Solana Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $3.4 million, a significant increase from $0.7 million in the prior-year period.
• Revenue composition included $3.3 million in staking revenue and $23 thousand in other revenue.
• Year-to-date revenue through September 30, 2026, totaled $9.5 million, compared to $0.8 million in the prior-year period.
• Cost of revenue was $0.6 million, resulting in a gross profit of $2.7 million and a gross margin of approximately 82%, compared to a gross profit of $0.6 million in the prior-year period.
• General and administrative expenses were $3.4 million for the quarter, down from $5.5 million in the prior-year period; year-to-date G&A was $19.7 million versus $12.7 million in the prior-year period, primarily due to $6.8 million in severance costs associated with the PoNS divestiture.
• Net operating income was $101.1 million for the quarter, compared to a net operating expense of $36.0 million in the prior-year period.
• Income from operations was $103.9 million for the quarter, compared to a loss of $35.5 million in the prior-year period; year-to-date loss from operations was $28.4 million.
• Nonoperating income, net, was $1.3 million for the quarter, including a $1.7 million gain from the change in fair value of the derivative liability.
• Reported net income was $105.2 million, or $1.21 per basic and $1.17 per diluted share, compared to a net loss of $352.8 million, or $32.89 per basic and diluted share, in the prior-year period.
• Total assets were $292.6 million as of September 30, 2026, including $1.1 million in cash and cash equivalents.
• Long-term digital assets and exposure totaled $252.4 million, including staked positions and restricted assets.
• Total liabilities were $19.1 million, including a $2.5 million derivative liability.
• Total stockholders' equity was $266.2 million as of September 30, 2026.

Guidance and Future Outlook:

• Management stated the company is building a bridge to bring Asia's financial institutions onto Solana, with a new headquarters in Hong Kong to meet demand.
• The company described a "self-reinforcing flywheel" that is picking up speed, aiming to compound value with every turn.
• Forward-looking statements indicate expectations regarding the implementation of the digital asset treasury strategy, validator infrastructure build-out, and the conversion of advisory and third-party staking pipelines.
• The company anticipates continued growth in token treasury and broader opportunities across the Solana ecosystem.

Business Segments and Product Lines:

• Pacific Backbone infrastructure moved from build-out to operation, with approximately 1.3 million SOL total stake delegated as of September 30, 2026, including 1.0 million SOL from third parties.
• The company achieved an average net staking yield of 5.9% APY on treasury holdings, outperforming the Solana network average of 4.9% APY by 100 basis points.
• Treasury holdings included approximately 2.4 million SOL with a fair value of approximately $288.2 million as of September 30, 2026.
• The company delivered over 40 institutional education sessions and advisory workshops with banks, asset managers, and exchanges across Asia-Pacific.
• The company participated in Solana's first onchain governance vote, publishing positions to inform delegators.
• 30.8 thousand SOL in staking rewards were earned during the quarter and automatically restaked to compound returns.

Market and Competitive Landscape:

• The company positions itself as a publicly listed digital asset treasury and infrastructure company providing institutional access to the Solana ecosystem.
• The company's strategy focuses on maximizing SOL per share through active treasury management and institutional-grade staking.
• The company noted that institutions entrusted it with a million SOL of third-party stake, indicating growing confidence in its infrastructure.

Risks and Challenges:

• Risks include capital requirements to achieve business objectives, the success of the business plan, and operating costs.
• External factors include global macroeconomic conditions, logistics challenges, labor shortages, banking system disruptions, high inflation, and high interest rates.
• Risks related to the implementation of the digital asset treasury strategy, validator infrastructure, and advisory business are noted.
• The company faces risks regarding the expected timing and amount of validator rewards and the conversion of staking pipelines.
• Specific risks are detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings.

Management Commentary and Tone:

• Joseph Chee, Chairman, President, and CEO, described the quarter as a "milestone," highlighting the live status of Pacific Backbone, third-party stake entrustment, and revenue growth.
• Chee expressed excitement about the road ahead, emphasizing the company's role in bridging Asia's financial institutions to Solana.
• Cosmo Jiang, General Partner at Pantera Capital and board director, noted the company's ability to beat network staking yields and effectively use its capital toolkit by buying back shares below NAV and raising capital above it.
• Jiang stated that owning a company that adds more SOL behind every share is a key opportunity being delivered to shareholders.

Other Key Points:

• The company priced an approximately $15 million registered direct offering at a 5% premium to net asset value per share.
• Proceeds from the direct offering were used to purchase approximately 125 thousand SOL.
• The company repurchased approximately $2.8 million of Class A common stock (1.4 million shares) during the quarter, bringing year-to-date repurchases to approximately $8.7 million.
• Diluted share count on a Treasury Stock Method basis was approximately 85.2 million shares, equating to 0.0274 SOL per share.
• Common shares issued totaled 65.1 million, including 3.1 million shares subject to possible redemption; 57.1 million shares were outstanding as of September 30, 2026.
• The company divested its legacy PoNS business, incurring $6.8 million in severance costs in the first nine months of 2026.
• A $14.8 million digital assets receivable from a broker for SOL purchased on September 30, 2026, was settled on October 1, 2026.