Solana Company Q1 FY2026 earnings call

• Leadership Updates

  • Madeline Ghani was appointed Chief Financial Officer, Treasurer and Secretary, joining from a recent role as Chief Operating Officer and Deputy CFO, and presented financial results for the first time on this call.
  • Late April 2026 saw the closing of a strategic capital raise led by institutional investor MIRE, with participation from Hashkey, priced at 1.1x net asset value (NAV), marking the highest NAV multiple capital raise for any Solana digital asset treasury since the 2025 market downturn, and was immediately accretive to Solana per share.

• Strategic Positioning

  • The company is building a diversified digital asset treasury platform focused on the underserved Asia-Pacific (APAC) market, which holds the majority of global crypto users and a large share of global cross-border payments and trading activity. It targets growth via three integrated, self-reinforcing segments: advisory services, Pacific Backbone institutional validation infrastructure, and an AI-powered compliance platform, aimed at driving Solana adoption and capturing recurring revenue.

• Operational Execution

  • Completed the divestiture of the cash-burning pawn business and medical device business, along with broader cost rationalization steps, in Q2 2026, with positive financial impacts expected to appear in Q2 results.
  • Generated consistent compounding staking returns through institutional portfolio management practices including careful validator selection, active MEV capture, and continuous rebalancing; all staking rewards are automatically restaked to compound growth.
  • Executed $3.5 million in share repurchases in Q1 2026 (total $5.0 million year-to-date) when the stock traded at a discount to NAV, funded by strategic Solana sales, making the repurchases accretive to NAV per share; completed an $8 million strategic capital raise at a premium to NAV in late April 2026, part of which was deployed into additional Solana purchases at favorable entry prices.

• Financial Performance

  • Q1 2026 gross profit hit $3.4 million, up from a gross loss of $72 thousand in Q1 2025; reported a net loss of $99.8 million ($1.3 per basic/diluted share) driven primarily by non-cash unrealized losses from the 33% Q1 decline in Solana price, plus $7 million in realized losses from strategic Solana sales.
  • As of May 12, 2026, the company held 2.37 million SOL tokens with a fully diluted share count of 86.0 million shares; total assets as of March 31, 2026 were $200.7 million, including $4.4 million in cash and cash equivalents.

Solana Company reports three core business segments: 1) Staking: Q1 2026 staking revenue was $3.4 million, accounting for 94.4% of total Q1 2026 revenue. Average net staking yield hit 6.9%, outperforming the system-wide average of 6.0% by 90 basis points. The company generated 32.5 thousand Solana tokens in staking rewards in Q1 2026, compared to 34 thousand in Q4 2025. 2) Advisory Services: This is a newly developing segment with no material revenue reported in Q1 2026, contributing less than 1% of total revenue to date. 3) Validator Infrastructure (Pacific Backbone) + Platform Business: Also in early development, with $0.2 million in combined other revenue reported in Q1 2026, accounting for 5.6% of total Q1 2026 revenue. Total company Q1 2026 revenue was $3.6 million, up exponentially from $49 thousand in Q1 2025.

The company provided limited formal forward guidance, with the following key forward-looking statements:

• The company expects operational impacts from its new multi-year integrated business initiatives (advisory, infrastructure, platform) to be felt within the 2026 fiscal year, and expects to sign significant advisory contracts that will generate material revenue as early as 2026.
• Pacific Backbone (the institutional validation infrastructure) is on track to launch the first three operational nodes in late June 2026; management expects to attract a fairly significant amount of third-party delegated SOL to the infrastructure, but will not provide confident numeric guidance for stake ramp until the Q2 2026 earnings call.
• Cost rationalization from legacy business divestiture completed in Q2 2026 will deliver recurring positive financial impacts starting in Q2 2026, with more details to be provided when Q2 results are reported.
• Management will prioritize accretive capital raises for Solana accumulation at current MNAP trading levels, rather than aggressive share buybacks, and will continue to opportunistically adjust strategy based on market volatility in Solana price and the company's NAV multiple.

The company notes that all forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from expectations, referenced in the company's SEC filings (including the Form 10-K filed March 31, 2026). Key risks discussed or implied on the call include:

• Significant volatility in Solana token prices, which creates large non-cash unrealized gains/losses on the company's balance sheet and impacts overall net performance.
• Execution risk associated with building out new business lines (advisory, institutional validation infrastructure) in the APAC market, with revenue growth dependent on successfully signing new clients and attracting third-party stake.
• General digital asset market volatility and uncertainty, which impacts the company's ability to execute accretive capital raises and share buybacks, as well as the value of its core Solana holdings.

Q: The prepared remarks outlined a business flywheel with advisory as a core component. What traction do you have for advisory, what is the revenue model, and is it just for onboarding counterparties to the Solana ecosystem? / A: Advisory is a dedicated revenue-generating business line. It partners closely with the Solana Foundation to target major financial institutions and tech corporates across APAC. Many APAC institutions are under pressure from leadership to implement on-chain products like stablecoin payments but lack execution expertise. The company is currently negotiating contracts that will deliver significant revenue this year, charging fees for end-to-end project management for clients moving on-chain. (206 characters)

Q: With a currently lean operational structure, how will you deliver advisory services, and how will you allocate cash flow generated from advisory? / A: The team currently consists of 2.5 full-time equivalent employees, including a new head of advisory hired from Boston Consulting Group. Costs will be strictly aligned to generated revenue, so revenues from signed contracts will easily cover incremental personnel costs. Net cash flow after costs will be primarily used to purchase additional Solana, with a portion reinvested in infrastructure to expand services and generate future recurring revenue. (265 characters)

Q: What is the current status of the Pacific Backbone validator infrastructure, how much third-party SOL is expected to be delegated, and what yield uplift comes from the JITO integration? / A: The build-out is on plan, with the first three nodes scheduled to go live in late June 2026. The company already has verbal commitments for delegated SOL from potential institutional clients, but no public projection is available yet. Pacific Backbone is built as institutional-grade, certified infrastructure tailored to meet the strict requirements of large APAC financial institutions, positioning it to attract significant stake from smaller, less institutional current providers. More guidance will be provided next quarter. (301 characters)

Q: At current NAV multiples, what is your outlook for future share buybacks and Solana accumulation? / A: The company's stock currently trades at a higher NAV multiple than most peers, so buybacks are less accretive right now than for peer firms. At current levels, the company will prioritize raising accretive new capital to fund additional Solana accumulation instead of aggressive buybacks. The company will continue to adjust its approach opportunistically based on future volatility in both the company's NAV multiple and the price of Solana. (244 characters)

Q: How should investors model SG&A run rate as you scale the new businesses? Will we see significant step-ups in costs over the coming quarters? / A: The company builds the business in APAC, where IT talent and third-party consulting costs are far lower than in Western markets, so large incremental capex or operating cost increases are not expected. Legacy business divestiture and cost rationalization completed in Q2 will deliver recurring cost reductions, and new headcount growth will only occur in line with new contracted revenue (costs will not front-run revenue). No large cost uptick should be expected. (268 characters)