SKYX Platforms (SKYX 8.47%), a developer of advanced smart-home and safety platform technologies, released its earnings for the second quarter of fiscal 2025 on August 12, 2025. Gross profit (GAAP) increased to $7.0 million. These results signal both sequential and year-over-year improvement as the company continued to prioritize innovation and market expansion. SKYX exceeded expectations, with GAAP revenue of $23.1 million and non-GAAP EPS of $0.02, both above analyst estimates, and delivered notable progress, though it remains unprofitable and is still investing heavily to capture broader market adoption.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.08) | $(0.08) | $(0.08) | 0.0% |
| Revenue (GAAP) | $23.1 million | $22.94 million | $21.4 million | 7.9% |
| Gross profit | $7.0 million | $6.6 million | 6.4% | |
| EBITDA, as adjusted (non-GAAP) | $(2.6 million) | $(2.1 million) | (24.3%) | |
| Cash, cash equivalents and restricted cash | $15.7 million | $15.6 million | 0.6% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report.
Company Overview and Strategic Focus
SKYX Platforms is focused on developing innovative plug-and-play solutions for electrical fixtures, smart ceiling fans, lighting, and home platforms. The company’s hallmark is its Smart Sky Platform, which lets users quickly, safely, and easily install or upgrade electrical fixtures and smart-home devices. By integrating advanced safety features and user-friendly technology, SKYX aims to address key concerns for homeowners and builders alike.
Recently, SKYX has targeted strategic partnerships and expanded into e-commerce while emphasizing code standardization for safety. Licensing deals, such as its agreement with General Electric (NYSE:GE), and acquisitions like its purchase of Belami, are designed to deepen distribution and reach new market segments. The company’s success depends on product adoption, continued regulatory progress, and opportunities for future recurring revenue streams, such as subscription services.
Quarterly Highlights and Notable Developments
SKYX delivered growth across several major financial metrics. Revenue (GAAP) rose 8.0% year over year, reaching $23.1 million, and came in above analyst projections. Sequential revenue growth outpaced even that year-ago comparison, as GAAP revenue of $23.1 million exceeded both Q1 2025 ($20.1 million) and Q2 2024 ($21.4 million). GAAP revenue climbed 15% over Q1 2025. Gross profit also advanced, rising 23% over the prior quarter, supported by gross margin improvement to 30.3%. Cash used in operations (GAAP) was cut nearly in half compared to the previous quarter, dropping from $4.3 million to $2.0 million.
The company remains unprofitable, but some losses narrowed. The adjusted EBITDA loss improved to $2.6 million, better than the $3.6 million non-GAAP adjusted EBITDA loss in Q1 2025 but wider than the prior-year loss of $2.1 million. General and administrative expenses climbed year over year, up 27% to $8.3 million (GAAP), as compared to Q2 2024, while net loss (GAAP) stood at $8.8 million, an increase from the previous year. Despite these losses, SKYX ended the quarter with $15.7 million in cash, cash equivalents, and restricted cash after raising $15 million in new equity. That effort was led by institutional investors and insiders and helps to support ongoing investment and operations.
Commercial progress was a highlight this quarter. The company announced a collaboration with a $3 billion mixed-use smart city development in Miami. SKYX expects to deploy more than 500,000 units of its advanced plug-and-play smart-home technologies over several years for this project. Additionally, it highlighted partnerships with major distributors, including Home Depot (NYSE:HD) and Wayfair (NYSE:W), and expanded its e-commerce operations to 60 web platforms. The hiring of Huey Long, a former Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) executive, as head of e-commerce reflects the company’s push to accelerate online sales.
On the product front, SKYX announced a surge in demand ahead of the launch of its new all-in-one smart turbo heater and ceiling fan, marking its entrance into a large combined market for four-season ceiling fans and heaters. The device is positioned as a four-season comfort solution. The company partnered with Parrot Uncle, a well-known global manufacturer of lighting and ceiling fans, to jointly promote and distribute these new products in the U.S. and internationally.
A core part of SKYX’s strategy involves its intellectual property. During the quarter, it secured eight new patents, bringing its total to more than 100 patents and pending applications worldwide. These patents cover both the underlying technology of its smart platform and specific safety innovations. This intellectual property portfolio bolsters the company’s ability to license technology globally and defend its innovations as its market share grows.
The company is also pressing forward on regulatory and safety milestones. Its technology is referenced in 10 segments of the National Electrical Code (NEC), and it has an ongoing campaign to secure mandatory adoption in U.S. homes and buildings. Management reported support from key leaders within regulatory bodies and indicated that broad standardization remains a priority. SKYX’s long-term regulatory goal is to make its plug-and-play system a ceiling safety requirement. Any shift to regulatory mandates could significantly support future growth, though clear conversion metrics have yet to be disclosed.
Looking Ahead: Outlook and Guidance
Management reaffirmed plans to reach cash flow positivity by the end of 2025, as stated in management commentary and guidance, saying that the cash balance is “sufficient to achieve its goals,” with management referencing $15.7 million in cash, cash equivalents, and restricted cash as of June 30, 2025. The outlook for revenue growth is anchored in several factors: converting pilot programs and large contracts, such as the Miami smart-city project, into high-volume sales; launching additional innovations such as the smart heater/fan; and expanding e-commerce market share. The company also targets entry into 40,000 homes in the U.S. and Canada by the end of the quarter, supported by both retail and professional distribution.
SKYX did not provide detailed numeric forward guidance for the remainder of fiscal 2025 or for the full year. Instead, leadership emphasized the potential of its new product launches, licensing channels, and international partnerships as future revenue drivers. Given the ongoing losses and operating expenses, investors should watch for tangible progress in sales ramp-up, recurring revenue streams, and indications that regulatory changes are driving higher adoption rates.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
