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    GLXY
    Earnings call· Mar 2026(Q1 FY26)

    Galaxy Digital Q1 FY26 earnings call GLXY

    Apr 28, 2026 Source

    Executive summary

    Galaxy Digital Q1 FY26 — Data Center Milestones and Digital Asset Resilience

    Despite a challenging quarter for digital asset prices, Galaxy Digital demonstrated resilience in its operating businesses, with its data center segment achieving key milestones and its digital asset segment maintaining stable adjusted gross profit. The company is actively pursuing financing for its data center expansion and productizing its digital infrastructure for institutional adoption, aiming to diversify revenue and reduce correlation to crypto price volatility.

    Highlights

    5

    • Data Centers: Delivered first data halls on schedule and on budget for Phase 1 at Helios, a significant de-risking event.

    • Digital Assets: Adjusted gross profit of $49 million, roughly flat QoQ despite a 20% decline in total core market cap.

    • Trading: Digital Asset trading volumes held steady, even as industry-wide activity declined more than 25%.

    • Asset Management: Generated $69 million of net inflows during the quarter, underscoring platform durability.

    • Q2 Preliminary Performance: Adjusted EBITDA estimated at approximately $90 million quarter-to-date through last Friday.

    Concerns

    5

    • Net Loss: Reported a GAAP net loss of $316 million or $0.49 per share, primarily due to unrealized mark-to-market losses on Digital Asset holdings.

    • Firm-wide Adjusted EBITDA: Negative $188 million for the quarter.

    • Treasury & Corporate Segment: Reported an adjusted gross loss of $140 million due to market depreciation.

    • Balance Sheet: Total assets decreased from $11 billion at year-end to $10 billion, driven by Digital Asset price declines.

    • Lending: Average loan book declined approximately 20% QoQ due to digital asset price depreciation, client deleveraging, and roll-off of two larger loans.

    Guidance & targets

    6
    CategoryTargetConfidence
    Critical IT capacity delivery
    Substantially all of 133 megawatts
    high materiality
    High
    Phase 2 data hall deliveries commencement
    Commence in H1 2027
    medium materiality
    High
    Phase 2 financing update
    More to share in the near term
    high materiality
    Medium
    Leasing 830 megawatts
    Second half of the year process
    high materiality
    Medium
    New projects announcement
    Announcement in not-too-distant future
    medium materiality
    Medium
    Q2 Adjusted EBITDA (preliminary)
    Approximately $90 million
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Digital Assets
    Adjusted gross profit was roughly flat QoQ despite a 20% decline in total core market cap. Tightened operating expenses narrowed the adjusted EBITDA loss by approximately 1/3 from Q4. Global Markets trading volumes held steady while industry-wide activity declined over 25%. Asset Management saw strong net inflows.
    Adjusted EBITDA loss: $188 million (firm-wide)Global Markets adjusted gross profit: $31 millionGlobal Markets trading volumes: flat QoQAsset Management adjusted gross profit: $18 millionAsset Management net inflows: $69 millionAssets on platform: $8 billionAverage loan book: declined 20% QoQ
    		———Adjusted gross profit of $49 million
    Data Centers
    Financial results remained de minimis in Q1 as the company worked through final stages of construction and commissioning for Phase 1 at Helios. Revenue will begin ramping in Q2 with 15-year contracted cash flows at approximately 90% average lease level EBITDA margins.
    Critical IT capacity delivered (Phase 1): first data hallPhase 1 critical IT capacity on track: 133 megawatts by end of Q2 FY26Phase 2 incremental critical IT capacity: 260 megawattsPhase 2 data hall deliveries commencement: H1 2027Available approved capacity: 830 megawattsAdditional capacity progressing through ERCOT study: 1.8 gigawatts
    		de minimis———

    Operational metrics

    19
    Adjusted EBITDA
    negative $188 million
    Q1 FY26

    Driven primarily by unrealized mark-to-market losses on Digital Assets holdings.

    Treasury & Corporate Adjusted Gross Loss
    $140 million
    Q1 FY26

    Primarily reflecting market depreciation of Digital Assets.

    Operating expenses (adjusted)
    $147 millionDown 7% QoQ
    Q1 FY26

    Driven by lower professional fees and a decrease in compensation expense.

    Total assets
    $10 billionDown from $11 billion at year-end
    Q1 FY26

    Driven by the decline in Digital Asset prices.

    Total equity capital
    $2.8 billion
    Q1 FY26

    Expect this share of capital allocated to operating businesses to continue increasing.

    Net Digital Assets and Investments
    $1.4 billionDown 19% QoQ
    Q1 FY26

    Primarily reflecting market appreciation.

    Shares repurchased
    3.2 million shares
    Q1 FY26

    More than offset dilution from equity-based compensation awarded in 2025.

    Basic shares outstanding
    390 million
    Q1 FY26

    At quarter end.

    Cash and stablecoin balances
    $2.6 billionRoughly flat from year-end
    Q1 FY26

    Maintaining sufficient capital and liquidity, including for potential repayment of $445 million exchangeable notes maturing in December of this year.

    Digital Asset Segment Adjusted EBITDA Loss
    narrowed by approximately 1/3from Q4
    Q1 FY26

    Due to tightened operating expenses.

    Industry-wide Digital Asset trading volumes
    down more than 25%
    Q1 FY26

    Against this backdrop, Galaxy's trading volumes held steady.

    Total core market cap (Digital Assets)
    declined roughly 20%
    Q1 FY26

    Impacted reported results.

    Critical IT capacity delivered
    first data hall
    Q1 FY26

    Delivered to CoreWeave.

    Contracted cash flows
    15-year
    null

    Uncorrelated to Digital Asset prices.

    Incremental critical IT capacity
    260 megawatts
    null

    Greenfield construction advancing.

    Approved incremental capacity
    830 megawatts
    null

    Front-of-the-meter power in ERCOT.

    Additional capacity in ERCOT study
    1.8 gigawatts
    null

    Progressing through the ERCOT study process.

    Interconnect studies completion
    January 15
    2026

    For the 830MW capacity.

    New investment mandate
    $75 million
    Subsequent to Q1 FY26

    One of the largest single client inflows in history.

    Industry KPIs

    1
    MetricValueDetails
    Fundraising inflows$69 millionUSD

    Product announcements

    3
    ProductTypeDetails
    Solana stakinglaunch
    GalaxyOne Business Accountslaunch
    New fintech hedge fundlaunch

    Deals & partnerships

    1
    CoreWeaveLease agreement for Helios data center capacity.15-year

    Delivered first data halls under this agreement. Client expects a multitrillion-dollar investment-grade public company to be the end user for their GPUs at Helios Phase 1.

    Risks & headwinds

    5
    Digital Asset Price VolatilityQ1 FY26

    Total core market cap declined roughly 20%; GAAP net loss of $316 million; firm-wide adjusted EBITDA negative $188 million; Treasury & Corporate segment adjusted gross loss of $140 million.

    Mitigation: Tightened operating expenses; shifted Level 2 exposure to hyper-liquid; focus on less cyclical infrastructure business.

    Regulatory Uncertainty (Clarity Act)Next 6 weeks

    null

    Mitigation: Management believes it will pass due to importance for both Republicans and Democrats.

    Inflation and Interest Rate EnvironmentNear term

    null

    Mitigation: Management expects Fed to cut rates by year-end due to AI-driven productivity miracle, which would be supportive of crypto prices.

    ERCOT Regulatory Framework for New CapacityMid-year (June)

    1.8 gigawatts

    Mitigation: Closely tracking PGRR145 draft rule; current 830MW capacity is expected to be baseload and not subject to re-study.

    Lending Book DeclineQ1 FY26

    Approximately 20% QoQ.

    Mitigation: Attributed to digital asset price depreciation and client deleveraging; focus on not losing money and rebuilding the book with a more diverse client base.

    What to watch in Q2 FY26

    5

    Phase 1 Helios Critical IT Capacity Delivery

    End of Q2 FY26
    CurrentFirst data hall delivered
    TargetSubstantially all 133 megawatts delivered

    Why it matters

    This is a key milestone for the data center business, proving execution and enabling revenue ramp-up.

    We remain on track to deliver substantially all of the 133 megawatts of critical IT capacity for Phase I by the end of Q2.

    Q&A highlights

    7

    Are tightening spreads for stabilized assets and strained syndicate financing for large deals impacting Galaxy's go-forward financing strategy for data centers?

    Chris Ferraro confirmed tightening spreads for stabilized assets. He noted a shift from bank syndicates to the high-yield bond market, which offers a more distributed investor base and flexible capital. He expressed constructive views on financing opportunities due to tightened spreads and rating agencies recognizing the long-lived nature of their infrastructure.

    “We've pretty much seen -- things could change, but we've pretty much seen spreads tighten across the board, and that's come from a peak of sort of concern around build-outs, CapEx budgets, credit quality. And spreads have come in pretty significantly.”

    asked by Peter Christiansen · answered by Christopher Ferraro

    2 min read6 chapters

    Detailed Narrative

    01

    Data Center Execution and Expansion

    Galaxy Digital has successfully delivered the first data halls for Phase 1 at its Helios campus, marking a significant de-risking event by proving its ability to deliver on time and budget. The company remains on track to deliver substantially all of the 133 megawatts for Phase 1 by the end of Q2 FY26, with Phase 2 construction for 260 megawatts advancing for deliveries commencing in H1 2027.

    02

    Strategic Data Center Financing and Leasing

    The company is actively pursuing financing for Phase 2, noting strong market demand and a shift towards high-yield bond markets for stabilized assets. For the available 830 megawatts of approved capacity, Galaxy is in discussions with multiple potential customers, aiming for a multi-tenant strategy to diversify its client base. The company has already procured long-lead electrical infrastructure for this expansion, reinforcing its commitment to development regardless of commercial structure finalization.

    03

    Digital Asset Business Resilience

    Despite a 20% decline in total core market cap in Q1 FY26, Galaxy's Digital Asset segment generated $49 million of adjusted gross profit, flat QoQ. This resilience is attributed to scaling recurring fee revenue and transaction income, as well as tightened operating expenses. The Global Markets business saw trading volumes hold steady while industry-wide activity declined over 25%, indicating a decoupling from broader market trends.

    04

    Institutional Adoption and Infrastructure Productization

    Galaxy is observing a significant shift towards institutional adoption of blockchain-based rails, with demand for foundational infrastructure like wallet and custody technology. The company is productizing its digital infrastructure platform into a B2B model, offering white-labeled solutions and bespoke integrations to financial institutions, aiming to make its revenue less correlated to digital asset prices and more driven by institutional utilization.

    05

    Asset Management Growth and Innovation

    The Asset Management business generated $18 million in adjusted gross profit and $69 million in net inflows during Q1 FY26, ending the quarter with $8 billion in assets on platform. Post-quarter, Galaxy secured a new $75 million investment mandate and plans to launch a new fintech hedge fund focused on the convergence of traditional financial services, blockchain, and emerging technologies, leveraging its decade-long expertise in the space.

    06

    Regulatory Environment and Market Outlook

    Management believes the "Clarity Act" infrastructure bill in D.C. is crucial and expects it to pass within the next six weeks, which would further accelerate crypto build-out and support prices. While Bitcoin may face resistance around $80,000-$85,000, a potential Fed rate cut by year-end, driven by AI-led productivity, is expected to be very supportive of broad crypto prices.

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