AVAT — Third Quarter 2026 Earnings Summary

Financial Performance

• Preliminary net income of approximately $54.6 million, or $1.53 per diluted share, for the third quarter of 2026.
• Approximately $60 million in gains attributable to market-driven changes in the value of AVAX holdings, including fair value changes and realized losses.
• Staking revenue, net of fees, totaled approximately $0.6 million for the quarter and $4.2 million for the first nine months of 2026.
• General and administrative expenses were approximately $3.2 million.
• Cash and USDC holdings stood at $4.9 million as of September 30, 2026.
• Total debt was $10.0 million outstanding, with the specific FalconX collateralized loan repaid in full during the quarter.

Guidance and Future Outlook

• The Company intends to continue deploying AVAX into staking, supported by the Avalanche Helicon network upgrade which introduced auto-renewing stakes.
• Full third quarter financial results are expected to be released in November 2026.
• Management indicated continued focus on capital allocation discipline, specifically through share repurchases when trading at a discount to AVAX holdings.

Business Segments and Product Lines

• As of September 30, 2026, the Company held 13.31 million AVAX tokens, with 7.93 million (60%) unlocked and 5.38 million (40%) locked.
• Locked tokens carry a weighted-average remaining lock period of approximately 16.5 months.
• By September 2026, approximately 91% of AVAT's AVAX (roughly 12.1 million tokens) was staked and producing yield.
• The Company resolved prior regulatory and liquidity constraints that previously limited staking activities following the business combination in June.

Market and Competitive Landscape

• Goldman Sachs: On September 28, tZERO announced qualified U.S. institutions can subscribe to Goldman Sachs' Financial Square Treasury Instruments Fund (FTIXX) via Lynq, an institutional settlement network on a dedicated Avalanche Layer 1.
• New York Stock Exchange: ICE's parent company is evaluating Avalanche technology for a planned tokenized-securities trading and settlement platform, having spent about a year testing the technology.
• United Arab Emirates: The UAE's Telecommunications and Digital Government Regulatory Authority partnered with Ava Labs and Deca4 to integrate Avalanche technology into the UAE PASS national digital identity platform, serving over 12.5 million people.
• Paxos: Integrated AVAX and Avalanche-native USDC across its regulated infrastructure serving over 650 institutions.
• Helicon Upgrade: Activated on mainnet on September 22, reducing the minimum validation period from 14 days to 48 hours.

Risks and Challenges

• Preliminary results are unaudited, subject to completion, and may change due to ongoing management review and quarter-end financial procedures.
• Forward-looking statements are subject to risks including changes in AVAX price, digital asset volatility, regulatory developments, and the Company's ability to access capital.
• Third-party developments, such as the NYSE/ICE evaluation and UAE integration, are outside the Company's control and may not proceed as described.

Management Commentary and Tone

• CEO Bart Smith stated that buying back stock below the value of AVAX holdings is a direct method to create shareholder value.
• Management highlighted the elimination of the FalconX loan and the removal of roughly 8% of the outstanding share count as evidence of disciplined treasury management.
• Smith noted that major institutions, from Wall Street to national governments, are building on and evaluating Avalanche infrastructure, providing shareholders exposure to network growth.

Other Key Points

• Share Repurchases: AVAT repurchased 2,889,440 shares of Class A common stock at an average price of $1.14 per share for an aggregate consideration of approximately $3.3 million. These shares represent approximately 8% of Class A shares outstanding (based on August 24, 2026 figures) and are held as treasury shares.
• Debt Reduction: The FalconX collateralized loan was retired in full, eliminating a facility secured by the Company's AVAX and leaving more of the treasury free of lender claims.
• Conference Call: A conference call to discuss results is scheduled for Thursday, November 19, 2026, at 4:00 p.m. ET.