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The U.S. government’s surprise move to take a nearly 10% stake in Intel has raised fresh questions about whether similar investments could be directed toward defense contractors. Commerce Secretary Howard Lutnick signaled this week that defense remains a central area of discussion, citing its deep ties to government funding and its strategic importance to national security.

The comments sent shares of major defense primes such as Lockheed Martin and Northrop Grumman higher, underscoring how sensitive the sector is to policy developments. But beyond the established giants, investors are now weighing whether small-cap defense firms could become the next beneficiaries of heightened federal interest.

Unlike the household names of the defense world, many smaller contractors play critical yet less visible roles in the military supply chain. These firms often specialize in advanced components, niche technologies, cybersecurity solutions, or unmanned systems. With Washington openly considering how to finance munitions acquisitions and strengthen industrial capacity, smaller players could find themselves on stronger footing.

For small-cap stocks, the potential upside comes from two angles. First, government scrutiny of prime contractors could create opportunities for subcontractors to capture a greater share of defense budgets. If policy shifts encourage more competition in procurement, companies developing next-generation drones, satellite systems, or precision components could see contracts flow their way. Second, direct or indirect investment by the U.S. could help shore up balance sheets and provide access to growth capital that is often scarce in the sector.

The Intel deal also signals a broader shift in Washington’s approach to industrial policy. By taking an equity stake rather than simply providing subsidies, the government aligned its financial interests with a major company’s success. If similar mechanisms are applied in defense, even at smaller scales, it could transform the risk–reward profile for publicly traded small-cap contractors. Investors would be betting not just on execution, but on the implicit backing of federal policy.

Still, risks remain. The defense sector is highly regulated, and the prospect of deeper government involvement raises questions about oversight and shareholder rights. The Intel deal gave the U.S. no board seat or governance role, but uncertainty lingers over how similar arrangements might play out in defense. Additionally, defense budgets are subject to political cycles, making small-cap firms vulnerable to swings in appropriations and shifting strategic priorities.

Market reaction to Lutnick’s remarks illustrates how policy talk alone can move stocks, but investors should be cautious about reading too much into early signals. Large primes like Lockheed Martin remain deeply entrenched as key suppliers, and any structural changes would take time to ripple through the industry. For smaller contractors, however, the current environment could present a rare window of opportunity.

If the government follows through on exploring new financing models for defense, small-cap stocks could benefit disproportionately, gaining visibility, liquidity, and growth momentum. For investors willing to tolerate the volatility, Lutnick’s comments may have opened the door to a new chapter in defense-sector investing—one where the biggest opportunities lie not only with the giants, but with the up-and-coming firms that keep the supply chain moving.

Crescent Energy Company (NYSE: CRGY) has struck a $3.1 billion all-stock deal to acquire Vital Energy, Inc. (NYSE: VTLE), positioning the combined business as one of the top 10 independent oil and gas producers in the United States. The merger, unanimously approved by both companies’ boards, will establish a scaled operator with a strategy anchored in free cash flow generation, disciplined capital allocation, and shareholder returns.

The agreement values Vital at a modest premium, with its shareholders receiving 1.9062 shares of Crescent Class A common stock for each Vital share. Upon closing, Crescent shareholders will own roughly 77% of the combined entity, while Vital investors will hold about 23%. The deal, inclusive of Vital’s net debt, represents a significant consolidation move in the energy sector, with closing targeted by year-end 2025 pending shareholder and regulatory approvals.

The transaction is framed as accretive across all major financial metrics, with Crescent projecting $90 million to $100 million in annual synergies right out of the gate. The company also sees room for additional efficiencies as operations are integrated. The deal strengthens Crescent’s already formidable position in the Eagle Ford, Permian, and Uinta basins, giving it more than a decade of high-quality drilling inventory and greater flexibility in capital deployment.

Management emphasized that the acquisition fits squarely within Crescent’s long-standing strategy: acquiring assets at attractive valuations, running them with lower activity levels, and emphasizing free cash flow and sustainable shareholder returns. The merger will also advance Crescent’s goal of sharpening its balance sheet, supported by a $1 billion pipeline of planned non-core asset sales.

The combined company is expected to become the largest U.S. liquids-weighted producer without an investment-grade rating, but Crescent’s leadership underscored its line of sight toward achieving that milestone in the coming years. With the expanded scale and diversified asset base, executives believe the business will be better positioned to weather commodity cycles while maintaining peer-leading dividends.

For Vital, the deal represents both recognition of its progress and an opportunity to accelerate growth. By merging into Crescent’s platform, Vital gains access to broader capital allocation flexibility and a proven framework for free cash flow optimization. The addition of Vital’s resources is anticipated to further strengthen Crescent’s ability to generate stable returns even as the energy sector faces volatility in prices and regulatory pressures.

Governance of the new company will reflect the integration, with Crescent expanding its board to 12 members, including two directors from Vital. John Goff will remain Crescent’s non-executive chairman, and David Rockecharlie will continue as chief executive officer. Headquarters will stay in Houston, reinforcing Crescent’s position as a central player in the U.S. energy heartland.

With U.S. oil and gas companies under increasing pressure to deliver efficiency and capital discipline, this merger highlights the ongoing consolidation trend across the sector. By combining two mid-cap operators into a top-tier independent, Crescent is betting that scale, synergies, and a relentless focus on free cash flow will be the winning formula for long-term shareholder value.

Markets are experiencing a rare moment in financial history. Nearly every major benchmark or asset class is sitting at record levels — from the Dow Jones and Nasdaq to gold, Bitcoin, housing values, rents, IPOs, and merger activity. Even the U.S. national debt has climbed to historic highs. The only notable exception is the Russell 2000 small-cap index, which has lagged behind its larger-cap peers.

This convergence of highs across so many areas raises critical questions: Is this sustainable, and where should investors look next?

At the heart of the rally is anticipation. Inflation has eased enough for Wall Street to believe the Federal Reserve will begin cutting interest rates in the coming months. Markets tend to price in expectations before policy changes occur, which explains why equities, real estate, and digital assets have surged despite borrowing costs still being elevated.

Corporate strength is also contributing. Tech giants continue to deliver outsized earnings, fueling growth in the Nasdaq, while strong balance sheets across industries are powering mergers and acquisitions at a record pace. Investors aren’t just chasing momentum; they’re betting on resilient fundamentals.

Interestingly, the surge is not limited to risk assets. Gold and Bitcoin, often viewed as hedges against uncertainty, have also reached record highs. That signals investors are not fully comfortable with the backdrop of ballooning U.S. debt, currency volatility, and geopolitical tensions.

In short, markets are climbing on optimism — but they’re also hedging.

The biggest challenge is valuation. Equities trading at record levels are vulnerable if earnings slow or if rate cuts fail to materialize. Housing markets, while supported by supply shortages, remain stretched on affordability. IPOs and M&A often peak late in a cycle, suggesting companies may be capitalizing on favorable conditions before they shift.

The Federal Reserve is the wild card. If policymakers cut rates in September as many expect, small-cap stocks — represented by the Russell 2000 — could see sharp gains. These companies are more sensitive to borrowing costs and have lagged during the tightening cycle. Conversely, if the Fed holds rates steady or signals fewer cuts, markets could face a correction.

Where Investors Should Look

Given the uncertainty, balance is essential. Investors might consider:

• Small Caps (Russell 2000): The one major index not at record highs, offering upside potential if rates decline.
• Defensive Dividend Stocks: Companies with consistent cash flow in healthcare, consumer staples, and utilities provide resilience.
• Gold and Bitcoin: Effective hedges amid debt concerns and potential dollar weakness.
• Global Diversification: International markets, many of which trade at lower valuations, offer opportunity.
• Cash and Treasuries: With attractive short-term yields, keeping dry powder for potential volatility makes sense.

Markets are in uncharted territory, with nearly everything at record highs. Optimism about rate cuts and earnings strength is driving the surge, but stretched valuations and policy uncertainty suggest caution. Investors who balance growth exposure with hedges and defensive positions may be best positioned for what comes next.

Guess?, Inc. (NYSE: GES) will exit public markets after agreeing to a $1.4 billion buyout led by its co-founders and Authentic Brands Group, in a move that highlights the growing shift of heritage fashion labels into private ownership backed by global licensing platforms.

The transaction values Guess? at $16.75 per share, representing a premium of about 73% to the company’s unaffected stock price as of mid-March. The offer ranks among the year’s largest fashion buyouts, underscoring the resilience of brand-driven retail even in a challenging consumer environment.

Under the terms of the agreement, Authentic Brands will acquire a majority stake in Guess?’s intellectual property portfolio, while the Marciano family and CEO Carlos Alberini will retain the remaining interest. The operating company, which runs Guess?’s stores, e-commerce, and wholesale operations, will remain entirely under existing management. This structure reflects Authentic’s typical playbook: leveraging its brand management expertise and global licensing network, while entrusting day-to-day operations to experienced retail leaders.

For Guess?, going private provides greater strategic flexibility. Freed from the pressures of quarterly earnings, the company will be positioned to pursue long-term brand building, international expansion, and potential new product categories. The involvement of Authentic Brands, which manages more than 50 global names across fashion, sports, and lifestyle, signals a push to extend Guess?’s reach through licensing deals, partnerships, and new distribution channels.

The premium offered to shareholders is intended to deliver immediate value while also recognizing the enduring equity of Guess?’s brand. After more than four decades in business, Guess? has built one of the most recognizable names in denim and lifestyle apparel. Despite industry headwinds, the company has improved its financial discipline in recent years, strengthened its e-commerce channels, and invested in expanding its global footprint.

For Authentic Brands, the deal further consolidates its position as a dominant force in fashion and brand licensing. Adding Guess? to its portfolio not only diversifies its holdings but also provides another globally recognized fashion label that can be scaled across markets and categories.

The buyout reflects broader trends in retail, where public markets have often undervalued legacy fashion brands relative to their long-term licensing potential. By combining private ownership with Authentic’s infrastructure, Guess? is expected to transition from being primarily a retail operator to becoming a broader lifestyle platform with stronger global licensing opportunities.

The transaction is expected to close in Guess?’s fiscal fourth quarter of 2026, subject to regulatory approvals and a shareholder vote. Once complete, Guess? shares will be delisted from the New York Stock Exchange, marking the company’s shift into a new era of private ownership and long-term brand development.

Federal Reserve Chair Jerome Powell will take the stage at this week’s Jackson Hole Economic Symposium under some of the most difficult circumstances of his tenure, with markets, policymakers, and global counterparts all watching for signals about the path ahead.

The annual gathering in Wyoming comes at a pivotal time. Inflation has remained stubbornly above the Fed’s 2% target for four years, with recent indicators pointing to renewed upward momentum. At the same time, signs of a weakening labor market have begun to surface, raising questions about the balance between price stability and employment—two pillars of the central bank’s mandate.

Powell’s address is expected to be his last as Fed chair, adding even more weight to his words. Yet the environment he faces is unusually complex. Not only is the economy sending mixed signals, but political scrutiny of the central bank is intensifying, and divisions within the Federal Open Market Committee have become increasingly visible. The recent dissent among Fed governors—the first in decades—underscores that fracture. Meanwhile, the nomination of a new governor known for his sharp critiques of recent policy decisions further complicates Powell’s ability to unify the institution.

Investors remain split on what they hope to hear. Some want clarity on whether the Fed will move to cut interest rates as soon as September, while others are looking for insights into the deeper structural changes reshaping the labor market. The official theme of this year’s symposium is employment, but the debate over monetary policy and the Fed’s long-term framework is expected to dominate conversations.

Data dependence has long been the hallmark of Powell’s approach, but that strategy is increasingly being tested. Inflation readings have painted a conflicting picture: headline CPI slowed last month, but producer prices accelerated, and consumer surveys revealed rising inflation expectations. On the labor front, headline unemployment remains steady at just above 4%, yet underlying weakness is evident in reduced hiring, sector-specific job growth, and challenges facing new graduates.

Layered onto this economic backdrop are broader forces complicating the outlook. Tighter immigration policies under the Trump administration are reshaping the available workforce, while artificial intelligence raises new uncertainties about whether technology will ultimately augment or displace labor. Both trends make it harder to interpret traditional indicators.

Powell must also navigate the unveiling of a revised Monetary Policy Framework, which will guide how the Fed pursues its dual mandate in the years ahead. The last framework, designed to combat inflation undershooting, proved inadequate for the structural shocks that emerged after 2020. Whether the new iteration will address current challenges—or simply repackage old assumptions—remains an open question.

Markets are bracing for potential volatility. If Powell leans too heavily on flexibility and avoids specifics, investors may interpret it as indecision, further eroding confidence in the Fed’s direction. Conversely, signaling aggressive easing could push bond markets to react sharply, steepening the yield curve in ways reminiscent of last year’s turbulence.

The stakes at Jackson Hole could hardly be higher. Powell will not only be judged on how he balances immediate economic risks but also on how he frames the Fed’s strategic direction for a world that looks markedly different than when he first assumed the chair. With his legacy and the institution’s credibility on the line, his final address may shape how policymakers, markets, and history remember his leadership.

Soho House & Co Inc., the global private members’ club operator, has agreed to a definitive take-private transaction valued at approximately $2.7 billion. The deal will see investors led by MCR acquire outstanding shares not already held by key stakeholders, while longtime backers Ron Burkle and Yucaipa will maintain majority control by rolling their existing equity.

Under the terms of the agreement, shareholders will receive $9.00 per share in cash—an 83% premium to Soho House’s unaffected stock price in December 2024. Once completed, the company’s shares will be delisted from the New York Stock Exchange, marking a return to private ownership just four years after its 2021 IPO.

MCR, one of the largest hotel owner-operators in the U.S., is set to become a significant shareholder, bringing with it a portfolio of high-profile properties including the TWA Hotel at JFK, The High Line Hotel, and the Gramercy Park Hotel. MCR’s Chairman and CEO, Tyler Morse, will join Soho House’s board as Vice Chairman, signaling the group’s intent to expand its hospitality expertise across the brand.

Financial backing comes from Apollo Funds, which structured a hybrid capital solution combining debt and equity to refinance Soho House’s existing senior notes while injecting new liquidity. Goldman Sachs Alternatives, an investor since 2021, will continue its support with additional capital commitments.

The transaction will also introduce fresh strategic partners, including actor and tech investor Ashton Kutcher, who will join the board following completion. Other significant shareholders—such as Richard Caring, Soho House founder Nick Jones, and Goldman Sachs Alternatives—are retaining the majority of their equity positions, further reinforcing long-term confidence in the business.

Soho House has expanded its network of private members’ clubs to 46 locations worldwide, with recent openings in São Paulo, Mexico City, Nashville, and Paris. From 2022 through 2024, the company achieved consistent double-digit revenue growth alongside a more than 50% average annual increase in adjusted EBITDA, despite a challenging global economy.

The shift back to private ownership is expected to give the company greater flexibility to pursue its long-term strategy. Executives believe the move will allow Soho House to focus on enhancing the member experience, scaling operational systems, and expanding its global footprint without the quarterly scrutiny of public markets.

With four new Houses slated to open in the near future, the company’s leadership and new investor group see significant opportunity to deepen Soho House’s cultural influence while driving sustainable profitability. The combination of MCR’s hospitality expertise, Apollo’s capital resources, and Goldman Sachs Alternatives’ continued backing is expected to position the brand for accelerated international growth.

The deal is expected to close by the end of 2025, pending shareholder and regulatory approvals. Once finalized, Soho House will continue its mission of connecting a diverse global community of creatives, entrepreneurs, and cultural leaders within its expanding network of clubs and lifestyle businesses.

Friday, August 15, 2025

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Task Order. DLH has been awarded a task order valued at up to $46.9 million to continue providing information technology services, including enterprise IT systems management, cyber security, software development, cloud computing, and more, to the National Institutes of Health’s Office of Information Technology (“OIT”).

Details. The task order includes a base period and multiple options aggregating to a three-year period of performance. Through this award, DLH will leverage a comprehensive suite of digital transformation and cyber security solutions to support approximately 7,000 end-customers. As part of this new effort, DLH will design and implement a cloud migration strategy built on partnerships with leading commercial CSP vendors, including Azure, AWS, and Google.

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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Bitcoin’s remarkable ascent to record highs came to an abrupt halt Thursday as inflation concerns and policy clarity sent the cryptocurrency tumbling more than 3% from its peak above $123,500.

The selloff began after July’s producer price data showed a shocking 0.9% monthly increase versus expectations of just 0.2%, immediately cooling market expectations for aggressive Federal Reserve rate cuts. The inflation surprise highlighted bitcoin’s sensitivity to monetary policy shifts and broader economic conditions.

Adding pressure were comments from Treasury Secretary Scott Bessent clarifying the government’s approach to bitcoin reserves. While acknowledging the US holds $15-20 billion worth of bitcoin, Bessent stated the government won’t actively purchase cryptocurrency for strategic reserves, instead relying on asset seizures and confiscations for any growth.

This dual blow highlighted bitcoin’s vulnerability to both policy uncertainty and macroeconomic headwinds, demonstrating how quickly bullish narratives can shift.

The broader cryptocurrency market suffered alongside bitcoin, with Ethereum falling 3.6% and MicroStrategy dropping over 4%. The selloff underscored how crypto assets remain closely tied to traditional financial market dynamics despite their decentralized nature.

Bitcoin’s recent surge had been fueled by corporate treasury adoption, following MicroStrategy’s strategy of adding bitcoin to balance sheets. Spot bitcoin ETF inflows and the Trump administration’s pro-crypto stance, including executive orders exploring cryptocurrency in 401(k) plans, had provided additional momentum.

However, Thursday’s action reminded investors that bitcoin’s correlation with traditional risk assets strengthens during uncertainty periods. As investors reassessed Fed policy prospects amid persistent inflation, they simultaneously reduced appetite for speculative investments.

The inflation data’s impact highlights bitcoin’s evolution from purely speculative asset to one increasingly influenced by mainstream financial conditions. Higher producer prices suggest inflationary pressures may persist, potentially keeping monetary policy restrictive longer than anticipated.

For bitcoin investors, the environment presents competing forces. While long-term structural support remains through corporate adoption and regulatory clarity, near-term price action appears tied to economic conditions and policy developments. Bitcoin’s ability to maintain recent gains may depend on inflation trends and Fed policy decisions.

Despite Thursday’s pullback, fundamental drivers supporting bitcoin’s longer-term outlook remain intact. Corporate demand continues, regulatory frameworks are clarifying, and institutional infrastructure keeps expanding. However, the day’s events showed that even bullish crypto narratives remain subject to monetary policy and economic realities.

Trading around $118,400 after the decline, bitcoin’s next move likely depends on whether inflation pressures build or moderate, directly influencing both monetary policy expectations and risk asset appetite. The intersection of traditional monetary policy and cryptocurrency markets has never been clearer, suggesting bitcoin’s path forward will remain closely tied to broader economic conditions.

In a landmark deal set to reshape the global apparel industry, Gildan Activewear Inc. and HanesBrands Inc. have agreed to merge, forming one of the largest basic apparel companies in the world. The agreement, announced August 13, 2025, combines two industry leaders with complementary strengths, aiming to expand market reach, enhance manufacturing efficiency, and unlock significant cost savings.

The transaction values HanesBrands at approximately $2.2 billion in equity and $4.4 billion in enterprise value. Upon completion, HanesBrands shareholders will own about 19.9% of the combined company. The deal is expected to close in late 2025 or early 2026, pending shareholder and regulatory approvals.

The merger will give Gildan access to HanesBrands’ iconic innerwear labels such as Hanes, Playtex, and Maidenform, while strengthening its retail penetration for its own activewear brands. The companies plan to leverage their combined strengths to expand sales across multiple channels and geographies.

Gildan’s vertically integrated, low-cost manufacturing network is a core advantage in the deal. By combining operations, the new entity expects to realize at least $200 million in annual cost synergies within three years—$50 million in 2026, $100 million in 2027, and another $50 million in 2028. These savings will come from streamlining supply chains, consolidating production, and reducing overlapping expenses.

From day one, the transaction is expected to boost Gildan’s adjusted diluted earnings per share, with projected growth of over 20% once full synergies are achieved. The combined entity’s adjusted EBITDA would have been approximately $1.6 billion for the 12 months ending June 29, 2025.

With greater scale, a broader product range, and enhanced brand strength, the merged company is positioned to better withstand seasonal and economic fluctuations. By blending HanesBrands’ strong retail presence with Gildan’s manufacturing efficiency, the partnership aims to offer greater value to both customers and shareholders.

The combined company will remain headquartered in Montréal, Québec, while maintaining a strong presence in Winston-Salem, North Carolina, preserving HanesBrands’ historical roots. Additionally, Gildan plans to review strategic alternatives for HanesBrands Australia, which could include a sale or other restructuring.

Looking ahead, Gildan projects net sales growth of 3–5% annually from 2026 to 2028, with capital expenditures of 3–4% of sales to support growth and integration. The company intends to resume share buybacks once its leverage ratio returns to target levels.

If successful, the merger will create a dominant player in the basic apparel space, offering a more diversified product portfolio, expanded global reach, and a more resilient supply chain. For both brands, this union marks a significant step toward shaping the future of affordable, high-quality apparel worldwide.

Sapiens International Corporation N.V., a global provider of SaaS-based software for the insurance industry, has agreed to be acquired by private equity giant Advent in a $2.5 billion all-cash deal. The agreement values Sapiens at $43.50 per share, a 64% premium over its undisturbed closing price of $26.52 on August 8, 2025.

Under the terms of the transaction, existing shareholder Formula Systems will retain a minority stake, continuing its long-standing involvement with the company. Once the deal closes, Sapiens’ shares will be delisted, and the company will operate as a privately held entity.

The acquisition is designed to accelerate Sapiens’ expansion in the global insurance technology market. Advent’s investment will focus on strengthening the company’s SaaS capabilities, advancing artificial intelligence tools, and broadening its reach into new geographies. Both firms expect the partnership to enhance Sapiens’ ability to deliver modern, scalable solutions to insurers navigating an increasingly digital and competitive environment.

Founded in 1982, Sapiens serves over 600 customers in more than 30 countries, offering core software for life, pension, annuities, property and casualty insurance, as well as reinsurance and compliance systems. In recent years, the company has invested heavily in cloud-based platforms and AI-driven analytics, positioning itself as a partner for carriers undergoing large-scale digital transformation.

Advent, which manages more than $94 billion in assets and has completed over 430 investments worldwide, sees the insurance technology sector as a high-growth area ripe for modernization. By leveraging its global network, operational expertise, and capital resources, Advent aims to accelerate Sapiens’ product innovation and improve the speed at which insurers can deploy next-generation solutions.

The transaction has been unanimously approved by Sapiens’ board of directors following a review by a special committee. Advent has secured both debt and equity financing to fund the acquisition, including a $1.3 billion equity commitment. Completion remains subject to shareholder and regulatory approvals, with closing expected in late 2025 or early 2026.

Financial advisors to the deal include William Blair for Sapiens and Citi for Advent. Legal counsel is being provided by Latham & Watkins LLP and Meitar Law Offices for Sapiens, and by Kirkland & Ellis LLP and Herzog Fox Neeman for Advent.

Sapiens will not host its scheduled second-quarter earnings call, but plans to release its Q2 2025 results via press release later today.

If completed, the acquisition will mark a significant step in the ongoing consolidation of the insurance technology market, giving Sapiens the flexibility and resources of private ownership while positioning it for faster innovation in a rapidly evolving sector.

Research News and Market Data on SKYX

August 12, 2025 16:05 ET | Source: SKYX Platforms Corp.

Company reports $15.7 million in cash, cash equivalents, and restricted cash, as compared to $12.3 million as of March 31, 2025. SKYX Continues to Leverage its Cash Position Through its E-Commerce Platform of 60 Websites among Other Methods Including Support from Strategic Investors and Insiders

SKYX Revenues Increased for 6 Comparable Quarters from Q1 2024 Through Q2 2025 with $19M in Q1/24, 21.4M in Q2/24, $22.2M in Q3/24, $23.7M in Q4/24, $20.1M in Q1/25, and $23.1M in Q2/25

Gross Profit Improvement by 23% to $7 million in the Second Quarter of 2025 Sequentially from the First Quarter of 2025

Net cash used in Operating Activities for the Second Quarter ending June 30, 2025, Decreased Sequentially by 54% to $2.0 Million Compared to $4.3 Million in the First Quarter of 2025

Major SKYX Collaboration with a Miami $3 Billion Mix-Use Urban, Smart Home City Project; SKYX is Expected to Supply Over 500,000 Units of its Advanced Smart Home Plug & Play Platform Technologies for the Entire Smart City Project

SKYX’s Technologies Provide Additional Opportunities for Future Recurring Revenues Through Interchangeability, Upgrades, Monitoring and Subscriptions, Among Others

SKYX’s Safety Code Standardization Team is Continuing to Progress and is Receiving Significant Support from a New Prominent Leader with its Government Safety Organization Process for Safety Mandatory Standardization in Homes and Buildings of Its Ceiling Outlet/Receptacle Technology

Company Expects Its Products to Be in 40,000 Units/Homes by The End of Q3 2025 in the U.S and Canada Through Retail and Pro Segments

MIAMI, Aug. 12, 2025 (GLOBE NEWSWIRE) — SKYX Platforms Corp. (NASDAQ: SKYX) (d/b/a SKYX Technologies) (the “Company” or “SKYX”), a highly disruptive platform technology company with over 100 pending and issued patents globally and over 60 lighting and home décor websites, with a mission to make homes and buildings become safe and smart as the new standard, today reported its financial and operational results for the Second quarter ended June 30, 2025.

Second Quarter 2025 Highlights and Recent Events

• Generated record Second quarter 2025 revenues of $23.1 million compared to $20.1 million for the first quarter of 2025.
• As of June 30, 2025, Company reported $15.7 million in cash, cash equivalents, and restricted cash, as compared to $12.3 million as of March 31, 2025.
• As common with companies such as ours when sales are converted into cash rapidly, often referred to as the “Dell Working Capital Model”, the Company leverages its trades payable to finance its operations, to enhance its cash position and to lower its cost of capital.
• Management believes it has sufficient cash to achieve its goals including being cash flow positive in 2025.
• Net cash used in operating activities for the Second quarter ending June 30, 2025, decreased sequentially by 54% to $2.0 million compared to $4.3 million in the First quarter of 2025.
• The gross profit for the Second quarter ending June 30, 2025, increased sequentially by 23% to $7.0 million, compared to the First quarter ending March 31, 2025.
• The gross margin for the Second quarter ending June 30, 2025, increased sequentially by 7% to 30.3%, compared to the First quarter ending March 31, 2025.
• Entered into a major collaboration with a $3 billion mixed-use smart city development in the Little River District in the heart of Miami. SKYX has financial backing from U.S. and Global manufacturers to support its massive product deployment.
• SKYX is expected to deliver over 500,000 units of its advanced and plug & play smart home technologies addressing the 5,700 residential units, 350,000 square feet of retail and commercial space and a new $35 million Tri-Rail station.
• Announced demand surge towards the launch of its new disruptive patented all-in-one smart turbo heater and ceiling fan. This highly innovative product – integrating a ceiling fan with a built-in heater – is designed to address a massive market opportunity for all four seasons. The combined ceiling fan and portable heater category is a multi-billion-dollar market, with tens of millions of units sold annually in the U.S. alone.
• Announced a U.S. and global sales and marketing collaboration agreement with Parrot Uncle, a world leading ceiling fan and home décor manufacturer selling millions of fans globally with SKYX and Parrot Uncle jointly marketing SKYX’s disruptive technologies and products in the U.S. and to global markets including its patented all-in-one smart turbo heater & ceiling fan.
• Granted 8 newly issued U.S. and global patents with now over 100 patents and pending applications with 45 issued patents. Each of Company’s 100 patents and pending application is based on three major factors: 1. Safety, 2. Massive Addressable Market, and 3. Global Applications.
• Through the Second quarter of 2025, SKYX has secured additional equity, mainly through preferred stock with no warrants as part of a broader financing round totaling approximately $15 million to date, led by The Shaner Group, owner, and developer of more than 70 hotels worldwide.
• The $15 million broader round included substantial participation from company insiders, including SKYX President Steve Schmidt and Co-CEOs Lenny Sokolow and John Campi, underscoring their continued confidence in SKYX’s strategic vision and growth trajectory.
• Net loss per share decreased by $0.01 to $0.08 per share in the Second quarter of 2025 compared to $0.09 in the first quarter of 2025. Adjusted EBITDA loss per share, a non-GAAP measure, decreased to $0.02 per share in the Second quarter of 2025, as compared to $0.04 per share, in the First quarter of 2025.

 Market Acceptance and Recent Events:

• SKYX is continuing to grow its market penetration in the U.S. and Canada to both retail and pro segments through its e-commerce platform of 60 websites among other channels as described below.
• Collaborating with Home Depot for its advanced and smart plug & play products for both retail and professional segments. Company is in the process of growing its product assortment in Home Depot to offer a variety of its advanced plug & play smart products including ceiling fans, heater fans, light fixtures, EXIT signs, Emergency lights, ceiling outlet receptacles, recessed lights, downlights indoor and outdoor wall lights, retrofit kits, among others.
• Collaborating with Wayfair for Its Advanced and Smart Plug & Play Products for both retail and professional segments. SKYX’s product offering will include a variety of its advanced and Smart Plug & Play products including Retrofit Kits, Smart Light Fixtures, Smart Ceiling Fans, Ceiling Outlet Receptacles, Recessed Lights and more.
• Collaborating with U.S. and world leading lighting companies including Kichler Quoizel, European leading company, EGLO, and world lighting manufacturer Ruee.
• Collaborating with a new Miami $3 billion smart urban city. Expected to deploy over 500,000 units of its advanced smart plug & play products.
• Collaborated with Cavco Homes, a leading U.S. prefabricated home manufacturer, for integrating our advanced and smart plug & play technologies into Cavco’s high-end premium homes shown at the builder show. Cavco is a public company that has sold nearly one million homes and continues to deliver close to 20,000 annually.
• Three luxury developments by Forte Developments, including an 80-story high-rise in Miami’s Brickell District and projects in Clearwater Beach and Jupiter, Florida, will feature SKYX’s technology. More than 12,000 smart plug & play products, including ceiling outlets, lighting, fans, and emergency fixtures, will be supplied across 400+ units. A 1,000-unit mixed-use development by Jeremiah Baron Companies will incorporate smart plug & play technologies, with 140 units receiving initial product supply. This product rollout will include ceiling outlets, lighting, fans, and emergency fixtures, with deliveries continuing throughout construction.
• A strategic partnership with JIT Electrical Supply, a leading builder supplier, will expand SKYX’s footprint in electrical, lighting, and ceiling fan markets. JIT, which has supplied over 100,000 U.S. homes, will distribute SKYX’s lighting solutions, ceiling fans, recessed lights, emergency lights, exit signs, and indoor/outdoor wall lights beginning early 2025.
• Huey Long, former Amazon E-Commerce Director and executive at Walmart and Ashley Furniture, has joined as head of SKYX’s e-commerce platform. He will collaborate with the existing team to expand market penetration across 60 lighting and home décor websites and other key e-commerce channels in the U.S. and Canada.
• SKYX’s technologies provide opportunities for recurring revenues through interchangeability, upgrades, monitoring, and subscriptions. Company is focused on the “Razor & Blades” model and its product range includes its advanced ceiling electrical outlet (Razor) and its advance and smart home plug & play products (Blades) including its advance and smart home plug & play platform products, lighting, recessed lights, down lights, EXIT signs, emergency lights, ceiling fans, chandeliers/pendants, holiday/kids/themes lights, indoor/outdoor wall lights among other. Company’s plug & play technology enables an installation of lighting, fans, and smart home products in high-rise buildings and hotels within days rather than months.
  

Safety Standardization Mandatory Code / Insurance Specification and Recommendation

• SKYX’s code team, led by industry veterans Mark Earley, former head of the National Electrical Code (NEC), and Eric Jacobson, former President, and CEO of the American Lighting Association (ALA). Company’s safety Code Standardization team believes it will achieve assistance from additional safety organizations with its code mandatory safety standardization efforts based on the product’s significant safety aspects. Mr. Earley and Mr. Jacobson were instrumental in numerous code and safety changes in both the electrical and lighting industries. Both strongly believe that, considering the Company’s standardization progress including its product specification approval voting for by ANSI / NEMA (American National Standardization Institute / National Electrical Manufacturers Association) and being voted into 10 segments in the NEC Code Book, it has met the necessary safety conditions for becoming a ceiling safety standardization requirement for homes and buildings.
• Insurance Companies. Company strongly believes its products can save insurance companies many billions of dollars annually by reducing fires, ladder falls, and electrocutions among other things. Management expects that once it completes an entire range and variations of its safe advanced plug & play products it will start being recommended by insurance companies.
• SKYX – GE (General Electric) Global licensing agreement. To accommodate SKYX’s its code standardization and licensing strategy the Company has signed a 5-year global licensing agreement with GE to license its advanced and smart home platform technologies.
  

Select Second Quarter 2025 Financial Results

Revenue in the Second quarter of 2025 increased 15% and 8% to $23.1 million, including E-commerce sales as well as smart and standard plug and play products, as compared to $20.1 million and $21.4 million in the First quarter of 2025 and the Second quarter of 2024, respectively.

Net cash used in operating activities for the Second quarter ending June 30, 2025, decreased sequentially by 54% to $2.0 million compared to $4.3 million in the First quarter of 2025.

The gross profit for the Second quarter ending June 30, 2025, increased sequentially by 23% to $7.0 million, compared to the First quarter ending March 31, 2025.

The gross margin for the Second quarter ending June 30, 2025, increased sequentially by 7% to 30.3%, compared to the First quarter ending March 31, 2025.

Reported $15.7 million in cash, cash equivalents, and restricted cash, as of June 30, 2025, as compared to $12.3 million as of March 31, 2025. As common with companies such as ours when their sales are converted into cash rapidly, often referred to as the “Dell Working Capital Model”, we leverage our trades payable to finance our operations to enhance our cash position and lower our cost of capital.

Through the Second Quarter of 2025, we secured additional equity, mainly through preferred stock investment with no warrants as part of broader financing round totaling approximately $15 million to date, led by The Shaner Group, owner and developer of more than 70 hotels worldwide as well as SKYX’s President Steve Schmidt and Co-CEOs Lenny Sokolow and John Campi, underscoring their continued confidence in SKYX’s strategic vision and growth trajectory.

For the Second quarter of 2025 Adjusted EBITDA loss, which is the loss before interest, taxes, depreciation, and amortization, as adjusted for share-based payments, a non-GAAP measure, decreased to $2.6 million, or $0.02 per share, as compared to $3.6 million, or $0.04 per share, in the First quarter of 2025.

The Company’s financial statements for the quarter ended June 30, 2025, will be filed with the SEC and are available on the Company’s investor relations website. https://ir.skyplug.com/sec-filings/

Management Commentary

Company’s Management, Board members, and Senior Advisors include former CEO’s and executives from Fortune 100 companies including Nielsen, Microsoft, Disney, GE, Home Depot, Office Depot, Chrysler, among others.

The Company generated record Second quarter 2025 revenues of $23.1 million as compared to $21.4 million for the Second quarter of 2024.

We are encouraged by our path to the builder/commercial segments, large online and brick-and-mortar retail partners as well as our future potential to realize incremental licensing, subscription, and AI/data aggregation revenues.

Furthermore, our e-commerce website platform with 60 websites enhances the acceleration of marketing, distribution channels, collaborations, licensing, and sales to both professional and retail segments. Our websites include banners, videos, and educational materials regarding the simplicity, cost savings, timesaving, and lifesaving aspects of the Company’s patented technologies.

We believe we have accelerated our pace of sales with a robust gross margin profile, notably managing the cash burn of SKYX. Our e-commerce platform with over 60 websites is expected to continue providing additional cash flow to the Company.

Video link of SKYX’s Technologies: Link to video

About SKYX Platforms Corp.

As electricity is a standard in every home and building, our mission is to make homes and buildings become safe-advanced and smart as the new standard. SKYX has a series of highly disruptive advanced-safe-smart platform technologies, with over 100 U.S. and global patents and patent pending applications. Additionally, the Company owns over 60 lighting and home decor websites for both retail and commercial segments. Our technologies place an emphasis on high quality and ease of use, while significantly enhancing both safety and lifestyle in homes and buildings. We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally. For more information, please visit our website at https://skyplug.com/ or follow us on LinkedIn.

Forward-Looking Statements

Certain statements made in this press release are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “can,” “could,” “continue,” “estimate,” “expect,” “evaluate,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “target” “view,” “will,” or “would,” or the negative thereof or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These statements reflect the Company’s reasonable judgment with respect to future events and are subject to risks, uncertainties and other factors, many of which have outcomes difficult to predict and may be outside our control, that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include statements relating to the Company’s ability to successfully launch, commercialize, develop additional features and achieve market acceptance of its products and technologies and integrate its products and technologies with First-party platforms or technologies; the Company’s efforts and ability to drive the adoption of its products and technologies as a standard feature, including their use in homes, hotels, offices and cruise ships; the Company’s ability to capture market share; the Company’s estimates of its potential addressable market and demand for its products and technologies; the Company’s ability to raise additional capital to support its operations as needed, which may not be available on acceptable terms or at all; the Company’s ability to continue as a going concern; the Company’s ability to execute on any sales and licensing or other strategic opportunities; the possibility that any of the Company’s products will become National Electrical Code (NEC)-code or otherwise code mandatory in any jurisdiction, or that any of the Company’s current or future products or technologies will be adopted by any state, country, or municipality, within any specific timeframe or at all; risks arising from mergers, acquisitions, joint ventures and other collaborations; the Company’s ability to attract and retain key executives and qualified personnel; guidance provided by management, which may differ from the Company’s actual operating results; the potential impact of unstable market and economic conditions, including recent measures adopted by the federal government, on the Company’s business, financial condition, and stock price; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including its periodic reports on Form 10-K and Form 10-Q. There can be no assurance as to any of the foregoing matters. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws.

Non-GAAP Financial Measures

Management considers earnings (loss) before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, an important indicator in evaluating the Company’s business on a consistent basis across various periods. Due to the significance of non-recurring items, EBITDA, as adjusted, enables management to monitor and evaluate the business on a consistent basis. The Company uses EBITDA, as adjusted, as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions regarding future operating investments and potential acquisitions. The Company believes that EBITDA, as adjusted, eliminates items that are not part of the Company’s core operations, such as interest expense and amortization expense associated with intangible assets, or items that do not involve a cash outlay, such as share-based payments and non-recurring items, such as transaction costs. EBITDA, as adjusted, should be considered in addition to, rather than as a substitute for, pre-tax income (loss), net income (loss) and cash flows used in operating activities. This non-GAAP financial measure excludes significant expenses that are required by GAAP to be recorded in the Company’s financial statements and is subject to inherent limitations. Investors should review the reconciliation of this non-GAAP financial measure to the comparable GAAP financial measure. Investors should not rely on any single financial measure to evaluate the Company’s business. 

Investor Relations Contact:

Jeff Ramson
PCG Advisory
jramson@pcgadvisory.com