UPEXI, INC. Q2 FY2026 earnings call

• Allan Marshall discussed market challenges like declining Solana prices and treasury company multiple compression, but remained optimistic due to Solana's historical volatility being normal, improving fundamentals, and multiple value creation mechanisms for shareholders.
• Brian Rudick highlighted Solana's progress with increased development, adoption, and usage, including ETF inflows, stablecoin supply records, tokenized equities growth, client launch, and institutional announcements. Also mentioned capital markets activities like private placements and convertible note issuances.
• Andrew Norstrud reviewed financials, cash and Solana token holdings, revenue growth, losses, and balance sheet strengthening through capital raises and prudent management.

For the second quarter, total revenue was approximately $8.1 million, an increase of approximately $4 million or just over 100% compared to $4 million in the prior year quarter. For the six months period ended 12/31/2025, total revenue was $17.3 million compared to $8 million in the prior period. As of December 31, the company had approximately $1.6 million in cash and 2,170,000 Solana tokens (1,320,000 liquid, 850,000 locked). The net loss for the quarter was approximately $178.9 million or approximately $2.94 per share, primarily driven by $164.5 million of unrealized losses on digital assets and ~$8.3 million of stock compensation expense.

• Focus on accretive growth, aiming to raise capital above NAV to increase digital assets per share and continue issuing in-kind convertible notes at a premium to NAV.
• Goal to increase yield on the treasury in a low-risk fashion to enhance valuation, believing this would lead to sustainable premium trading and accelerate the capital markets flywheel.

• Market volatility, including Solana's significant price fluctuations due to factors like geopolitical risks and precious metals impacting the market.
• Multiple compression in the treasury space due to oversupply of treasury companies, leading to discounts to net asset value.

Q: Recent pressure on Solana coupled with high conviction, any change in capital raising strategy? Are you more willing to raise capital at a lower premium to MNAV? To reduce average purchase price? And goal to use ATM as much as possible to lower cost of capital.

A: I don't think we've changed perspective. We have one of the lowest costs on Solana tokens, continue to bring cost down, open to raising capital as gap to NAV closes again, and will use ATM and sell Solana to buy back stock if gap too wide.

Q: Is there an updated Solana balance following direct offering and convertible notes? Can you elaborate on generating additional yield outside of staking?

A: Public number is around 2,400,000 Solana tokens. Still in exploratory phase for additional yield, focused on recurring, low-risk strategies with hurdle rate of low to mid-teens yield, and will provide more info as progress is made.