SRX Global Inc. — Fiscal Third Quarter 2026 Earnings Summary

Financial Performance

• Net sales increased 27% year over year to $3.4 million for the quarter ended June 30, 2026.
• Operating loss improved 63% year over year to $3.2 million.
• Net loss from continuing operations improved 40% year over year and 35% quarter over quarter to $4.1 million.
• Adjusted EBITDA loss improved 35% year over year to $1.6 million.
• The company ended the quarter with $36.7 million in cash, cash equivalents, and restricted cash, $65.2 million in current assets, and $2.4 million in total liabilities.
• There was no debt outstanding as of June 30, 2026.
• Net Asset Value (NAV) was $62.9 million, or $3.22 per common share, exceeding preliminary estimates of $3.07 per share.
• The company recognized a $1.4 million loss from changes in the fair value of digital assets, partially offset by $0.6 million in aggregate gains from changes in the fair value of equity securities and derivative liabilities.

Business Segments and Product Lines

• Halo: Achieved an average fill rate of 93% for the quarter and 98% in June; delivered record Prime Day performance with 13% year-over-year growth in New-to-Brand customers and a search cost-per-click of $2.51, approximately 8% below the pet category benchmark.
• EMJX: Completed the acquisition of EMJX on June 16, 2026, an AI-enabled digital-asset treasury platform led by Eric M. Jackson, to expand investment and capital allocation capabilities.
• Capital allocation priorities include deploying capital to support Halo's revenue growth and margin expansion, phasing the deployment of the internal Gen 2 digital-asset treasury strategy for EMJX, and making selective minority investments in technology, fintech, biotechnology, consumer businesses, and critical infrastructure.

Other Key Points

• Approved a 10 million share repurchase program, with capacity fully available following the Black Out period related to the 10-Q filing.
• Declared a one-time cash dividend of $0.05 per share (approximately $1.3 million aggregate) to shareholders of record on July 22, 2026; the distribution has been fully funded.
• The company completed a one-for-sixty reverse stock split effective July 6, 2026.
• EMJX strategy model performance metrics are hypothetical and system-generated; from February 11, 2026, through June 30, 2026, the model experienced a maximum drawdown of approximately 10.6%, compared to 28% to 58% across four primary benchmark comparators (IBIT, ETHA, MSTR, BMNR).
• During the 14-day post-acquisition period (June 16–30, 2026), the EMJX strategy model generated hypothetical performance of 4.3%, outperforming Bitcoin by approximately 15.1 percentage points during a period where Bitcoin declined 10.8%.
• Kent Cunningham, CEO, described the quarter as "transformational," highlighting the completion of the EMJX acquisition, strengthened Halo operations, and a highly liquid balance sheet.