SKYX Platforms 2025 Q2 Earnings Net Loss Widens Despite Revenue Growth

SKYX Platforms (SKYX) reported its fiscal 2025 Q2 earnings on August 12th, 2025, with revenue up 7.5% year-over-year to $23.06 million. However, the company continued to report a net loss of -$8.83 million, a 18.3% increase compared to the previous year. Despite revenue growth, the earnings report highlights ongoing financial challenges.

Revenue
SKYX Platforms recorded a 7.5% year-over-year increase in total revenue, reaching $23.06 million for Q2 2025, compared to $21.45 million in the same period last year. This growth reflects improved business performance, driven by strategic initiatives and a 15% sequential rise in revenue compared to Q1 2025.

Earnings/Net Income
The company's earnings per share (EPS) remained stable at -$0.08 for Q2 2025, consistent with the previous year's quarter. Meanwhile, the net loss widened to -$8.83 million, a 18.3% increase from the -$7.46 million loss in Q2 2024. SKYX Platforms has now posted a net loss for five consecutive years during the corresponding fiscal quarter, underscoring persistent financial headwinds.

Price Action
SKYX Platforms' stock price fell by 0.84% on the latest trading day but showed resilience with a 9.26% gain during the most recent full trading week. The stock has surged 16.83% month-to-date, indicating some investor optimism amid challenging earnings results.

Post-Earnings Price Action Review
Despite the quarter’s revenue growth, a post-earnings investment strategy of buying SKYX shares on the report date and holding for 30 days underperformed significantly, resulting in a -59.23% return. Over three years, the strategy posted a negative compound annual growth rate (CAGR) of -26.63%, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.30. This indicates the strategy's high risk and lack of positive returns, contrasting with a favorable benchmark return of 46.32%.

CEO Commentary
Leonard Jay Sokolow, SKYX Platforms' CEO, highlighted a strong Q2 2025 performance, noting a 15% sequential revenue increase to $23.1 million compared to Q1. He emphasized improved cash flow, with net cash used in operations down 54% to $2 million, driven by a 23% sequential rise in gross profit to $7 million and a 7% increase in gross margin to 30.3%. Sokolow expressed confidence in achieving cash flow positivity in 2025, citing strategic use of trade payable financing and e-commerce platforms to optimize liquidity. He also highlighted progress in key collaborations, including the Miami smart city project and product launches, which are expected to drive significant revenue and margin growth during the winter season.

Guidance
The CEO expects continued momentum in 2025, driven by new product launches such as the plug-and-play smart heater and expansion in retail and pro segments. While no specific revenue or EPS targets were provided, Sokolow anticipates cash flow turning positive in 2025, supported by cost reductions and higher-margin product deployments. He also noted progress in code standardization efforts and the potential for long-term growth via mandatory safety regulations.

Additional News
Within the past three weeks of August 12th, 2025, notable non-earnings-related news included a U.S. Treasury action against two European financial institutions as part of broader trade measures. Additionally, the Chinese government announced new regulations regarding consumer loan interest subsidies, which may affect SKYX Platforms’ operating environment. Lastly, an industry-wide initiative was launched to standardize trade payable financing, which could impact SKYX Platforms’ cash management strategies.