Dominari — Q3 2026 Earnings Summary

Financial Performance:

• Net loss to common stockholders narrowed to $1.9 million in Q3 2026, a 65% sequential decrease from $5.4 million in Q2 2026.
• Year-to-date net loss attributable to common stockholders was $64.7 million for the nine months ended September 30, 2026, compared to net income of $109.3 million in the same period in 2025.
• Q3 2026 revenue was $16.4 million, a 69% decline from $52.4 million in Q3 2025.
• Year-to-date revenue was $69.0 million, a 30% decrease from the nine months ended September 30, 2025.
• Operating loss for the nine months ended September 30, 2026, narrowed by 16% to $40.6 million from $48.2 million in the prior year period.
• Q3 2026 operating loss increased to $1.9 million from $0.4 million in Q3 2025, driven by revenue decline despite expense reductions.
• Q3 2026 operating expenses decreased 65% to $18.3 million from $52.8 million in Q3 2025; year-to-date operating expenses decreased 25% to $109.6 million from $146.9 million in 2025.
• Compensation and benefits decreased by $35.3 million in Q3 2026, primarily due to a $30.0 million reduction in commission expenses.
• Q3 2026 net loss per share was $0.08 (basic and diluted), compared to $7.27 (diluted) in Q3 2025.
• Year-to-date net loss per share was $2.97 (basic and diluted), compared to $7.86 (diluted) in 2025.
• Cash and cash equivalents were $24.0 million as of September 30, 2026, down from $34.0 million at December 31, 2025.
• Total stockholders' equity was $22.4 million as of September 30, 2026, down from $69.4 million at December 31, 2025.
• Working capital was approximately $14.5 million as of September 30, 2026.
• Dominari Securities maintained $18.5 million of net capital against a $0.6 million minimum requirement.
• The company raised approximately $3.3 million via a warrant inducement program announced in August 2026.
• A $14.6 million income tax provision was recorded for the nine months ended September 30, 2026, compared to no provision in 2025.

Business Segments and Product Lines:

• The Dominari Financial business segment remained profitable, reporting $1.8 million in net income for Q3 2026 and $12.7 million for the year-to-date period.
• Annual recurring revenue (ARR) from management services increased to $3.6 million as of September 30, 2026, up from $0.8 million at the end of Q2 2025, representing a 341% increase.
• The annualized run-rate for recurring revenue from management services increased to $3.5 million per year, up approximately $2.7 million compared to September 30, 2025.
• Revenue drivers for the decline included lower underwriting revenue ($25.7 million decrease in Q3), lower carried interest ($3.7 million decrease in Q3), lower commission revenue ($4.3 million decrease in Q3), and lower principal transactions ($3.0 million decrease in Q3).
• Year-to-date carried interest was $11.5 million lower than the prior year, reflecting the absence of a single deal in 2026 that generated $19.0 million in 2025.
• Underwriting revenue decreased $10.6 million (18%) year-to-date to $48.0 million due to increased capital market volatility and lower deal flow.

Other Key Points:

• The company initiated a stock repurchase program with a target of buying back $5.0 million of shares; as of the release date, over 1.9 million shares were repurchased for approximately $3.4 million.
• Treasury stock increased to 482,196 shares as of September 30, 2026, from zero shares at December 31, 2025.
• The company seeks opportunities in the AI and Data Center sectors to enhance shareholder value.
• The company reported a $126.5 million other income gain in Q3 2025 driven by valuation increases in American Bitcoin Corp. (ABTC), compared to a $0.3 million loss in Q3 2026.
• Year-to-date realized loss on marketable securities was $8.9 million, and unrealized gain was $2.0 million.
• Net cash used in operating activities was $38.97 million for the nine months ended September 30, 2026, compared to $4.03 million used in 2025.
• Net cash provided by investing activities was $42.73 million for the nine months ended September 30, 2026.
• Net cash used in financing activities was $13.78 million for the nine months ended September 30, 2026, driven by $19.0 million in cash paid for dividends.