USBC earnings analysis
What we found in USBC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
USBC, Inc. continues to report a challenging financial position in its Q1 2026 10-Q. With a net loss of $25.6 million, significantly up from -$3.6 million in the prior year, the firm faces increased operational and development costs, particularly related to its tokenized deposit program. Operating revenue remains nonexistent, reflecting ongoing development phases. Cash and cash equivalents totaled $2 million, indicating persistent liquidity concerns.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Increased Net Loss
- USBC reported a net loss of $25,554,000 for Q1 2026, up from a net loss of $3,578,000 in Q1 2025.
- Zero Revenue Generation
- The company did not generate any revenue in Q1 2026, consistent with the same lack of revenue in Q1 2025.
- R&D Expense Decrease
- R&D expenses declined to $218,000 in Q1 2026 from $418,000 in the same quarter last year.
- Significant SG&A Increase
- SG&A expenses surged to $11,449,000 in Q1 2026, a rise of $9,660,000 compared to $1,789,000 in Q1 2025.
- Tokenized Deposit Program Focus
- The increase in operational expenses is largely driven by investment in developing the USBC tokenized deposit program.
- Operational Cash Outflow
- Net cash used in operating activities was $7,057,591, primarily due to the net loss for the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- High Dependence on Additional Financing
- The company indicated a significant need for liquidity sources, noting recurring losses and an accumulated deficit of $216.1 million as of March 31, 2026.
- Digital Asset Volatility Impact
- The company reported a $20 million decline in the fair value of digital assets, which is subject to market fluctuations.
- Regulatory Integration Challenges
- Future results will depend on the technical and regulatory integration with partner banks and financial technology providers.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.07
What they said about what is next.
Management continues to foresee a challenging environment with expected ongoing losses as they develop the tokenized deposit program.
The filing reads worse than the one before it.
What came before.
- 10-K · April 27, 2026
- The Amendment to the Form 10-K (Transition Period ended December 31, 2025) supplements Part III corporate governance disclosures but does not change financial statements. Management is positioning USBC around…
- 10-K · March 25, 2026
- USBC (f/k/a Know Labs) has pivoted to a fintech strategy centered on a USBC tokenized-deposit platform and a Bitcoin treasury. The filing documents partner agreements with Uphold and Vast Bank, initiation of an internal…
- 10-K · December 19, 2025
- USBC, Inc. continues its strategic pivot to develop a fintech platform focusing on a tokenized deposit offering leveraging blockchain technology, with a successful $125 million private placement and partnerships with…
- 10-Q · August 14, 2024
- Know Labs reported no revenue and remains pre-revenue. For the quarter ended June 30, 2024 the company recorded a net loss of $4.10M (quarter) and loss per share of $(0.05), with cash declining to $2.13M as of June 30,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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