFAN & Turbo Heater?

: Gen-3.

Jacob Stephan, Analyst, Lake Street Capital Markets: Gen-3.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Gen-3. Yeah, okay.

Jacob Stephan, Analyst, Lake Street Capital Markets: The monitoring. Yeah.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Gen-3, we are happy to say that we already have some production samples in our hands that are testing very well. At that stage, we will need to wait for all the code approvals, the U.S., FCC, and other code approvals we need for that device. That is not up to us, the timetable, but we are happy on our end that the software and hardware are in very good condition. Now it is about the regulators to get the final approvals to start the mass production and to be able to supply to the quarter. In the next quarter, hopefully. There is great demand growing for that product from several angles, and we are looking forward to finalizing all the code approvals that we can start delivering that product.

Jacob Stephan, Analyst, Lake Street Capital Markets: Awesome. Very helpful. Thanks, guys.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Thank you, Jacob. Great hearing from you.

Rob, Conference Call Moderator, SKYX Platforms Corporation: Our next question comes from Joseph Gomes with Noble Capital Markets. Your line is now live.

Joseph Gomes, Analyst, Noble Capital Markets: Good afternoon, and thanks for taking my questions.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Thank you for having you.

Joseph Gomes, Analyst, Noble Capital Markets: I just kind of wanted to follow up on the units. You talked about deploying more than 100,000 during 2026. Just how confident are you that you will hit or exceed that goal this year?

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: By the end of 2026, our expectation is that we will have 100,000 units in the market. So far, it looks according to plan as we continue to grow our market penetration, and we strongly believe that we will meet our goal by the end of 2026.

Joseph Gomes, Analyst, Noble Capital Markets: Okay. Thanks for that. On the SKYFAN, it sounds things are going well there. If you look first quarter, second quarter at The Home Depot, how did sales go there, and how is it unfolding in some of the newer launches at the other retailers?

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: We are actually encouraged. Although it is summertime, the peak of summertime now, and our expectations were very low for that season, we are very encouraged for the signals we see there, and we are actually in process of enhancing our variety with bigger fans and smaller turbo heater fans based on demand. We have demand for smaller rooms, and we are going to come with a smaller version that you will see by the next quarter, and we have demands for bigger rooms, so we are coming for a bigger version that you will see also us launching in Q4. We are very happy with the indications we see during the worst season for any type of heater. We look forward to the winter with that product, and we strongly believe that that product will create some growth and gross margins for us in the next coming quarters.

Joseph Gomes, Analyst, Noble Capital Markets: Okay. Thanks. One more for me. Maybe just give us a little bit more color on the Eurofase, how that is progressing. Is that going according to your plan? Is that kind of a one-off type of agreement, or do you think we’re going to see more additional license agreements modeled on the Eurofase agreement?

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Our licensing model was created to deliver one of our initiatives or one of our demands based on standardization with the National Electrical Code or with any other safety organizations. We would need to license that product all across the board to prevent from monopoly or situations like this. That’s how we started with our licensing. We’re pleasantly surprised or happy that companies are taking steps towards discussion on licensing with us, and Eurofase is one of them. It’s a leading company that has a large pro segment and are involved with hotels and builders. As they saw progress in this segment, as to remind everyone, in the past year or so, we announced, I believe, over 14 real estate projects, or probably 16 already between hotels and real estate projects. As we grow our progress there, we expect to see more opportunities for licensing.

Definitely, there’s major companies that are looking into how we grow our channels in the pro and hotels, and that’s really what enabled our relationship and licensing agreement with Eurofase. It’s a great company, very large in U.S. and Canada, as well as Europe.

Joseph Gomes, Analyst, Noble Capital Markets: Okay, thanks for that. I’ll get back into you. Thank you.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Thank you.

Rob, Conference Call Moderator, SKYX Platforms Corporation: Our next question comes from Jack Vander Aarde with Maxim Group. Your line is now live.

Jack Vander Aarde, Analyst, Maxim Group: Okay, great. Good evening. Thanks for taking my question, and congrats on the continued growth ramp. Rani, with regard to the dozen or so large-

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Thank you, Jack.

Jack Vander Aarde, Analyst, Maxim Group: Yeah, no problem. With regard to the dozen or so large projects, not to repeat myself or repeat you guys, but there’s a ton of these projects going on in North Carolina, San Antonio, you got some in Europe, all the hotels, the smart city in Miami, et cetera. Just wondering, do you have any visibility yet or any color you can provide on what SKYX products are going to be involved? For example,

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: What type of product?

Jack Vander Aarde, Analyst, Maxim Group: Yeah. The SKYFAN & Turbo Heater, and then maybe that I know you haven’t released it yet, but the Gen-3 All-in-One Smart Home Platform. Are these products being discussed as being involved? I’m just curious to get your thoughts.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Yes, absolutely. Yeah, they’re definitely being discussed as being involved. Again, to remind everyone, we have the razor and the blade model. Once you have the razor, what we call a ceiling outlet receptacle, you can plug in a light fixture, a smart platform, a ceiling fan, or it’s up to your choice. As we’re progressing with the hotel and builder segment, definitely discussions on the All-in-One Smart Home Platforms, and it’s definitely going to be part of our portfolio in the next coming projects we’re doing here. There are discussions with many parties and excitement towards that product.

Jack Vander Aarde, Analyst, Maxim Group: Okay, great. Excellent. Maybe just one more. On the standardization front for the mandatory ceiling receptacle, has there been any, I guess, incremental discussion since the last time we spoke, last quarter? Or anything you can share. I know there’s some stuff you have to keep kind of close to the belt for now, but wondering if there’s been any incremental material changes on the standardization front.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Material, we can’t say material, but we definitely see some progress. We’re attacking it from several angles, and we’re doing progress, and I would say with four segments there of safety organizations. We feel that we’re making progress and we’re getting closer. But we don’t know exact timetables here, but we definitely have a very strong case as we said. This is a life-saving device, and there’s codes and organizations that have an obligation to save lives, mitigate injuries and property damages, and we fit all those criteria and beyond. We met all the conditions, including the ANSI NEMA specification as well as the NEC votes, NFPA demands. We have, to remind everyone, in the code books, we already have a generic name, WSCR, Weight-Supporting Ceiling Receptacle. So that’s a generic name that’s part of our standardization progress. So we feel very good with this.

Again, it’s a slow machine. It’s very slow to get something standardized mandate. That’s the bad news. But the good news is we’re 14 years now in this progress, and we feel that we’re getting closer than ever.

Jack Vander Aarde, Analyst, Maxim Group: Okay, excellent. I appreciate all the color there, and I’ll hop back in the queue. Thanks, guys.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: Thank you. Again, we do not hold the clock, but we are getting closer. That is the feedback we are getting from our team.

Rob, Conference Call Moderator, SKYX Platforms Corporation: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. One moment, please, while we poll for questions. There are no further questions. At this time, I would like to turn the call back over to management for any closing remarks.

Rani Kohen, Founder and Executive Chairman, SKYX Platforms Corporation: I would like to thank you all for joining us on our second quarter 2026 earning call. We look forward to keep our progress, and we hope that we will be able to share more of our progress in the near future. We thank you very much for your time, and have a great evening, everyone. Thank you.

Rob, Conference Call Moderator, SKYX Platforms Corporation: This concludes today’s conference. You may disconnect your lines at this time, and we thank you for your participation.