Sky Harbour Group Corporation reported consolidated revenue of approximately $7.3 million for the third quarter of 2025, representing a 78% year-over-year increase and 11% sequential growth as additional aviation campuses reached operational status. The company's continued expansion across key markets reflects its successful transition from development to revenue-generating operations, with rental revenue increasing to roughly $5.7 million and fuel revenue reaching about $1.6 million during the quarter.
The company now conducts resident flight operations at nine campuses, including fully operational sites at Sugar Land, Nashville, Miami Opa-Locka, San Jose, Camarillo, Phoenix Deer Valley, Dallas Addison, Seattle Boeing Field, and Denver Centennial. Additional Tier 1 locations including Bradley, Dulles, Orlando Executive, Salt Lake City, Portland-Hillsboro, and Long Beach are advancing through development and pre-leasing phases. Stabilized campuses generally remained at or near full occupancy, while Dallas Addison and Phoenix Deer Valley moved past the 50% leased threshold and Denver Centennial began contributing with initial leases.
Constructed assets and construction in progress increased to more than $308 million at quarter-end, supported by ongoing investment at Phoenix Deer Valley, Dallas Addison, Denver Centennial, and Miami Opa-Locka Phase 2. Dallas Addison received final certificates of occupancy and became fully operational, while Denver Centennial commenced resident flight operations as it neared completion, marking a significant shift from construction to income generation at both campuses. Miami Opa-Locka Phase 2 remains on schedule for completion in the second quarter of 2026, Bradley broke ground with targeted delivery in the fourth quarter of 2026, and site work advanced at Salt Lake City and other Tier 1 locations.
Management strengthened the capital stack by signing a joint venture letter of intent on an SH34 hangar at Miami Opa-Locka Phase 2, providing flexible, lower-cost funding to support the next wave of growth. The company ended the quarter with approximately $48.0 million in consolidated cash, restricted cash, and U.S. Treasuries. A new $200 million tax-exempt warehouse facility, expandable to $300 million, offers draw-as-needed flexibility at an attractive fixed rate with no prepayment penalty, preserving capacity to fund five to six upcoming developments across Tier 1 airports.
Gross margin improved to 13.5% in the third quarter of 2025, compared to 10.2% in the same quarter last year and negative 2.0% in the second quarter of 2025. Operating loss widened to $7.7 million from $4.8 million in the prior-year quarter, while net income attributable to common shareholders was negative $1.9 million, or negative $0.06 per diluted share. Adjusted EBITDA remained negative but improved on a run-rate basis, indicating progress toward profitability as operations scale.
Sky Harbour continues to leverage its vertically integrated platform, including Ascend Aviation Services and Stratus Building Systems, to enhance quality control, manage per-square-foot costs, and improve delivery timelines across the network. Pre-leasing activity at future developments, notably Bradley and Dulles, continued to secure early commitments without material pricing concessions, reinforcing the strong demand and pricing power in the aviation infrastructure market. Stonegate Capital Partners maintains coverage on Sky Harbour Group Corporation with valuation analysis available through their research platform at https://stonegateinc.com.
