10-Q · May 8, 2026
Galaxy Digital reported a Q1 2026 net loss of $216.3 million with an adjusted EPS of $(0.49), significantly better than the expected loss of $(0.82). Revenues fell 23% year-over-year to $10.04 billion due to decreased…
Earnings analysis · 10-Q
GLXY earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Galaxy’s Q2 results show the beginning of the Helios data-center revenue ramp, but the company remained materially loss-making as investment losses, digital-asset impairment of $181.3 million and higher corporate costs…
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Galaxy’s Q2 results show the beginning of the Helios data-center revenue ramp, but the company remained materially loss-making as investment losses, digital-asset impairment of $181.3 million and higher corporate costs offset operating gains. Revenue declined 1% year over year to $8.557 billion, diluted EPS was $(0.09), and six-month free cash flow was approximately negative $448.0 million after $736.7 million of capital spending. The data-center strategy has meaningful long-term lease potential, including $4.748 billion of future minimum lease income, but liquidity, project execution, customer concentration and the subsequent $3.507 billion secured financing materially increase risk.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.09
- Operating margin
- -1.5%
What stood out
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Revenue declined modestly year over year
Q2 revenue was $8.557 billion, down $104.2 million, or 1%, from $8.662 billion in Q2 2025. Revenue and gains from operations were $8.711 billion, down 4% year over year.
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Profitability deteriorated sharply
The company generated a Q2 net loss of $85.3 million versus net income of $30.7 million in Q2 2025; diluted EPS was $(0.09) versus $0.08. Adjusted EBITDA was $(77.3) million versus $211.1 million.
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Helios data center revenue commenced
Data Centers began contributing revenue, with $18.9 million of leasing revenue and $5.8 million of operator revenue in Q2. The segment generated $31.2 million of net income versus no income in the prior-year quarter.
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Digital asset gains offset investment losses
Digital asset gains increased to $237.3 million from $134.9 million year over year, and six-month gains rose to $516.3 million from $116.7 million. However, investment losses were $114.5 million in Q2 versus a $195.4 million gain in Q2 2025.
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Heavy Helios investment drove negative FCF
Operating cash flow was $288.6 million for the six months, versus $329.3 million in the prior-year period. Property, equipment and intangible-asset purchases were $736.7 million, producing calculated free cash flow of negative $448.0 million.
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Data center asset base expanded materially
Property and equipment increased $795.1 million, or 56%, to $2.2 billion, primarily from AI/HPC infrastructure investment. The company reported $4.748 billion of future minimum data-center lease income, including $3.820 billion thereafter.
What to watch
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Liquidity and leverage increased
Cash and cash equivalents declined 28% to $895.7 million from $1.246 billion at December 31, 2025, while working capital fell to $2.4 billion from $3.2 billion. The company also had $3.263 billion of notes payable and $1.3 billion drawn under the Helios secured term loan.
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Large new secured data-center financing
Subsequent to quarter-end, Galaxy issued $3.507 billion of 9.875% senior secured notes due 2031 to fund two Helios buildings. GDH LP also provided an uncapped completion guarantee, increasing project-financing and execution exposure.
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Helios remains capital intensive
The Helios facility had $1.489 billion of outstanding construction commitments as of June 30, 2026, up from $529.8 million at December 31, 2025. Management stated that additional debt, equity or equity-linked financing would be needed for estimated capital expenditure requirements.
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DeFi concentration and exploit risk
The company held $401.8 million of digital assets associated with DeFi protocols, with Liquid Collective, Morpho and Kamino representing 65% of that balance. The filing also cites approximately $285 million drained from Drift Protocol and approximately $292 million from the Kelp DAO bridge in April 2026.
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Trading-platform concentration remains material
Three digital-asset trading platforms accounted for 42% of Q2 revenue, while approximately 56% of digital assets were held with third parties or posted with counterparties. One centralized platform held 12% of total digital assets.
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ERCOT review could delay expansion
The filing adds that an August 2026 Texas directive requires PUCT and ERCOT to conduct a comprehensive audit of data centers advancing through the interconnection process before projects move forward, potentially affecting power-approval timelines.
Management's outlook
The 10-Q provides no company-wide revenue or EPS guidance. It states that Phase II and Phase III CoreWeave leases, representing 393 MW of incremental critical IT load, are expected to be delivered beginning in Q2 2027. The previously disclosed outlook of approximately $80 million of quarterly Phase I Helios leasing revenue and project-level Adjusted EBITDA margin above 90% beginning in Q3 2026 was not updated in this filing.
Earlier filings 3
10-K · February 26, 2026
Galaxy Digital positions itself as an integrated digital-assets financial services and HPC data center company, operating two principal segments: Digital Assets and Data Centers. The 2025 results show a material…
10-Q · November 10, 2025
Galaxy Digital reported a very strong quarter year-over-year with Q3 revenues of $28,401,871 (thousands) and net income of $505,057 (thousands), reversing a prior-year Q3 loss of $(33,330) (thousands). EPS (diluted) was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.