- GAAP Net Loss: Reported a net loss of $85 million, or $0.09 per share, for Q2 2026.
- Firmwide Adjusted EBITDA: Negative $77 million for the quarter.
- Combined Operating Businesses Adjusted Gross Profit: $86 million, up significantly from Q1.
- Combined Operating Businesses Adjusted EBITDA: $1 million, up significantly from Q1.
- Firmwide Operating Expenses: $172 million in Q2, up $25 million quarter-over-quarter.
- Total Assets: $10.8 billion at quarter end, up 9% from the prior period.
- Total Equity: $2.7 billion, essentially flat quarter-over-quarter.
- Cash and Stablecoins: $2.5 billion, down 6% from Q1.
- Net Digital Assets and Investments: Approximately $1.2 billion at quarter end, down 15% from Q1.
- Digital Assets Segment Adjusted Gross Profit: $66 million, up $17 million or 34% quarter-over-quarter.
- Global Markets Adjusted Gross Profit: $49 million, up significantly from Q1 despite trading volumes declining 7%.
- Asset Management and Infrastructure Solutions Adjusted Gross Profit: $17 million.
- Combined Assets Under Management and Assets Under Stake: Approximately $7 billion, down 12% from Q1.
- Data Centers Adjusted Gross Profit: $20 million in Q2.
- Data Centers Adjusted EBITDA: $11 million in Q2.
- Data Center Operating Expenses: $21 million in the quarter, excluding pass-through operator costs.
- Data Center CapEx: $448 million in Q2, up from $354 million in Q1.
- Clean Electricity Investment Tax Credit: Recognized approximately $65 million, with $32 million flowing through the P&L as a tax benefit.
- Data Center Segment Assets: Approximately $2.5 billion in total assets at quarter end.
- Data Center Segment Liabilities: Approximately $1.5 billion in total liabilities at quarter end.
- Phase 1 Leasing Revenue Expectation: Expected to generate approximately $80 million in Q3 2026, with a project-level adjusted EBITDA margin of over 90%.
Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Galaxy Digital Inc GLXY successfully delivered Phase 1 of the Helios data center on schedule and on budget, generating cash flow and demonstrating execution capability.
- The company expanded its data center development pipeline to over 5.7 gigawatts of potential power capacity through the acquisition of three new sites in Texas, positioning it as a major player in the industry.
- Galaxy Digital Inc (GLXY) completed a $3.5 billion high-yield financing for Phase 2 of Helios, fully funding the project and ensuring capital for future development.
- The digital assets segment showed resilience, with adjusted gross profit up 34% quarter-over-quarter despite lower crypto prices, driven by market share gains and new product launches like GOFR and Galaxy Curator.
- Galaxy Digital Inc (GLXY) signed a multi-year agreement with Bank of New York to develop digital asset infrastructure, marking a significant milestone in institutional partnerships and monetizing its engineering talent.
Negative Points
- Galaxy Digital Inc (GLXY) reported a GAAP net loss of $85 million and negative firmwide adjusted EBITDA of $77 million, driven by depreciation in digital asset prices.
- The company's treasury and corporate segment posted an adjusted gross loss of $42 million due to crypto market weakness, highlighting ongoing volatility in digital asset holdings.
- The delay in passing crypto clarity legislation in the U.S. creates regulatory uncertainty, potentially hindering growth in the digital assets business.
- Data center operating expenses increased by $25 million quarter-over-quarter, reflecting higher depreciation and interest costs as projects come online, pressuring near-term profitability.
- The Helios II 830 megawatts of approved capacity remains unleased, with tenant conversations still in early stages and timing dependent on market conditions and customer planning cycles.
Q & A Highlights
Q: Can you update us on conversations with potential tenants for the additional 830 megawatts of approved capacity at Helios II, the composition of the tenant funnel, and the gating factors to signing a tenant?
A: Michael Novogratz (CEO): We've had discussions with every flavor of potential tenant, including hyperscalers, neoclouds, and labs. The primary gating factor is that Helios II's energization is slated for late 2028, while many tenants are focused on securing 2026 power. We are building long-term relationships and observing new market dynamics, such as guarantee and lease wrap structures from larger credit counterparties, which could improve our risk-reward. We are being patient to ensure we deploy this near-gigawatt asset optimally.
Q: Which products are the key near-term investment and growth priorities in the digital assets business, and where are you seeing the strongest early traction?
A: Anthony Paquette (CFO): Our priority is partnership-level infrastructure engagements, like the one with Bank of New York, where we help large institutions build and own their own digital asset infrastructure. We are focusing on staking, tokenization, wallet infrastructure, and vaults. We are being selective with partners to deepen long-term relationships and expand beyond initial engagements, leveraging our unique experience and talent.
Q: Can you walk us through the thought process behind financing Phase 2 and Phase 3 of Helios, and whether it needed to be done in one deal?
A: Michael Novogratz (CEO): Phase 2 and Phase 3 were not financed in one deal. The recent $3.5 billion high-yield offering was specific to Phase 2, which is now 100% funded. We had already pre-funded the equity for Phase 3 through prior capital planning and cash generation, so there is no equity need to complete the project. We expect to execute a separate debt financing for Phase 3 as we ramp up construction.
Q: Is Galaxy exploring behind-the-meter power for its new data center sites to meet tight customer timelines?
A: Michael Novogratz (CEO): All our current sites are targeted for front-of-meter power. While we are researching behind-the-meter generation, it adds significant complexity, cost, and timing dependencies to data center development. We are focused on front-of-meter assets, but we have advanced specific conversations on behind-the-meter partnerships and may pursue them in the future.
Q: What drove the decision to change the general contractor from Clayco to HIT Contracting for Phase 2 of Helios?
A: Michael Novogratz (CEO): Clayco was a great partner on Phase 1, delivering on time and on budget. However, given their other project commitments and our timeline requirements for Phase 2, which is double the size, we made a collaborative decision to bring in HIT, a top nationally recognized data center contractor with a strong track record and aspirations to build a larger presence in Texas.
Q: Can you give an update on Galaxy One and how you are thinking about that business?
A: Michael Novogratz (CEO): Galaxy One is being run like a startup, with a focus on product development and market fit. We are seeing green shoots in areas like equity trading and are planning new features like a portfolio line of credit. We have not heavily invested in marketing, as building a consumer franchise takes time. We are harmonizing operations and back-end technology with the institutional side to gain efficiencies as the business scales.
Q: How should we expect the key partnerships like BNY to manifest in financial results, and how soon can they become material contributors?
A: Michael Novogratz (CEO) & Anthony Paquette (CFO): The business model involves allocating our engineering and development teams to help partners build their infrastructure, for which we get paid. This will initially appear as fee revenue in our asset management infrastructure subsegment. Over time, as integrations deepen, we expect it to broaden growth across our trading and asset management businesses. These are long-term engagements with healthy margins during the build phase, expanding our distribution surface area.
Q: How should we think about getting approvals and power for the newly announced acquisitions (Merlin, Caspian, Saline) in the current ERCOT process?
A: Anthony Paquette (CFO): We have completed all required steps for each site. Helios III and Saline are expected to be batch zero study loads, having submitted attestations and posted financial security. Caspian is eligible for batch zero base load classification, having completed interconnection agreements and funded known utility upgrades. We have put real capital to work on all projects. We view the Governor's audit directive as a healthy process that will prioritize well-developed projects like ours and weed out speculative ones.
Q: Where do you see the most tangible convergence between AI computing and the movement of financial markets on-chain, and are there synergies between the two businesses?
A: Michael Novogratz (CEO): In the short term, there is no direct convergence. The data center business gives us a bird's-eye view of the massive capital flowing into AI, reinforcing why blockchain rails will become important. The two businesses are at opposite ends of a big theme. However, the cash flow from the data center business provides us the stability to navigate crypto transitions without being forced into moves, which is a strategic advantage.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
