SKYI · Sky Century Investment, Inc.

Sky Century Investment, Inc. (SKYI) delivered a striking financial turnaround in Q2 FY2026 ended February 28, 2026, achieving profitability through revenue acceleration and cost control. Revenue climbed 207% to $43.3K from $14.1K in the prior-year quarter, as management implemented a targeted customer outreach strategy absent in Q2 FY2025. This initiative, combined with the November 2025 acquisition of RSS Feeds, directly fueled the top-line surge by expanding the customer base and integrating new revenue streams from IT services.

Gross profit reflected this momentum, expanding to $31.7K—a 1,190% increase from $2.5K—delivering a robust 73.1% gross margin. Cost of revenue, comprising amortization of intangible assets like the RSS Feeds database, API, and website update costs, remained controlled relative to the revenue base. This margin resilience underscores the scalability of the acquired assets and outreach efforts, converting topline growth into bottom-line leverage without proportional cost escalation.

Operating income flipped to $5.9K from a -$26.7K loss (122% improvement), and net income mirrored this at $5.9K versus -$26.7K. The primary drivers, per management discussion, were the revenue increase and decrease in operating expenses, enabling the company to harness growth while tightening cost structure. Diluted EPS held at $0.00, consistent with the prior period, as the profit scale remains modest relative to the share base in this early-stage operation.

Cash flow dynamics showed progress but highlight ongoing liquidity needs. Net cash provided by operating activities improved markedly to -$4.0K used from -$20.2K, benefiting from non-cash amortization expenses and related party support that eased working capital strains. This reduction in burn rate signals better operational efficiency, though the company continues funding growth amid expansion into high-demand areas like cloud solutions, data management, and network infrastructure.

Strategically, the RSS Feeds acquisition and outreach strategy position SKYI to capitalize on IT services demand, with cost discipline amplifying the profitability shift. While cash use persists, the Q2 results demonstrate a viable path to sustainable operations, setting the stage for further scaling as web design services and IT offerings gain traction.