SKYX Platforms (SKYX) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of $20.1 million, up 6% year-over-year, driven by advanced and smart platform products in the U.S. and Canada.

• Net loss narrowed to $9.1 million from $9.7 million in Q1 2024, with improved operating performance and adjusted EBITDA loss per share improving to $0.04 from $0.05.

• General and administrative expenses decreased 17% year-over-year to $6.6 million.

• Expanded market penetration with expectations to reach 30,000 homes by end of Q2 2025 and ongoing integration of Belami to enhance distribution.

• Launched new manufacturing partnership with ProFab Electronics to enhance domestic production and automation.

Financial highlights

• Gross profit for Q1 2025 increased 2% sequentially to $5.7 million; gross margin improved by 4.8% from Q4 2024.

• Adjusted EBITDA loss decreased to $3.6 million from $4.5 million year-over-year.

• Net cash used in operating activities fell 29% sequentially to $4 million.

• Cash, cash equivalents, and restricted cash at $12.3 million as of March 31, 2025.

• Operating loss improved to $7.7 million from $8.9 million in Q1 2024.

Outlook and guidance

• Management anticipates becoming cash flow positive in the second half of 2025, with higher revenues expected from advanced and smart product sales.

• Products expected in 30,000 U.S. and Canadian homes by end of Q2 2025, with further expansion in H2 2025.

• Ongoing focus on margin improvement and growth through large retailers, online channels, and builder/professional segments.

• Plans to launch new patented products and expand product assortment, targeting insurance and hotel markets.

• Cost of revenues expected to rise in line with increased sales volume.