Sky Harbour Group Corporation maintained strong operational momentum during the third quarter of 2025 as the company continued its transition from development to cash-generating operations across its growing network of aviation campuses. 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, indicating continued expansion of the company's national footprint.
For the third quarter, Sky Harbour reported consolidated revenue of approximately $7.3 million, representing a 78% year-over-year increase and 11% sequential growth as additional campuses reached operational status. Rental revenue increased to roughly $5.7 million while fuel revenue reached about $1.6 million, driven by higher utilization at both stabilized and recently opened sites. Stabilized campuses generally remained at or near full occupancy, while newer locations including Dallas Addison and Phoenix Deer Valley moved past the 50% leased threshold. Constructed assets and construction in progress increased to more than $308 million at quarter-end, reflecting the substantial capital investment in developing these aviation facilities.
The company's development pipeline shows continued strength with pre-leasing activity at future developments, notably Bradley and Dulles, securing early commitments without material pricing concessions. This pattern reinforces the demand for aviation infrastructure and the company's pricing power in key markets. 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. Construction progress remains robust across multiple locations with Dallas Addison receiving final certificates of occupancy and becoming fully operational, while Denver Centennial commenced resident flight operations as it neared completion.
Financial metrics showed improvement with gross margin reaching 13.5% in the third quarter, compared to 10.2% in the same period last year and negative 2.0% in the previous quarter. However, operating loss widened to $7.7 million from $4.8 million in the prior-year quarter. 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. 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. This facility was undrawn at quarter-end, preserving capacity to fund five to six upcoming developments across Tier 1 airports. Stonegate Capital Partners maintains coverage on Sky Harbour Group and provides detailed analysis through their research platform at https://stonegateinc.com.
