SKYX Platforms (NASDAQ:SKYX) reported record third-quarter revenue of $25.7 million and a narrower operating cash outflow, while executives outlined plans to expand sales to homebuilders following its merger with Deako.
Revenue rose 7.4% from $23.9 million a year earlier, marking the company’s 11th consecutive quarter of year-over-year growth, President Steve Schmidt said. Management said it believes SKYX has sufficient cash to support its path to positive cash flow, but declined to provide a firm timetable.
Margins improve as cash use declines
CEO Lenny Sokolow said gross profit increased to $8.1 million from $7.3 million in the second quarter of 2026. Gross margin rose to 31.4% from 28.9% in the preceding quarter.
Net cash used in operating activities fell 15.5% to $4.2 million from $5 million in the third quarter of 2025. Adjusted EBITDA loss, a non-GAAP measure, narrowed to $2.9 million from $3.5 million in the second quarter, while adjusted EBITDA loss per share improved to $0.02 from $0.03.
SKYX had $21 million in cash, cash equivalents and restricted cash as of Sept. 30, compared with $10 million at the end of 2025, Sokolow said. Interest-bearing debt, after debt discounts, declined to $14.7 million from $18.3 million at year-end. The debt matures in 2030.
Asked whether the company still aimed to exit 2026 cash-flow positive, Founder and Executive Chairman Rani Kohen said the goal was to reach that point as soon as possible, but management wanted to be careful about specifying a date. Kohen said overlapping operations at SKYX and Deako could produce $6 million to $8 million in savings.
Deako merger expands builder channel
Schmidt said the Deako merger expands SKYX’s builder-channel pipeline to approximately 4 million units over the next three to four years, with an expected average selling price of $50 per product. That pipeline is a management expectation, rather than a forecast of completed sales.
The companies have announced programs to supply more than 210,000 units across three builders: more than 80,000 units for Maronda Homes, more than 60,000 for Home Creations and approximately 70,000 for Stone Martin. The programs cover homes in several states, including Ohio, Georgia, Oklahoma and Alabama.
Asked how much of the recently announced Deako business was incremental, Kohen said he believed this year’s business was part of Deako’s existing backlog. He said the mix next year would initially be mostly Deako products but could become more evenly split with SKYX products as the year progresses, although the timetable was uncertain.
Deako Founder and CEO Derek Richardson said the company makes plug-and-play light switches and matching outlets for new single-family homes. Its products allow homeowners to replace or upgrade switches without wiring or an electrician, he said. Richardson said Deako has shipped more than 32 million products over 11 years and recently extended supply agreements with Stone Martin, Maronda Homes and D.R. Horton.
Richardson and Kohen said combining Deako’s wall products with SKYX’s ceiling products could increase revenue per home to as much as five times what Deako currently earns. Richardson described a model in which the companies sell the initial products during construction and earn additional revenue when homeowners upgrade.
Shipments and product launches
Kohen said SKYX had shipped to what he believed were two projects in the Austin and Dallas areas and hoped to begin shipping to a hotel during the current quarter. He noted that Deako continues to ship products regularly. SKYX also announced an agreement to supply its technologies to two 65-story Trump Towers in Hyderabad, India, where it expects to deploy tens of thousands of units over the next couple of years, Schmidt said.
SKYX plans to launch four additional Turbo Heater ceiling fan models in the fourth quarter, alongside its original 24-inch model. Kohen said the additions include sizes ranging from 20 to 60 inches and will be offered in five colors. He said two big-box retailers were interested in a winter offering but did not identify them or announce agreements.
Management also discussed potential longer-term revenue from home monitoring, security and other services. Kohen said SKYX was exploring strategic relationships with technology companies and builders, but did not disclose any new agreements on the call.
About SKYX Platforms (NASDAQ:SKYX)
SKYX Platforms Corp. develops and markets technologies and products for smart homes and buildings. Its core platform is designed to make it easier to install and connect ceiling lighting and other electrical fixtures, including through plug-and-play products intended to simplify installation. The company also offers lighting fixtures, ceiling fans and related home products through its e-commerce operations and retail brands. Its products serve residential and commercial customers, with sales focused primarily on the North American market.
