0001683168-26-002333
SEC filingEmpery Digital Inc. reported a net loss of $150.1 million for FY 2025, a significant increase from a $45.5 million loss in FY 2024. This was primarily driven by a $122.7 million unrealized loss on digital assets, which constituted 79.3% of total operating expenses. Revenue declined sharply to $975K from $3.98 million in the prior year, while gross margin was negative at -$363K due to cost of goods sold exceeding revenue. The company's strategic shift to a digital asset treasury strategy, initiated in July 2025, involved raising $501 million in private placements to acquire Bitcoin, resulting in total digital asset holdings of $357.0 million as of December 31, 2025. Despite a net cash outflow from operations of $17.8 million, financing activities provided $478.4 million, primarily from equity issuances, supporting a year-end cash position of $9.1 million.
For the fiscal year ended December 31, 2025, Empery Digital Inc. reported a net loss of $150.1 million, a significant deterioration from a net loss of $45.5 million in the prior year. The loss from continuing operations was $148.6 million, compared to $44.2 million in FY 2024. A major driver was a $122.7 million unrealized loss on digital assets, recorded as an operating expense following the adoption of the company's new digital asset treasury strategy in July 2025. Revenue declined sharply to $975K from $3.98 million in the prior year, primarily due to the discontinuation of several vehicle product lines. The company ended the year with total assets of $372.4 million, heavily weighted towards digital assets valued at $357.0 million, and stockholders' equity of $269.2 million.
Revenue for FY 2025 was $975K, a 76% decrease from the $3.98 million reported in FY 2024. The decline is attributed to the strategic shift away from vehicle sales. Revenue components included sales of the discontinued Grunt EVO motorcycle ($303K), the continuing Brat E-Bike ($437K), accessories and parts ($116K), and finance revenue from inventory financing ($98K). In the prior year, revenue was more diversified across the Brat, Grunt EVO, Stag, and Volcon Youth product lines. The company divested its four-wheel product lines (HF1 and MN1 UTVs) in October 2025, and those results are presented as discontinued operations, contributing an additional $1.5 million loss.
The company reported a gross margin of -$363K (gross margin percentage of -37.2%), compared to -$14.0 million (-351.6%) in the prior year. The negative margin persists as cost of goods sold ($1.34M) exceeded revenue. Operating expenses ballooned to $153.1 million from $11.7 million, with the $122.7 million unrealized loss on digital assets representing 79.3% of the total. Other significant operating expenses included general and administrative costs of $28.6 million (which included $17.8 million in stock-based compensation) and sales and marketing expenses of $1.5 million. The loss from operations was $153.5 million.
Net cash used in operating activities was $17.8 million, an increase from $16.0 million used in the prior year. Cash flow from investing activities was an outflow of $453.8 million, primarily due to the purchase of $451.6 million in digital assets (Bitcoin). Cash flow from financing activities was a large inflow of $478.4 million, driven by net proceeds of $452.3 million from the July 2025 private placement, $10.3 million from ATM offerings, and $100.0 million from borrowings, partially offset by $96.3 million in share repurchases. The balance sheet shows total assets of $372.4 million, including $357.0 million in digital assets and $14.3 million in current assets. Total liabilities were $103.2 million, resulting in stockholders' equity of $269.2 million. Cash and cash equivalents were $9.0 million.
Management anticipates that cash on hand, plus cash expected from operations, derivative trading, available borrowings, and potential sales of Bitcoin, will be sufficient to fund planned operations and repay borrowings. The company's strategy focuses on its digital asset treasury to increase Bitcoin per share and stockholder value, which includes issuing equity at a premium to net asset value (NAV), repurchasing shares when trading below NAV, and reducing operational costs. The company expects revenue from product sales to decrease further in 2026 following the divestiture of four-wheel products and will concentrate on its two-wheel business (the Brat E-Bike) and expanding inventory financing operations. Significant risks noted include the high volatility of Bitcoin prices, regulatory uncertainty for digital assets, reliance on third-party manufacturers, and the company's history of losses and negative cash flows.