Logo of jester cap with thought bubble.

Image source: The Motley Fool.

Date

Monday, May 11, 2026 at 4:30 p.m. ET

Call participants

  • Executive Chairman — Stephen M. Schmidt
  • Chief Executive Officer — Leonard Jay Sokolow
  • Founder — Rani Kohen

Need a quote from a Motley Fool analyst? Email [email protected]

Takeaways

  • Total revenue in fiscal Q1 2026 (ended March 31, 2026) -- $22 million, representing a 10% year-over-year increase and marking the ninth consecutive quarter of annual revenue growth.
  • Gross profit in fiscal Q1 2026 -- $7 million, a 16% growth from the prior year period.
  • Gross margin in fiscal Q1 2026 -- 30%, up from 28% year over year.
  • Total cash, cash equivalents, and restricted cash -- $32 million as of March 31, 2026, a substantial increase from $10 million at year-end 2025.
  • Net loss per share -- $0.07 per share, an improvement from $0.90 per share in the previous year.
  • Adjusted EBITDA loss per share (Non-GAAP) -- $0.03 per share, reduced from $0.04 per share the year before.
  • Strategic partnerships -- New agreements include deployment of advanced smart and AI platform technologies with Group OT across Europe, and Heritage Hospitality Group in the European hotel market.
  • Deployment pipeline -- Projects moving from agreement to active supply orders in Texas (including Austin and San Antonio), New York, and the first European hotel renovation.
  • Product expansion -- Turbo Heater Fan sales remain strong despite seasonally warm weather; category expansion planned with new models from 18 to 60 inches, and five color options.
  • AI-driven website upgrades -- Approximately 30% of the company’s 60 websites have integrated AI-driven e-commerce enhancements, progressing toward full completion in the upcoming quarter and expected to finalize by Q3 2026.
  • Smart platform launch -- Generation 3 all-in-one smart platform hub scheduled for production by mid-to-late third quarter 2026.
  • Recurring revenue strategy -- Management confirmed that the new platform hub is expected to enable monitoring subscription and AI service revenues from multiple sectors, including home security, hospitality, and elder care.
  • Manufacturing diversification -- Manufacturing capacity spans the U.S., China, Taiwan, Cambodia, the Philippines, and Vietnam, with each capable of producing millions of units annually.
  • U.S. production initiative -- Collaboration with ProFab, a U.S.-based manufacturer, aims to offer Made in USA versions of key products, with a focus on automation to manage cost competitiveness.
  • Safety standardization progress -- The internal code team led by former National Electrical Code and National Fire Protection Association leaders continues monthly meetings with governmental and regulatory bodies to advance mandated adoption of SKYX’s receptacle technology.
  • GE licensing agreement -- The five-year global licensing contract with General Electric (NYSE: GE), now within Dolby (NYSE: DLB)’s licensing division, remains active, with anticipated growth in licensing revenues pending further standardization.
  • Insurance collaboration -- Management referenced ongoing advanced discussions with insurance companies regarding adoption and potential standardization of the all-in-one platform.
  • Middle East projects -- Partnerships in Saudi Arabia and Egypt are proceeding as planned, with no reported disruptions due to geopolitical factors.

Summary

SKYX Platforms Corp. (SKYX 11.40%) reported record quarterly revenue and cash position, driven by expansion in both B2B and retail channels, including new European partnerships and diversification of its manufacturing footprint. Across the call, management repeatedly emphasized the strategic shift toward recurring smart-services revenue enabled by its new all-in-one platform hub, which is on track for production and expected to serve multiple end markets. The company also identified progress in engaging regulatory and insurance stakeholders for its safety technology, aiming for industry standardization as a potential catalyst for future licensing revenues.

  • Management described cost control and operational sequencing as drivers of improved gross margin, with enhanced AI e-commerce systems noted as contributors to both revenue growth and sales mix.
  • Leadership stated that fully automated U.S. manufacturing of core electronic components is feasible without a material labor cost disadvantage, due to advances in PCB production.
  • Insurance industry collaboration is positioned as an additional pathway for product standardization and market penetration, capitalizing on the safety features in the upcoming product suite.
  • The leadership team shared that the path to cash flow positivity by year-end 2026 is supported by current balance sheet strength and rapid e-commerce working capital turnover modeled on precedent technology-sector “Dell working capital” practices.

Industry glossary

  • Razor-and-blade model: A business strategy where initial low-cost or essential products are sold, creating demand for higher-margin, recurring add-ons, or consumables.
  • Turbo Heater Fan: SKYX’s patented ceiling fan combining heating and cooling functions, sold as a year-round home appliance.
  • ProFab: SKYX’s U.S.-based manufacturing partner specializing in advanced circuit board production and Six Sigma-certified processes.
  • AI Ecosystems Connect (NVIDIA (NASDAQ: NVDA)): NVIDIA’s program facilitating integration of artificial intelligence into smart home platforms, in which SKYX participates.

Full Conference Call Transcript

Stephen M. Schmidt: Alright. Lenny, thank—first of all, excuse me. I am sorry. Rani, thank you very much. Good afternoon to everybody. Let me start by saying that we are happy to share that we are continuing our progress in growing our market penetration and remain focused on our razor-and-blade model through B2B segments for hotels and builders, as well as on the retail aspects through our e-commerce platform and big-box retail. As we previously have discussed, we are continuing our growth despite the slow new-build market that is affecting smart home, lighting, and home décor segments. Let us start with four key financial points demonstrating our positive progress.

First, we are pleased to report nine consecutive quarters of year-over-year growth with a 10% increase in record revenues for Q1 2026 with $22 million compared to $20 million in Q1 2025, as we continue to grow our market penetration. Next, our cash position improved significantly to over $32 million in cash and cash equivalents as of 03/31/2026. We believe we have sufficient cash to achieve our goal of becoming cash flow positive in 2026. Our gross profit improved by 16% to $7 million in Q1 2026 compared to $6 million in Q1 2025. And finally, our gross margin improved to 30% in Q1 from 28% in Q1 2025.

Leonard Jay Sokolow will be providing additional insights shortly on these financial results. On the business front, we have entered into a strategic partnership agreement with prominent European hotel and real estate developer Group OT, or Odd Group, to deploy our advanced smart and AI platform technologies as a brand standard throughout their hotel and building segments. Group OT has developed over 250 hotels and buildings across Europe. Next, we just announced that we will be deploying our advanced and smart technologies to its first European hotel master renovation of a historical architectural preservation hotel, the Grand Hotel Dubarre, formerly the Grand Medicis,

Rani Kohen: in Orbo, France.

Stephen M. Schmidt: We also have signed an additional agreement with the group at Heritage Hospitality Group to deploy and market our technologies to the vast European hotel market of over 132 thousand hotels. We expect to supply our advanced smart home technologies to upcoming and future key projects in the U.S. and globally, including New York, North Carolina, Austin, San Antonio, South Florida, including Miami's new $4 billion smart city, Europe, Saudi Arabia, and Egypt. Next, our technologies reduce up to 90% of the time and cost of buildings and hotel renovations and installations or new build, and we continue our discussions with additional hotel groups and owners regarding utilization of our game-changing advanced and smart platform technologies.

We expect to deploy over 1 million units of our products, including advanced smart home plug-and-play technologies during these projects, and to over 100 thousand units and homes by 2026 through our pro and retail segments. Next, despite warmer weather, our sales of our patented Turbo Heater Fan are continuing to grow, and we are expanding the category of the all-season ceiling fan—heat in winter and cool in summer—and we are working on additional products in new designs and larger sizes. In Q1, we announced the beginning of our collaboration with NVIDIA, AI Ecosystems Connect program, and we expect to grow our collaboration with NVIDIA into future smart home projects.

Our technology expansion provides additional opportunities for future recurring revenues through interchangeability upgrades, AI services, monitoring subscriptions, and more. Finally, 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 lot of great progress. It is my pleasure now to turn the call over to Leonard Jay Sokolow, our CEO, who will provide additional insights. Len?

Leonard Jay Sokolow: Thank you very much, Steve. I appreciate it. I am very pleased to announce strong financial and operational results for the first quarter and most recently. This reflects our continued momentum in revenue growth, operational execution, and market expansion. We generated the greatest increase in year-over-year revenues of 10% with a record $22 million in revenues in 2026 compared to $20 million for 2025. This reflects nine consecutive year-over-year quarters of growth. As of 03/31/2026, we reported $32 million in total cash, cash equivalents, and restricted cash compared to $10 million as of year-end 12/31/2025. We continue to leverage the rapid conversion of our e-commerce sales into cash, advancing our cash position.

This is often referred to, as we have mentioned before, as the Dell working capital model, lowering our cost of capital along with it. We believe we have sufficient cash to achieve our goal of becoming cash flow positive exiting 2026. Our gross profit for the first quarter ending 03/31/2026 increased comparatively by 16% to $7 million as we compare it to the first quarter ending 03/31/2025. The gross margin for the first quarter ending 03/31/2026 increased comparatively by 2% to 30% compared to 28% in the first quarter ending 03/31/2025. Net loss per share decreased by $0.02 to $0.07 per share in 2026 compared to $0.90 in 2025.

Our adjusted EBITDA loss per share, which is a non-GAAP measure, decreased by 3% to $0.03 per share in 2026 as compared to $0.04 per share in 2025. I will now turn it back.

Rani Kohen: Thank you, Steve. Thank you, Lenny. We will open in a minute our phone for Q&A. We would like to emphasize, as Steve mentioned, that we are laser-focused on our razor-and-blade model and on the B2B segment through hotels and builders. Reaction is actually very strong and very positive, and we hope we can announce more on this front in the near future. We are also happy with the growth of our retail segment. As Steve mentioned, despite warm weather around the country, we are continuing to see growth in our Turbo Heater. That is one of many products we intend to offer in the razor-and-blade model.

As we mentioned before, we are going to expand that category to create an all-season ceiling fan. As you all know, ceiling fans are products that mainly focus on summertime and warm weather. We strongly feel that this can open a whole new category, especially based on the demand we have for that product. In the next coming months and this year, we believe it is going to be a strong aspect of our razor-and-blade model, showing additional types of ceiling fans in sizes of 18, as we have now 24 inch. It is going to be 18, a bit smaller, but also a large one with 28 inches.

We are also going to do, for much bigger rooms, starting at 42 inches, a new model, new design with the same Turbo Heater with three blades at 42 inch, 54 inch, as well as 60 inch. We really think that this is a category that, with time, we can create a lot of demand for those different types of Turbo Heater Fans. We are going to offer them in five colors, and we intend to expand this in the next coming months. You will see more announcements and additional products in, hopefully, additional places that we will be able to announce. With that being said, we are also progressing with the standardization aspect.

We also hope to introduce our products this year to insurance companies. We strongly believe that can have another angle of standardization as we hold many products that have strong aspects when it comes to life safety and eliminating the need to touch hazardous wires, long time on ladders, with heavy or large-sized devices. With the launch of our Generation 3 all-in-one smart platform hub, adding the smoke detectors, CO detectors, emergency light, 911 calling, night light, and many other safety features, we have strong indications that we will cooperate with insurance companies that are quite excited towards our launch in 2026. With that being said, thank you again, and we will pass it to Q&A here.

I think we have Jacob from Lake Street first in line.

Operator: Thank you very much, sir. Ladies and gentlemen, we will now be conducting the question-and-answer session. For participants making use of speaker equipment, it may be necessary to pick up your handset before pressing the star keys. If you would like to ask a question, please key in star and then one. A confirmation tone will indicate that your line is in the question queue. You may key in star and then two to leave the question queue. The first question comes from Jacob Stephan of Lake Street Capital Markets. Please go ahead.

Jacob Stephan: Yes. Hey, guys. Congrats on a nice quarter, and thanks for taking the questions. Maybe just first, I wanted to touch on the construction project pipeline here. I know you have 12 major projects over the past year, a million total units, and obviously Group OTT. How many of these projects so far have moved from a signed agreement to what you would call an active supply order? And maybe if you could give us any sense of updated timing on the Austin, New York, or Miami smart city projects, that would be great. And maybe give us an overview of the developer pipeline just beyond what you already have signed and purchase orders.

What does the future pipeline look like? Also, moving on to big-box retail, you now have the Turbo Heater at Home Depot, Target, Walmart, Lowe’s. Maybe if you could quantify what a single in-store SKU order from one of these big-box retailers could be, that would be helpful. Any comments on the pipeline there?

Rani Kohen: Yes. Thank you, Jacob. A few projects already have moved to purchase orders, and we expect to start supplying products in the next coming months to several places in Texas, I believe Austin, as well as New York, San Antonio maybe, and hopefully even to the first European hotel we announced. Regarding the developer pipeline, we are entertaining discussions with several developers on new projects as well as hotel developers, and we are confident that this is a strong path for us—the B2B segment, as Steve mentioned, for hotels and builders. The value proposition, with saving up to 90% of time and labor cost of those renovations and installations, is quite significant.

Also, the razor-and-blade model opens the door to start with maybe something simple but to upgrade, and then down the road the subscription model and AI services and recurring revenues can be quite significant for us as we penetrate. Our goal is to focus on the razor-and-blade model, penetrate buildings, and then once we penetrate a property and deliver our receptacles, we kind of, quote-unquote, have an ownership in that electrical and electronic real estate that we strongly believe will be fruitful down the road. On big-box retail, despite warm weather now, we expected a slowdown with that product, but we are happy to announce that we are actually seeing continuing growth.

I think word of mouth—people now recognize they can buy a fan that also has a heater, all in one—opens the doors to really good customer reviews. Dealing with big-box retail such as Home Depot, Target, Lowe’s, and others, if you penetrate those stores and once you start—if you penetrate significantly beyond a few stores or a few hundred stores, that can be significant revenues. When you go over 1 thousand or 2 thousand stores, that can be a major turning point for us, and it looks promising. We hope toward the winter, or hopefully earlier, to be able to talk about it in more detail.

Operator: The next question comes from Thomas Hayes of ROTH Capital Partners. Please go ahead.

Thomas Hayes: Afternoon, guys. Can you hear me okay? Just wondering about the strong Q1 gross margin performance. Could you talk about what the drivers were on the year-over-year growth?

Rani Kohen: I think our focus on implementing more new products in our e-commerce and other big-box retail, in combination with some of our new software, AI-driven—already almost, I would say, in a third of our e-commerce platform. Combined—products for lighting, the heaters, the home décor products—a combination of our strong emphasis on growth is starting to show, and we hope to continue to show that in the next coming quarters.

Thomas Hayes: Appreciate that. And maybe, appreciating all the color that you gave us on the Turbo Heater Fan, now that it is really going to become an all-season fan, do you see more opportunity in the winter or the summer for the unit?

Rani Kohen: We believe that in the winter it would provide more emphasis and purchases, in addition to decorating a home and impulse buy. Many people do not think about a ceiling fan—if they see one, if it is not urgent, they will probably not buy it during the winter. But if they are aware of it and there is a new category that can serve winters as well as summers, we strongly believe that we can continue seeing additional growth in winter times. The data shows that most of the space heaters are very strong from October through February—those five months are probably three quarters of the market—and then March through August is really only 25%.

Therefore, we think that this coming winter could be quite significant for that product, although we mentioned we are already seeing growth in the summer, and that is a pleasant surprise.

Thomas Hayes: Maybe one last one. Could you give us an update on updating your 60 websites—where you are in that process, and when you expect to have that wrapped up?

Rani Kohen: Yes. I think we are around a third into it now. Last call, we were around 20% plus, and now I think we are 30% plus of websites that merged into the AI-driven software. We will continue our progress this quarter, and we hope and believe that during Q3 we can finalize that project. That is our anticipation.

Operator: The next question comes from Barry Sine of Leechedfield Hills Research. Please go ahead.

Barry Sine: Hey, good afternoon, gentlemen. I want to follow up on that last question where we talked about the website upgrades. Obviously, you had a very strong quarter, revenue up 10%. Could you give us some sense of how much of that is coming from the website upgrades, the contract shipments, and then obviously the Turbo Heater sales, both through your website channels as well as through retailers? A little color on what drove the growth in the quarter, please? And on the website upgrade, maybe give us a little more detail—what exactly are you doing with the websites and why has that been so successful? What is causing consumers to spend more through your websites?

Rani Kohen: We really think it is all of the above. We are emphasizing growth in all aspects: the SKYX and the SkyPlug products as much as we can, the Turbo Heater, and definitely the new AI-driven software that we are implementing on the websites. On the sites where we already completed the implementation, we do see this. So it is a combination of all the above and our e-commerce home décor and lighting products as well as our own products, including the Turbo Heater Fan. It is a consolidated effort to continue our growth on all fronts. Regarding the website upgrades, the older softwares—even five years ago—are aged today.

Any improvement you have by AI identifying customers, focusing on customers that are more likely to purchase within lighting, smart lighting, home décor, etc., can identify better and faster, with easier maneuvering through the site. Today, AI is able to profile you much faster as to what type of customer you are and what type of products have higher chances for you to acquire. These AI-driven softwares are way more advanced than the newest software five years ago. The difference, as we all know with AI, is quite significant, and AI attacks all fronts at once. This is just the beginning.

We believe that as we fully implement the entire AI-driven software in our platform, we will see more benefit toward the end of the year, and the learning and the data we can get is quite significant compared to what we had in our old software. It all helps us grow our business on the e-commerce side.

Barry Sine: And my last question on the regulatory front. Could you give us a bit more detail on what you took in the most recent quarter in terms of getting government entities to do some type of a mandate—whichever entity that might be—how many meetings were there, the feedback, and then a similar question with the insurance companies?

Rani Kohen: Yes, Barry. Thank you. As we mentioned, it is a slow process—that is the bad news. The good news is we started that process over 14 years ago and achieved key milestones last year. We are in the final stages, we believe, and we are working on all fronts. There is NFPA and NEC, and other bodies that report directly to the government. These government bodies have clear criteria of saving lives, mitigating injuries, and property damages. They were established in the past 50 to 100 years for that purpose. They really need to find products like ours and bring them to the finals—obviously, we are helping them.

Our code team, led by Mark Early, the former head of the National Electrical Code and Chief Engineer of the National Fire Protection Association, together with Eric Jacobson, the former President of the American Lighting Association, are leading our team. They are having meetings almost every month now or even more than once a month, and we are stepping it forward. We are working on more help with government agencies and also experts who have joined us to emphasize how significant our safety aspect is—how much we can reduce ladder falls in a significant way.

Most ladder falls—close to 80% according to the data we saw—are in homes, and many happen when you have heavy or big obstacles in your hands and/or you are making unstable movements while trying to twist wires. Reducing that time by up to 95% to 99% can be quite significant in reducing ladder falls. With that being said, Stephen M. Schmidt and myself, with other members, are focused now—Steve is leading it—with insurance companies. If you look at their history, they mandated or required or promoted safety products starting with smoke detectors, CO detectors, emergency lights in commercial buildings, and other products that we are working on that we did not disclose yet. We have many of them together.

Our initial discussions now are looking quite well, and once we have the all-in-one smart platform in the market, we are confident—we had some good discussions—that we have a significant play that we strongly believe can save many billions of dollars on an annual basis for insurance companies. We are progressing on this front as well.

Operator: Thank you. Our next question comes from Jack Vander Aarde of Maxim Group. Please go ahead.

Jack Vander Aarde: Thanks. Congrats on the momentum; progress seems to be accelerating. Rani, it sounds like there is progress on the standardization front, and your new smart plug-and-play product rollout is ramping. Can you remind us of the vision and provide an update on your General Electric—your GE—five-year global licensing partnership agreement you signed back in 2023? Is GE still in the cards here? What is the vision there with them? And maybe a question for Lenny or Rani as well: last quarter, I believe the next-gen all-in-one smart platform hub was on track for a third-quarter or fourth-quarter launch this year. An update there? And is this the product that unlocks a recurring revenue stream for you?

Any color on what that might look like?

Rani Kohen: As you know, yes, we have this contract. GE merged some divisions. The licensing division is merged with Dolby, and we are in connection with GE—part of Dolby or a collaboration with Dolby—on this. Yes, they are in the game, and we expect that, as we progress with the standardization—toward mandatory—the licensing will become a major thing for us. The licensing segment will become quite significant for us, and insurance companies can help as well, as you heard in our other answer.

Leonard Jay Sokolow: Thanks, Jack. We are on track. We think by mid to third quarter we should be on track for Generation 3—the all-in-one platform—getting into production. So far, we believe that is in our projection.

Rani Kohen: Yes, Jack, great question. The all-in-one smart platform hub is a product that helps several industries or segments in one. We have the home security industry with sensors, home safety for insurance, smart home features, communication features such as Wi-Fi extenders and communication, hospitality sensors, and we can do the same for the cruise industry with that platform. That can go to elder living facilities, and there is a growing market of home elder living—people stay in their homes with visits and monitoring—that can be a significant market for that product, as well as hospitals. As you can see, several segments and industries can be served.

This will generate significant data aggregation and precise data, helping us in learning and very strong knowledge of those industries. It will generate monitoring subscriptions and AI services, depending on the industry. To answer your question, this product is what we expect will open doors with recurring monitoring subscription opportunities across all of those industries.

Operator: The next question comes from Sam Mubish, who is a Private Investor. Please go ahead.

Unknown Speaker: [inaudible]

Sam Mubish: Yes. Hello, everyone. Again, congratulations on a stellar quarter. Lenny, I do not know if you remember, but we talked probably about six months ago or so. Thanks again for having me, and congratulations on a good quarter. A few questions starting off first. At this time last year, you had announced a partnership with ProFab, a local manufacturer. I was just looking for an update on your partnership with ProFab and guidance on what percentage of your products are now made in the U.S. versus non-U.S., and where ProFab fits within that. Do you anticipate costs being manageable as you migrate manufacturing, especially with the all-in-one platform—can margins be sustained or continue to grow?

As we think about the pipeline of these major projects you have, do you have any concerns about meeting future demand, especially for those B2B contracts? Can you meaningfully scale production to millions of products being deployed a year from now? Lastly, we have seen some disruption to Middle East funding and projects during the recent conflict. You have a few Middle East projects—notably Egypt and Saudi Arabia. Are those relationships steady? Any disruption or trepidation about moving forward?

Rani Kohen: I will answer that product development question. ProFab is a leading electronic, sophisticated PCB, electronic boards manufacturer in industries like military, aviation, hospitals, and other sophisticated industries. They are investors in our team and long-term partners of ours. We expect, as we grow the all-in-one smart platform opportunities in the U.S., to have a Made in USA opportunity. Part of our product development and all the testing and manufacturing and Six Sigma process is done together with them. They are a great partner to have and really a leading manufacturer here in South Florida, where tech is growing.

We are looking forward to manufacturing together with them some of the products here, with a goal to have a strong U.S. manufacturing channel. That is in development, and once we start production of the all-in-one smart platform, we will look into how to start making some of this product made in the U.S. Regarding costs and margins, unlike the car industry—which is still a few years away but happening—to become highly automated, the electronic board, the PCB, is already in a mode that can be fully automated. With that, you do not have the 5x to 10x labor situation that the U.S. has compared to other places in the Far East and Asia.

Therefore, anything that can be fully automated made in the U.S. has a great chance to be manufactured in the U.S. because labor is not a big factor in these types of productions. On capacity, we are collaborating with manufacturers all around the world. In addition to China, we have Taiwan, Cambodia, the Philippines, the U.S., and Vietnam. We did not want to rely on one area or one country. All the manufacturers we associate with are mass production and each one is able to produce millions of units. It is a combination of cost and quantity. Quantity we are okay with, and we strongly believe those manufacturers are capable of producing in the millions—each one of them.

It is really the cost factor to determine the best place to manufacture, but for quantities, we are in very good shape. On the Middle East, we are in discussions with those parties and they are moving ahead with their projects. We hope to start something and be able to announce something even this year. These projects are long-term and in planning stages, so there is no interruption, and everything is moving forward according to plan.

Leonard Jay Sokolow: Sam, if you have anything else in the future, feel free to call. Happy to answer.

Operator: Ladies and gentlemen, with no further questions in the question queue, we have reached the end of the question and answers. We will now hand back for closing remarks.

Rani Kohen: Thank you again to all the participants. We look forward to continuing our progress and sharing it with you in the near future. On our next earnings call—and hopefully sooner in some aspects—we will be happy to announce if we have something to share with the market. Thank you, and good evening to all.

Operator: Ladies and gentlemen, that concludes today's event. Thank you for attending, and you may now disconnect your line.