SKYH

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sky Harbour Group Corp (NYSE:SKYH) reported a 50% year-over-year increase in Q2 revenues, driven by new campus openings and higher occupancy and rental rates. The company achieved positive cash flow from operations of approximately $0.5 million, a significant milestone, with 10 consecutive quarters of positive cash flow at the obligated group. Sky Harbour Group Corp (NYSE:SKYH) has a strong liquidity position with over $207 million in cash and US treasuries, plus $130 million available from a committed construction loan, and an additional $40 million raised via a direct equity placement. The company is on track with all developments, on budget and on time, and expects to double its square footage under construction to over 1.2 million by year-end, leveraging vertical integration and a new prototype to lower costs. Pre-leasing efforts are proving successful, with San Jose Phase 2 fully leased before construction, and the company is expanding its SkyKey network access program to drive additional revenue. Leasing has been slow at Denver Centennial Phase 1, with relatively low economic occupancy, which has been a disappointment and a surprise. Adjusted EBITDA remained negative at approximately -$0.9 million in Q2, though improving, and the company expects to reach a positive annualized run rate of $4-6 million only by year-end. Operating expenses continue to increase in tandem with new campus openings, including non-cash accruals for ground leases not yet operational, which pressures margins. The company's release rate (rent step-up on renewals) declined to 19% from 23% last quarter, partly due to third-turn leases, which may indicate slower rent growth. Sky Harbour Group Corp (NYSE:SKYH) faces potential macro headwinds from construction inflation, which could impact cost reduction targets, and the company has not yet set a new cost-per-square-foot target. Warning! GuruFocus has detected 6 Warning Signs with SKYH. Is SKYH fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on pre-leasing progress, especially at San Jose and Dulles, and whether you are using the introductory rate strategy there or a different approach?A: Tal Keinan (CEO): Pre-leasing is much easier in Phase II markets like San Jose and Miami Phase 2 because of pent-up demand and our growing national brand. Unlike the introductory rate strategy used at Dallas, Phoenix, and Denver, we do not use introductory rates for pre-leasing. The main concern for prospective residents in pre-leasing is FOMO (fear of missing out), not overpaying, which allows us to secure leases at or above target rates. San Jose Phase 2 is fully pre-leased, and we have a waiting list for a potential Phase 3. Q: How should we think about the revenue escalation from lease renewals over the next 2-3 years, given the introductory rate strategy at some campuses and new campuses coming online?A: Tal Keinan (CEO): Your instinct is correct. On campuses where we used the introductory rate strategy (Dallas, Phoenix, Denver), we expect a larger bump on the first renewal. On pre-leased campuses where we are already getting above-target rents, we expect a smaller bump. We avoid making predictions on inflation rates, but we believe they will be divorced from CPI due to the lack of developable land at airports and the growing fleet. We publish our release rate (19% average step-up in the last 12 months) and remind investors that all leases have annual escalators of CPI with a floor of 4%. Q: The $0.5 million positive operating cash flow is a significant milestone. Was there anything one-time in the quarter, and should we expect this to remain positive going forward?A: Francisco Gonzalez (CFO): This is a recurrent number. We expect it to trend higher in Q3 and Q4 due to continued leasing at Opa-locka Phase 2, Denver, and Phoenix. In Q1 and Q2 of 2027, we expect a step-function increase with the opening of Bradley and Addison Phase 2, and we do not expect to see negative operating cash flow again. Q: With the unchanged guidance and the roughly $0.9 million adjusted EBITDA loss in Q2, what are the key drivers to reach the $4-6 million annualized run rate by year-end?A: Francisco Gonzalez (CFO) and Mike Schmidt (CAO): The main drivers are the continued leasing of Opa-locka Phase 2 at attractive rates and the significant operating leverage from Phase II expansions, which nearly double revenue with minimal increases in operating expenses. This operating leverage is highly accretive to adjusted EBITDA and is crucial to achieving the guidance. Q: What is the current construction cost per square foot, and how much further opportunity remains through vertical integration and prototype improvements?A: Tal Keinan (CEO): We are currently at about $242 per square foot, down from our previous target of $250. We believe there is more juice to squeeze. The third version of our prototype, which will launch at Fort Worth in Q4, uses new materials and techniques, is more functional, and costs less per square foot. National procurement and our manufacturing facility in Texas will also drive costs lower as we scale to over 1.2 million square feet under construction by year-end. Q: Will pre-leasing be a standard offering across all new construction, and how should we think about the pace of lease-up?A: Tal Keinan (CEO): Yes, pre-leasing is now standard. We target 50% to two-thirds pre-leased by opening. We may adjust this ambition over time. The proof will be in the puddinglook at Opa-locka Phase 2 on the next call to see if we are at 100% or higher, and then Bradley will be the next data point. Pre-leasing could accelerate the time to full lease-up from three quarters to potentially two quarters or shorter. Q: As you move more into Tier 1 airports, is the competitive environment tightening, and how does that affect your land acquisition strategy?A: Tal Keinan (CEO): We remain aggressive, creative, and patient. All of our wins are the result of multiyear efforts, often 5-6 years. We are accelerating on the site acquisition side and have no plans to slow down. The good news is that we started processes on dozens of airports years ago, and some of those are now starting to bear fruit. Q: Can you provide more color on the registered direct placement and the sale of 360,000 shares by Boston Omaha?A: Francisco Gonzalez (CFO): We were approached by two strategic investors for a $40 million primary issuance at $10 per share. In the spirit of our shareholders agreement, we offered our legacy investors (Center Capital, Due West, and Boston Omaha) the opportunity to sell shares. Boston Omaha expressed interest in selling 360,000 shares, which was coordinated in a separate transaction to the same investors. This is Boston Omaha's first sale in about a year and a half, and they have reaffirmed their interest in being a long-term investor. All our shareholders have reaffirmed their commitment to Sky Harbour. Q: Why are you continuing to invest in California despite significant wealth flight from the state?A: Tal Keinan (CEO): The rents in California are among the best in the country, second only to New York. While over $1 trillion in wealth has left California in the last 12 months, the vast majority of that is attributable to just 10 people. In the same period, 37 new billionaires were minted in California. The average number of aircraft owned by someone with $2 billion is not significantly lower than someone with $80 billion. Additionally, many who left still visit frequently enough to justify keeping permanent hangar space. We have very high conviction in the California market and expect even more emphasis on site acquisition there. Q: Can you explain why economic occupancy at Sugarland and Opa-locka is not running above reported occupancy?A: Tal Keinan (CEO): Sugarland is 100% private hangars, so it cannot exceed 100% occupancy. Miami Phase 1 is similar, with mostly private leases. However, Miami Phase 2 has semi-private hangars, so we should see significantly more than 100% economic occupancy there. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Sky Harbour Group Co.? Here are five stocks we like better. Revenue and cash flow improved: Second-quarter revenue rose 50% year over year and 13% sequentially, while consolidated operating cash flow turned positive at approximately $500,000. The company’s obligated group generated nearly $3 million in operating cash flow, marking its 10th consecutive positive quarter. Growth plans remain on track: Sky Harbour reaffirmed its year-end annualized revenue run-rate guidance of $42 million to $46 million and adjusted EBITDA guidance of $4 million to $6 million. Construction capacity is expected to more than double to over 1.2 million square feet by year-end, with new openings planned in Connecticut, Dallas and Salt Lake City. Liquidity supports expansion: The company ended the quarter with more than $207 million in cash and Treasuries, plus $130 million available under a construction loan, and raised an additional $40 million through a stock placement. Management said these resources, along with potential warrant proceeds, could cover equity needs for the foreseeable future. Sky Harbour Group (NYSE:SKYH) reported higher second-quarter revenue and reached positive consolidated operating cash flow, as the private aviation hangar developer and operator continued to expand construction activity, add capacity at existing campuses and pursue larger opportunities at tier-one airports. Chief Financial Officer Francisco Gonzalez said consolidated assets under construction and completed construction exceeded $393 million at the end of the second quarter, up $65 million year to date. He described the increase as the company’s largest six-month investment and construction expansion to date. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Second-quarter revenue rose 50% from a year earlier and 13% sequentially, driven by campus openings over the past year as well as higher occupancy and rental rates, Gonzalez said. Operating expenses also increased as new campuses opened, including added campus staffing and non-cash accruals related to ground leases signed late last year for sites that are not yet operating. On a consolidated basis, Sky Harbour generated roughly $500,000 of cash flow from operating activities during the quarter, its first positive result in that measure, according to Gonzalez. He said the company expects future equity proceeds to be directed toward capital expenditures for new projects rather than funding current operating expenses. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand For Sky Harbour Capital and its operating subsidiaries, which comprise the obligated group supporting the company’s bond financing, revenue increased 79% year over year and 22% from the prior quarter. Cash flow from operations was nearly $3 million, compared with $2.2 million a year earlier, marking 10 consecutive quarters of positive operating cash flow for that group. Chief Accounting Officer Mike Schmitt said adjusted EBITDA improved to approximately negative $0.9 million in the second quarter. He attributed the improvement to rising revenue at operating campuses while operating expenses remained relatively flat. Schmitt noted that adjusted EBITDA is a non-GAAP measure and excludes certain non-cash expenses, including costs associated with non-operating campuses, stock compensation and changes in the fair value of liability-classified warrants. → Apple’s Next iPhone Could Test How Much Pricing Power Is Left Sky Harbour reaffirmed its year-end guidance for an annualized revenue run rate of $42 million to $46 million, compared with a $39.4 million run rate in the second quarter. The company also maintained its outlook for an annualized adjusted EBITDA run rate of $4 million to $6 million by year-end. Gonzalez said the projected improvement is expected to be supported by leasing at the second phase of the company’s Miami-Opa Locka campus and by occupancy gains at Denver Centennial and Phoenix Deer Valley. He said the operational leverage from the Opa-locka expansion should aid profitability because the second phase uses much of the same staffing and equipment as the initial campus. Chairman and Chief Executive Officer Tal Keinan said leasing in Denver has progressed more slowly than the company would prefer, though he said lease-up timing can vary materially by market. He pointed to Miami and Nashville as examples of campuses that took longer to lease initially but later became “very robust cash flowing campuses.” Keinan also discussed the company’s use of short-term introductory-rate leases at certain locations, including Dallas Addison, Phoenix Deer Valley and Denver Centennial, to accelerate occupancy. He said Sky Harbour intends to replace those agreements with longer-term leases at higher rates when they expire. In Dallas, he said multi-year tenants are paying rents in the $40 to $50 per-square-foot range. The company said it recorded a 19% average rent increase on 100,360 square feet of leases that expired and were renewed during the preceding 12 months. Keinan said the figure was lower than the prior quarter’s 23% because some agreements were entering a third lease term, when pricing is closer to prevailing market rates. Sky Harbour plans to use pre-leasing as a standard practice for new campuses. Keinan said the company has targeted having roughly one-half to two-thirds of a new location leased by opening. He said pre-leasing has been especially effective at markets where Sky Harbour already operates a first phase, citing demand for San Jose’s second phase and Miami-Opa Locka’s expansion. Management said all projects currently in the development plan are on schedule and on budget. The company expects Bradley International Airport in Connecticut to be its nearest-term opening, followed by Dallas Addison’s second phase and Salt Lake City early next year. Keinan said Sky Harbour expects to increase space under construction from slightly more than 600,000 square feet to more than 1.2 million square feet by year-end. The company has completed a third version of its hangar prototype, which is scheduled to debut at a Fort Worth project expected to break ground in the fourth quarter. The company said its current construction cost is about $242 per square foot, below its previously stated $250 target. Keinan said Sky Harbour sees further potential savings through prototype changes, national procurement and its vertically integrated construction capabilities, while acknowledging potential construction-inflation pressure. Gonzalez said Sky Harbour ended the quarter with more than $207 million of cash and U.S. Treasuries, plus approximately $130 million available under a committed JPMorgan construction loan. Those liquidity figures exclude $40 million in proceeds from a registered direct common-stock placement that closed on the day of the call. The company issued the shares at $10 each, a 4.6% discount to the prior 30-day volume-weighted average price of $10.49 through the Monday before the purchase agreement was executed, Gonzalez said. The company said it has now received more than $300 million in cumulative shareholder equity investment. Management said the $40 million raise, along with a potential $94 million from the exercise of public warrants next January, could cover Sky Harbour’s equity requirements for the foreseeable future. The company also said it plans to provide 2027 guidance during its next quarterly webcast. Sky Harbour Group Inc is a U.S.-based real estate development and operating company focused on private aviation infrastructure. The company specializes in the acquisition, design and management of fixed-base operations (FBOs), aircraft hangarage and private terminals that serve business and general aviation operators. By providing expedited ground handling, concierge services and state-of-the-art facilities, Sky Harbour seeks to streamline the operations of private jet owners, fractional-ownership programs and charter operators while reducing congestion at major airports. Through strategic leases and joint-venture partnerships, Sky Harbour has established a growing presence at key regional and metropolitan airports across the United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sky Harbour Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a significant corporate milestone with positive cash flow from operating activities of approximately $0.5 million, signaling a shift where equity proceeds will now exclusively fund new project CapEx rather than operations. Revenue growth of 50% year-over-year was driven by new campus openings and increased occupancy, though operating expenses rose due to non-cash accruals for new ground leases that are not yet operational. Management is prioritizing 'Tier 1' airport acquisitions, noting that larger footprints at major hubs offer superior operating margins because two phases cost nearly the same to operate as one while doubling revenue. The 'Sky Harbour equivalent rent' remains the primary valuation framework, with management emphasizing that the ground lease is the 'entry ticket' and most critical value-creation step in the business model. Leasing strategy at specific airports (Dallas, Phoenix, Denver) utilized short-term introductory rates to accelerate occupancy and debt service, with plans to cycle these into long-term residents at significantly higher target rates. Despite net wealth flight from California, management is increasing investment there, observing that 'California refugees' maintain hangar space for frequent return visits and that new billionaire creation continues to drive aircraft demand. Vertical integration is now being proven empirically, with all developments on schedule and on budget as the company transitions to acting as its own general contractor to achieve scale. Reaffirmed year-end 2026 guidance for an annualized revenue run rate between $42 million and $46 million and adjusted EBITDA run rate between $4 million and $6 million. Expects a 'step function' increase in revenue and margin expansion in early 2027 following the scheduled openings of Bradley and Addison Phase 2 campuses. Construction activity is slated to double from roughly 600,000 square feet currently to over 1.2 million square feet under development by year-end 2026. The third iteration of the hangar prototype will launch at Fort Worth in Q4 2026, designed to be more functional and aesthetically pleasing while costing less per square foot to construct. Management views the recent $40 million equity raise and potential $94 million from January warrant exercises as sufficient to cover equity needs for the 'foreseeable future' and perhaps indefinitely. Leasing in Denver (APA 1) has been unexpectedly slow, which management characterized as a disappointment, though they noted similar slow starts in Miami and Nashville eventually led to robust cash flow. The re-lease step-up rate moderated to 19%, which is down a few points from the previous quarter. as more leases entered their third terms, moving closer to stabilized market rates. Operating expenses include significant non-cash accruals related to ground leases for sites that are not yet generating revenue, which impacts GAAP results but is adjusted in EBITDA calculations. The company introduced 'Sky Key,' a new network-access program for top residents, intended to drive incremental revenue and enhance the competitive moat of the home-base solution. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that pre-leasing at established markets like San Jose does not require introductory rates due to high pent-up demand and 'FOMO' among residents. Pre-leasing is now a standard strategy for all new campuses, targeting 50% to 66% occupancy prior to opening to avoid the 'glut' of vacancies that can give residents too much negotiation leverage. Sky Harbour aligns its interests with airports by focusing on indoor hangar space (rent) rather than outdoor fueling, which is the primary revenue driver for traditional FBOs. The model reduces 'repositioning flights' (empty flights between airports), which appeals to municipalities by lowering environmental, noise, and infrastructure impacts. Current construction costs are approximately $242 per square foot, beating the previous $250 target; management expects further reductions through national procurement and prototype refinements. The manufacturing facility in Texas is currently running nearly 2.5 shifts to meet the increased volume of the development pipeline. Management coordinated a secondary sale of 360,000 shares from Boston Omaha to strategic investors alongside the company's primary raise. The sale was described as a minor portion of Boston Omaha's holdings, with all legacy investors reaffirming their long-term commitment to the company.

Reaffirms Guidance for Year End 2026 WEST HARRISON, N.Y., August 12, 2026--(BUSINESS WIRE)--Sky Harbour Group Corporation (NYSE: SKYH, SKYH WS) ("SHG" or the "Company"), an aviation infrastructure company building the first nationwide network of Home Base Operator ("HBO") campuses for business aircraft, announced the release of its unaudited financial results for the three and six months ended June 30, 2026 on Form 10-Q. The Company also announced the filing of its unaudited financial results for the three and six months ended June 30, 2026 for Sky Harbour Capital LLC ("Obligated Group") with MSRB/EMMA. Please see the following links to access the filings: SEC 10-Q: https://www.sec.gov/Archives/edgar/data/1823587/000143774926027302/ysac20260630_10q.htm MSRB/EMMA: https://emma.msrb.org/P22077957-P21578942-P22039856.pdf Financial Highlights on a Consolidated Basis for SHG include: Constructed assets and construction in progress reached over $393 million at quarter-end, a year-to-date increase of $65 million. Q2 2026 consolidated revenues increased approximately 50% as compared to Q2 2025 and 13% as compared to Q1 2026. Q2 2026 net cash provided by operating activities was approximately $0.5 million, compared to net cash used of approximately $3.9 million in Q1 2026. This is the first quarter of recurrent positive operating cash flow in the Company’s history. Quarter-end liquidity and capital resources are strong, with consolidated cash and US Treasuries totaling $206.9 million and access to an additional $130.2 million of capacity under the committed JP Morgan drawdown construction bank facility ("JPM Facility"). These figures exclude $40 million in proceeds from a registered direct common stock issuance that settled earlier today. Refer to our 10-Q for presentation of GAAP net income and adjusted EBITDA (Non-GAAP) results. Financial Highlights at Sky Harbour Capital LLC ("Obligated Group") include: Q2 2026 Obligated Group revenues increased 79% as compared to Q2 2025 and 22% as compared to Q1 2026. Q2 2026 net cash provided by operating activities was approximately $2.9 million in Q2 2026, compared to $2.2 million in Q2 2025. Cash and US Treasuries at the Obligated Group totaled $26.2 million as of June 30th, 2026. Separately, proceeds of the Series 2026 Bonds are available for the construction completion of Phase 2 at Dallas Addison Airport ("ADS"). Debt service coverage tests, calculated as per the Series 2021 bond indenture for the period ending June 30th, 2026, and the next-twelve-months budget, are compliant with all applicable covenant ratios. During the quarter, the Company contributed $20.0 million as equity to the Obligated Group to reimburse past cash advances from the Company to partially fund certain expenditures associated with the construction of Phase 2 at Miami–Opa Locka Executive Airport ("OPF") . OPF Phase 2 opened for operations in May. In addition, the Company contributed $7.3 million to the Obligated Group from the Series 2026 Bonds for construction expenditures at Phase 2 at ADS. ADS Phase 2 is expected to be completed by year end. The latter will constitute the final project of the first vintage of campuses financed by the Series 2021 Bonds under the Obligated Group. Update on Leasing Activities Stabilized campuses: The Company continues to enjoy higher-than-forecast revenue per square foot at its stabilized campuses, with economic occupancy reaching as high as 132% at one campus. Revenue per square foot continues to grow as original hangar leases turn over, with an average revenue escalation of 19% upon re-lease for the trailing 12 months as of 8/1/2026 (excluding typical annual escalations of CPI with a floor of 4%). OPF combined occupancy is now 80%, with high leasing velocity, and all leases in 2026 signed at Tier-1 rates. As of today, ADS Phase 1, Phoenix Deer Valley Airport ("DVT") Phase 1 and Denver’s Centennial Airport ("APA") have achieved 98%, 76% and 44% occupancy respectively. San Jose Mineta Internation Airport ("SJC") Phase 1 has reached 132% economic occupancy. SJC Phase 2, not yet constructed, has been 100% pre-leased. Update on Construction and Development Activities Obligated Group Construction Portfolio 2 Construction Portfolio 2 Development Update on Airport Operations As of Q2 2026, the Company is operating 1.04 million square feet of hangar and associated office and support space, with approximately 2 million square feet of aviation ramp and vehicle parking. The campus-level OPEX-Efficiency Program is in implementation at pilot campuses across the country, with initial cost-savings already realized. The program will be implemented across all campuses in the coming quarters. The Company launched its proprietary selection, training, and professional development program for line crew and Harbour Masters (campus leaders), including proprietary training equipment, an HBO Syllabus, and standard operating procedures. The HBO service model has become a major differentiator for Sky Harbour and the Company will continue to invest in enhancing its resident services. Update on Capital Formation Earlier today, the Company closed a $40 million common stock issuance at $10.00 per share through a registered direct placement with two new long-term investors; funds managed by Oasis Management Company and a prominent member of the California Bay Area tech community. The proceeds of this primary placement are expected to be paired with an expanded tax-exempt bank facility to fund additional hangar projects totaling approximately 400,000 rentable square feet. As of June 30th, 2026, the Company has drawn nearly $70 million from the JPM Facility for capital expenditures and reimbursement of prior advances related to projects at BDL, SLC and OPF Phase 2. As of today, there is an additional $130 million of committed undrawn capacity under the JPM Facility. Reaffirmation of 2026 End of Year Guidance We expect to achieve consolidated revenues of $42-46 million on an annualized run-rate basis by year end, up from an annualized run rate of $39.4 million in Q2 2026. We expect to achieve consolidated Adjusted EBITDA of $4-6 million on an annualized run rate basis by year end. CEO Tal Keinan commented: "The Sky Harbour HBO model is an increasingly established triple-win, aligning the interests of Airports, the Business Aviation Community, and Sky Harbour shareholders. This drives the Site Acquisition pipeline, which is at its most robust to date. The Sky Harbour Development team is meeting its construction-pace and quality targets, while continuing to lower development costs. Per-square-foot revenue is exceeding forecasts. And the Sky Harbour Operations team continues delivering the safest, fastest and most secure service offering in Business Aviation." CFO Francisco Gonzalez commented: "We welcome two long-term strategic investors to the Sky Harbour shareholder family. The $40 million (raised with minimal transaction costs given existing shelf and without banker fees) will be paired with additional tax-exempt debt to fund approximately 400,000 new square feet of hangar, an accretive exercise for our shareholders. At $10 a share, it represents a relatively small discount to our last 30-day (thru 8/10) VWAP of $10.49, a very efficient execution." CEO Tal Keinan commented on the equity issuance: "Sky Harbour shareholders have been active partners, helping us to secure the top airport sites in the country and, increasingly, supporting our ambition to serve the top business aircraft operators in the country. We are honored to be joined today by two new partners who will propel that part of our business forward." About Sky Harbour Sky Harbour Group Corporation is an aviation infrastructure company developing the first nationwide network of Home-Basing campuses for business aircraft. The company develops, leases, and manages general aviation hangar campuses across the United States. Sky Harbour’s Home-Basing offering aims to provide private and corporate residents with the best physical infrastructure in business aviation, coupled with dedicated service, tailored specifically to based aircraft, offering the shortest time to wheels-up in business aviation. To learn more, visit www.skyharbour.group. Forward Looking Statements Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements about the financial condition, results of operations, earnings outlook and prospects of SHG, including statements regarding our expectations for future results, our expectations for future ground leases, our plans for future capital raising activity, the transactions contemplated by the letter of intent, our expectations on future construction and development activities and lease renewals, and our plans for future financings. When used in this press release, the words "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of Sky Harbour Group Corporation (the "Company") as applicable and are inherently subject to uncertainties and changes in circumstances. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. For more information about risks facing the Company, see the Company’s annual report on Form 10-K for the year ended December 31, 2025 and other filings the Company makes with the SEC from time to time. The Company’s statements herein speak only as of the date hereof, 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 law. Key Performance Indicators We use a number of metrics, including annualized revenue run rate per leased rentable square foot, to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other issuers. These metrics are estimated operating metrics and not projections, nor actual financial results, and are not indicative of current or future performance. View source version on businesswire.com: https://www.businesswire.com/news/home/20260812049479/en/ Contacts Sky Harbour Investor Relations: [email protected] Attn: Francisco X. Gonzalez

Global Partners LP GLP is set to release second-quarter 2026 results on Aug. 7. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of $1.24 per share on revenues of $7.5 billion. Let’s delve into the factors that might have influenced the vertically integrated energy partnership’s results in the June quarter. But it’s worth taking a look at GLP’s previous-quarter performance first. In the last reported quarter, the gasoline station and convenience store operator beat the consensus mark on strong execution across all operating segments. Global Partners had reported net income per share of $1.85, which comfortably surpassed the Zacks Consensus Estimate of 33 cents. However, sales of $5.3 billion missed the consensus mark by 23.7%. GLP topped the Zacks Consensus Estimate for earnings in one of the last four quarters and missed in the other three. This is depicted in the graph below: Global Partners LP price-eps-surprise | Global Partners LP Quote The Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 125.5% improvement year over year. The Zacks Consensus Estimate for revenues also suggests a 62.2% increase from the year-ago period due to constrained growth in the Gasoline Distribution and Station Operations business. Global Partners’ Wholesale segment entered the second quarter of 2026 with significant momentum after first-quarter product margin surged 65% year over year to $154.1 million from $93.6 million, driven by stronger gasoline and residual oil market conditions. Management highlighted that commodity price volatility created opportunities for its integrated sourcing, storage and distribution platform, while executives noted that volatility continued into the second quarter. The company also emphasized that its extensive terminal network and inventory management capabilities positioned it to capture market opportunities, which likely continued to lift wholesale profitability during the to-be-announced second-quarter results. GLP’s Gasoline Distribution and Station Operations business likely remained a key earnings driver after first-quarter gasoline distribution product margin increased to $136.7 million from $125.8 million, supported by higher fuel margins, while Commercial product margin climbed to $11.7 million from $7.1 million on improved market conditions. Management stated that fuel margins had remained resilient despite market volatility and noted that price swings created additional pricing opportunities. Combined with continued investment in retail assets and an integrated operating model, these trends could have favorably affected second-quarter earnings. Despite the strong start to 2026, management cautioned that the steep backwardation in forward fuel markets was expected to increase the cost of carrying hedged inventory in future periods. Executives also observed a decline in average gallons per fill-up during March and April, warning that persistently higher gasoline prices could pressure consumer spending and fuel demand if sustained. Although Global Partners planned to offset these headwinds through disciplined inventory management, promotions and loyalty programs, these factors likely created some pressure on second-quarter earnings. The proven Zacks model does not conclusively show that Global Partners is likely to beat estimates in the second quarter of 2026. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Earnings ESP: GLP has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.24 per unit each. Zacks Rank: Global Partners currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season. While an earnings beat looks uncertain for Global Partners, here are some firms that you may want to consider based on our model: Calumet, Inc. CLMT has an Earnings ESP of +169.57% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 7. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for 2026 sales of Calumet indicates 6.3% growth. Valued at around $3.9 billion, CLMT has gained 173.2% in a year. Sky Harbour Group Corporation SKYH has an Earnings ESP of +27.27% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 12. Sky Harbour beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 84.8%. Valued at around $818.9 million, SKYH has gained 11.5% in a year. Alpha Cognition Inc. ACOG has an Earnings ESP of +6.90% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 13. The Zacks Consensus Estimate for 2026 sales of Alpha Cognition indicates 118.9% growth. Valued at around $180.3 million, ACOG is down 7.3% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Partners LP (GLP) : Free Stock Analysis Report Calumet, Inc. (CLMT) : Free Stock Analysis Report Sky Harbour Group Corporation (SKYH) : Free Stock Analysis Report Alpha Cognition Inc. (ACOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year decline in earnings on higher revenues when Sky Harbour Group Corporation (SKYH) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 12. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -40%. Revenues are expected to be $9.29 million, up 41% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 8.93% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Sky Harbour Group, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +27.27%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Sky Harbour Group will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Sky Harbour Group would post a loss of$0.19 per share when it actually produced a loss of -$0.16, delivering a surprise of +15.79%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Sky Harbour Group appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sky Harbour Group Corporation (SKYH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fluence Energy FLNC is set to release fiscal third-quarter 2026 results on Aug. 5. The current Zacks Consensus Estimate for the to-be-reported quarter is a loss of 5 cents on revenues of $761.9 million. Let’s delve into the factors that might have influenced the clean energy company’s results in the September quarter. But it’s worth taking a look at FLNC’s previous-quarter performance first. In the last reported quarter, the Arlington, VA-basedprovider of battery energy storage systems, software and services for renewable and grid applications beat the consensus mark, backed by disciplined execution across projects and supply-chain operations. FLNC had reported a loss per share of 16 cents, 2 cents narrower than the Zacks Consensus Estimate. However, revenues of $464.9 million came in 21.7% below the Zacks Consensus Estimate after roughly $80 million of shipments slipped into the third quarter because of customs delays in Vietnam and loading-equipment shortages in Spain. Fluence Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters, met in one and missed in the other. This is depicted in the graph below: Fluence Energy, Inc. price-eps-surprise | Fluence Energy, Inc. Quote The Zacks Consensus Estimate for the fiscal third-quarter bottom line has remained unchanged over the past seven days. The estimated figure indicates a 600% decline year over year. The Zacks Consensus Estimate for revenues, however, suggests a 26.4% increase from the year-ago period. Fluence's Energy Storage Products & Solutions business is likely to have been the primary growth driver in fiscal third-quarter 2026. Management reported order intake of nearly $2 billion through May 6, including more than $600 million booked during the third quarter to date, while backlog reached a record $5.6 billion. The company also reaffirmed fiscal 2026 revenue guidance of $3.2-$3.6 billion and indicated that production remained on plan, with roughly 70% of annual revenues expected in the second half. These factors could lift segment revenues. The Zacks Consensus Estimate for this segment's revenues is $636 million, above the year-ago sales of $584 million. Fluence Energy's Services business is likely to have provided another source of support for fiscal third-quarter results through its expanding recurring revenue base. Assets under management increased to 6.3 GW, while contracted backlog rose 10% to 7.7 GW and the pipeline expanded 15% to 33.7 GW. A larger installed base generally supports higher maintenance and operational service activity, which could have contributed to revenue stability. The Zacks Consensus Estimate for Services revenues stands at $27.2 million compared to $16.9 million a year ago. Fluence's Digital Applications & Solutions business is likely to have remained a modest headwind during the fiscal third quarter. Although contracted backlog improved 19% to 14.4 GW, the digital pipeline declined 16% to 53.5 GW, pointing to slower growth in future software opportunities. That softer pipeline could limit near-term revenue conversion and weigh on the segment's performance. The proven Zacks model does not conclusively show that Fluence Energy is likely to beat estimates in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -68.75%. Zacks Rank: FLNC currently carries a Zacks Rank of 2. While an earnings beat looks uncertain for Fluence Energy, here are some firms that you may want to consider on the basis of our model: Calumet, Inc. CLMT has an Earnings ESP of +169.57% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 7. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for 2026 sales of Calumet indicates 6.3% growth. Valued at around $3.9 billion, CLMT has gained 173.2% in a year. Alpha Cognition Inc. ACOG has an Earnings ESP of +6.90% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 13. The Zacks Consensus Estimate for 2026 sales of Alpha Cognition indicates 118.9% growth. Valued at around $180.3 million, ACOG is down 7.3% in a year. Sky Harbour Group Corporation SKYH has an Earnings ESP of +50.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 12. Sky Harbour beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 84.8%. Valued at around $818.9 million, SKYH has gained 11.5% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluence Energy, Inc. (FLNC) : Free Stock Analysis Report Calumet, Inc. (CLMT) : Free Stock Analysis Report Sky Harbour Group Corporation (SKYH) : Free Stock Analysis Report Alpha Cognition Inc. (ACOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WEST HARRISON, N.Y., July 31, 2026--(BUSINESS WIRE)--Sky Harbour Group Corporation (NYSE: SKYH, SKYH WS) ("SHG" or the "Company"), an aviation infrastructure company building the first nationwide network of Home-Basing campuses for business aircraft, today announced that it will release its Second Quarter 2026 financial results and file its quarterly report on Form 10-Q with the SEC after market close on Wednesday, August 12th, 2026, and that it will host an investor webcast at 5:00 pm ET the same day. On the call, Sky Harbour will review quarterly financial results and provide a general business update. A question-and-answer session with Sky Harbour leadership will follow. Both the call and webcast are open to the general public. The webcast will be publicly available in the Upcoming Events section of the Company’s investor relations website, https://ir.skyharbour.group. A replay of the webcast will be available on the Company’s website following the event. To join the webcast, please use the following link: https://events.q4inc.com/attendee/533533186 For the audio-only conference call, please use the following participant details: USA - Toll-Free (800) 715-9871USA / International Toll +1 (646) 307-1963Conference ID: 3371806 If you have any questions or are interested in connecting with Sky Harbour leadership, please contact Investor Relations at [email protected]. About Sky Harbour Group Corporation Sky Harbour Group Corporation is an aviation infrastructure company developing the first nationwide network of Home-Basing campuses for business aircraft. The Company develops, leases and manages general aviation hangars across the United States. Sky Harbour’s Home-Basing offering aims to provide private and corporate customers with the best physical infrastructure in business aviation, coupled with dedicated service tailored to based aircraft, offering the shortest time to wheels-up in business aviation. To learn more, visit www.skyharbour.group. Forward Looking Statements Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements about the expectations regarding future operations at Sky Harbour Corporation and its subsidiaries. When used in this press release, the words "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of Sky Harbour Group Corporation (the "Company") as applicable and are inherently subject to uncertainties and changes in circumstances. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. For more information about risks facing the Company, see the Company’s annual report on Form 10-K for the year ended December 31, 2025, and other filings the Company makes with the SEC from time to time. The Company’s statements herein speak only as of the date hereof, 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 law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260731835947/en/ Contacts SKYH Investor Relations:[email protected] Attn: Francisco X. Gonzalez, CFO

First Internet Bancorp (INBK) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +800.00%. A quarter ago, it was expected that this internet bank would post earnings of $0.08 per share when it actually produced earnings of $0.29, delivering a surprise of +262.5%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. First Internet, which belongs to the Zacks Banks - Northeast industry, posted revenues of $41.12 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.12%. This compares to year-ago revenues of $33.55 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First Internet shares have added about 28% since the beginning of the year versus the S&P 500's gain of 6.9%. While First Internet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First Internet was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $46.65 million in revenues for the coming quarter and $1.98 on $182.4 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Finance sector, Sky Harbour Group Corporation (SKYH), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -40%. The consensus EPS estimate for the quarter has been revised 9.5% higher over the last 30 days to the current level. Sky Harbour Group Corporation's revenues are expected to be $9.2 million, up 39.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Internet Bancorp (INBK) : Free Stock Analysis Report Sky Harbour Group Corporation (SKYH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, March 19, 2026 at 5 p.m. ET Chair and Chief Executive Officer — Tal Keinan Treasurer — Tim Herr Chief Accounting Officer — Mike Schmitt Accounting Manager — Tori Petro Assistant Treasurer — Andreas Frank Chief Financial Officer — Francisco Gonzalez Operator Need a quote from a Motley Fool analyst? Email [email protected] So now let's get started. The team with us this afternoon, you know from our prior webcast, our CEO and Chair of the Board, Tal Keinan; our Treasurer, Tim Herr; our Chief Accounting Officer, Mike Schmitt; our Accounting Manager, Tori Petro; and our Assistant Treasurer, Andreas Frank. We have a few slides we will want to review with you before we open it to questions. These were filed with the SEC an hour ago in Form 8-K, along with our 10-Q and will also be available on our website later this evening. And we also filed our First Quarter Sky Harbour Capital Obligated Group financials with MSRB/EMMA an hour ago. As Kate mentioned, you may have submitted written questions during the webcast during the Q4 platform -- using the Q4 platform, and we will address them shortly after our prepared remarks. Let's get started. At the end of the first quarter on a consolidated basis, assets under construction and completed construction reached over $352 million. That is a $75 million increase from a year ago. Let me highlight that the pace of investment and new construction at Sky Harbour is accelerating, and this column will continue to grow at a higher rate. Revenues experienced an increase of 56% year-over-year and 8% sequentially, given the new campus openings during the past year and increases in occupancy and rental rates. Operating expenses in Q1 continue to increase in tandem with new campus openings, impacted in particular by increases in campus headcount and the cash and noncash expense accruals from new ground leases entering into the past year, which are not yet in construction or in operations. More than half of the increase in OpEx in quarter-over-quarter or quarter sequentially is related to the signing of these new ground leases at the end of the year. And within that expense, more than half of that is noncash accruals, payments that will be made in the future. We look forward to benefiting from the operating leverage of our Phases 2, both in Miami Opa Locka, we just opened and in early 2027 with the opening of Addison Phase 2. We expect gross profit margin expansion with these 2 Phases 2 with the same people and fuel trucks basically serving a doubling of hangar campuses. In terms of SG&A, we strive to keep this in check as we grow, keeping frugality front and center in our expense and cost management initiatives. Cash flow used in operations moved higher than last quarter of 2025, which usually happens in each of our first quarters, given the seasonality of our cash performance, bonuses paid to our employees in February, the annual increases in base salaries that occur as of January 1, and also some minor items related to 401(k) corporate matches, Social Security employer contributions, and the like, that they all tend to be concentrated in Q1. If you look historically, that pattern has been the case in terms of Q1 -- prior Q1 quarters in prior years. Also, the figure in Q4 had the nonrecurring benefit of the $5.9 million upfront payment we received by one tenant in terms of a lease renegotiation in Miami. On a normalized basis, as we have disclosed previously, we have reached cash flow breakeven at the operating level. More on this when we talk about our guidance for 2026 shortly. Next slide, please. This slide is a summary of the financial results of our wholly owned subsidiary, Sky Harbour Capital, and its operating projects that form the Obligated Group. Assets under construction are still growing as we complete Opa Locka Phase 2 and will only stabilize once we complete Addison Phase 2 at the end of the year. This will constitute the last projects of the Obligated Group's first vintage of campuses that were financed primarily by the 2021 series bonds. Revenues at the Obligated Group in Q1 increased 76% year-over-year and 15% sequentially. We expect another step function increase in revenues in Q2 and Q3 of this year following the opening of Phase 2 in Opa Locka and then in Q1 and Q2 of 2027 after the opening of Phase 2 in Addison. As I mentioned earlier, we expect a significant increase in the Obligated Group's gross profit and EBITDA margins, given the additional revenues of these 2 phases with limited increases in operating costs given the ability to use the same personnel and equipment with an expanded campus doubling the size, both in Dallas and in Miami. Cash flow from operations at the Obligated Group reached $2.9 million, almost tripling of the same amount -- I'm sorry, of $1 million a year ago and a 14% increase from the prior quarter after adjusting for the nonrecurring $5.9 million influx in the prior quarter with the prepaid rent that we discussed also earlier. So at this point, let me pass it on to Tal to provide our leasing and development update. Tal? Tal Keinan: Thanks, Francisco. So the slide is self-explanatory, and it's the same format we've been using in the last few earnings calls. So I think I'm just going to highlight a few specific rubrics here for people's attention. Starting with the campuses that are in initial lease-up. We'll speak specifically about Opa Locka, Miami Phase 2 in a later slide, I think our -- what I'd just call attention to is Denver, APA Phase 1, where we're only 44% leased at this point. Sometimes they go a little bit slower than others. This one has definitely lagged a bit. But again, that's -- I think Nashville looked quite similar 6 months after it opened. So we don't really attach that much significance to it. Obviously, we wish everything moved a little bit faster. And then on the left side, you can see the economic occupancy, which now on all but one campus is, at 100% or above. What's the upper limit of that? I'm going to have to go on a limb and say San Jose is probably somewhere near the upper limit of that. We might find a few more creative ways to increase occupancy beyond 130%, but that -- it's probably not going to go much beyond that. However, what I really want to point out is the lower left-hand corner of the slide, that re-lease update. So in the last 12 months, we have re-leased about 119,000 square feet of hangar, meaning leases that have come to term and either been renewed by the existing resident or taken over by a new resident. The average escalation between one lease and the next is 23%. By the way, that's up from 22% in the last quarter. All of this is on top of the annual escalators, the contractual escalators that feature in all of our leases, which escalate at CPI with a floor of 4%. Anyone who is running a model for Sky Harbour knows that your inflation assumption is one of the most sensitive inputs in the entire model. Again, I don't want to make a claim here that we'll always be getting 23% escalations. But the -- for the time being, at least, I think what we're seeing is more or less what we forecast a couple of years ago on these calls, which is that hangar inflation has nothing to do with CPI. We are on the island of Manhattan from a real estate perspective. You just cannot build new airports. And we think that this scarcity is what -- I think is one of the key components of driving the value on a macro level in this company going forward. Next slide. A little bit of kind of forecast versus actual. So again, things that I'll point out. You've got 2 rows here of third-party forecast for revenue per square foot on different campuses. What we're showing right now is whatever is gray is going to be within the range of those forecasts. Whatever is green is going to be above both forecasts. Whatever is red is going to be below both forecast. So what you see at first blush might look like a mixed bag. To us, it does not because that high range, if you look -- we've got high, average, and low. The high range in the campuses that are in lease-up, okay? So look at DVT, APA, and ADS, the high range are the long-term leases, okay? And I think as people might remember, our strategy on initial lease-up, this is before we move to the pre-leasing strategy, which we'll get to soon, has been to get these campuses to 100% as quickly as possible. So if somebody wants to come in on a 6-month lease at some very low introductory rate, we're fine with that. We want to start actually negotiating in earnest with our long-term tenants on the basis of 100% occupancy or higher. So rather than let these hangars ride empty for the months that it takes to get to 100% and surpass it, we rent them out like this, which skews your averages. So all of those higher -- the green numbers on those lease-up campuses are long-term leases. That's what that looks like. And then another thing I'll call everyone's attention to is if you look at the legacy campuses, what we call the stabilized campuses. So BNA, that's Nashville, OPF 1, that's Miami Phase 1, even Camarillo, CMA, at the end, what you'll see is the lows are the first leases that we signed. In fact, if you take BNA, that might actually be the very first lease we signed at BNA. And the highs tend to be the last leases that we signed, which, again, I think corroborates the trend that we're talking about, that 23% re-lease rate. As time goes by, these leases go up, which is why we're getting a lot of demand from new residents, especially long-term residents, to maximize the term of their leases because there's an increasing appreciation that this inflation trend is here to stay in business of aviation. Okay. Next slide. A little bit about pre-leasing. So Miami Phase 2 is the first campus that we've -- the first campus on which we've applied this pre-leasing strategy, where we're going out and offering people certain incentives to sign leases before we even open the doors, which has resulted in what we consider pretty significant success. We're 68% leased in Miami Phase 2 the day we opened the doors. That means we're leaving some money on the table, no question. We think all things considered, this is probably the right way for us to continue. A few things that we learned from Opa Locka Phase 2, I'm starting at the top of the slide. Number one, this is the first, at least partial, trial of the Ascend integrated construction program that we have in place. We're using the prototype hangar. It's a derivative of the SH37s, the SH34 hangar. We're using Stratus construction. That steel that you see in the picture is our Stratus Steel. We're using Ascend construction management. What we don't have yet here is, number one, our GMP was priced before we implemented the program, before Ascend came in. So that budget construction cost is what it is. And number two, we're using a third-party general contractor in Miami. But other than that, this is the Ascend integrated construction program. We're very happy to demonstrate an on-time, on-budget delivery. The next thing I think it's worth understanding is -- you'll see this in some of the upcoming slides. Same campus expansion can be a lot more valuable than putting a new dot on the map in that we know the market -- we'll take Miami in this case as sort of the first example of this. We know the market and even more importantly, the market knows us, okay? It's not like we're getting more speculative when we increase the size, and you'll see when we talk about Stewart and Dallas, that's exactly what we're doing. It's just that we know the battle space a lot better. And again, our counter-parties know us better. There's a lot of pent-up demand in Miami. There's about to be a lot of pent-up demand in Dallas. Once people experience the Sky Harbour model, the churn is extremely low. People tend not to leave us. Most of those 23% markups are to existing residents, who just understand that there is a market. This is what people are paying now. If I want to stay, that's what we have to pay. And so the churn has been extremely low. So look out for a lot more of that going forward, and we'll show as we -- I don't know if people have already seen our press release, but the guidance that we're putting forward is based a lot more on that, meaning more dots on the map is not really what we're going after, and I'll explain more in the coming slides. Next slide. Okay. So a few things that jump out on site acquisition. You'll start, conspicuously to perhaps some of you up in Seattle, a dot has been removed. So you might remember, we had a 1-year lease at Boeing Field in Seattle. We allowed that lease to lapse. We were not happy enough with the terms of the long-term lease that was put in front of us. And add to that some macro trends on wealth flight from Washington State made us say, "Listen, let's allow that lease to lapse." We can be on the fence for a little while. There are other opportunities, other avenues of attack at Boeing Field. We still like the airport a lot, but we don't think that's the right entry point. So we will hopefully come back to that at some point, but it's not going to be right now. And then just to help people understand what we're looking at, and we've had a lot of questions about this over the last quarter or so is tiering, okay? What do we mean when we say Tier 1, which I'm glad we got the questions because kind of for us, it was a little bit less structured internally. So we put some pretty rigid criteria down. I think that's going to work really well. What we call a Tier 1 airport is an airport that's going to deliver us $50 per square foot or better. That's Sky Harbour's internal underwriting. That's not what any third-party is telling us. That's our internal underwriting. But again, if you can compare it to what we showed in some of the previous slides, we tend to undershoot on what we attribute to a field, meaning we're making more per square foot on the field than even we forecast. So we think it's a pretty solid number. It's the same methodology we've always used internally. Tier 2 is airports where we think we're going to be making $30 to $50 per square foot in revenue. And then Tier 3 is below $30 per square foot. Just to be clear, Tier 2 is good. It's great. Like look at Miami, look at Nashville, these are healthy, double-digit, unlevered yield on cost airports and they're Tier 2 airports. So that works really well. Tier 1 is great, obviously, right? Your denominator and yield on cost is relatively static. It varies within a pretty tight range. Your denominator primarily being development costs. But your numerator, right, we're in the real estate business. It's really about location. There are jurisdictions where you're going to get a lot more per square foot even for the same product that you put out. And then Tier 3, Tier 3 can actually work pretty often, but it's not our focus right now. I think it will be down the road. As our construction costs -- which we'll talk about soon, as our construction costs continue to come down as Francisco and the finance team get our cost of capital down over time, many, many more airports in the country become viable and those Tier 3 airports are becoming interesting, right? There are plenty of scenarios where we can generate those double-digit unlevered yields on cost even in Tier 3 airports. We're just not doing that right now because there are juicer targets in front of us. A couple of things to point out. The green dots are currently open and operating airports. The flags represent the tiers. One of the things that you'll see is on the yellow dots, meaning the airports that are in development, not operating yet, there is a much, much higher incidence of Tier 1 airports. And this is exactly what we've been telling you from the beginning. We started out with a relatively arbitrary portfolio of airports. We knew we wanted to stay out of the New York market because we knew we'd make some big mistakes that we did in our early days. But once we became comfortable that the model is working and it is established, we could build these things at the cost that we thought we could build them, we could lease them at the rates that we thought we could lease them, we started expanding to the Tier 1 markets. So as you can see, we actually tabulated it here. 48% of the rentable square footage that is currently fully funded and in the construction pipeline, either under construction or in preconstruction right now, 48% of that square footage is in Tier 1 markets. If you express that in dollars, it would be obviously a much, much higher level, right, because your dollar per square foot is higher. We didn't want to get into that. It's a tough calculation and that starts getting close to guidance. So we didn't want to put it out there, but you can kind of back into the math yourself. That will be increasingly the story, at least for the next 2 years, meaning our major focus is on Tier 1 airports and some Tier 2 airports. Occasionally, there's going to be a Tier 3 that just lines up very easily, and we'll jump on that. But our primary focus, for at least the 2 years ahead, is Tier 1 airports. The only thing I think that bears a little explanation in this is Miami having the red and blue flag. To be clear, Miami Phase 1 is still solidly within Tier 2 territory. We've got a lot of legacy leases. Again, the latest leases signed in Miami Phase 1 are coming into Tier 1 territory. But on average, we're still Tier 2. But our second phase in Miami is a solid Tier 1. And we think that entire kind of corridor in South Florida will continue accelerating on that same path. I think that's all I had on this slide. Next slide, please. Okay. So a little bit about development. We call it projected fully funded construction pipeline. Projected because the sequence might shift a bit as conditions change. Again, sometimes we want to put an airport with those. We think there's a great leasing opportunity, move it up a little bit in the chain. But largely, this is what it's going to look like. A few things that should jump out at kind of some of the more astute observers of Sky Harbour. Number one, revenue run rate step-ups are not linear. They're a step function, okay? That's how this company works. it almost doesn't matter what's going on month by month or quarter-by-quarter. It matters what's going on project by project. Bradley is going to get delivered in Q4. Addison I is going to get delivered by the beginning of Q1. That's when you have your big step-ups. Again, we are re-leasing in the interim, right? There are Nashville hangars that are going for 23% higher than they were going for before, but your big quantum step-ups are every time a project gets delivered. The -- what you're seeing here as well, it shows the importance why we've invested so much over the last 18 months in the Ascend integrated construction program. What you're seeing on this chart is an order of magnitude increase in the square footage as being parallel processed at this company. We've never had this much -- anywhere near this amount of construction underway in parallel. Let's hope it keeps up, but it's all going smoothly, on schedule, on budget, and that is really a testament to the Ascend team. Just as a reminder, what that includes is prototyping, in-house architecture and engineering, in-house manufacturing, and increasingly in-house general contracting. That's what that program constitutes. You can see also when that revenue really starts to fire, right, which you'll see a big, big bulge in revenues coming on in 2027, okay, which should be clear to anyone who's watching how this company grows. And we're not going to make huge forecast for the years ahead. Just understand that the intention is to do another order of magnitude leap in the volume of parallel processing going forward. It's all a matter of getting these top-tier airports into the portfolio, getting them financed and now unleashing the Ascend team on those projects. I think that's all I had on this slide. Let me hand it back to Francisco. Francisco Gonzalez: Thank you, Tal. We have been focused on creating a fortress of liquidity at Sky Harbour, now with $368 million of available resources following our debt -- our 2 debt transactions, the $200 million bank facility through JPMorgan last September and the $150 million that are taxes and bond issuance that closed in the middle of this past February. Of this amount, $187 million in cash and U.S. treasuries sitting on our balance sheet. We continue to cash manage our cash management strategy led by our treasurer Tim Herr of rolling out these funds in short-term treasuries, pending their use in construction. We also have drawn only $19 million of the JPMorgan facility so far and have $181 million left of committed available capacity in that facility. In terms of capital formation, we now have a significant runway ahead of us and are fully funded, as Tal mentioned, to double in size without additional capital. As we always have mentioned before, we'll continue to be deliberate and conservative on raising capital way in advance for the time that we needed and at the lowest cost of capital possible. Next slide. For the past 4 years since going public, we have been asked by all of you, investors and analysts alike, to provide formal guidance of our expected results. We have avoided doing so until today, given our early-stage nature of our business and the variability of our outlook driven by past capital formation availability and project cadence and so on. As Tal mentioned, now that we have everything in place, we have the capital funding in place, the development and construction and manufacturing teams locked and loaded to execute on our plan, the visibility of our results is more predictable and clear. Unfortunately, I cannot give guidance, but for this year, which is, again, similarly that looking historically at our results or the current quarter's results or the subsequent quarters, it is really -- I don't want to say meaningless, but in terms of grasping, really, the cash flow generation potential of this platform. It is, as Tal mentioned, in 2027 and really 2028 calendar years, which we were able to show the results of all these projects that are now in development or construction. Having said that, we are going to provide today formal guidance in terms of revenues. We expect to finish this year, 2026, with an annualized run rate of revenues between $42 million and $46 million. Again, annualized run rate of revenues between $42 million and $46 million and that's up from $35 million annualized run rate this quarter that we just filed today for this year. This increase will be driven by the incremental revenues of the Phase 2 at Opa Locka that opened this week and the increased occupancy at DVT and APA. Similarly, we're introducing guidance for an estimated adjusted EBITDA that we expect to end the year at an annualized run rate of between $4 million to $6 million, up from the annualized run rate of negative $6 million in Q1. This guidance, as you may notice, is slightly lower than what is shown in some of our analyst models for 2 reasons. First, it is guidance, which we intend to meet or exceed. And second, it does not include any revenues or EBITDA from the Bradley and ADS 2 campuses that will open at the end of the year, which, from a timing perspective, those future revenues and EBITDA are not reflected in our guidance. Let me now pass it back to Tal for some final comments regarding highlights and next steps of our 4 pillars of our business model, site acquisition, development construction, leasing and operations. Tal Keinan: Thanks, Francisco. So on site acquisition Stewart expansion, I think people might remember because the Port Authority announced it in Q4, but we only executed it in Q1, we doubled the -- our footprint at Stewart International Airport in New York, Tier 1 market, hundreds of thousands of square feet of hangar. We're actually considering at this point going straight to developing the entire project rather than doing it in phases. That's our level of conviction in the demand and market uptake in the New York market, but we'll report on that soon enough. 2026 in site acquisition, again, it's not anymore just about putting more dots on the map. It's more than that, about rentable square footage, even more than that, about revenue per square foot. And then ultimately, what it's really about is NOI per square foot, and we're choosing our targets on that basis. On development, we talked about Miami Phase 2, which is delivered and the Ascend platform in action. Bradley, Connecticut, Dallas Addison Phase 2, Salt Lake City, Hudson Valley Regional, all of those are under construction. We're in the ground on schedule and for the time being, and let's hope it stays this way on budget as well. And we have additional airports like Dallas International, Trenton, New Jersey, Orlando that are in development right now, pre-construction. Cost per square foot, last time we reported, was $253. Our current GMPs that are out on projects that have not yet been delivered. This is what's out there, is $244.37. We're not done. We're fighting to keep getting that cost per square foot down. Reminder to everyone that not only does that improve our unit economics, it dramatically expands our total addressable market, right? Those Tier 3 airports start getting very attractive as your cost per square foot continues going down. So that fight is nowhere near over for us. On leasing, again, we discussed the Miami Phase 2, this occupancy optimization program. So again, I think a lot of you are familiar with how we run that. It's primarily a geometric optimization when you have semi-private hangars, an aircraft that is -- occupies 10,000 square feet, meaning length times wingspan is 10,000 square feet, doesn't actually occupy that entire rectangle. This is a convention in the industry that we didn't invent. This has been here for a long time. The corners of that rectangle remain vacant, and you could put other aircraft in those corners. We don't get them too close. We're trying to keep things very safe in Sky Harbour hangars, but we have been able to get, as you've seen, to far beyond 100% occupancy. We're now beginning to introduce temporal occupancy programs, right? So some may have noticed the Opa Locka Phase 2, there was one lease that was actually below $50 a foot. That aircraft is in Miami on a seasonal basis, right? That space is available to lease to other prospective residents at specific parts of the year. And so that's, again, something that will, over time, increase occupancy. We have treated that as -- the revenue per square foot we're getting for that aircraft, we don't discount in any sort of way. But functionally, if you're putting it in your model, understand that, that square footage will be leased to somebody else as well. But again, that's the small piece. The big piece, as we discussed, is re-lease revenue step-ups, right? Every time a lease comes to term, we get a very, very healthy escalation in revenues. On the operations side, we discussed the OpEx efficiency program. We'll share interim results in one of the upcoming earnings calls. It's a little bit early to do that, but that is underway. And we've begun a quarterly survey of Sky Harbour residents, which has gotten a very gratifying participation and the vast majority of our residents participate in that. And what we use it mainly to do is figure out where we can improve, both in the physical product that we put down and in the service offering, but we also, obviously, look for people's overall satisfaction kind of ratings relative to alternatives in the industry. And all of our residents are familiar with all of the alternatives in the industry. And there, we're -- I don't think it could be any better. And -- although we will continue trying to make it better. And a few testimonials on the bottom of the page. Let's move on to the last slide. Okay. So looking ahead, like I said, we feel like the model is increasingly established. We're happy with, really, all parts of the model. Obviously, we're refining everything, but we're happy with where we're going. It's now much more of a rinse and repeat exercise. The focus is on scale. That's across the board. So on site acquisition, it's not a number of dots on the map anymore. It's maximized NOI capture, right? That's square footage, Sky Harbour equivalent rent and OpEx. Those are the inputs to that. The same field expansion is going to be a theme, getting everybody ready for that. That's going to be a big part of what's going forward. What we saw in Miami, we think is something that could be replicated in a lot of markets where we can expand. The fact that you know the market and the market knows you very well, gives you a massive head start in leasing. And you can see also the rates are significantly improved. On the development side, again, we've seen this in different charts. I won't go through them all. But to be clear, we're going to be at over 1 million square feet in development by the end of this year. And that, again, will only accelerate in the years ahead. And then the -- lastly, that cost per square foot, again, that fight is not over. There are major architecture and engineering initiatives in progress right now. I think there's a real opportunity there. And as soon as we have -- again, we'll be reporting this on every earnings call, we'll see that $244 a foot number, hopefully continue coming down. On the leasing side, again, I won't go through all of the numbers. What I will focus on is that last bullet, team growth. So we are in the process of onboarding additional team members. I think what's worked for us at Sky Harbour traditionally is recruiting out of the military. We've continued with that. But as you can see, we have a -- really, the rubber hits the road in a very big way starting in 2027. So we've got a massive leasing challenge. Because we're pre-leasing now like we did in Miami Phase 2, that challenge is now. So the team has to grow right now, and that is underway. And then lastly, operations. Again, the defensive side of operations where we don't want to be too innovative here is just absolutely bulletproof safety, bulletproof security, and the highest efficiency, the shortest time to wheels up in business aviation. What we consider offense is continue working with our residents, in some cases, very intimately to constantly improve both the physical offering and the service offering and create this virtuous circle of value creation. And with that, I think we can move on to questions. Francisco Gonzalez: Operator, please go ahead with the queue for the questions. Operator: [Operator Instructions] Your first question comes from Ryan Meyers with Lake Street Capital Markets. How are lease-up and pricing trends progressing at the newer campuses? And what evidence today best demonstrates the operating leverage in the model? Tal Keinan: Okay. That second question is interesting. Thanks, Ryan, for that. So I think the lease-up and pricing trends, you may have logged just before we went through the presentation. So my understanding is the presentation probably answered your question there. What evidence best demonstrates the operating leverage in the model? It's an interesting question. Look, first of all, time has been our friend here in that our major capital investment is upfront, right? This is a high CapEx, low OpEx business. Once you lock in a price per square foot or a cost per square foot on a campus, that's it forever. However, the revenue that's associated with that, that numerator in your yield on cost has been growing at really gratifying rates, much higher than we thought. That's maybe one piece of evidence that I think demonstrates the operating leverage and go around the table here if anyone else has a good example of that. I like the question. Operator: Your next question comes from Michael Thompson with BTIG. During the 4Q '25 call, you mentioned prioritizing site acquisition targets based on those with the highest NOI generation potential. How many locations would be on the top tier of your wish list? And how many of these are you actively pursuing ground leases on? Tal Keinan: Okay. So by top tier, what we're calling Tier 1, meaning airports with $50 and up a foot rent. So we, for competitive reasons, don't provide any kind of list or even number of airports there. What I will say, you can see on the map that we showed, the site acquisition map, more or less where those airports tend to be concentrated. How many are we going after? All of them. Every airport that's in that space is something that we're going after. And the last thing I think that's worth saying about that is we feel that the number of airports that are crossing into Tier 1 territory is going up, right? So I think a good example of that is Opa Locka, where Phase 1 is still solidly in Tier 2. Phase 2 is solidly in Tier 1. Operator: Your next question comes from Dave Storms with Stonegate Capital Partners. Based on your properties in development table on Page 25 of the 10-Q, it is estimated that your rentable square feet per hangar is expected to grow by 8,000 feet over the next 3 years. Can you break out this growth between growing our square footage versus increased occupancy efficiency? Also, marketing expense took a step up this quarter. Can you speak to what this looks like on the ground and what the expectations are here? Tal Keinan: Can you reread the second part of that question? We didn't hear that. Operator: Also, marketing expense took a step up this quarter. Can you speak to what this looks like on the ground and what the expectations are here? Tal Keinan: Okay. Thanks you. All right. So if I understand correctly, the first part of the question is about growing rentable square footage while also increasing occupancy efficiency. So we don't see a tension there, right? The demand is there. In most of the airports that we're at, we need to get very creative about accommodating new residents, right? Once you get deep into that above 100% occupancy category, it becomes a little bit tricky fitting in new residents. So fundamentally, if we could be growing square footage at a faster rate, we would be. We think it's totally [ foolproof ]. So I don't think there's really a tension between those. And then the question about marketing expense, what does it look like on the ground? Well, look, we -- first of all, we have more and more people in leasing, and we need even more to pursue that. We don't advertise -- I don't know if this is where you're going with the question. I think I would say most of our marketing is really existing residents bringing in friends and colleagues and advocating for us. I think that's -- I hope that answers the question about marketing. Operator: Your next question comes from John. What are annual rent escalators in the leases? And is the 23% re-lease up compared to the initial rent or the rent accounting for annual rent increases? Tal Keinan: Okay. So the annual increases in our standard tenant leases are CPI, consumer price index, with a floor of 4%. And it's actually a very good, nuanced question. That 23% step-up between leases is after the 4% escalators, meaning if a 3-year lease ends, it will have escalated twice by the time it ends. The 23% increase is after those escalations, right? So if your lease ended December 31, the new lease starts January 1, it's 23% on average higher than it was on December 31. Operator: Your next question from Mike. What's the tenant retention rate for the portfolio? Tal Keinan: Tenant retention rate. I don't know that we've actually ever compiled those statistics. I would say the vast majority of our residents whose leases come to term are the next resident, right? That's really -- but I don't think we actually have those numbers. Let's talk about that a little bit. Francisco Gonzalez: As we grow and time passes, we're going to be providing a lot of statistics on vintages and our various vintages of phases and so on and so forth. I think it's still too early. But as Tal mentioned, again, the renewals are mostly with our existing tenants. Obviously, there's a back-and-forth that starts several months before their term ends. And then they know that, obviously, there's people out there that we could replace them with at higher rents, and that creates tension for that increase in rates for that renewal. Next question. Operator: Your next question from C.K. Can you speak about your recent Investor Relations initiatives and conversations you're having with potential investors or partners? Tal Keinan: I'm not sure which initiatives you're referring to specifically. Francisco Gonzalez: So let me just mention the following. From now after having completed the 2 debt financings, we have increased our activities in terms of outreach to investors, existing and potential. We are attending more conferences going forward. Tim and I are going to be next week at the B. Riley Conference in Marina del Rey, California. Then a couple of weeks later, we're going to be at the RBC Conference here in New York and so on and so forth. And we're going to be more active, you will see both in person and in virtual conferences going forward in terms of our outreach to investors. Next question. Operator: Your next question from Steve. What's your G&A expectations as you grow the company? Francisco Gonzalez: Yes. Listen, one of the most important things at Sky Harbour, as you know, is that -- as most of you know, is our ability to have operating leverage and not just as we move from Phase I to a Phase II, but in general, in terms of the scale of the company. We are looking to -- yes, we're increasing the lease team, the leasing team, but we look to, basically, after those people are onboarded to basically limit the amount of SG&A that will grow at this company. And then as we scale, we'll be able to basically generate a significant EBITDA expansion on the back of that fixed -- very fixed SG&A expense. Next question. Operator: Your next question from Jack. What are annual rent escalators in the leases? And is the 23% re-leased up compared to the initial rent or the rent accounting for annual rent increases? Tal Keinan: Yes, I think we answered that one already. Next question. Operator: I'd now like to hand over the call to Francisco Gonzalez. Francisco Gonzalez: Operator, I think there are more questions here still. Tal Keinan: Yes, we just had a repeat of a question, but let's see if -- I think there are others now. Operator: Your next question from C.K. I noticed you issued some shares using your ATM facility. Why was this needed given the robust liquidity you have? Do you expect this to continue? Francisco Gonzalez: Thanks for the question. As some of you may be aware, we entered into a facility with Yorkville Securities late December, early January. And that facility also -- as part of the facility or separate the facility, we also added them to our ATM program that is also run with B. Riley. And we -- basically, in Q1, we test-drove Yorkville as an ATM agent on a few days during the quarter. Next question. Operator: Can you -- this is the next question. Can you provide details on economic occupancy that is 103% for campuses open for more than 6 months? How high can economic occupancy go? Tal Keinan: Yes. Okay. I addressed this a little bit during the presentation. Look, San Jose is probably somewhere near the limit. We're at 132% in San Jose. We never want to -- and remember, you can only exceed 100% on a semi-private hangar. A fully private hangar, it is what it is, right? You take the entire square footage of the hangar irrespective of the square footage of aircraft that's actually in the hangar. So it's only semi-private hangars that we're doing it with. We never wanted to get crowded. We never wanted to get too busy in these hangars. So I think San Jose is probably approaching the top of that range. Maybe if we introduce some temporal like we're talking about those seasonal residents like we have in Miami, we can go a little bit higher than that. But I don't think it's going much higher. One of the things that we're seeing, though, and this is maybe combines two of these questions, here is a trend of people going from semi private to fully private hangars, right? Once they experience it and understand exactly what the service offering is, we do see people saying, "All right, I'm willing to spring for a fully private hangar." And that -- those are happening, of course, at significantly higher rents. So that trend is going on. We're always going to, I think, keep some sort of a balance between private and semi-private hangars. Operator: Your next question comes from Joe. Can you talk about the competitive landscape? Have there been additional competitors entering the market? Tal Keinan: So we still haven't seen anyone who does exactly what we do. The FBO companies, Signature and Atlantic, we cooperate with as much as we compete with. And it's kind of, as I said, the Venn diagram has just not that much overlap between what we do to the extent that one of them actually refers residents to us sometimes, which has been great. So we haven't seen that. We have seen people come and acquire hangar assets. That is going on. Again, I think many of the people on the call understand we don't acquire assets because we think the economics of acquiring raw land and building them, especially when you get to this scale, are just so much better than acquiring them. We just don't want to be on that side of the trade. So we like where we are there. Operator: Your next question from Mr. [indiscernible]. On an occupied square feet basis, OpEx per square feet is running around $15 for the Obligated Group. Why should future properties be any different? Francisco Gonzalez: Yes. Thanks for the question. One of the things we mentioned, the 2 remaining campuses at the Obligated Group is this Opa Locka Phase 2 that just opened this week and then ADS 2 in Dallas that will open at the end of the year. If we expect these campuses to run basically the same personnel, the same fuel trucks, and then just a marginal increase in OpEx expenses. So that will allow us to really expand the operating margin, the gross profit and EBITDA margin of the Obligated Group as those 2 campuses come into being. And similarly, as we finish leasing both Phoenix and Denver, we will also see the expansion in the gross profit margin of the Obligated Group. Tal Keinan: Yes. I'll say in addition, first, you're welcome to e-mail your numbers if that's not the numbers that we come up with. We'll be happy to look at your logic. And if it's worth putting out a clarification, we'll happily do that. But we're not at $15 a square foot. What I can say is when we started this, there was a very deliberate decision to over equip, overstaff all of our campuses, right? What we wanted to do was create, by far, the best service offering in business aviation. And then with the scalpel, we will go back and make it efficient. So we're exactly -- that's what that OpEx efficiency program is about is how do we become more efficient on OpEx without touching the magic, without compromising the service level we have. So that's ongoing. And again, we'll start putting out numbers on that as we go forward. But welcome to e-mail your numbers to us, and we'll have a look at how you got to that. Operator: Your next question from Dave. The conflict in the Middle East has impacted fuel prices. Do you anticipate this impact being immaterial, providing a tailwind or creating headwinds for fuel revenue on the income statement? Tal Keinan: Yes. I'd say probably immaterial. I don't think it helps. It doesn't hurt. Remember, we -- what drives our business is the existence of aircraft square footage. We really don't care how much you fly. As long as you exist, you've got to be housed somewhere. The FBO model is a little bit different where they do -- I mean fuel is the major source of revenue for the FBO industry. I think even in the FBO industry, you haven't seen an incredibly material impact. I mean this is obviously a very economically resilient cut of the population. If they have to get somewhere, they're going to get there. If they cost them a bit more on fuel to do it, that's -- so be it. Now if this remains protracted, maybe that changes a little bit on the FBO side. From our perspective, again, unless this becomes a permanent, higher than $100 barrel oil and aviation just kind of falls out of favor over time, I suppose that could happen, but I don't foresee it. Operator: Your next question from Pete. What are the 2026 guidance assumptions to achieve revenues of $42 million to $46 million and adjusted EBITDA of $4 million to $6 million? Francisco Gonzalez: Yes. Thanks for the question. Yes, our main assumptions is that Opa Locka Phase 2 that just opened this week, it will continue to move from the 68% owner occupancy towards 100% occupancy. So we're not -- and we're not including revenues beyond that 100% occupancy, which obviously -- and then we also are including in the assumptions that both Denver and Phoenix will continue the trajectory towards 100% occupancy as well by the end of the year. And again, as I mentioned in the prepared remarks, we are not including there the contributions from Bradley or Addison 2. And one last comment, just to reiterate what I said earlier, that we in finance are -- if the lawyers allowed us to give '27 and '28 guidance, we'll provide that because this company and with all the projects that we have broken ground on and are about to break ground, shown in the picture, are going to be in construction in the next 1.5 years. It's really 2027 revenues and '28 revenues and EBITDA that really are the things that people need to be focused on and not what happens in '26. Obviously, trajectory matters and keeping these guidances and these milestones makes sense. But in terms of the cash flow potential of this platform, it's really -- is going to be shown in '27 and '28 both on the back of the scaling of all these projects and the resulting cash flows. And I think with that -- go ahead. Operator: I'd now like to turn the call over to Francisco Gonzalez for closing remarks. Francisco Gonzalez: Thank you, operator. It's clear that there were more questions in the queue and that we run out of time. Please reach out to us through [email protected], and we'll be happy to answer them either via e-mail or with a follow-up call. Also additional information is available on our website at www.skyharbour.group. And again, we want to thank you for your participation this afternoon. We have concluded our webcast, operator. Thank you. Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in Sky Harbour Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sky Harbour Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Sky Harbour Group. The Motley Fool has a disclosure policy. Sky Harbour (SKYH) Q1 2026 Earnings Transcript was originally published by The Motley Fool