UPXI

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. Performance was heavily impacted by a 33% decline in Solana's price during the quarter, driven by Bitcoin's beta and a broader crypto bear market. Management executed a proactive capital strategy, repurchasing 2.5 million shares at approximately $0.80 per share to increase Solana holdings on a per-share basis while trading below NAV. The company transitioned its brand business from in-house manufacturing and logistics to a third-party outsourced model to rightsize costs and tie expenses directly to revenue. Treasury expenses are expected to normalize following an elevated initialization phase, with a goal of achieving the lowest expense base among Solana treasury peers. Strategic value creation was furthered through a $36 million in-kind convertible note and a $7 million equity offering, both designed to be accretive to Solana per share metrics. The company is shifting focus toward generating low-risk, recurring yield beyond native staking to potentially command a sustained valuation premium. Management targets July 1 as the milestone for ongoing cash expenses to fall below treasury staking revenue, assuming a 6% to 7% staking yield. The company plans to eliminate remaining warehouse leases and logistics headcount by the end of the current quarter to complete the operational pivot. Guidance assumes a significant reduction in the $500,000 monthly interest expense through debt refinancing or restructuring within the next three months. Future capital allocation will prioritize building the Solana-per-share position through a mix of token purchases and opportunistic share buybacks. Management is evaluating off-chain, traditional financial instruments to enhance treasury yields, with an initial planned allocation of $25 million to $50 million. Reported a net loss of $109 million for the quarter, with $92.3 million attributed to non-cash unrealized losses on digital assets. Short-term debt was reduced by $7.6 million during the quarter, including a $5.4 million reduction in treasury-specific debt. The company flagged the 'October 10 deleveraging event' and competition from AI investments as external factors that pressured digital asset valuations. Management highlighted a 35% annualized increase in Solana holdings per share, outperforming native staking returns by 32 percentage points. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is exploring options to increase capital returns but maintains a high hurdle rate, requiring yields to exceed current native and locked staking returns. Any potential M&A would likely utilize leverage or debt rather than selling existing Solana holdings to preserve the core treasury position. Management prefers a 'fully loaded' NAV calculation that assumes the conversion of in-kind notes, which currently suggests a valuation near 1x NAV. They acknowledged that while the company may appear to trade at a premium on a non-conversion basis, the probability of conversion remains high based on option pricing models. The company intends to use traditional Wall Street instruments rather than on-chain protocols to minimize decentralized finance risks. Initial testing will involve a small portion of the treasury, with plans to scale once debt is refinanced and the strategy's efficacy is proven.

Interested in Upexi, Inc.? Here are five stocks we like better. Upexi posted revenue growth but a steep loss: Fiscal Q3 revenue rose to $4.6 million from $3.2 million a year ago, but the company reported a net loss of about $109 million, largely due to $92.3 million in unrealized losses on its Solana holdings. The company is actively managing capital and costs: Upexi repurchased about 2.5 million shares for roughly $2 million, issued a $36 million convertible note, and completed a $7 million equity-and-warrants deal. Management also cut debt, reduced headcount, and expects operating and interest expenses to fall below staking revenue by July 1. Management remains bullish on Solana’s long-term fundamentals: Executives said Solana’s ecosystem is still strong in stablecoins, tokenization, and AI payments, while Upexi is exploring additional low-risk yield strategies beyond native staking to boost returns and shareholder value. Upexi (NASDAQ:UPXI) reported higher fiscal third-quarter revenue but a large net loss tied primarily to unrealized losses on its Solana holdings, as management said a weak crypto market weighed on both token prices and industry valuation multiples during the quarter ended March 31, 2026. Chief Executive Officer Allan Marshall said the quarter was marked by “a challenging environment,” citing a decline in the price of Solana and industry multiples. He said Solana fell to an intra-quarter low of about $77 before rebounding to $96 at the time of the call, while Upexi’s valuation multiple also recovered from lows and was “now sitting above NAV” on the company’s fully loaded measure. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Marshall said Upexi remained focused on capital activity despite the market backdrop. The company repurchased approximately 2.5 million common shares for roughly $2 million, or about $0.80 per share, during the quarter. He said buying shares below 1x net asset value increases Solana per share. The company also issued a $36 million in-kind convertible note in January and completed an approximately $7 million equity and warrants offering. Marshall said the equity and warrants transaction was completed above NAV and increased Solana per share. → MercadoLibre Boldly Invests in Growth: Discount Deepens Chief Financial Officer Andrew Norstrud said Upexi had approximately $3.5 million in cash and 2.5 million Solana tokens as of March 31, including 1.4 million liquid tokens and 1 million locked tokens. During the quarter, staking generated approximately 35,000 tokens, or $3.5 million in revenue. For the fiscal third quarter, total revenue was $4.6 million, compared with $3.2 million in the prior-year quarter. For the nine months ended March 31, total revenue was approximately $21.8 million, compared with $11.5 million in the prior-year period. Norstrud said the increase reflected the addition of Upexi’s digital asset treasury business in 2025. → MP Materials Is Quietly Building a Rare Earth Powerhouse Upexi reported a quarterly net loss of approximately $109 million, or $1.67 per share. Norstrud said $92.3 million of the loss was related to unrealized losses on digital assets during the quarter. For the nine-month period, the company recorded an unrealized loss on digital assets of approximately $178.8 million, reflecting a Solana price per liquid token of $83.11 and $71.47 per locked token as of March 31. Norstrud said Upexi increased its total Solana holdings by about 189,000 tokens during the quarter, representing a 9% increase, or 35% annualized. For the nine months ended March 31, the company generated approximately $14.7 million in digital asset revenue, or about 100,000 tokens. Management said Upexi is working to lower its cost structure and align expenses with staking revenue. Marshall said the company has shifted its consumer brands operations from in-house manufacturing, warehouse and logistics to third-party providers, making costs more closely tied to revenue generated by the brands business. Norstrud said Upexi reduced short-term debt by approximately $7.6 million during the quarter, including a $5.4 million reduction in short-term treasury debt. He also said the company reduced recurring general and administrative expenses from the fiscal second quarter and cut headcount to 10 employees. Marshall said Upexi expects that by July 1, ongoing cash expenses for operations and interest will be less than treasury staking revenue, assuming a continued 6% to 7% staking yield. Norstrud said some warehouse leases and logistics-related expenses are expected to end during the current quarter, while the company is also looking at ways to reduce more than $500,000 per month of interest expense tied to short-term treasury debt. Chief Strategy Officer Brian Rudick said Solana declined from about $125 per token to about $83 during the quarter, a 33% drop, compared with a 22% decline in Bitcoin over the same period. Rudick said Upexi believes Solana’s decline was largely driven by Bitcoin’s weakness, as investors often trade crypto assets together. Rudick argued that Solana and Bitcoin are “two completely different constructs,” with Bitcoin functioning as a store of value and Solana serving as a “new type of computer” aimed at upgrading financial infrastructure. He said Solana’s fundamentals remain strong in areas such as stablecoins, tokenization and AI-agent payments. Rudick said stablecoin transfer volume on Solana totaled $2.1 trillion in the quarter, up 60% from the prior year. He said Solana real-world assets reached $2.4 billion in the first quarter, up from $317 million a year earlier. He said Solana held a 99% market share of tokenized equities trading volume in the first quarter. Rudick said lower Solana prices, combined with improving fundamentals, create what he described as an improved risk-reward opportunity for Upexi and Solana. Marshall said Upexi is examining ways to increase the native Solana staking yield in a “low risk and recurring” manner. He said the company believes the market would value additional yield above native staking if it is recurring and low risk. In response to an analyst question from Brian Kinstlinger of Alliance Global Partners, Norstrud said native staking yield was “just below 7%” during the quarter. Management also said it is evaluating potential opportunities, including M&A or other strategies, that could increase returns on capital, though any action would need to exceed the yields the company can earn through staking. During the question-and-answer session, management said any excess cash generated from staking would be used to build the treasury, either by repurchasing shares or buying more Solana, depending on which option is more accretive. Management also said it may initially allocate a smaller amount, such as $25 million or $50 million, toward a higher-yield strategy if returns are attractive, while emphasizing the company is seeking off-chain strategies using traditional Wall Street instruments. In response to a question about enterprise value and net asset value, Rudick said Upexi evaluates NAV in two ways depending on whether its in-kind convertible notes convert. He said the company’s fully loaded NAV assumes the converts are converted and Solana is sold to repay the outstanding line, resulting in roughly 1x NAV. He said another method, assuming no conversion, would show the company “way above NAV.” Rudick said Upexi’s view is that the in-kind convertible notes are more likely than not to convert, which is why management tends to manage the company using the fully loaded NAV measure. Marshall closed the call by saying Upexi is operating from a “position of strength,” citing what he described as a low average Solana purchase price relative to larger peers, a clean capital structure, leading trading volumes and valuation, and a management team focused on capital markets execution and shareholder value. Upexi (NASDAQ: UPXI) is a full-service digital consultancy that partners with brands to design, develop, and deploy digital products and marketing strategies. The company's expertise spans user experience and interface design, custom software engineering, and data-driven marketing services. By integrating research, creative design, and technical execution, Upexi helps clients accelerate product development cycles and optimize their digital presence. The firm serves a diverse, global clientele across sectors such as e-commerce, software-as-a-service (SaaS), healthcare, and finance. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Upexi Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Upexi Inc (NASDAQ:UPXI) successfully executed a buyback of approximately 2.5 million common shares, enhancing shareholder value. The company issued a $36 million in-kind convertible note, reducing credit risk and potentially increasing Solana per share. Upexi Inc (NASDAQ:UPXI) completed a $7 million equity plus warrants offering above NAV, further increasing Solana per share. The company has focused on cost reduction by outsourcing operations, which is expected to align expenses more closely with revenue. Upexi Inc (NASDAQ:UPXI) reported a significant increase in total revenue for the nine-month period, reflecting the addition of its digital asset treasury business. Upexi Inc (NASDAQ:UPXI) faced a challenging environment with a decline in Solana prices and industry multiples, impacting stock performance. The company reported a net loss of approximately $109 million for the quarter, largely due to unrealized losses on digital assets. There was a 33% decline in Solana's price during the quarter, which was more significant than Bitcoin's 22% fall. Upexi Inc (NASDAQ:UPXI) has a substantial amount of debt, with $238 million, which affects its enterprise value calculations. The company is still working towards achieving a self-sustaining treasury, with ongoing efforts to reduce expenses and manage debt. Warning! GuruFocus has detected 6 Warning Signs with UPXI. Is UPXI fairly valued? Test your thesis with our free DCF calculator. Q: Can you highlight the underlying yield for Solana that you're generating outside of what was acquired through the capital raise and what are the ways you're evaluating to improve that yield? A: Andrew Nordstrom, CFO: During the quarter, the staking yield was just below 7% for the native staking. We had a net increase of 187,000 tokens, factoring in the convertible debt and token sales. We are exploring strategies to improve yield, but the total rewards have been slightly down. Q: Can you highlight how management's thinking about M&A and what types of assets might be intriguing or go hand in hand with your business? A: Brian Ruddick, Chief Strategy Officer: We are exploring options to increase the overall return on our capital. Any M&A activity would need to surpass the yields we currently get from staking Solana. We are open to opportunities that could enhance yield without selling our Solana holdings. Q: Could you dive in on the cost structure and the path to a self-sustaining treasury? What existing cost actions need to be hit before you get to the July 1st milestone? A: Alan Marshall, CEO: We've reduced headcount and outsourced brand operations. We need to refinance some debt or see a small appreciation in Solana's price to reduce expenses further. By July 1st, we aim to have all logistics and leases concluded, reducing operating expenses significantly. Q: If you do end up generating cash flows from the staking business, how do you think about allocating that and returning it to shareholders? A: Alan Marshall, CEO: Any excess cash will be used to build the treasury, either by repurchasing shares or buying more Solana. We aim to enhance Solana per share value through disciplined capital activities. Q: Could you elaborate on the high-yield strategy and your appetite to allocate more of the treasury towards it in the future? A: Alan Marshall, CEO: We are considering an initial allocation of $25 million to $50 million into high-yield strategies, using traditional Wall Street instruments. Once we refinance debt, we may allocate more if the yield is promising. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Cash: Approximately $1.6 million as of December 31, 2025. Solana Tokens: 2,170,000 tokens held, with 1,320,000 liquid and 850,000 locked. Digital Asset Revenue: Approximately $11.2 million, or 65,700 tokens added. Treasury Expenses: Approximately $6 million for the six months ended December 31, 2025. Unrealized Loss on Digital Assets: Approximately $86.4 million for the six months ended December 31, 2025. Total Revenue (Q2 2026): Approximately $8.1 million, a 100% increase from the prior year quarter. Total Revenue (Six Months Ended Dec 31, 2025): $17.3 million compared to $8.4 million in the prior period. Net Loss (Q2 2026): Approximately $178.9 million, or $2.94 per share. Unrealized Losses on Digital Assets (Q2 2026): $164.5 million. Stock Compensation Expense: Approximately $8.3 million. Solana Tokens Added (Q2 2026): Approximately 106,000 tokens. Cash on Hand: Approximately $9.7 million. Warning! GuruFocus has detected 6 Warning Signs with UPXI. Is UPXI fairly valued? Test your thesis with our free DCF calculator. Release Date: February 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Upexi Inc (NASDAQ:UPXI) reported a significant increase in total revenue for the second quarter, reaching approximately $8.1 million, which is over a 100% increase compared to the prior year quarter. The company successfully increased its Solana token holdings by approximately 106,000 tokens during the quarter, demonstrating growth in its digital asset treasury. Upexi Inc (NASDAQ:UPXI) has implemented a $50 million share repurchase program, providing a tool to manage capital effectively. The company has become self-eligible and filed a shelf registration statement on Form S-3 with the SEC, enhancing its financial flexibility. Upexi Inc (NASDAQ:UPXI) remains optimistic about the potential for Solana's price appreciation and the company's ability to increase Solana per share, which could lead to greater potential upside. Upexi Inc (NASDAQ:UPXI) faced a net loss of approximately $178.9 million for the quarter, primarily driven by $164.5 million of unrealized losses on digital assets. The company experienced challenges due to declining asset prices and multiple compression in the treasury space, impacting its stock price and quarterly results. Solana's price fell significantly during the quarter, which negatively affected Upexi Inc (NASDAQ:UPXI)'s financial performance. The company incurred approximately $6 million in direct treasury expenses for the six months ended December 31, 2025, including management, custodial, and service fees. Upexi Inc (NASDAQ:UPXI) is cautious about entering on-chain yield strategies due to regulatory uncertainties and smart contract liquidation risks, limiting potential yield opportunities. Q: With the recent pressure on Solana, is there any change in your capital raising strategy? Are you more willing to raise capital at a lower premium to MNAV to reduce your average purchase price? A: Allan Marshall, CEO: We haven't changed our perspective. We aim to raise capital above NAV. We completed two capital raises post-quarter end, maintaining a focus on raising above or at NAV. The ATM is the lowest cost tool, and we are open to using it, but we will also consider selling Solana to buy back stock if the gap widens. Q: How do you weigh buying Solana versus keeping a cash reserve given the current market volatility? A: Allan Marshall, CEO: The downturn has taught us the importance of maintaining a cash reserve due to volatility. We are being prudent and believe we are nearing a market bottom. We are focusing on balance sheet strength and exploring hedging opportunities as the options market matures. Q: Can you share more about your high yield strategy plans? Are there still interested parties despite the pressure in cryptocurrency? A: Allan Marshall, CEO: We are cautious about on-chain yields due to additional risks and are waiting for regulatory clarity. We are exploring risk-adjusted high yield strategies that are more familiar to traditional investors and plan to launch something by the second quarter. Q: Is there an updated Solana balance following the direct offering and convertible notes placement? A: Allan Marshall, CEO: The public number is around 2,400,000 Solana tokens, and it remains close to that figure. Q: Can you elaborate on generating additional yield outside of staking? A: Brian Rudick, Chief Strategy Officer: We are exploring strategies to generate high yield in a low-risk way. Our focus is on recurring and low-risk returns, with a hurdle rate in the low to mid-teens. We will provide more details as we progress. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net loss of about $178.9 million for the quarter was driven largely by roughly $164.5 million of non‑cash fair‑value write‑downs on Solana, even as total revenue more than doubled to about $8.1 million for the quarter. Management strategy centers on raising Solana per share via accretive capital raises and buying locked tokens at discounts—Upexi completed multiple financings (private placements, a $36M in‑kind convertible note), became shelf‑eligible, announced a $50M buyback, and boosted cash to roughly $9.7M. Market backdrop: executives said the quarter was defined by token volatility and “multiple compression” after Solana fell ~40% in the quarter and a further ~31% post‑quarter, but they remain optimistic on Solana fundamentals and potential subsector consolidation to narrow NAV discounts. Interested in Upexi, Inc.? Here are five stocks we like better. Upexi (NASDAQ:UPXI) executives emphasized a long-term focus on growing Solana holdings per share and improving treasury yield during the company’s fiscal second-quarter 2026 earnings call, even as the quarter was overshadowed by steep declines in Solana’s price and broader valuation compression across digital-asset treasury companies. Chief Executive Officer Allan Marshall said the quarter was defined by two primary market challenges: falling digital-asset prices and declining valuation multiples for treasury-focused companies. Marshall noted Solana fell 40% during the quarter and was down an additional 31% since quarter end, which he said materially impacted results and Upexi’s stock. → Once Upon A Farm: Buy the $1B Growth Story? Despite the downturn, Marshall said he remains optimistic for three reasons: volatility is typical for digital assets; Solana’s fundamentals are improving; and Upexi believes it has tools to create shareholder value beyond simply holding the token, including “accretive issuance” and purchasing locked tokens at discounts. He added the company’s objective has been, and continues to be, increasing Solana per share to help offset price declines and enhance upside in stronger markets. On valuation, Marshall pointed to what he described as supply-and-demand dynamics across a crowded field of more than 200 treasury companies, with many trading at discounts to net asset value (NAV). He said Upexi expects the subsector to “work through” oversupply via potential M&A or companies selling digital assets to narrow discounts, and he argued Upexi could warrant a premium valuation in constructive environments if it succeeds in adding recurring, risk-prudent yield on its treasury. → 3 ETFs Designed to Survive the Next Market Crash Chief Strategy Officer Brian Rudick highlighted continued development and adoption on Solana during the quarter, framing the blockchain’s long-term goal as “internet capital markets.” He cited several milestones and indicators of activity, including: Launch of spot Solana ETFs, which he said have seen more than $850 million of net inflows since launch Stablecoin supply reaching a new record Growth in tokenized equities activity Non-native tokens such as MON and STRK beginning to trade on Solana The Firedancer client launching on mainnet Announcements involving institutions including Western Union, Visa, Coinbase, Revolut, Kalshi, and SoFi Rudick also reviewed Upexi’s financing and capital markets steps. He said the company completed a private placement of up to $19 million in common stock and warrants, and after quarter end completed an additional $7 million common stock and warrants offering, as well as a $36 million in-kind convertible note issuance. He said these financings were completed at a premium to the company’s fully loaded NAV and therefore increased adjusted Solana per share. → Verizon: Your Total Return Leader for 2026 Might Be Hiding in Plain Sight In addition, Rudick said Upexi became shelf-eligible during the quarter and filed a Form S-3 shelf registration statement that is now effective. He also noted the company announced a $50 million share repurchase program and increased investor outreach through conference participation and more than 100 investor meetings. Chief Financial Officer Andrew Norstrud said that as of December 31, the company had approximately $1.6 million in cash and 2.17 million Solana tokens, including 1.32 million liquid tokens and 850,000 locked tokens. He added that about 95% of tokens were staked at December 31. For the six months ended December 31, 2025, Norstrud reported digital asset revenue of approximately $11.2 million, which he equated to roughly 65,700 tokens added. Direct treasury expenses for the same period were approximately $6 million, including management, custodial and service fees, as well as interest. Norstrud said the treasury recorded an unrealized loss on digital assets of approximately $86.4 million for the six-month period, reflecting a Solana price of $124.48 at December 31, 2025. He noted there was no comparable prior-period financial information because the digital treasury began in April 2025. For the fiscal second quarter, the company reported total revenue of approximately $8.1 million, up about $4 million, or just over 100%, compared with $4 million in the prior-year quarter. For the six-month period, total revenue was $17.3 million, compared with $8.4 million in the prior period, which Norstrud attributed to the addition of the digital asset treasury business in 2025. Upexi reported a net loss for the quarter of approximately $178.9 million, or $2.94 per share. Norstrud said the loss was primarily driven by $164.5 million of unrealized losses on digital assets tied to non-cash quarter-end fair value adjustments, as well as about $8.3 million of stock compensation expense. He added that, excluding fair value changes, “the underlying treasury performance has remained strong.” Norstrud said the company increased its Solana holdings during the quarter by about 106,000 tokens, driven by spot purchases but partially offset by a decline in locked Solana through a swap transaction. He also said the company strengthened its balance sheet and, primarily due to accretive equity raises, had approximately $9.7 million of cash on hand at the time of the call. Marshall reiterated two priorities: raising capital above NAV (or at NAV) to grow digital assets per share—using equity and in-kind convertible notes—and increasing treasury yield in what he described as a low-risk fashion to potentially support a higher valuation multiple. In the question-and-answer session, Marshall said the company’s capital raising approach had not changed due to recent Solana price pressure, and that management continues to avoid reacting to “daily movement.” He said Upexi would look to raise capital as the gap to NAV closes, with a preference for issuing above NAV or at NAV, and described the at-the-market (ATM) facility as a low-cost tool. He also said the company could consider selling Solana to buy back stock if the discount to NAV becomes too wide. Asked about balancing cash versus additional Solana purchases, Marshall said the recent drawdown underscored the need to keep reserves and remain prudent, adding that maturing options market liquidity could create better opportunities to hedge positions than were available earlier. On incremental yield beyond staking, management said it is evaluating strategies but is not pursuing on-chain yield strategies at this time, citing regulatory clarity and risks such as smart contract and liquidation risk. Marshall said the company is pursuing something more familiar to traditional investors and expected more clarity after work progresses in the quarter beginning April. Rudick added that Upexi is focused on recurring and low-risk yield, and cited the company’s “hurdle rate” as comparable to the low- to mid-teens yield it associates with buying locked Solana at a discount combined with staking. Later in Q&A, Marshall confirmed that a publicly stated Solana balance of roughly 2.4 million tokens was “really close,” with no material change. He closed the call by acknowledging a difficult quarter for the crypto market while reiterating confidence in the company’s long-term direction. Upexi (NASDAQ: UPXI) is a full-service digital consultancy that partners with brands to design, develop, and deploy digital products and marketing strategies. The company's expertise spans user experience and interface design, custom software engineering, and data-driven marketing services. By integrating research, creative design, and technical execution, Upexi helps clients accelerate product development cycles and optimize their digital presence. The firm serves a diverse, global clientele across sectors such as e-commerce, software-as-a-service (SaaS), healthcare, and finance. The article "Upexi Q2 Earnings Call Highlights" was originally published by MarketBeat.

Performance was significantly impacted by a 40% decline in Solana token prices during the quarter, highlighting the company's direct exposure to underlying asset volatility. Management attributes the current stock price discount to net asset value (NAV) to a general multiple compression across the treasury company subsector due to an oversupply of similar public vehicles. The company maintains a high-conviction stance on Solana, viewing current price weakness as a disconnect from improving fundamental on-chain metrics and global institutional adoption. Strategic value is being driven through 'accretive issuance,' where capital is raised at a premium to NAV to increase the total Solana holdings per share for existing investors. Operational focus has shifted toward developing risk-prudent yield mechanisms to differentiate the company from passive ETFs and other treasury peers. The addition of the digital asset treasury business in April 2025 has fundamentally transformed the revenue profile, contributing $11.2 million in digital asset revenue for the first half of fiscal 2026. Management aims to launch a new high-yield strategy in the second quarter of 2026, targeting recurring, low-risk returns that exceed the current 'hurdle rate' of low-to-mid teens yield. Future capital allocation will prioritize maintaining a cash reserve to navigate volatility while opportunistically purchasing discounted locked tokens to lower the average cost basis. The company has an effective $50 million share repurchase program and a Form S-3 shelf registration, and plans to utilize the ATM facility as a low-cost tool for capital management when market conditions are favorable. Strategic hedging via maturing options markets is expected to become a larger part of the risk management framework as liquidity in digital asset derivatives improves. Management anticipates potential multiple expansion driven by catalysts such as the passage of U.S. digital asset legislation and the continued maturation of the Solana ecosystem. Reported a net loss of $178.9 million, primarily driven by a $164.5 million non-cash unrealized loss on digital assets due to quarter-end fair value adjustments. Successfully executed a $36 million in-kind convertible note issuance at a premium to NAV, which management views as a lower-credit-risk method of expanding the treasury. Approximately 95% of all Solana tokens held in the treasury were staked as of December 31, 2025, to capture consistent network rewards. The treasury holds a mix of 1,320,000 liquid tokens and 850,000 locked tokens, with the latter providing higher effective yields through purchase discounts. 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 confirmed they will not 'panic' or lower their standards for raising capital, remaining committed to raising at or above NAV whenever possible. The company is prepared to sell Solana to buy back its own stock if the discount to NAV becomes excessively wide. Management explicitly stated they will avoid 'on-chain' yield strategies to bypass smart contract and liquidation risks, seeking more traditional market structures instead. The strategy is currently in an exploratory phase with a focus on recurring, low-risk returns that compete with the 15% discounts found in locked token markets. Following recent offerings and convertible note placements, the company's Solana balance is approximately 2,400,000 tokens. The company currently holds approximately $9.7 million in cash to provide a buffer against ongoing market volatility. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Tuesday, February 10, 2026 at 5:30 p.m. ET Chief Executive Officer — Allan Marshall Chief Strategy Officer — Brian Rudick Chief Financial Officer — Andrew Norstrud Need a quote from a Motley Fool analyst? Email [email protected] Allan Marshall: Thank you, Valter, and welcome to our second quarter 2026 earnings conference call. I'm happy to review our results and discuss why, despite the difficult market backdrop, I remain extremely optimistic for the future and why we remain well-positioned to win. The market presented two key challenges for us last quarter with both declining asset prices and treasury company multiple compression. This was reflected in our quarterly results as well as in our stock price. I'll discuss each in succession. On the former, the price of Solana fell 40% during the quarter, and it has fallen a further 31% since the quarter end. While there have been many reasons cited, including rising geopolitical risks, precious metals stealing the show, and many more, the fact of the matter is the biggest determinant of any treasury company's success has and always will be the performance of its underlying token. Thus, we are not immune, and Solana's performance had a big impact on the company. That said, I remain encouraged for three key reasons. The first is given their latency, such volatility is normal with digital assets. And Solana often exhibits large movements in both directions along a significant uptrend over time. Second, as Brian will discuss in more detail, the underlying fundamentals for Solana continue to improve as global finance moves on-chain. Here, I'm particularly optimistic because over time, price follows fundamentals. And improving fundamentals against the falling price is a recipe for greater potential upside. Lastly, as a treasury company, we have multiple mechanisms not available to native tokens or ETFs that can create value for shareholders, like accretive issuance and discounted lock token purchases. We have in the past and aim to, in the future, increase our Solana per share to help offset any decline in token price, or to add to any increase in price in an upmarket. So overall, between the volatility being expected, a positive view for potential Solana price appreciation, and our ability to increase Solana per share, we remain positive about the opportunity and continue to believe 2026 will be a strong year for Solana and Upexi. The second key challenge during the quarter was general multiple compression in the treasury space. We believe this was due to the law of supply and demand. With over 200 treasury companies, it's not hard to see why many are trading at discounts to net asset value. Despite this, I remain optimistic for so many reasons. First, I believe the subsector will work through some of its oversupply, either through M&A or from treasury companies selling their digital assets to close the discounts. Secondly, I believe there are fundamental reasons why Upexi can and should trade at a premium valuation in constructive market environments. As discussed in the past, these have to do with our multiple value accrual mechanisms which have value. Third, as we have publicly stated, we are working to increase the yield that we generate on a treasury in a risk-prudent and recurring fashion. Should we be successful, we believe this would increase our multiple, which in turn would accelerate the model and differentiate Upexi from others. Lastly, I believe we're likely to see multiple expansion in a bull market, as has been the case historically with public companies. And there are large catalysts like the potential passage of US digital asset legislation that could quickly bring this to fruition. In closing, while we have had a turbulent start to 2026, we remain positive about the future and the company has developed a strong strategic plan to, one, increase yield, two, hedge positions using maturing option markets, and lastly, capitalize on top of opportunities the volatility creates. All of these things should lead to significant growth in yield, cash flow, and stability for 2026 and beyond. With that, I'd like to turn the call over to our Chief Strategy Officer, Brian Rudick. Brian Rudick: Thanks, Allan, and hello, everyone. Despite the challenges during the quarter, the underlying fundamentals for both Solana and Upexi remained solid. As a brief reminder, Solana's North Star is what it calls Internet capital market, where it aims to upgrade our antiquated global financial infrastructure. Existing constructs like ACH and the credit card issuer networks were created fifty-plus years ago and are slow and expensive. While even fintech is simply a front-end wrapper on this antiquated infrastructure. But we can now use Internet and blockchain-based rails to upgrade this antiquated infrastructure for huge speed and cost savings, in addition to other benefits around transparency, composability, investor access, and many more. Solana continued to progress throughout the quarter with increased development, adoption, and usage. The Spot Solana ETFs launched and have seen over $850 million of net inflows since. Stablecoin supply reached a new record, tokenized equities are booming. Non-native tokens like MON, STRK began trading on Solana, and the FireDancer client launched on Mainnet. And importantly, key announcements were made by various leading institutions, including Western Union, Visa, Coinbase, Revolut, Robinhood, Cauchy, and SoFi. In short, Solana demonstrated strong momentum and particularly so related to its Internet capital markets goal. The opportunity to revolutionize finance is massive, and Solana is at its very heart. We remained active with the capital markets highlighted by the private placement of $19 million in common stock and warrants, and subsequent to quarter end, an additional $7 million common stock and warrants offering as well as a $36 million in-kind convertible note issuance. Both were done at a premium to our fully loaded NAV meaning they increased adjusted Solana per share. We also became self-eligible during the quarter and quickly filed our shelf statement on Form S-3 with the SEC which is now effective. And we announced a $50 million share repurchase program adding another important tool to manage capital. On the visibility front, we participated in over 10 conferences and events during the quarter, including Solana Breakpoint, Maxim, Cantor, Rothschild, Roth, Clear Street, and others. These resulted in myriad presentations and panels, as well as in over 100 investor meetings where we continue to evangelize both Solana and Upexi. And we continue to appear in many news articles and podcasts throughout the quarter. Put simply, Solana is executing on its Internet capital markets road map and Upexi is adding additional value for shareholders. And with that, I'd like to turn the call over to our Chief Financial Officer, Andrew Norstrud, for a review of our financial performance. Andrew Norstrud: Thank you, Brian. As of December 31, the company had approximately $1.6 million in cash and 2,170,000 Solana tokens. 1,320,000 of those tokens were liquid, 850,000 of those tokens were locked. For the six months ended 12/31/2025, the company had digital asset revenue of approximately $11.2 million or approximately 65,700 tokens added. We expect to increase the number of tokens we hold in our treasury each quarter and also increase the quarterly revenue from the treasury. The direct treasury expenses for the six months ended 12/31/2025 were approximately $6 million which included management fees, custodial fees, service fees, and interest. For the six months ended 12/31/2025, the treasury had an unrealized loss on digital assets of approximately $86.4 million reflective of the Solana price per token of $124.48 at 12/31/2025. There are no comparable financial information for the prior period as the Digital Treasury was started in April 2025. The company continues to develop the digital asset treasury with a focus on maximizing the return for shareholders and had approximately 95% of all token stake at 12/31/2025. For the second quarter, total revenue was approximately $8.1 million, an increase of approximately $4 million or just over 100%, compared to $4 million in the prior year quarter. For the six months period ended 12/31/2025, total revenue was $17.3 million compared to $8 million in the prior period. This increase reflects the addition of digital asset treasury business in 2025. The net loss for the quarter was approximately $178.9 million or approximately $2.94 per share. This loss was primarily driven by the $164.5 million of unrealized losses on digital assets reflecting non-cash quarter-end fair value adjustments as well as approximately $8.3 million of stock compensation expense. Excluding these fair value changes, the underlying treasury's performance remains strong. We increased the number of Solana tokens in our treasury during the quarter by approximately 106,000 tokens. The increase was driven by spot token purchases partially offset by a decline in the locked Solana through a swap transaction. We continue to strengthen our balance sheet in light of the changing market environment. Due primarily to accretive equity raises previously mentioned, we currently have approximately $9.7 million of cash on hand. Management continues to focus on growing Solana's holdings on a per-share basis through disciplined capital activities, staking yield, and opportunistic purchases of discounted locked tokens, while maintaining prudent leverage and risk management. And now I'll turn it back over to Allan for concluding remarks. Allan Marshall: Thanks, Andrew. I wanted to conclude the call by highlighting our top priorities. While we, as always, remain hyper-focused on external visibility and intelligent capital issuance, there are two key initiatives worth highlighting. The first is a continued focus on accretive growth. We aim to raise capital above NAV to increase our digital assets per share. We will continue to look for ways to raise equity capital in the most cost-effective manner available. Additionally, we will also continue to issue in-kind convertible notes at a premium to NAV. Such notes offer differentiated risk-reward for investors while significantly reducing credit risk for both parties. Our second key focus going forward is to increase the yield on the treasury in a low-risk fashion, which we believe would enhance our valuation. If we are successful, we should trade at a sustainable premium, which itself would accelerate the capital markets flywheel. In closing, we've remained active even in a significant downtrend, completing both a capital raise and an in-kind convert both at slowly or above NAV. While this has not helped stem the downturn in this or the stock performance, we believe it will accelerate the upturn when Solana and crypto begin to recover from the current drawdown. With that, I'll turn it over to the operator for questions. Operator: Thank you. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Brian Kinstlinger with Alliance Global Partners. Please proceed. Brian Kinstlinger: Great. Thanks for taking my questions. Recent pressure on Solana coupled with your high conviction, is there any change in terms of your capital raising strategy? Are you more willing to raise capital at a lower premium to MNAV? To reduce your average purchase price? And then is the goal to use the ATM as much as possible to lower your cost of capital. Allan Marshall: I'll jump in here, Brian. I don't think we've changed our perspective at all on this. We have one of the lowest costs on Solana tokens. We were able to, like we said, do two capital raises subsequent to the quarter end, with the one with Hivemind and then the cash one not too long ago, just over NAV. So we don't want to panic here and let or I shouldn't say panic, but, you know, decisions based on just daily movement. We continue to bring that cost down. We'll definitely be open to raising capital as that gap to NAV closes again, but we're still going to look to raise above NAV or at NAV as often as possible. The ATM, obviously, is the lowest cost. Now that we have all the tools in place going forward, we'll certainly be willing to use that, but we'll also be willing to sell Solana to buy stock back if that gap gets too wide as well. Well, to that point, you've got $9.7 million of cash. How do you weigh buying Solana versus keeping a reserve? I think the one thing that this downturn has taught everybody is to keep a reserve. Right? Like, the volatility has been even I think would from the crypto neos, we would consider pretty volatile in such a short period of time, especially into what everyone considers tailwinds. So right now, we're going to just be prudent. We do think we're getting close to washing out at the bottom here. Hopefully, it'll bounce around for a while and recover. So cash reserves are okay. What we've done is, you know, just kind of throw the balance sheet, make sure that we're set. The other thing with the whole market, and I said it in our call, is the options market and everything are getting much more liquid. So you're going to have a lot more opportunity to hedge these positions or to partially hedge these positions. We tried to do it earlier in the year. We're just unable to get a liquid enough market to do the size we wanted. Now looking back, we wish we could have, but with all of the new kind of attention to it, all of the ETFs launching with, you know, liquidity is coming. So everything's maturing, and I think all of that's going to still bring a lot of opportunity both to raise capital again, to hedge in any movements, to sit on cash. You know, right now, we're just in general, like, playing it as close to the vest we can, but we're still looking to grow. Brian Kinstlinger: Right. My last question is you've alluded to your high yield strategy plans. I think you had a press release a while back on that too. Any more you can share we've seen a number of DApps lend their digital coins they've generated a much higher return. I guess I'm curious is there a lower appetite or would be partners for this type of transaction given the pressure in cryptocurrency? Or are there still a number of parties that have a high degree of interest in something's imminent. Allan Marshall: Couple things. One is, like, I want to see what how that yield like, we understand how they're looping those tokens and everything. I don't believe that creates the yield that they're talking about, so I want to see how that's I'm not sure it's presented in apples to apples, presentation. So we want to see that. However, we are currently going through the exercise to pinpoint, like, the risk-adjusted, high yield strategies we're looking for opportunities. What we do believe there's a time and a place for on-chain yields, today is not it for us. We're not willing to go on-chain. We're still waiting for that regulatory clarity. The on-chain comes with additional smart contract liquidation risks. We don't want to enter into any of that. Like you said, with that volatility, and those yields, you know, can also compress. So what we're looking at is a more familiar and really easily understood by traditional kind of investors. We're looking at something that's more familiar in the markets. We're going to try to launch that here into the second quarter. April 4. And at that point, we'll probably give you more clarity on how we're doing that. But it's not on-chain. That's all I can tell you for now. Brian Kinstlinger: Okay. Thank you for taking my questions. Operator: As a reminder, it is star one on your telephone keypad if you would like to ask a question. Our next question is from Brett Knobloch with Cantor Fitzgerald. Please proceed. Brett Knobloch: Hi, Thanks for taking my question. I might have missed this, but is there an updated Solana balance following the direct offering in the placement of the convertible notes? In the press release, it said around 2,400,000. Is that the number that we should be using? Allan Marshall: That's the public number we have so far as it's really close. It's really close to that number. Nothing much has changed. Brett Knobloch: Perfect. Appreciate it. And then just to maybe double click on the generating additional yield outside of staking. Can you maybe elaborate in what forms of activities you would participate in? Obviously, you said nothing on-chain, but any additional color on how or where you would generate additional yield to staking? Allan Marshall: You know, what I'll let Brian step in here. But, yeah, what I will say is we're, you know, we will definitely collaborate on that going forward. But right now, we're trying to get it set up the way we want to get it set up. But I'll let Brian step in and elaborate a little bit there. Brian Rudick: Yeah. Thanks, Allan, and thanks, Brett. Yeah. As Allan mentioned, we're still in the exploratory phase. We think that we've identified specifically one strategy that can generate high yield in a low-risk way. But we're waiting till we're a bit further along in that path before we reveal too many details. The one thing I'd say is, like, we've got really two key things that we're focused on. One is making sure that this is recurring. And number two, making sure that this is low risk. And so when we think about it internally, our hurdle rate is that low to mid-teens that we can get on the lock. And so we've bought locked Solana at a 15% discount. When you think of it like OID and you put that 15% discount into the yield equivalent, we still get the 7% staking yield on that, and so it translates to an all-in, you know, low teens yield. And so that and we view that as low risk as well. So that is kind of the hurdle rate of what we're looking to do. And everything that we do will be compared against that. But we will give more information in the future as we continue to progress there. Brett Knobloch: Perfect. Thanks, guys. Appreciate it. Operator: There are no more further questions. I would like to turn the conference back over to Allan Marshall for closing remarks. Allan Marshall: Well, thank everybody for joining the call. I know it's been a tough quarter for everyone in crypto. We, like I said, during the call, we do think the future is still bright. We think we're on the right path. And thank you for the great questions. And we look forward to updating you guys during the quarter, and look forward to the next conference call. Thank you very much. Operator: The conference has now concluded. Thank you for attending today's call. You may now disconnect. Before you buy stock in Upexi, 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 Upexi 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 $439,362!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,164,984!* Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 196% 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 February 11, 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Upexi (UPXI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Upexi, Inc.'s (NASDAQ:UPXI) solid earnings report last week was underwhelming to investors. We think that they may be worried about something else, so we did some analysis and found that investors have noticed some soft numbers underlying the profit. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Upexi has an accrual ratio of 0.34 for the year to September 2025. Unfortunately, that means its free cash flow was a lot less than its statutory profit, which makes us doubt the utility of profit as a guide. Even though it reported a profit of US$54.7m, a look at free cash flow indicates it actually burnt through US$16m in the last year. We saw that FCF was US$911k a year ago though, so Upexi has at least been able to generate positive FCF in the past. Unfortunately for shareholders, the company has also been issuing new shares, diluting their share of future earnings. One positive for Upexi shareholders is that it's accrual ratio was significantly better last year, providing reason to believe that it may return to stronger cash conversion in the future. As a result, some shareholders may be looking for stronger cash conversion in the current year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. In fact, Upexi increased the number of shares on issue by 5,637% over the last twelve months by issuing new shares. As a result, its net income is now split between a greater number of shares. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. You can see a chart of Upexi's EPS by clicking here. Upexi was losing money three years ago. Zooming in to the last year, we still can't talk about growth rates coherently, since it made a loss last year. But mathematics aside, it is always good to see when a formerly unprofitable business come good (though we accept profit would have been higher if dilution had not been required). Therefore, one can observe that the dilution is having a fairly profound effect on shareholder returns. If Upexi's EPS can grow over time then that drastically improves the chances of the share price moving in the same direction. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. In conclusion, Upexi has weak cashflow relative to earnings, which indicates lower quality earnings, and the dilution means that shareholders now own a smaller proportion of the company (assuming they maintained the same number of shares). Considering all this we'd argue Upexi's profits probably give an overly generous impression of its sustainable level of profitability. If you want to do dive deeper into Upexi, you'd also look into what risks it is currently facing. For example, we've found that Upexi has 4 warning signs (3 are a bit concerning!) that deserve your attention before going any further with your analysis. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

This article first appeared on GuruFocus. Total Revenue: Increased by $4.9 million to $9.2 million for the quarter. Net Income: $66.7 million for the quarter. Earnings Per Share (EPS): $1.21 for the quarter. Digital Asset Revenue: Over $6 million in fiscal Q1, with current additions of over $75,000 per day. Solana Tokens: Increased by approximately 1,322,000 tokens during the quarter. Staking Revenue: $6.1 million generated from the treasury. Unrealized Gains: Approximately $78 million recognized during the quarter. Solana Token Purchases: Approximately 2,029,100 tokens purchased at an average price of $155.57. Warning! GuruFocus has detected 6 Warning Signs with UPXI. Is UPXI fairly valued? Test your thesis with our free DCF calculator. Release Date: November 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Upexi Inc (NASDAQ:UPXI) successfully completed a $100 million equity private placement and a $200 million raise, demonstrating strong capital-raising capabilities. The company has strategically pivoted towards digital assets, focusing on Solana, which is expected to be a high-performance blockchain with significant potential. Upexi Inc (NASDAQ:UPXI) generated over $6 million in digital asset revenue in fiscal Q1, with staking activities providing a substantial boost to company revenue. The management team has extensive experience in traditional finance, which is leveraged to create shareholder value through innovative capital market strategies. Upexi Inc (NASDAQ:UPXI) has increased its Solana holdings significantly, with a current valuation exceeding $327 million, positioning the company well for future growth. The company's shift to digital assets introduces volatility and risks associated with the crypto market, which could impact financial performance. Upexi Inc (NASDAQ:UPXI) faces challenges in accurately blending and maximizing staking yields due to the evolving nature of its digital asset strategy. The company's reliance on Solana's performance means that any adverse developments in the Solana ecosystem could negatively affect Upexi Inc (NASDAQ:UPXI). There is uncertainty regarding the regulatory environment for digital assets in the US, which could impact Upexi Inc (NASDAQ:UPXI)'s operations and strategy. Despite the positive outlook, the company acknowledges the potential for trading at a discount, which could affect investor sentiment and capital market activities. Q: The company has added high-profile crypto investors to the advisory committee. Can you discuss their impact and any recommendations for differentiation outside of SOL accumulation and yield? A: Allan Marshall, CEO: The advisory committee has provided valuable feedback on market presentation and positioning. Currently, the focus remains on Solana, with no immediate plans for ancillary revenue-generating businesses. However, internal discussions are ongoing to maximize yield for investors. Q: Given the partial quarter of SOL holdings, what has been the effective yield, and is there potential for enhancement? A: Allan Marshall, CEO: The yield is expected to increase as all assets are now staked. Andrew Norstrud, CFO, added that a program is in place to optimize validator fees and increase yield, with more clarity expected next quarter. Q: How would management address a situation where Upexi faces a deep discount in capital markets? A: Allan Marshall, CEO: The company has options like converting staking revenue into buybacks. The focus is on long-term growth, and even in a crypto pullback, the strategy remains robust. Brian Rudick, CSO, noted that borrowing funds to repurchase shares is a potential strategy without selling SOL. Q: Can you elaborate on the capital market strategy during a bear market, referencing MicroStrategy's approach? A: Brian Rudick, CSO: In a bear market, capital issuance may pause, but strategies like borrowing to repurchase shares can compress discounts. The company earns an 8% staking yield, and locked SOL purchases effectively double this yield, supporting treasury growth. Q: What are the future plans for enhancing yield beyond standard staking? A: Andrew Norstrud, CFO: The company is exploring opportunities to increase yield beyond standard staking, with more details expected next quarter as programs are fully implemented. For the complete transcript of the earnings call, please refer to the full earnings call transcript.