FWDI

Download the Complete Report Here Key Takeaways: Houdini materially changes the earnings mix and marks the clearest step yet in STKE’s evolution toward a broader blockchain infrastructure platform. STKE reported C$1.79 million of operating revenue in 3Q FY26 (quarter ending June 30, 2026), down 41% from C$3.04 million in the prior-year quarter, but the composition of revenue changed materially following the June 1 closing of Houdini. Swap aggregator fees contributed C$1.17 million from only one month of ownership, representing approximately 65% of quarterly operating revenue, while combined staking and validation income fell to C$622,000 from C$3.04 million y/y. Houdini also contributed C$768,000 of EBITDA, implying a 66% EBITDA margin, while the call separately referenced approximately C$685,000 of operating income and a margin of roughly 60%. We believe the quarter provides tangible evidence that STKE can add SOL-price-independent transaction revenue alongside validator infrastructure and a productive SOL treasury, broadening the earnings model within its core blockchain infrastructure strategy. STKE is increasingly organized around three interconnected value engines, validator infrastructure, privacy and cross-chain technology, and a productive SOL treasury, with each reinforcing the broader blockchain infrastructure platform. The validator business monetizes third-party SOL through staking commissions, MEV, and transaction fees without requiring STKE to own the delegated assets, creating a balance-sheet-light recurring revenue engine. The owned treasury adds a second layer by generating staking yield while also providing productive collateral that can support strategic financing and infrastructure expansion. Houdini and Zyga extend the model into privacy, cross-chain execution, transaction routing, and transaction and software-driven revenue across 120+ blockchain networks, with more than 50% of Houdini’s trailing transaction volume touching Solana. Together, the model increasingly combines infrastructure, treasury, and privacy technology that can compound through different but complementary economic channels, broadening STKE beyond a single-chain or token-price-dependent earnings model. Lower protocol issuance is accelerating the shift toward AuD, MEV and transaction-driven validator monetization. Staking income fell 59% y/y to C$530,000 from C$1.29 million, while validation service income declined 95% to approximately C$92,000 from C$1.75 million, taking combined income to C$622,000 versus C$3.04 million in 3Q FY25 and approximately C$1.15 million in 2Q FY26. Importantly, gross validator rewards fell to 2,531 SOL from 8,789 SOL y/y, while staking rewards declined to 4,295 SOL from 6,271 SOL. After 375 SOL of validator fees, net validator income was 2,156 SOL, taking total staking and validating income to 6,451 SOL versus 15,060 SOL a year ago, down 57%. This marks a change from 2Q, when weaker CAD revenue primarily reflected SOL-price pressure despite more resilient token-denominated generation. With Solana disinflation reducing issuance and network competition pressuring validator commissions, recovery increasingly depends on AuD, transaction activity, MEV capture, and monetization per delegated SOL rather than token price alone. We believe Houdini’s first month provides encouraging initial validation of the strategic rationale behind the acquisition and immediately adds a high-margin second operating engine. Houdini generated C$1.2 million of revenue and C$685,531 of operating income during June, implying a reported operating margin of ~59%. Management characterized the result as roughly 60% operating margin and 66% EBITDA margin, while noting that the first month was in line with expectations and that the June run-rate would imply a less-than-three-year payback on the acquisition before any future growth. Importantly, management also indicated that the September quarter was looking promising and that integration had been seamless to date, making 4Q FY26 the first period in which we will see three full months of Houdini inside consolidated results. Strong validator performance and embedded distribution provide a foundation to rebuild AuD and expand monetization per SOL. Assets under Delegation ended June at 3.4 million SOL, or ~C$355 million, down ~11% from 3.8 million SOL at March quarter-end and 8% from 3.74 million SOL a year ago, while STKE continued to serve 33,000+ unique wallets and maintained 100% validator uptime. Orangefin generated a 5.84% average APY in June versus the Solana network average of 5.53%, a 31 bps advantage, while the Seeker validator alone had attracted 27,000+ wallets. Together with STKE’s role as sole staking provider to the VanEck Solana ETF, these embedded and institutional channels provide balance-sheet-light routes to stabilize and rebuild delegation after AuD declined from more than 4.0 million SOL earlier in FY26. The owned treasury remains a productive third value engine, generating recurring staking yield while providing strategic balance-sheet flexibility. As of June 30, 2026, STKE held 459,792 SOL, more than 4.5x the 100,746 SOL held around its FY24 pivot, alongside additional STKESOL and JTO positions. Approximately 205,620 SOL was staked directly to company-operated validators at quarter-end, with management indicating the owned treasury earns approximately 6% annual staking rewards. This creates a recurring yield stream independent of third-party delegation growth while retaining upside to SOL appreciation and providing productive collateral that can be deployed for strategic financing. The distinction is increasingly important as STKE broadens into Houdini: the treasury can continue compounding in SOL units while transaction infrastructure provides a separate cash-earnings engine, with the two supporting different but complementary sources of value creation. A key shift within the validator stack is from issuance-driven rewards toward transaction and liquid-staking economics. STKE’s infrastructure processes more than 1 million transactions per day, creating monetization opportunities through commissions, MEV and transaction fees as protocol emissions decline; during 3Q, the company began deploying Jito’s block assembly marketplace on two nodes to improve participation in transaction-driven economics. SIMD-0550 proposes faster Solana disinflation, while SIMD-0553 would introduce resource-based transaction fees tied more directly to network compute usage, potentially accelerating this shift. STKE indicated support for both proposals and said it intends to vote accordingly, viewing the changes as constructive for Solana’s longer-term economics despite the near-term pressure faster disinflation could place on staking rewards. STKESOL adds a separate fee-bearing layer, ending June with ~646,000 SOL across 1,300+ wallets versus ~768,000 SOL at March quarter-end, down ~16% q/q but still above the 500,000+ SOL deposited at launch. The product distributes stake across roughly 75 validators and allows STKE to earn a share of pooled staking rewards without owning the underlying SOL. As protocol issuance declines, growth in validator monetization should increasingly depend on AuD, MEV, transaction fees and STKESOL activity rather than token rewards alone. Zyga adds a proprietary technology layer that STKE can now potentially commercialize through Houdini’s existing distribution. STKE acquired substantially all of Darklake’s assets and core development team in April, including Zyga, a proprietary zero-knowledge proving system developed from technology that placed second in the DeFi track of the Colosseum Global Radar Hackathon among 1,300+ submissions. Zyga is designed to enable private, MEV-resistant execution and confidential on-chain workflows, with the team now evaluating applications across Houdini’s retail and B2B ecosystem. Houdini gives the technology an existing distribution base across wallets, exchanges and transaction flow rather than requiring standalone customer acquisition; successful integration could improve product differentiation, monetization per transaction and margins. Treasury-backed financing preserved SOL exposure while providing acquisition capital without liquidating core holdings. STKE financed Houdini’s cash consideration through Solana-based DeFi rather than selling SOL, with 252,851 SOL worth approximately C$26.4 million pledged to Kamino at June 30 against C$13.9 million of borrowings. The facility carried an approximately 3% variable rate and a 75% liquidation threshold, while pledged assets continued generating staking yield. At quarter-end, STKE had C$1.9 million of cash and C$37.3 million of current liabilities, but also C$48.3 million of digital assets, including roughly C$22 million of unencumbered assets available for liquidity. This approach preserved SOL exposure and avoided crystallizing a sale during weak market conditions, but increased the sensitivity of liquidity and collateral coverage to token prices ahead of the $5.75 million Houdini seller-note payment due December 1. Noncash charges mask a significantly narrower underlying EBITDA deficit, with Houdini beginning to demonstrate operating leverage. Effective June 1, STKE ceased qualifying as an investment entity under IFRS 10 and began consolidating controlled subsidiaries, including Houdini, making 3Q both an economic and reporting transition. STKE reported a C$17.6 million net loss, or C$0.49 per share, versus C$8.2 million, or C$0.40, y/y, including C$5.43 million of digital-asset revaluation losses, C$4.00 million of impairment, C$1.81 million of amortization, and C$1.30 million of share-based compensation. Management characterized more than C$15 million of quarterly expenses as noncash and cited an underlying EBITDA loss of just over C$1.1 million versus positive adjusted EBITDA of approximately C$1.3 million in 3Q FY25. Professional fees, management remuneration, and G&A increased approximately 70% y/y to C$2.58 million, while Houdini generated C$768,000 of EBITDA in June alone, making 4Q an important test of whether a full-quarter contribution can absorb the larger cost base and move underlying profitability toward breakeven. The expanded equity base has funded platform growth, but the 72% increase in shares outstanding raises the hurdle for per-share value creation. Shares outstanding increased approximately 72% from 23.0 million at September 30, 2025 to 39.5 million by mid-August through the LIFE financing, ATM issuance, convertible conversions, acquisition consideration, and other equity issuance. Through 9M FY26, operating activities used C$7.8 million of cash versus C$8.1 million y/y, while financing activities supplied C$31.8 million and investing activities consumed C$24.0 million, including treasury deployment and acquisitions. The capital raised has expanded STKE’s capacity to build the platform, but incremental value creation now depends on converting that investment into stronger revenue, EBITDA and per-share economics across Houdini, validator monetization and Zyga commercialization. 4Q should provide the first clear read on STKE’s transition toward a broader, more diversified infrastructure earnings model. Houdini contributed C$1.17 million of swap revenue and C$768,000 of EBITDA in only one month versus C$622,000 of staking and validation income for the entire 3Q, while the platform has expanded beyond 40 integrations and $2.8 billion of cumulative transaction volume. The setup into FY27 is increasingly driven by the contribution from these newer operating engines, with Street revenue estimates sourced from TIKR pointing to C$24.5 million of FY27 revenue. We would consequently focus near-term on a full quarter of Houdini revenue and margin durability, AuD stabilization from 3.4 million SOL, STKESOL flows from 646,000 SOL, Zyga commercialization, and liquidity execution. Delivery across those metrics would provide the clearest evidence that STKE’s infrastructure, treasury, and privacy technology are beginning to compound into a broader and more durable revenue model. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. We believe STKE should increasingly be valued as a blockchain infrastructure company rather than primarily through a treasury-based valuation framework. The business now combines validator infrastructure, cross-chain transaction and privacy technology through Houdini and Zyga, liquid staking through STKESOL, and a productive SOL treasury, creating multiple operating and asset-backed sources of value. Importantly, these engines are increasingly complementary: validators generate recurring fees on third-party assets, Houdini adds high-margin transaction revenue largely independent of SOL prices, Zyga adds proprietary privacy technology, and the treasury generates staking yield while providing financing flexibility. As this revenue mix broadens, we believe operating metrics such as revenue growth and margins should carry increasing weight alongside NAV. STKE trades at a substantial discount to blockchain infrastructure peers, providing a clear framework for operating-led rerating. At $1.18 per share, STKE has a market capitalization of $46.6 million and trades at approximately 2.6x FY27E revenue estimate of C$24.5 million ($17.7 million). This compares with an average of 6.6x for selected infrastructure peers Coinbase, Circle Internet Group and Securitize, which trade between 5.4x and 8.2x FY27E revenue. STKE is substantially smaller and earlier in its operating transition, supporting some discount, but the current gap remains significant. Applying the 6.6x peer average to FY27E revenue implies an illustrative equity value of approximately $117 million, or roughly $2.96 per share, broadly consistent with the Street’s $2.80 target. We view this as an illustrative rerating framework rather than a price target, with convergence dependent on sustained Houdini growth, improving revenue visibility and demonstrated operating leverage. The SOL treasury provides substantial asset backing underneath the infrastructure valuation and creates a second source of rerating potential. STKE’s direct SOL holdings are currently worth $38.9 million, equal to roughly 84% of the company’s $46.6 million market capitalization, leaving only a modest portion of current equity value above the treasury despite the operating businesses now inside the platform. STKE trades at approximately 1.20x mNAV versus 0.81x for the broader crypto treasury peer group, indicating that investors already assign some premium for its operating capabilities. We nevertheless view mNAV as a secondary valuation lens going forward. STKE has traded at higher treasury premiums during stronger crypto markets, and a recovery in SOL and broader digital asset sentiment could lift both NAV and the multiple applied to that NAV while operating infrastructure provides an independent path to value creation. Houdini provides a second tangible valuation anchor, while its operating footprint has expanded since closing. STKE acquired Houdini for approximately $18 million after the business generated roughly $13 million of revenue in 2025, providing an observable transaction reference for an asset that now represents a meaningful portion of consolidated revenue. Houdini contributed C$1.17 million of revenue and C$768,000 of EBITDA in June, its first consolidated month, while cumulative transaction volume has increased from approximately $2.5 billion around the acquisition to $2.8 billion and wallet and exchange integrations have expanded from 32 to more than 40. The $18 million acquisition value and $38.9 million SOL treasury together represent roughly $56.9 million of gross reference value, already above STKE’s current $46.6 million market capitalization before assigning standalone value to the validator platform, STKESOL or Zyga. This is not a direct equity-value calculation given STKE’s financing obligations, but it reinforces how little value the current capitalization appears to assign to the broader operating platform. Validator infrastructure, STKESOL and Zyga provide additional optionality beyond the two most visible valuation anchors. STKE supports 3.4 million SOL of AuD, maintains 100% validator uptime and has embedded institutional distribution through relationships including the VanEck Solana ETF, while STKESOL holds approximately 646,000 SOL across 1,300+ wallets and provides an additional fee-bearing layer. Zyga adds proprietary privacy and execution technology that can be commercialized through Houdini’s expanding distribution. We would not assign precise standalone values to these businesses at their current stage, but each creates additional opportunities for recurring fee, transaction and software revenue that are not fully captured by treasury NAV or Houdini’s acquisition value alone. The rerating opportunity is therefore supported by both operating growth and underlying asset value, creating an attractive asymmetry if execution improves. The clearest catalysts are sustained Houdini revenue and margins through its first full quarter, continued B2B and integration growth, stabilization of AuD from 3.4 million SOL, renewed STKESOL growth, commercialization of Zyga, and progress toward the C$24.5 million FY27 Street revenue expectation. A stronger SOL and crypto market could provide an additional catalyst through higher treasury NAV and renewed mNAV expansion. The principal offsets remain leverage, pledged SOL, dilution and the $5.75 million Houdini seller-note payment due December 1, making cash generation and per-share value creation important to realizing the rerating. Overall, we believe STKE’s current revenue multiple understates the combined value of a growing blockchain infrastructure platform supported by a substantial productive SOL treasury. Read Exec Edge’s Initiation on STKE Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post SOL Strategies Evolving Into Broader Blockchain Platform – Quarterly Update Report appeared first on ExecEdge.

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 5:00 p.m. ET Chairman - Kyle Samani Chief Investment Officer - Ryan Navi Chief Financial Officer - Mark Brazier General Counsel - Georgia Quinn Operator: Good afternoon, and welcome to the Forward Industries Fiscal Third Quarter 2026 Earnings Conference Call. [Operator Instructions]. As a reminder, this call is being recorded. and a replay will be available on the company's Investor Relations website. I would now like to turn the call over to Georgia Quinn, General Counsel of Forward Industries. Please go ahead. Georgia Quinn: Thank you, operator, and good afternoon, everyone. Welcome to Forward Industries Earnings Call for our fiscal third quarter, which ended June 30, 2026. Joining me on today's call are Kyle Samani, our Chairman; Ryan Navi, our Chief Investment Officer; and Mark Brazier, our Chief Financial Officer. Earlier this afternoon, we issued a press release announcing our financial and operating results for the quarter. That release, along with the presentation accompanying today's remarks is available on the Investor Relations section of our website at www.forwardindustries.com. Before we begin, I need to remind everyone that certain statements made on today's call are forward-looking statements within the meaning of the federal securities laws. These statements include, among other things, statements regarding our Solana treasury strategy, our expectations for SOL per share growth, our expected returns on certain investments, our capital allocation plans, pending or potential acquisitions and regulatory developments. Forward-looking statements involve known and unknown risks -- and uncertainties that could cause actual results to differ materially from those expressed or implied on this call. We described these risks in our filings with the Securities and Exchange Commission, including our most recent Form 10-K and subsequent Form 10-Q filings. We undertake no obligation to update any forward-looking statement, except as required by law. In addition, during today's call, we will refer to certain operating metrics, including SOL Holdings, SOL per share and mNAV. These are operational measures we use to describe our treasury strategy. They are not prepared in accordance with U.S. GAAP and they should be considered alongside, not as substitute for our GAAP financial results. Definitions and methodology for these metrics are included on our website. With that, I'll turn the call over to our Chairman, Kyle Samani. Kyle? Pyahm Samani: Thank you, Georgia, and thank you to everyone joining us this afternoon. This was our third full quarter executing this Solana Treasury strategy we launched last September. And I want to open with the numbers that matter most to how we run this company. As of June 30, we held approximately 7.6 million SOL tokens and SOL equivalents. SOL per share on a fully diluted basis was 0.073.which is up from 0.0669 at March 31, which translates to an annualized growth rate of approximately 36%. That momentum has continued into the current quarter. As of August 3, we hold approximately 7.8 million SOL tokens, having added approximately another 254,000 SOL tokens just over a month ago at an average total cost of approximately $75 per token, bringing our SOL per share to 0.0754. Every decision we make is in service of growing SOL per share on a risk-adjusted basis. And this quarter, our team continued to deliver on that promise for our shareholders. That growth has come alongside real scale. As the world's largest Solana trade strategy, Forward reached an important milestone this quarter. Effective June 29, Forward was added to the Russell 2000 and Russell 3000 indices as part of their semiannual reconstitution. Index inclusion reinforces the growing institutional recognition of our strategy, scale and execution. We believe it will broaden our shareholder base, improved trading liquidity and increase our visibility amongst both institutional investors who track these benchmarks directly as well as retail investors who allocate to the Russell indices as passive investments. Forward's inclusion is a testament to what our team has built and to the scale this company has reached in a short period of time. It's been a busy quarter for the Solana ecosystem as well, which has continued to demonstrate not only resiliency, but accelerated growth as the ecosystem of choice for institutions, corporations and individual users. In calendar Q2, Solana had one of the most active stretches in its history. The network processed 3.8 billion transactions in June alone. Monthly token holder addresses reached an all-time high of 167 million in April and tokenized real-world assets on the network crossed $2.5 billion. Earlier this year, the Solana Foundation reported that SOL denominated value locked on the network crossed $80 million SOL for the first time. On economic activity, applications on Solana generated approximately $257 million in application revenue in the June quarter alone, according to the DeFi Lama. That made it the ninth consecutive quarter that Solana applications outearned those on every other blockchain, representing roughly 40% of application revenue across all of Web3 and crypto. In May alone, Solana applications earn more than those on Ethereum and Hyperliquid combined. Real users paying real fees to real businesses is the signal we care about and no other number comes close. Solana's tremendous growth and notable achievements this quarter continue to reinforce our conviction and validate our company's decision to build the Solana's treasury strategy and to be an active participant in driving the ecosystem forward. Solana's network infrastructure also keeps getting faster and more resilient. Firedancer, which is the independent validator entity client that Jump Crypto launched on mainnet last December, continues to gain adoption across the validators set and the upcoming Alpenglow consensus upgrade unlocks meaningful faster finality. We recognize that digital asset markets have remained soft. But as a company with a permanent capital base and a long-term view on the Solana ecosystem we view quarters like this as an incredible opportunity to continue doubling down on our conviction in Solana as the fundamentals continue to improve and accelerate. Against that backdrop, Forward position inside the ecosystem keeps compounding. Forward accumulated approximately 508,000 SOL tokens during the quarter, increasing our total SOL held from 7 million to 7.6 million, while growing SOL per share from 0.0669 and to 0.0730. We continue to stake almost all of our SOL holdings to Forward's validator, which continues to be a top 10 validator with approximately 1.8% of network stake rate. Part of our strategy is to selectively allocate capital to high conviction opportunities that extend beyond our core SOL holdings, investments that generate durable, uncorrelated returns while deepening our position in the Solana ecosystem. During the quarter, we put that strategy to work for the first time by taking a minority stake in OnRe, a Solana based reinsurance platform and becoming a liquidity provider in OnRe's RWA token called ONyc, an initiative which Ryan will cover in more detail here shortly. Looking ahead, Forward is incredibly well positioned with access to industry-leading cost of capital, a strong balance sheet and minimal debt. As some of you may have seen with our M&A activity this last quarter, Forward already has begun to leverage our advantageous position, and we expect to continue aggressively pursuing the opportunities that we have in this current market to drive long-term shareholder value. Ryan and Mark will now take you through more details on how we executed in the quarter. Ryan? Ryan Navi: Thanks, Kyle, and good afternoon, everyone. Starting with the treasury. As of August 3, 2026, Forward held approximately 7.8 million Solana, which equates to roughly 1.3% of total Solana circulating supply. This compares to 7.6 million SOL as of June 30, and 7.0 million as of March 31. The sequential increase came from roughly 403,000 SOL acquired through open market purchases and 106,000 SOL and SOL equivalents earned through taking rewards during the quarter. Staking is the foundation of our treasury. We stake nearly all of our Solana to generate a consistent compounding source of SOL denominated yield on top of our holdings. Cumulative staking rewards since we launched a strategy in September 2025 now total approximately 307,000 SOL. As of quarter end, the vast majority of our SOL continues to be stake to the Forward validator.which gives us the ability to borrow against the position without interrupting staking rewards and continues to generate positive carry under the terms of our agreements with our institutional lending partners. As of June 30, 2026, our fully diluted mNAV was 0.908. This is based on a SOL closing price of $73.53, a fully diluted share count of 103,525,881 and a closing price of $4.22 for FWDI stock. Forward increases SOL holdings by over 500,000 in Q3 at an average cost of approximately $79 per SOL token, highlighting our team's continued focus on growing our Solana treasury. That focus has not slowed in the current quarter. As of August 3, on a preliminary basis, we have added a further 254,000 SOL at an average cost of approximately $75 per token bringing total holdings to approximately 7.8 million Solana and a SOL per share of 0.0754 on a fully diluted basis. One month into the quarter, we have already added roughly half of what we accumulated in all of Q3 at a lower average cost. To funds SOL purchases, we utilize a number of tools at our disposal. With our recent inclusion in the Russell 2000 and Russell 3000 indices, one of these tools is our at-the-market program, under which we issued approximately 94,000 shares for gross proceeds of $435,000, at prices that are accretive to SOL per share. We deployed those proceeds into SOL purchases. Our discipline here is mechanical. We issue shares only when it is accretive and grow SOL per share. During the quarter, we also bought back approximately 2.5 million shares when doing so was accretive to our SOL per share. During the quarter, our net change in fully diluted share count was a reduction of approximately 1.7 million shares from 105.2 million to 103.5 million. The buyback and the ATM are 2 sides of the same discipline. When the stock trades below our net asset value and our internal view of intrinsic value supports it, repurchases are the accretive trade. When it trades above issuances, we will take cues from the market as to which lever to pull. Ultimately, our goal is to drive SOL per share growth while also continuing to expand the absolute scale of our treasury. SOL per share on a fully diluted basis was 0.0604 at the end of September 2025 and 0.0624 at December 31, 0.0669 at March 31, 2026, and 0.0730 at June 30, 2026. That is a 9% growth for the current quarter or approximately 36% annualized. Consistent with prior quarters, we calculate SOL per share using fully diluted share count. Again, as of June 30, 2026, our fully diluted mNAV was 0.908. Outside of our SOL treasury operations, Forward also made its first Solana ecosystem investment. As Kyle briefly mentioned, we acquired a minority stake in OnRe, a tokenized reinsurance platform. In connection with the investment, we committed up to $25 million of liquidity to OnRe's ONyc token. This is the type of investment our strategy contemplates, it deploys capital into Solana native financial infrastructure with the potential to generate uncorrelated U.S. dollar-denominated yield and strengthen the ecosystem our treasury depends on. Since our investment in OnRe, the protocol's AUM has increased 73% from approximately $142 million to approximately $247 million at the end of June. And the total tokenized RWA capitalization of Solana has grown from approximately $2.5 billion to more than $3.3 billion over the same period. The OnRe investment is also part of a broader strategy to increase our dollar-denominated yield which provides us the flexibility to grow our treasury beyond SOL denominated strategies and provide uncorrelated returns that we can use to more predictively offset dollar-denominated operating costs. Our CFO, Mark will share more on how Forward has executed this year on reducing our SG&A costs since adopting our SOL treasury strategy. Our investment in OnRe is an example of a highly synergistic opportunity for Forward where we can both invest in a company at an attractive valuation and create our own catalyst providing liquidity while supporting the broader Solana ecosystem. Following the success of our OnRe reinvestment, we continue to assess other investment strategies that diversify the yield Forward generates while also delivering value for our shareholders. Let me now spend a moment on M&A because it has become a more visible part of our strategy this quarter. The digital asset treasury sector is crowded and a number of vehicles now trade a significant and persistent discount to the value of the assets that they hold. We believe this condition is unsustainable and that there is an opportunity for the sector to consolidate around a small number of scaled credible operators. As the largest Solana treasury by both net asset value and total SOL held and being larger than the next 3 Solana treasury companies combined, Forward absolutely intends to play a lead role in industry consolidation. To be clear, an acquisition target doesn't need to be a Solana Treasury itself. We're open to combining with companies holding other digital assets as well. In those cases, we convert the acquired asset to SOL and that conversion is factored directly into how we value the transaction. For Forward and our shareholders, these acquisitions are unique opportunities to drive step function growth in our treasury while delivering SOL per share accretion. The shareholders of potential targets, combining with Forward offers a path to closing persistent discounts for the treasury value and to join the largest Solana treasury company with a strong balance sheet and a clear track record of delivering both treasury growth and SOL per share accretion. Our approach to acquisitions follows the same arithmetic as everything else we do. A transaction has to be accretive for our shareholders on a SOL per share basis and increase the scale of our SOL treasury. Forward is actively considering and pursuing M&A opportunities, and we will share more as things develop. With that, I'll turn it over to Mark to cover the financials. Brazier Christopher: Thank you, Ryan, and good afternoon, everyone. Revenue for the fiscal third quarter was $10.8 million compared to $2.5 million in the prior year period, with the increase driven primarily by staking in treasury-related revenue. Gross margin was 62.2% compared to negative 24.9% in the prior year period. SG&A expense was $7.4 million compared to $1.9 million in the prior year period, with a caveat that our SOL treasury strategy launched in September 2025. Excluding stock-based compensation of $3.1 million, SG&A was $4.3 million. We run the company with a small team and a lean cost structure by design because every dollar of overhead is the dollar not compounded in the treasury. At the beginning of this year, we committed to reducing SG&A, and I'm happy to report that as of this quarter, we continue to be on track to bring down our average quarterly SG&A expense, excluding stock-based compensation, to $4.8 million on a go-forward basis. Our results for the quarter include loss on digital assets of $49.8 million and an impairment of $15.2 million which is related to our Forward SOL and ONyc Holdings. As a reminder, this treatment is required under U.S. GAAP and reflects changes in the estimated fair value of our SOL position during the period. It does not reflect realized sales. We encourage investors to evaluate the treasury on the operating metrics Ryan walked through, SOL held and SOL per share alongside the GAAP results. Net loss for the quarter was $69.0 million or $0.80 per share compared to a net loss of $850,000 or $0.77 per share in the prior year period. Turning to the balance sheet and our capital position. We ended the quarter with cash of $11.0 million. The carrying value of our SOL and SOL equivalent holdings as of June 30 was $556.9 million. bringing our total digital treasury assets to $576.6 million. Total debt outstanding was $105 million and the Galaxy facility at an average weighted interest rate of 2.6%. Leverage against the treasury remains modest in the mid- to high teens, and we intend to continue being deliberate and intentional with how we utilize debt. The balance sheet is built to manage volatility and operates through drawdowns while also providing us flexibility to maximize the opportunities that the market provides us. With regards to our share count. Common shares outstanding at quarter end were approximately 73.8 million compared to 76.3 million as of March 31. The change reflects 94,000 shares issued under the ATM program and 2.6 million shares repurchased. Fully diluted shares, including warrants and options were approximately 103.5 million at quarter end. Finally, on liquidity. Between cash on hand, stake and rewards, availability under the ATM program and our credit capacity, we believe we are well positioned to execute on our strategy through varying market conditions. With that, I'll hand the call to Georgia for an update on the regulatory landscape. Georgia Quinn: Thank you, Mark. Before Kyle closes, I'd like to spend a moment on the regulatory landscape because the quarter ended June 30 saw continued and, in our view, meaningful movements toward a defined framework for digital assets in the United States. First, on the legislative side. the Senate Banking Committee advanced the Digital Asset Market Clarity Act on May 14. And on June 1, the bill was placed on the senate legislative calendar making it formally eligible for floor consideration. Early in the morning, on Saturday, August 8, Senate Majority Leader Thune filed cloture on the motion to proceed with the Clarity Act, and a vote is expected on September 15 when Congress is back in session. The legislation as advanced would allocate jurisdiction over digital commodity spot markets to the CFTC while preserving SEC jurisdiction over digital securities. This legislation will require a super majority of 60 votes, and I encourage everyone listening to this call to e-mail or call your senators immediately and urge them to vote in favor of this bill. This piece of legislation provides the certainty that has kept builders and developers from engaging in our industry or sent them offshore and to be a significant catalyst to the Solana ecosystem, especially here in the U.S. That being said, Forward is in no way dependent upon the passage of the Clarity Act. And thanks to both the foresight of the Securities Act and the interpretive work of the Securities and Exchange Commission, we are able to carry out our mission with the requisite legal and regulatory confidence. And speaking of regulatory agencies, the SEC and CFTC continue to build on the March joint interpretation. On May 29, the CFTC approved the listing of cash-settled perpetual futures on registered designated contract markets, bringing onshore a product class that has developed almost entirely offshore, And in June, the 2 agencies issued joint requests for comment, addressing tokenized securities under the Title VII swap definitions and the harmonization of portfolio margin rules. We are grateful to the SEC and the CFTC for their continued work to harmonize and reduce regulatory and jurisdictional ambiguity for companies that operate at the intersection of public markets and digital assets. And with that, I'll turn the call over to Kyle for closing remarks. Pyahm Samani: Thanks, Georgia. Three quarters in, Forward is executing on the strategy we laid out at the end of last year. SOL per share is compounding and growing at an annualized rate of 36%. Our balance sheet is strong, and we're operating at mid-teens LTV with industry-leading access to capital, allowing us to play offense when the market provides us with opportunities, whether that's accumulating SOL at attractive prices or pursuing M&A. The regulatory environment is moving step by step, providing regulatory clarity and framework that will allow Solana to thrive. Solana is becoming the settlement layer for Internet capital markets, and Forward owns a larger share of that network per share than we did 90 days ago. Looking at the back half of 2026, we will continue to execute on our core strategy: grow SOL per share, deploy capital with discipline and deepen Forward position within Solana ecosystem. Thank you to our shareholders for your continued conviction. Operator, please open the line for questions. Operator: [Operator Instructions]. And our first question comes from Devin Ryan with Citizens Bank. Noah Katz: This is Noah Katz on for Devin. I appreciate all the comments today. So to start on agentic finance, we continue to see more financial activity being built around AI agents, particularly within payments and trading. So as you guys look across Solana today, where are you seeing the most credible agentic products beginning to emerge? And then for Forward specifically, how do you plan to participate more directly in the economics? Ryan Navi: Thanks for the question. Kyle, you want to take this one? Pyahm Samani: Yes, happy to. The Solana ecosystem has been, I think, pretty ahead of the curve here on the kind of core infrastructure you need for agentic payments. They built, I think, 2 integrated protocols, one called x402 built by Coinbase and the other one is called machine payments protocol or MPP, which was developed by Stripe, and both of those implementations exist today and are kind of laid out there and being adopted by developers. Off top of my head, I don't know which applications are using, unfortunately, those 2 protocols. I do know Visa has integrated MPP with Solana because I actually spoke with the guy from Visa about this a few weeks ago, but I don't know the specifics off the top of my head. On the trading side today, there's probably a new trading terminal launching on Solana every day at this point and a pretty big number of those already facilitate agenetic trading.where you can just use kind of Claude as your -- Claude or ChatGPT or Grok or whatever, and they have a connector that connects directly to Solana to trade. So that's already kind of why they are out there, and it's being done. I don't know is there's a ton of reporting on it, but it's actually happening already. In terms of how is Forward kind of participating and capturing all of that, I mean the most direct instantiation of that is staking. All of those trades are all producing MEV and the MEV is ultimately being captured by stakers such as forward. We have not yet made any direct investments in that sector. We are certainly evaluating a bunch of stuff. But that space, as you can imagine, is extremely speculative, and we have not yet developed a conviction to pull the trigger on anything quite yet. Noah Katz: That's helpful. And then switching gears a little bit on Solana ecosystem as a whole, how are you guys thinking about the balance between continuing to grow the core SOL treasury and building recurring revenue streams around it? And then which parts of the ecosystem look the most capable of becoming the next meaningful contributor? Pyahm Samani: Yes, again, I guess, I'll take this one. We started off with our first kind of major outside investments in OnRe, which is a reinsurance protocol that Ryan led the investment in. I think they've grown something like 70%, if I recall, since we invested just a few months ago. We are looking at a lot more of these types of RWA growth initiatives. These worked very well for us structurally for a handful of reasons, versus because of our access to capital. we're borrowing at roughly 2.6% and we're able to deploy into various other environments at 8%, 9%, 10%, 11%, and we can already capture that spread. So that's been very lucrative for us. It allows us to cover our SG&A as well as other investment opportunities. I may have misheard the question, Ryan, maybe do you want to jump in here? Ryan Navi: Yes. So no, yes, thank you for the thoughtful questions. Yes, so we're actively looking at different RWA protocols, as Kyle mentioned. Again, we have industry-leading cost of capital at roughly 2.6% on an average basis. So the more that we can find these high single digit, low double-digit yield opportunities. We can continue to effectively grow our dollar-denominated cash flow that offsets our dollar-denominated cost structure, both in terms of SG&A and interest expense. As in the case of OnRe, we also had the minority investment vis-a-vis equity, we're able to create our own catalyst where we grew AUM pretty significantly post our involvement and we'll look to do the same across other reinsurance players, royalties, credit, a whole host of other yield-bearing dollar-denominated asset classes that are not correlated whatsoever with Solana price, but while pushing the Solana ecosystem forward as a whole. Hopefully, that answers your question, but maybe I missed the part of it. Operator: Your next question comes from Fedor Shabalin with B. Riley Securities. Fedor Shabalin: Thank you very much, operator, and good afternoon, everyone. My first question is, strategy-wise, like overall industry-wise, so tokenized real-world asset market cap on Solana went up several quarters and other metrics up and you started accelerating transaction activity.and we can see special app revenue growing. Yet Solana is down roughly 50-plus percent year-over-year. And in your opinion, what breaks the disconnect between usage of this network and the price? Ryan Navi: Peter, thanks for the question. Yes, I mean, I guess, for taking a step back, any time as an investor, where you see price kind of decoupling from fundamentals, in this case, in an attractive -- excuse me, in an attractive way where fundamentals are improving and prices are dropping. That's actually what's kind of given us the confidence to continue to scale our SOL holdings as you've seen with our results. In terms of the catalyst that kind of break that trend, no one has a crystal ball. I think there's a lot of macro forces at play.that doesn't really have anything to do with Solana fundamentals? And you're kind of seeing that across the broader crypto ecosystem. For Solana specifically, there are a couple of initiatives that are being contemplated, which will kind of improve the value accrual to the token network, which could act as a near-term, medium-term catalysts that kind of gets the ball rolling for Solana specifically. But overall, I mean, we are seeing more developers coming to Solana. We're seeing more usage. We're seeing more TVL, more AUM just on the RWA side, again, going from $2.5 billion to $3.3 billion plus, that's real growth, right? It's not just OnRe, it's a broader ecosystem as well. Markets get dislocated as we've seen, week-to-week, month-to-month, even year-to-year. And we're using this as a prime opportunity to lean into that dislocation. And we're willing to bet that the market will eventually catch up to our opinion. Fedor Shabalin: And my follow-up is OnRe, any incremental yield deployments. So obviously, it was a very successful investment, and you have committed up to $25 million of liquidity. Sorry, if I missed, but how much of that committed is actually deployed today? And what would it take to upsize it? And maybe should we see OnRe upsizing or OnRe like deployments in the near term? Ryan Navi: I'm not sure if we publicly disclose the exact amount of ONyc, I know it's alluded to in the cap table in terms of the quantum. But what we have deployed is public. So I believe it's in the low $20 million area in terms of the ONyc token itself. And again, that will -- up to $25 million... Brazier Christopher: Yes. Sorry, just to jump in here. As of the end of June, I think we publicly disclosed that we've invested approximately $70 million of deployment in the ONyc token, and that's on top of our -- that's on top of our initial investment in the entity. So yes, we're very close to -- with over halfway of what we've committed to deploying $25 million. Ryan Navi: Thanks for that, Mark. Yes. So I think the other part of your question is what would cause us to go further. What was the other part of your question, Fedor? I just want to make sure... Fedor Shabalin: Yes. Yes, sure. How likely we can see just maybe upsizing of OnRe or OnRe-like deployments in the near term, call it, as a balance of 2026? Ryan Navi: Yes. I mean, we're always evaluating different RWA and just general M&A opportunities, both debt and non-debt and also minority investments as well, similar to the OnRe situation. We don't have anything that we would like to publicly disclose at this moment. But we do have a robust pipeline and some targets are further along than others. There is a chance that one or a couple could be announced before year-end, but nothing specifically to share at this time. With OnRe specifically, yes, we're getting a great return of 12% net of fees that are completely uncorrelated to literally everything. It's more weather related. So really good from a portfolio construction perspective, not tied to macro, not tied to crypto price, not tied to really anything. Similarly, we'll look at other things as we try to build this RWA basket, where we're kind of creating on catalysts where we'll have equity upside in the entity that we are partnering and investing in and then also providing liquidity in a way that is accretive to our shareholders, picking up a positive U.S. dollar-denominated cash flow spread relative to our cost of capital. And again, these are way more stable uncorrelated cash flows that dramatically derisk our business and derisk our capital structure, and we think just make us a much more attractive overall total return opportunity. So in a downside scenario, we're still outperforming Solana. In an upside scenario, you're getting SOL plus, plus type exposure. So we're really trying to make this as attractive of a risk reward as possible here at Forward. Fedor Shabalin: Thank you, Ryan. Thank you, Mark, for your perspective and continued best of luck. Operator: This concludes today's conference call. Thank you for joining Forward Industries Fiscal Third Quarter 2026 Earnings Call. You may now disconnect. Before you buy stock in Forward Industries, 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 Forward Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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 Forward Industries. The Motley Fool has a disclosure policy. Forward Industries (FWDI) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

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 36% annualized growth rate in SOL per share, driven by aggressive open-market accumulation and compounding staking rewards. Leveraged inclusion in the Russell 2000 and 3000 indices to improve trading liquidity and broaden the institutional shareholder base. Maintained a top-10 validator status on the Solana network, controlling approximately 1.8% of the total network stake to generate consistent yield. Evaluating opportunities in 'agentic finance' while capturing indirect value through staking rewards, though no direct investments have been made in the sector yet. and real-world assets (RWA) to capture uncorrelated dollar-denominated returns. Capitalized on market dislocations by repurchasing 2.5 million shares when the stock traded at a discount to net asset value. Attributed long-term conviction to Solana's fundamental growth, citing record transaction volumes and its position as the leading blockchain for application revenue. Optimized the capital structure by maintaining a lean SG&A profile, ensuring maximum capital is directed toward treasury compounding. Management intends to lead industry consolidation by aggressively pursuing M&A targets that hold digital assets convertible to SOL. Guidance assumes continued growth in SOL per share through a mechanical discipline of issuing shares only when accretive to the treasury. Plans to expand the RWA portfolio to further offset dollar-denominated operating costs with high-yield, uncorrelated cash flows. Anticipates that the upcoming Alpenglow consensus upgrade and Firedancer validator adoption will enhance network resilience and value accrual. Strategy remains focused on maintaining a modest leverage profile in the mid-to-high teens to manage volatility while playing offense during market drawdowns. Reported a $49.8 million loss on digital assets and a $15.2 million impairment due to GAAP fair value requirements, despite no realized sales. Committed $25 million in liquidity to the OnRe platform, marking the company's first major move into tokenized reinsurance. Identified the pending Digital Asset Market Clarity Act as a potential catalyst for U.S.-based Solana ecosystem growth. Successfully reduced average quarterly SG&A (excluding stock-based compensation) toward a target of $4.8 million. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management captures agentic finance activity primarily through staking rewards and MEV generated by AI-driven trading terminals. While evaluating direct investments in the sector, the company remains cautious due to the highly speculative nature of current AI-crypto startups. Management views the current price-to-fundamental decoupling as an attractive opportunity to scale holdings while usage and TVL reach record highs. Expects value accrual to improve as more developers migrate to the network and RWA capitalization continues to expand. The company has already invested approximately $70 million in the ONyc token, which is more than halfway toward its $25 million commitment. Management is actively evaluating a robust pipeline of similar uncorrelated yield opportunities in royalties and credit to further derisk the capital structure.

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. Forward Industries Inc (NASDAQ:FWDI) achieved a 36% annualized growth in SOL per share, reaching 0.0730 by June 30, 2026, and continued to add SOL at attractive prices in the current quarter. The company was added to the Russell 2000 and Russell 3000 indices, which is expected to broaden its shareholder base and improve trading liquidity. Forward Industries Inc (NASDAQ:FWDI) maintains a strong balance sheet with minimal debt and a low leverage ratio (mid-to-high teens LTV), providing flexibility to capitalize on market opportunities. The company's investment in ONRI, a Solana-based reinsurance platform, has already seen the protocol's AUM increase by 73%, and it generates uncorrelated dollar-denominated yield. Forward Industries Inc (NASDAQ:FWDI) is actively pursuing M&A opportunities to consolidate the digital asset treasury sector, which could drive step-function growth in its treasury. The regulatory environment is improving, with the Digital Asset Market Clarity Act advancing in the Senate, which could provide a significant catalyst for Solana and Forward's strategy. Forward Industries Inc (NASDAQ:FWDI) reported a net loss of $69.0 million for the quarter, driven by a $49.8 million loss on digital assets and a $15.2 million impairment, reflecting the volatile nature of its treasury holdings. The company's SG&A expenses increased significantly to $7.4 million, up from $1.9 million in the prior year, even though it aims to reduce costs going forward. Digital asset markets remain soft, with Solana's price down over 50% year-over-year, which could pressure the company's net asset value and stock price. The company's stock trades at a discount to its net asset value (MNAV of $0.908 vs. stock price of $4.22), indicating a persistent market discount that may not close quickly. Forward Industries Inc (NASDAQ:FWDI) relies heavily on the Solana ecosystem, and any regulatory or technological setbacks could adversely impact its treasury strategy. The company's ATM program and share buybacks are executed only when accretive, but the net share count reduction was modest, and the company faces dilution risk from warrants and options (fully diluted share count is 103.5 million). Warning! GuruFocus has detected 5 Warning Signs with FWDI. Is FWDI fairly valued? Test your thesis with our free DCF calculator. Q: How is Forward Industries thinking about the balance between growing its core Solana treasury and building recurring revenue streams around it, and which parts of the ecosystem look most capable of becoming the next meaningful contributor?A: Kyle Samani (Chairman) and Ryan Navi (Chief Investment Officer) explained that Forward is actively looking at RWA protocols beyond its initial investment in ONRI. With an industry-leading cost of capital at roughly 2.6%, the company can deploy into opportunities yielding 8% to 11%, capturing the spread to cover SG&A and interest expenses. They are evaluating opportunities in reinsurance, royalties, and credit that generate uncorrelated, dollar-denominated yields while pushing the Solana ecosystem forward. Q: What breaks the disconnect between Solana's strong network usage and its declining price, given that the token is down over 50% year-over-year despite accelerating transaction activity and app revenue?A: Ryan Navi (Chief Investment Officer) stated that the price decoupling from improving fundamentals is actually what gives the company confidence to scale its SOL holdings. He noted that macro forces are at play across the broader crypto ecosystem, but for Solana specifically, there are contemplated initiatives to improve value accrual to the token that could act as near-term catalysts. He emphasized that real growth in TVL and RWA (from $2.5 billion to $3.3 billion) will eventually be recognized by the market. Q: How much of the $25 million committed liquidity to ONRI's RNYC token is actually deployed today, and what would it take to upsize it or make similar deployments in the near term?A: Mark Brasier (CFO) clarified that as of the end of June, Forward had invested approximately $17 million into the RNYC token, over halfway to the $25 million commitment. Ryan Navi added that the company has a robust pipeline of similar RWA and M&A opportunities, with a chance that one or a couple could be announced before year-end. The ONRI investment is generating a 12% net return that is completely uncorrelated to macro and crypto prices, being weather-related. Q: Where are the most credible agentic finance products emerging on Solana, and how does Forward plan to participate in the economics?A: Kyle Samani (Chairman) highlighted that Solana has been ahead of the curve with core infrastructure for agentic payments, including X402 (built by Coinbase) and Machine Payments Protocol (developed by Stripe), with Visa integrating MPP. He noted that new trading terminals launching on Solana already facilitate agentic trading through AI connectors. Forward's most direct participation is through staking, as all trades produce MEV captured by stakers, though the company has not yet made direct investments in the sector due to its speculative nature. Q: Can you provide details on the company's share buyback and ATM program activity during the quarter?A: Ryan Navi (Chief Investment Officer) explained that Forward issued approximately 94,000 shares under its ATM program for gross proceeds of $435,000 at prices accretive to SOL per share, deploying proceeds into SOL purchases. Simultaneously, the company bought back approximately 2.5 million shares when accretive. The net change in fully diluted share count was a reduction of approximately 1.7 million shares from 105.2 million to 103.5 million, demonstrating the mechanical discipline of issuing shares only when accretive and repurchasing when the stock trades below net asset value. Q: What is the company's current leverage position and how does it plan to manage debt through market volatility?A: Mark Brasier (CFO) reported total debt outstanding of $105 million under the Galaxy facility at an average weighted interest rate of 2.6%, with leverage against the treasury remaining modest in the mid-to-high teens. He emphasized that the balance sheet is built to manage volatility and operate through drawdowns while providing flexibility to maximize market opportunities. The company ended the quarter with $11.0 million in cash and total digital treasury assets of $576.6 million. Q: How is Forward Industries positioned for M&A consolidation in the digital asset treasury sector?A: Ryan Navi (Chief Investment Officer) stated that the digital asset treasury sector is crowded with vehicles trading at significant discounts to asset values, which he believes is unsustainable. As the largest Solana treasury by both net asset value and total SOL heldlarger than the next three combinedForward intends to play a lead role in industry consolidation. The company is open to combining with companies holding other digital assets, converting those to SOL, with transactions required to be accretive on a SOL-per-share basis. Q: What is the current status of the regulatory landscape and how might it impact Forward's operations?A: Georgia Quinn (General Counsel) reported that the Senate Banking Committee advanced the Digital Asset Market Clarity Act, with a vote expected on September 15th requiring a 60-vote supermajority. The legislation would allocate jurisdiction over digital commodity spot markets to the CFTC while preserving SEC jurisdiction over digital securities. She noted that Forward is not dependent on the bill's passage, as the company operates with legal confidence under existing SEC interpretations, but the legislation could be a significant catalyst for the Solana ecosystem in the US. Q: Can you elaborate on the company's SG&A reduction efforts and cost structure?A: Mark Brasier (CFO) reported SG&A expense of $7.4 million for the quarter, which included $3.1 million in stock-based compensation. Excluding that, SG&A was $4.3 million. The company committed to reducing SG&A at the beginning of the year and remains on track to bring average quarterly SG&A expense, excluding stock-based compensation, to $4.8 million on a go-forward basis. He emphasized that the company runs with a small team and lean cost structure by design, as every dollar of overhead is a dollar not compounding in the treasury. Q: What were the key drivers of the company's financial results for the quarter, and how should investors evaluate the GAAP losses?A: Mark Brasier (CFO) reported revenue of $10.8 million, up from $2.5 million in the prior year period, driven primarily by staking and treasury-related revenue. Gross margin improved to 62.2% from negative 24.9%. The net loss of $69.0 million included a $49.8 million loss on digital assets and a $15.2 million impairment related to For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Three crypto companies, Bitdeer (BTDR), Forward Industries (FWDI), and Bit Digital (BTBT), report quarterly earnings this week, each coming off a quarter deep in the red. The three prints span exposure to major tokens, including Bitcoin (BTC), Solana (SOL), and Ethereum (ETH). All three assets fell last quarter, likely driving heavy paper losses. Now the earnings will show how deep the damage ran. Bitdeer opens the week on Monday. It will report its second-quarter 2026 results before the US market opens on Monday, August 10, at around 7:00 a.m. ET In the first quarter, Bitdeer reported a $159.5 million net loss, pressured by weaker cryptocurrency prices. Revenue, however, rose to $188.9 million, while adjusted EBITDA remained positive at $14.4 million. The second-quarter results come amid a strong period for Bitdeer shares. BTDR gained roughly 83% during Q2, significantly outperforming Bitcoin, which fell 14.08% over the same period. The company’s mining output also surged. June production reached 990 BTC, up 388% year-over-year. Moreover, Bitdeer has continued to expand its AI infrastructure push. In June, its subsidiary signed a colocation lease for its Tydal AI data center in Norway. It also broke ground on an Alberta facility. Follow us on X to get the latest news as it happens Forward Industries will report its fiscal third-quarter results on Wednesday. In fiscal Q2, the company posted a $283.1 million net loss, largely due to Solana-related write-downs. Revenue more than quadrupled year-over-year to $13.0 million. Forward previously disclosed that it acquired more than 500,000 SOL during fiscal Q3 at an average price of about $79 per token, lifting its Solana treasury to 7.55 million SOL. The purchases helped fuel a rally in the company’s stock. Despite that boost, Forward was the only decliner among the three stocks during the quarter, falling about 5% between April and June. The decline was smaller than Solana’s roughly 11.4% drop. Bit Digital closes the week on Thursday before the open. The Ethereum treasury firm reported a net loss of $146.7 million last quarter as Ethereum's price downturn cut deep. A $121.1 million hit on digital assets drove most of the damage. Revenue fell 13.6% to $27.9 million, and the firm held about 155,444 ETH. The stock still recovered. Bit Digital rose about 37% in the second quarter, diverging from ETH’s 25.3% dip. Together, the three reports test one question. Each firm holds tokens that fell last quarter, and the earnings will show how deeply those drawdowns cut into results. Subscribe to our YouTube channel to watch leaders and journalists provide expert insights https://youtu.be/bvGprKRZSDg Read the Original story 3 Crypto Earnings to Watch This Week After Q1 Losses by Kamina Bashir at beincrypto.com

Omada Health, Inc. (OMDA) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to a loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +200.00%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced earnings of $0.01, delivering a surprise of +133.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Omada Health, Inc., which belongs to the Zacks Medical Services industry, posted revenues of $87.84 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.53%. This compares to year-ago revenues of $61.37 million. The company has topped consensus revenue estimates four times 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. Omada Health, Inc. shares have added about 21.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While Omada Health, Inc. 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 Omada Health, Inc. 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 $0.07 on $82.45 million in revenues for the coming quarter and $0.26 on $326.98 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, Medical Services is currently in the top 42% 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. Forward Industries, Inc. (FWDI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +100.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Forward Industries, Inc.'s revenues are expected to be $13 million, up 422.1% 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 Omada Health, Inc. (OMDA) : Free Stock Analysis Report Forward Industries, Inc. (FWDI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Download the Complete Report Here Key Takeaways: STKE’s DAT++ model is expanding from validator economics into a broader Solana infrastructure stack. STKE’s 2Q FY26 (quarter ending March 2026) was defined less by CAD-denominated revenue and more by its transition from a validator-led DAT++ vehicle into a broader Solana infrastructure platform spanning staking, liquid staking, privacy-enabled execution, and cross-chain routing. Core rewards remained resilient, with 5,650 SOL of staking rewards and 3,521 SOL of validation rewards, bringing total rewards to 9,171 SOL, down only 6% q/q, even as CAD-denominated staking and validation income fell 45% q/q to C$1.15 million on lower SOL prices. We believe the divergence reinforces the thesis: STKE is building value through SOL units, fee-bearing assets, and transaction-layer revenue, not simply balance-sheet exposure to SOL. Strategic execution in 1H FY26 supports the move from passive SOL exposure toward infrastructure monetization. The first half included capital-structure clean-up, Michael Hubbard’s permanent CEO appointment on March 31, the January launch of STKESOL, the April Darklake/Zyga acquisition, and the definitive agreement to acquire Houdini Swap for $18 million. Collectively, these actions extend the model beyond proprietary staking and delegated validation into liquid staking, private execution, APIs, routing, and transaction distribution, with Darklake and Houdini representing the clearest steps toward a higher-margin Solana middleware platform. The core thesis remains unit compounding, but mark-to-market pressure was significant. STKE ended March with 441,915 SOL, 82,314 STKESOL, and 52,182 JTO, worth C$60.7 million versus C$126.5 million of crypto holdings at September 30, as SOL fell 60% from $208.74 to $83.11. The offset was unit growth: SOL-equivalent holdings increased to roughly 524,000 from 435,159 at fiscal year-end, AuD reached 3.8 million SOL, and the validator network served 34,000+ wallets with 100% uptime and a 6.08% peak APY versus the 5.74% network average. The quarter therefore reinforced the DAT++ thesis at the unit and product levels, even as SOL-price compression drove a C$89.9 million quarterly loss and C$48.2 million total comprehensive loss. Darklake expands STKE into Solana-native privacy infrastructure and zero-knowledge execution. In April, STKE acquired Darklake Labs for $1.2 million, including $200K in cash and $1.0 million in common shares subject to a four-month lock-up. The transaction brings Zyga, a Solana-native dynamic zero-knowledge proof engine designed to enable private transaction execution while mitigating front-running and sandwich attacks, alongside an application layer focused on dynamic slippage protection and improved trade execution quality. Darklake adds a team with prior experience at Meta, IBM, Coinbase, and Coincover, plus ecosystem validation from a second-place finish in the Solana Radar Global Hackathon DeFi track, Colosseum Accelerator participation, two Brazilian university partnerships, and an ongoing patent process. Strategically, the acquisition moves STKE beyond validator ownership into proprietary Solana technology development, with privacy and execution quality becoming potential product layers on top of the core staking and validation platform. Pending Houdini acquisition adds cross-chain transaction infrastructure and software-based revenue. In May, STKE entered into a definitive agreement to acquire Houdini Swap for $18 million, consisting of $8.25 million in cash, a $5.75 million promissory note, $4 million in common shares, and additional warrant consideration, with closing expected by the end of May subject to customary approvals. Houdini is a non-custodial, privacy-enabled cross-chain swap aggregator operating across more than 100 blockchain networks and over 30 centralized and decentralized exchanges, enabling users to access competitive swap routes without taking custody of funds. The platform generated ~$13 million in revenue during 2025, has processed more than $2.5 billion in cumulative transaction volume, and had more than half of trailing 12-month volume touch Solana, making it directly relevant to STKE’s Solana-first infrastructure strategy. Zyga and Houdini together create the clearest near-term product integration opportunity. Darklake’s Zyga technology brings zero-knowledge privacy and slippage-protection capabilities, while Houdini brings existing distribution, routing infrastructure, public and private swap functionality, and API-based integrations across 100+ blockchain networks and 1 million+ supported tokens. Combining the two could improve private swap execution, support value-added services for users, and expand B2B API offerings for partners, with Houdini Pay creating an additional path into private wallet-to-wallet transfers. The opportunity is to turn these assets into integrated products that expand transaction volume, fee capture, and margin contribution, while using Houdini to drive users into STKE’s staking ecosystem and preserving execution quality across the core validator platform, 3.8 million SOL of AuD, and the January-launched STKESOL fee layer. STKESOL is validating the DAT++ model by converting staked SOL into a liquid, fee-bearing asset. Launched in January, STKESOL gives SOL holders a receipt token representing their staked position while continuing to accrue staking rewards, allowing users to hold, trade, collateralize, or deploy the asset in DeFi instead of waiting up to two days to unstake native SOL. Early adoption was strong, with deposits reaching approximately 768,000 SOL by March 31, equivalent to roughly $61 million or C$83 million at the time, and STKE earns a 5% commission on the staking rewards generated by the pool without taking a fee on staked principal. The traction matters because STKESOL adds an asset-linked fee stream alongside treasury staking and delegated validator commissions, while positioning STKE at the aggregation layer between stakers, validators, and DeFi applications. Leadership additions deepen blockchain, public-company, and capital-markets capabilities as STKE expands its platform ambitions. During the quarter, STKE added industry veteran Les Borsai and public company executive Dennis Logan as Directors, appointed Jon Matonis as Chairman, formalized Michael Hubbard as permanent CEO effective March 31, and appointed Steve Ehrlich as Chief Strategy Officer. The changes add blockchain expertise, public-company experience, and capital-markets depth at a point when the company is moving beyond validator infrastructure into STKESOL, Darklake/Zyga, and the pending Houdini transaction. Reported losses were dominated by accounting and noncash items rather than cash operating deterioration alone. STKE reported a C$89.9 million net loss in 2Q FY26 versus a C$4.8 million net loss in the March 2025 quarter, while the six-month net loss was C$101.7 million compared with C$1.6 million a year ago. The six-month loss included C$21.7 million of realized cryptocurrency disposition losses, C$56.5 million of digital-asset revaluation losses, C$12.1 million of intangible-asset impairment losses, C$4.7 million of amortization, C$2.2 million of share-based compensation, and C$1.7 million of noncash interest and accretion. The scale of noncash and mark-to-market charges drove the reported loss profile, masking continued SOL-denominated reward generation of 18,957 SOL and C$3.25 million of six-month staking and validation income. Balance-sheet simplification improved flexibility, while financing capacity remains tied to token collateral and market access. STKE had C$60.6 million of cryptocurrencies, C$22.0 million of intangible assets, and C$0.35 million of cash at March 31, while total assets declined to C$85.9 million from C$169.6 million at September 30. Shareholders’ equity fell to C$40.7 million from C$114.8 million over the same period, reflecting reported and unrealized digital-asset losses, partially offset by capital raising. The company also repaid roughly C$9 million of debt to the former chairman, ended the quarter with 81,236 SOL and 82,137 STKESOL pledged to Kamino, and has a base shelf allowing up to $150 million of future offerings. The financing stack is cleaner and more flexible, but liquidity remains dependent on SOL collateral values, market windows, and capital raises that preserve SOL-per-share economics. Valuation should frame STKE’s transition from NAV-linked treasury exposure to infrastructure-led monetization. Exec Edge does not provide estimates, price targets, or buy/sell/hold ratings, and the analysis below is intended to frame valuation positioning and potential rerating drivers rather than imply a specific fair value. We believe STKE’s valuation should now be viewed through a DAT-plus-infrastructure lens. STKE trades at 1.43x mNAV versus the peer average of 0.99x, suggesting the stock is no longer being valued as a simple discount-to-NAV treasury vehicle. That premium is best understood as early credit for the company’s operating infrastructure, including validator rewards, 3.8 million SOL of AuD, STKESOL liquid-staking fees, and the pending expansion into transaction routing through Houdini. On a pure DAT framework, STKE’s SOL-equivalent holdings remain the valuation anchor; on an infrastructure framework, the debate shifts to whether those assets can support recurring, scalable fee revenue beyond token appreciation. Middleware expansion strengthens the case for an operating premium over passive DAT peers. STKE combines SOL treasury exposure with delegated validator economics, 768,000 SOL of STKESOL deposits, and a developing software and transaction layer through Darklake/Zyga and Houdini. Houdini is particularly important because it generated approximately $13 million of 2025 revenue and processed more than $2.5 billion of cumulative transaction volume, creating a potential software-revenue stream that passive DAT peers do not have. While STKE is not the largest SOL treasury in the peer set, the valuation argument is increasingly about recurring infrastructure monetization rather than balance-sheet SOL density alone. Rerating drivers are now tied to execution across the infrastructure stack rather than SOL price alone. Continued SOL-equivalent unit growth, AuD expansion with stable validator margins, STKESOL deposit retention and fee contribution, Houdini closing and revenue contribution, and Zyga-enabled private execution products are the key catalysts. As fee-bearing assets and transaction revenue become more visible, STKE should be better positioned to sustain a valuation framework above NAV-only DAT treatment. The upside case is that STKESOL, delegated validation, and Houdini/Zyga convert the SOL treasury into a broader infrastructure platform with recurring revenue and higher-margin monetization. The key risks to that framework are limited STKESOL fee contribution, validator incentives weighing on net economics, or slower Houdini integration, any of which would keep valuation more closely tied to DAT peer multiples and SOL NAV. Download the Complete Report Here Read Exec Edge’s Initiation on STKE Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected]

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. Management is transitioning Forward from a passive treasury holder to an active participant in the 'Internet capital markets' by leveraging Solana's emerging role as a default settlement layer for payments and real-world assets. Performance attribution for the quarter was defined by disciplined capital allocation, specifically a strategic share repurchase that reduced common shares outstanding by 7.4% to drive SOL per share accretion. The company is deepening its technical integration through the Forward Validator and fwdSOL, its proprietary liquid staking token, which now represents 25.1% of its Solana holdings. Strategic positioning has shifted toward generating non-correlated, USD-denominated revenue through investments like OnRe to diversify the income base beyond native SOL staking rewards. Management addressed recent ecosystem security incidents, clarifying they were social engineering attacks on specific protocols rather than vulnerabilities in the underlying Solana Layer 1 network. The rollout of Firedancer is viewed as a critical maturation milestone that provides the throughput and resilience necessary for large-scale institutional capital commitment. The 2026 framework prioritizes identifying high-quality real-world asset opportunities on Solana that offer yields exceeding the native 7% staking rate. Management intends to use its $40 million Galaxy Digital credit facility to further optimize its capital structure, with approximately 40% of the facility being evergreen to reduce refinancing risk. Future capital allocation will remain market-dependent; management will prioritize share repurchases if the stock trades at a significant discount to NAV, shifting back to SOL accumulation as the valuation normalizes. The company expects to achieve a targeted quarterly SG&A run rate of approximately $4.8 million, down from $7.2 million in Q1, driven by renegotiated service agreements and leaner operations. Strategic deployment into tokenized reinsurance via OnRe is expected to yield net spreads of approximately 10 points, assuming a 12% yield against a 2% cost of capital. Forward recognized a $201.7 million loss on digital assets and an $85.1 million impairment charge on fwdSOL due to GAAP requirements to record fair value fluctuations in operating income. The company completed a $27.4 million share repurchase in March, funded by institutional debt rather than selling SOL holdings to preserve staking yield. A transition in financial leadership occurred with Mark Brazier succeeding Kathy Weisberg as CFO to oversee the new cost discipline and capital structure priorities. Management highlighted the 'burn and remit' process of tokenized real-world assets as a structural protection that mitigates smart contract risk compared to decentralized digital assets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management views share buybacks as the primary tool for SOL per share accretion when the stock trades below NAV, but will shift to direct SOL accumulation as the market enters a bull cycle. The company is exploring novel accumulation methods, including the use of derivatives and purchasing locked SOL at a discount. Rising SOL prices increase the value of fwdSOL collateral, directly expanding the company's borrowing capacity under the Galaxy facility. Management intends to utilize this increased capacity for non-dilutive financing to pursue strategic on-chain opportunities. The deal provides equity upside in the protocol while generating 10% to 15% yields on deployed capital, which is non-correlated to SOL price volatility. Financing was secured via evergreen loans at a 2% interest rate, creating a highly accretive net spread for the business. Solana is positioned as the primary beneficiary of AI agent payments due to its high throughput and established on/off-ramps. Management expects micro-payment usage for usage-based billing models to ramp up significantly in the second half of 2026.

Transitioned to a Solana treasury company, establishing a permanent capital vehicle designed to evolve from passive holding to an active value-generating business. Achieved 13% annualized growth in SOL per fully diluted share, outperforming the native staking yield benchmark by approximately 2x through opportunistic capital allocation. Maintained a clean balance sheet with zero institutional debt to preserve 'offensive' capability during market dislocations, contrasting with levered competitors. Launched fwdSOL, a proprietary liquid staking token representing 25% of holdings, to capture staking yields while maintaining liquidity for on-chain strategies. Pioneered the issuance of SEC-registered common shares (FWDI) directly on the Solana blockchain to bridge public equities with programmable financial infrastructure. Attributed significant net losses to GAAP accounting requirements that mandate marking digital asset holdings to market, which management notes does not impact cash or yield generation. Prioritizes SOL per fully diluted share as the 'North Star' KPI, targeting consistent outperformance of the 6.5% to 7.2% native staking benchmark. Anticipates a shift in staking yield composition from inflationary rewards toward transaction fees and MEV as Solana network activity and volatility increase. Evaluates M&A opportunities through a relative value lens, favoring accretive acquisitions of dislocated peers when trading at a premium to NAV. Plans to expand the Prop AMM and other on-chain trading strategies to participate directly in Solana's growing decentralized exchange volumes. Assumes continued institutional adoption of Solana as a global execution layer for payments and regulated financial products like tokenized funds. Recognized a $560.2 million loss on digital assets and a $33 million impairment charge due to the decline in SOL fair value during the quarter. Reported $3.4 million in related party SG&A expenses for accounting and launch support, which management expects to decrease in future periods. Chairman Kyle Samani reaffirmed his commitment to the company following his departure from Multicoin Capital, intending to increase his personal holdings. Acknowledged extreme volatility risk, noting SOL has historically experienced drawdowns of 70% to 90% from all-time highs. 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. Management uses a relative value equation where trading at a premium increases the appetite for stock-for-stock M&A, while trading at a discount favors share buybacks. The company seeks businesses with product-market fit and durable moats that can be accelerated by Forward's scale and involvement. Kyle Samani highlighted that major institutions like Visa, PayPal, and Square are already using Solana for payments due to its speed and low cost. Management believes Solana is in the 'pole position' to win the transition of U.S. securities markets on-chain as regulatory frameworks evolve. Clarified that increased validator competition does not dilute total staking yield available to the network. Stated that Forward is 'explicitly long' on transaction fee growth, which is expected to eventually replace inflation as the primary source of yield. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.