Q2 2026 Abaxx Technologies Inc. Earnings Call Transcript
Key Points
- Abaxx Technologies Inc (ABXXF) reported its strongest quarter to date, with total volume reaching 888,902 contracts in Q2 2026, a 276% increase from Q1, and year-to-date volume surpassing 1.1 million contracts, a seven-fold increase over the full year of 2025.
- The company achieved significant network expansion, including onboarding Yongan International Singapore as its first mainland China-backed clearing member, and making its market data available on Bloomberg and LSEG, reaching over 400,000 institutional screens.
- Abaxx Technologies Inc (ABXXF) successfully raised $69 million in Q2 at $54.25 per share, ending the quarter with $95.1 million in cash, providing a secure financial position to fund its growth plans for the next four to six quarters.
- The company's precious metals complex, particularly gold and silver, is showing strong traction, with a clear path to stand-alone breakeven by 2028, potentially carrying the exchange's baseline operational costs.
- Abaxx Technologies Inc (ABXXF) is making progress on its technology front, with MarketOS advancing toward commercial implementation and a new agreement to support the Cambodian National Futures Exchange, creating a path for third-party revenue generation.
- The company's liquidity-building programs are working as designed, with average daily volume reaching 34,136 contracts in July and single-day volume surpassing 100,000 contracts for the first time, attracting commercial interest and onboarding requests.
- Abaxx Technologies Inc (ABXXF) reported a net loss of $28.8 million for Q2 2026, an increase from the $21.6 million loss in Q1, partly due to a $6.1 million unrealized loss on derivatives from a decline in its share price.
- The company faced unfounded and meritless allegations from Viceroy Research, which required significant time and resources to address, including regulatory and legal actions, and an independent investigation by the audit committee.
- Abaxx Technologies Inc (ABXXF) acknowledged accounting errors in its Q2 2026 financial statements, which overstated operating expenses by $1.3 million, leading to a refiling and highlighting control weaknesses that needed to be addressed.
- The company's net cash spend increased to $16.3 million in Q2, up from $12.3 million in Q1, and management expects to continue reinvesting transaction and clearing fees back into liquidity programs, meaning rising volumes will not immediately flow to the bottom line.
- Abaxx Technologies Inc (ABXXF) has moderated its expansion plans for MarketOS go-to-market this fall to manage dilution, trading some speed for patience and potentially slowing down the commercialization of its technology beyond the exchange.
- The company's path to profitability remains uncertain, with management stating it is still a few quarters away from being able to project guidance and break-even for individual products, and net fee capture per contract is not expected to inflect sharply positive until the end of its funded runway.
Good day and welcome to the ABAX Technologies second quarter 2026 earnings and business update call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Tara Hayes, Director of Communications. Please go ahead.
Thank you, operator. Good morning, afternoon, or evening, depending on where you're dialing in from today. Thanks for joining us for our Q2 earnings and business update call. With us are Josh Crum, Founder and Chief Executive Officer Steve Fray, Chief Financial Officer David Greeley, Chief Strategy Officer Joe Raya, Chief Commercial Officer of FX Exchange and Leah Wahl, Digital Title Lead at FX Technologies.
The primary disclosure for today's call are our quarterly financial statements, MD&A and earnings announcement, which were released prior to this call and are available on our Investor Relations website at investors.abx.tech. This call is being webcast and an archived version along with the presentation
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