Galaxy Digital Inc. (GLXY) Earnings & Analysis

Latest quarter

Galaxy reported Q2 FY2026 revenue of $8.6 billion, compared with $8.7 billion a year earlier. Its filing attributed the decline in digital asset sales primarily to lower trading volumes and digital asset prices. Galaxy also said it records principal trading revenue and the corresponding costs on a gross basis, so much of the revenue is offset by transaction expenses.

The filing reported a net loss of $85.3 million, compared with net income of $30.7 million a year earlier, and attributed the loss primarily to investments and digital assets held in Treasury and Corporate. Galaxy reported diluted EPS of −$0.09, compared with $0.08 a year earlier.

Galaxy’s gross margin was 0.86%, compared with 0.23% a year earlier, while its operating margin was −1.50%, compared with 1.92%. Free cash flow was −$26.8 million, compared with −$134.9 million a year earlier. The filing said cash and cash equivalents stood at $895.7 million at June 30, 2026.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Michael Novogratz said Galaxy had delivered Helios Phase I on schedule and on budget, and that the campus was generating cash flow. He said token prices and trading activity remained subdued, while institutions were seeking infrastructure for digital asset markets. Galaxy’s agreement with Bank of New York was its first major infrastructure engagement, he said.

Asked about similar opportunities, executive Anthony Paquette said Galaxy had brought acquired products and businesses together into an offering for institutions that want to build and own their infrastructure. He said potential work includes staking, tokenization, wallets and vaults. Paquette said Galaxy would need to be selective about partners because resources are limited, and that some engagements would generate fees while potentially extending relationships across trading and asset management.

On data centers, Paquette said Galaxy had discussed Helios II with prospective tenants including cloud providers and AI labs. He said many prospective customers were focused on power available sooner than Helios II’s planned energization. Paquette added that Galaxy was studying structures in which counterparties with stronger credit could support potential tenant commitments before it made a final decision on the asset.

Asked about financing, Paquette said the $3.5 billion high-yield notes offering was specific to Phase II of Helios I, the project for CoreWeave. He said Phase II was fully funded with debt and equity, and that Galaxy expected a separate debt financing as Phase III construction ramps up. He added that Galaxy did not expect to need additional equity to complete the CoreWeave project.

Executive Christopher Ferraro said Galaxy had site control and development plans across its power portfolio. For Helios III, he said the company had applied for capacity, but the amount deliverable under the Texas grid’s Batch Zero process remained uncertain.

Guidance

Galaxy expects to exit 2027 with an annualized leasing revenue run rate of $800.0 million to $850.0 million. For Q3 FY2026, Paquette had expected approximately $80.0 million in Helios Phase I leasing revenue; Galaxy subsequently reported $79.1 million in leasing revenue for the quarter.