0001859392-26-000054
SEC filingNet loss improved 27% YoY to $216.3M, driven by higher gains on digital assets despite lower revenue.
Galaxy Digital reported a net loss of $216.3 million for Q1 2026, improving from a $295.4 million loss in Q1 2025. Total revenue fell 23% to $10.0 billion, primarily due to a $2.9 billion decline in digital asset sales, reflecting lower trading volumes and average digital asset prices. However, gains from operations swung to $171.8 million from a loss of $120.3 million, driven by a $297.2 million improvement in net gain on digital assets (to $279.0 million) and a $74.3 million increase in net gain on derivatives trading. These gains offset higher impairment of digital assets ($284.4 million, up 153%) and a $79.4 million larger net loss on investments. Operating expenses fell 21% to $10.45 billion, largely due to lower transaction expenses, but impairment and compensation costs rose. Adjusted EBITDA improved to $(187.5) million from $(289.5) million.
The Digital Assets segment recorded a net loss of $34.3 million, compared to net income of $3.5 million in Q1 2025, as lower trading volumes and higher impairment weighed on results. Data Centers remained pre-revenue, with a net loss of $1.5 million as construction costs incurred. Treasury and Corporate reported a net loss of $180.5 million, narrower than $296.1 million in Q1 2025, driven by lower losses on digital assets and investments.
Management expects the Helios data center conversion to HPC infrastructure to deliver substantially all 133 MW of critical IT load by end of H1 2026, with lease revenue from CoreWeave commencing thereafter. The company secured additional ERCOT-approved power capacity and raised $1.3 billion in exchangeable notes and $460 million private placement to fund build-out. No numerical guidance for Q2 2026 was provided. Strategic priorities include scaling GalaxyOne retail platform and expanding asset management AUM.
Galaxy Digital's total assets declined to $9.99B from $11.35B at year-end 2025, driven by a $786M decrease in digital assets (both intangible and financial). Cash and equivalents dropped 27% to $910.7M. Total debt (notes payable) increased to $3.06B from $2.86B, primarily due to additional draws on the $1.4B Credit Agreement (outstanding $1.1B at quarter end). Shareholders' equity (attributable to Class A stockholders) decreased to $1.81B from $1.96B, impacted by net losses and $80M in share repurchases. The company maintains $634.7M in loans receivable (fiat) and $670.1M in digital asset loans receivable, net of allowances. Deferred revenue (contract liabilities) of $47.6M will be recognized through September 2028.
The most significant commitment is the Helios data center construction contract: $706.5M outstanding as of March 31, 2026 (up from $529.8M at year-end 2025). Additionally, the company has $48.8M in unfunded investment and loan commitments to portfolio companies. A $120M legal settlement related to LUNA matters is due in equal payments of $60M in 2027 and 2028, discounted at 4.26% (accrued $112.6M). Operating lease liabilities total $11.6M with average remaining term of 2.7 years.
Galaxy repurchased 3.69 million Class A shares for $80M in Q1 2026, reducing total shares outstanding. No dividends were paid. The company issued $166M in net new notes payable (including draws on the Credit Agreement) while repaying $3.3M of loans payable. Capital expenditures totaled $337.9M, primarily for data center construction and mining equipment. Total debt carrying value of $3.06B includes $2.1B in exchangeable notes (weighted effective rate ~4.7%) and $1.1B in variable-rate credit facility. The company uses interest rate caps to hedge SOFR exposure.
Three reportable segments: Digital Assets (83% of total assets, $6.04B), Data Centers ($2.10B), and Treasury & Corporate ($1.84B). Digital Assets generated $10.04B revenue (down 23% YoY) but posted a $34.3M net loss. Data Centers revenue was minimal ($3.05M) with a $1.5M loss, reflecting early-stage HPC infrastructure. Treasury and Corporate reported a $180.5M loss, including impairment of digital assets and unallocated expenses. Geographic mix not disclosed.
The provided document excerpt does not contain the actual cash flow statement. It includes the table of contents, statements of operations, financial position, and changes in equity, but the cash flow statement (page 12) is missing. Therefore, no cash flow metrics such as CFO, capex, or FCF can be extracted. Further analysis requires the full filing.