Avalanche Treasury Company — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss of $44.7 million, or $1.54 per share, for the second quarter of 2026.
• Approximately $35.7 million of the net loss (around 80%) was attributable to market-driven losses on AVAX holdings, including fair value changes, realized losses, and impairments.
• Incurred approximately $15.2 million in one-time transaction costs associated with completing the business combination.
• Reported core general and administrative expenses of approximately $3.5 million.
• Generated $1.5 million of staking revenue, net of fees, during the second quarter.
• Generated $3.6 million of staking revenue, net of fees, during the first half of 2026.

Guidance and Future Outlook

• Enters the second half of 2026 focused on a core strategy of accumulating AVAX, productively deploying its treasury, and identifying opportunities to participate in the growth of the Avalanche ecosystem.
• Continues to evaluate additional opportunities across the Avalanche ecosystem to create new revenue sources and long-term shareholder value.
• Management expects to continue productively deploying the AVAX treasury through staking while exploring deeper participation in the ecosystem.

Business Segments and Product Lines

• Completed the company's business combination and began trading on Nasdaq under the ticker AVAT on June 11, 2026.
• Held approximately 15.3 million AVAX at quarter-end, representing approximately $100 million in carrying value at June 30, 2026 prices.
• Continues to stake AVAX holdings to generate recurring yield.

Market and Competitive Landscape

• Avalanche's C-Chain processed approximately 236 million transactions during the second quarter, marking a record quarter and the seventh consecutive quarter of transaction growth.
• Stablecoin transfer volume on Avalanche reached approximately $84 billion during the period.
• Institutional adoption milestones include FIFA operating a purpose-built blockchain using Avalanche technology during the 2026 FIFA World Cup.
• Progmat announced plans to migrate more than $2 billion of tokenized securities onto Avalanche infrastructure in Japan.
• KB Kookmin Card announced plans to build a stablecoin payment system and a dedicated Layer 1 on Avalanche in Korea.

Risks and Challenges

• Digital asset prices faced significant pressure during the period, contributing to market-driven losses on AVAX holdings.
• Forward-looking statements involve known and unknown risks, uncertainties, and factors that may cause actual results to differ materially from expectations, as detailed in the company's Form 10-Q and Form S-1 filings.

Management Commentary and Tone

• CEO Bart Smith described the second quarter as an important milestone, noting that while digital asset prices faced pressure, underlying blockchain fundamentals show a different story.
• Management stated that institutions are moving beyond exploration toward implementation in stablecoins, tokenization, payments, and real-world assets.
• The company remains focused on executing its long-term strategy to accumulate AVAX and position AVAT to participate in continued institutional adoption of Avalanche.

Other Key Points

• The Board of Directors approved a $10 million share repurchase program for the repurchase of Class A stock to create shareholder value.
• Management believes the current market price represents a perceived disconnect from the company's fundamentals.
• A conference call to discuss results was scheduled for August 26, 2026, at 4:00 p.m. ET.