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    FWDI
    Earnings call· Jun 2026(Q3 FY26)

    Forward Industries Q3 FY26 earnings call FWDI

    Aug 12, 2026 Source

    Executive summary

    Forward Industries Q3 FY26 — Strong SOL per Share Growth and Ecosystem Investments

    Forward Industries continued to execute its Solana Treasury strategy in Q3 FY26, achieving significant SOL per share growth and expanding its total SOL holdings. The company also made its first strategic ecosystem investment in OnRe, a tokenized reinsurance platform, and was added to the Russell 2000 and 3000 indices. Management emphasized a disciplined capital allocation approach, including accretive share buybacks and ATM issuances, while actively pursuing M&A opportunities in the digital asset treasury sector.

    Highlights

    5

    • SOL per share grew 9% QoQ to 0.0730, representing an annualized growth rate of 36%.

    • Total SOL holdings increased from 7.0 million to 7.6 million during the quarter.

    • Forward Industries was added to the Russell 2000 and Russell 3000 indices, enhancing visibility and liquidity.

    • Made first Solana ecosystem investment in OnRe, committing up to $25 million in liquidity.

    • SG&A expense (excluding stock-based compensation) is on track to reduce to an average of $4.8 million quarterly on a go-forward basis.

    Concerns

    3

    • The company reported a net loss of $69.0 million or $0.80 per share for the quarter.

    • Incurred a loss on digital assets of $49.8 million and an impairment of $15.2 million due to fair value changes.

    • Solana's price is down "50-plus percent year-over-year" despite strong network usage growth.

    Guidance & targets

    1
    CategoryTargetConfidence
    Quarterly SG&A expense (excluding stock-based compensation)
    $4.8 million
    medium materiality
    High

    Operational metrics

    34
    SOL Holdings
    7.6 millionUp from 7.0 million at March 31
    June 30, 2026

    Total SOL tokens and SOL equivalents held.

    SOL Holdings
    7.8 millionAdded 254,000 SOL since June 30
    August 3, 2026

    Total SOL tokens held as of early August.

    SOL per share (fully diluted)
    0.073Up from 0.0669 at March 31
    June 30, 2026

    Represents 9% growth for the current quarter.

    SOL per share (fully diluted)
    0.0754Up from 0.0730 at June 30
    August 3, 2026

    SOL per share after additional acquisitions in the current quarter.

    SOL acquired (Q3 FY26)
    508,000 SOL
    Q3 FY26

    SOL tokens accumulated during the fiscal third quarter.

    SOL acquired (current quarter)
    254,000 SOL
    July 1 - August 3, 2026

    Additional SOL tokens acquired in the first month of the current quarter.

    Staking rewards (Q3 FY26)
    106,000 SOL and SOL equivalents
    Q3 FY26

    Earned through staking during the quarter.

    Cumulative staking rewards
    307,000 SOL
    Since September 2025

    Total staking rewards since the strategy launched.

    Network stake rate (Forward validator)
    1.8%
    Q3 FY26

    Percentage of network stake rate held by Forward's validator.

    mNAV (fully diluted)
    0.908
    June 30, 2026

    Market Net Asset Value, a non-GAAP metric.

    Shares issued (ATM program)
    94,000 shares
    Q3 FY26

    Shares issued under the at-the-market program at prices accretive to SOL per share.

    Shares repurchased
    2.5 million shares
    Q3 FY26

    Shares bought back when accretive to SOL per share.

    Net change in fully diluted share count
    reduction of 1.7 million sharesfrom 105.2 million to 103.5 million
    Q3 FY26

    Net reduction in fully diluted share count for the quarter.

    Revenue
    $10.8 millioncompared to $2.5 million in prior year period
    Q3 FY26

    Increase driven primarily by staking and treasury-related revenue.

    Gross margin
    62.2%compared to negative 24.9% in prior year period
    Q3 FY26

    Significant improvement in gross margin.

    SG&A expense
    $7.4 millioncompared to $1.9 million in prior year period
    Q3 FY26

    Increase in SG&A expense.

    SG&A expense (excluding stock-based compensation)
    $4.3 million
    Q3 FY26

    SG&A expense adjusted for stock-based compensation.

    Loss on digital assets
    $49.8 million
    Q3 FY26

    Reflects changes in estimated fair value of SOL position, not realized sales.

    Impairment
    $15.2 million
    Q3 FY26

    Related to Forward SOL and ONyc Holdings.

    Net loss
    $69.0 millioncompared to $850,000 in prior year period
    Q3 FY26

    Net loss for the quarter.

    Net loss per share
    $0.80compared to $0.77 in prior year period
    Q3 FY26

    Diluted net loss per share.

    Cash on hand
    $11.0 million
    June 30, 2026

    Cash balance at quarter end.

    Carrying value of SOL and SOL equivalent holdings
    $556.9 million
    June 30, 2026

    GAAP carrying value of digital asset holdings.

    Total digital treasury assets
    $576.6 million
    June 30, 2026

    Total digital treasury assets.

    Total debt outstanding
    $105 million
    June 30, 2026

    Debt outstanding under the Galaxy facility.

    Leverage against treasury
    mid- to high teens
    Q3 FY26

    Leverage ratio against the digital asset treasury.

    Common shares outstanding
    73.8 millioncompared to 76.3 million as of March 31
    June 30, 2026

    Common shares outstanding at quarter end.

    Fully diluted shares
    103.5 million
    June 30, 2026

    Fully diluted share count at quarter end.

    OnRe liquidity deployed
    $70 million
    June 30, 2026

    Amount deployed into the ONyc token as part of the OnRe investment.

    OnRe AUM increase
    73%from $142 million to $247 million
    Since investment

    Growth in Assets Under Management for the OnRe protocol since Forward's investment.

    Tokenized RWA capitalization on Solana
    $3.3 billionup from $2.5 billion
    June 30, 2026

    Total capitalization of tokenized real-world assets on the Solana network.

    Borrowing cost of capital
    2.6%
    Q3 FY26

    Average borrowing cost for the company's capital.

    Yield on RWA deployments
    8-11%
    Ongoing

    Expected yield from deployments into various real-world asset environments.

    Yield on OnRe investment
    12%
    Ongoing

    Net yield generated from the OnRe investment.

    Deals & partnerships

    2
    OnReAcquired a minority stake in OnRe, a Solana-based reinsurance platform, and committed liquidity as a liquidity provider in its ONyc token.Up to $25 million committed liquidity; $70 million deployed as of June 30, 2026

    This investment is part of a strategy to deploy capital into Solana native financial infrastructure, generate uncorrelated returns, and strengthen the ecosystem.

    Digital asset treasury sectorIntends to play a lead role in industry consolidation by acquiring other digital asset treasury companies, potentially holding other digital assets that would be converted to SOL.

    Forward aims to drive step-function growth in its treasury and close persistent discounts for target companies' treasury values.

    Risks & headwinds

    2
    Digital asset market softnessOngoing

    Solana price down "50-plus percent year-over-year"

    Mitigation: Company views quarters like this as an opportunity to double down on conviction in Solana, leveraging its permanent capital base and long-term view as fundamentals improve.

    Regulatory uncertainty for digital assetsOngoing, with potential for resolution by September 15 (vote on Clarity Act).

    Unquantified, but noted as a barrier that has kept builders and developers from engaging or sent them offshore.

    Mitigation: Forward is not dependent on the passage of the Clarity Act, operating with legal and regulatory confidence within existing frameworks. The company is grateful for ongoing efforts to harmonize and reduce ambiguity.

    What to watch in Q4 FY26

    5

    SOL per share growth

    Next quarter (Q4 FY26)
    Current0.0730 (June 30, 2026); 0.0754 (August 3, 2026)
    TargetContinued compounding growth

    Why it matters

    Growing SOL per share on a risk-adjusted basis is the core objective and thesis of the company.

    Every decision we make is in service of growing SOL per share on a risk-adjusted basis. And this quarter, our team continued to deliver on that promise for our shareholders.

    Q&A highlights

    4

    Where are credible agentic products emerging on Solana, and how does Forward plan to participate in their economics?

    Kyle Samani highlighted Solana's advanced infrastructure for agentic payments (x402 by Coinbase, MPP by Stripe) and the prevalence of agentic trading terminals. He stated that Forward participates indirectly through staking, capturing MEV, and is evaluating direct investments in the speculative sector.

    “The Solana ecosystem has been, I think, pretty ahead of the curve here on the kind of core infrastructure you need for agentic payments.”

    asked by Noah Katz · answered by Pyahm Samani

    2 min read5 chapters

    Detailed Narrative

    01

    Solana Ecosystem Growth and Index Inclusion

    The Solana ecosystem demonstrated accelerated growth in calendar Q2, processing 3.8 billion transactions in June and reaching an all-time high of 167 million monthly token holder addresses in April. Tokenized real-world assets on the network crossed $2.5 billion, and applications generated $257 million in revenue, representing approximately 40% of application revenue across all of Web3. Forward Industries' growing scale was recognized with its inclusion in the Russell 2000 and Russell 3000 indices effective June 29, expected to broaden its shareholder base and improve liquidity.

    02

    Strategic Capital Allocation and Share Management

    Forward Industries accumulated 508,000 SOL tokens during Q3 FY26, increasing total holdings to 7.6 million. The company employs a disciplined capital allocation strategy, issuing 94,000 shares under its at-the-market (ATM) program for gross proceeds of $435,000 when accretive to SOL per share. Concurrently, it repurchased 2.5 million shares when accretive, resulting in a net reduction of approximately 1.7 million fully diluted shares, from 105.2 million to 103.5 million.

    03

    OnRe Investment and RWA Strategy Expansion

    The company made its first Solana ecosystem investment by acquiring a minority stake in OnRe, a Solana-based reinsurance platform. In connection with this, Forward committed up to $25 million of liquidity to OnRe's ONyc token, with approximately $70 million already deployed as of June 30, 2026. This investment aims to generate uncorrelated U.S. dollar-denominated yield, leveraging Forward's industry-leading cost of capital (2.6%) to achieve yields of 8-11% on RWA deployments, while also supporting the broader Solana ecosystem.

    04

    Industry Consolidation Ambitions

    Forward Industries intends to play a lead role in the consolidation of the digital asset treasury sector, positioning itself as the largest Solana treasury by net asset value and total SOL held. The company is actively considering and pursuing M&A opportunities, evaluating potential targets based on their ability to drive step-function growth in the SOL treasury and deliver SOL per share accretion, even if it involves converting other digital assets to SOL.

    05

    Regulatory Landscape Developments

    The regulatory environment for digital assets in the United States saw meaningful movement towards a defined framework. The Senate Banking Committee advanced the Digital Asset Market Clarity Act, which is now eligible for floor consideration with a vote expected on September 15. This legislation aims to allocate jurisdiction to the CFTC for digital commodity spot markets and preserve SEC jurisdiction over digital securities, providing much-needed clarity for the industry.

    AI-generated summary of the company’s earnings call. Not investment advice.