SKYX Platforms Corp. Common Stock 2026 Q2 Earnings Call

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? 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? Great. Thank you very much, Steve.

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.

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.