Upexi, Inc. Common Stock 2026 Q4 Earnings Call

Good evening, and welcome everyone to the Upexi Fiscal Fourth Quarter and Full Year 2026 Financial Results Conference Call. I am joined today by Allan Marshall, Chief Executive Officer, Andrew Norstrud, Chief Financial Officer, and Brian Rudick, Chief Strategy Officer. Before I begin, I am going to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks, uncertainties, and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I will refer you to the press release issued this evening and filed with the SEC on Form 8-K, as well as the company's reports filed periodically with the SEC.

The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law. In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the U.S., and they may be different from non-GAAP financial measures used by other companies. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issued this evening, unless otherwise noted. I would now like to turn the call over to Upexi CEO, Allan Marshall.

Thank you, Valter, and welcome everyone to our fiscal fourth quarter 2026 earnings conference call. Our fiscal quarter ending June 30, 2026, marks not only the end of our fiscal year, but also the one-year anniversary of our Solana Treasury strategy. As such, I wanted to start with a brief review. We first embarked on our Solana Treasury strategy in April 2025, as it became apparent that the U.S. administration and its agencies were turning from a headwind to a tailwind for digital assets. To bootstrap the strategy, we completed what we believe to be the first large-scale equity raise for an altcoin treasury, raising $100 million and kickstarting the digital asset treasury company trend in the U.S.

We followed with a second highly accretive raise in July 2025, taking in an additional $200 million and including, we believe, the first in kind convertible note, again, demonstrating our innovation within the capital markets. Turning to the quarter, April, May, and June were characterized by a subdued market environment for digital assets and though volatile, Solana generally trended lower throughout the quarter. During this bear market, we focused on what we could control. Management works to fortify the balance sheet with debt reductions and increasing capital on hand using our ATM. Secondly, we dramatically reduced expenses and streamlined our business to create a very predictable expense profile. On the balance sheet front, we spent the quarter focused on a number of initiatives to strengthen our financial position.

We used some of the ATM proceeds to increase our cash position, which totaled $5.8 million as of June 30th, up 65% from the prior quarter end. Separately, in June, we extinguished roughly $20 million in debt. Subsequent to quarter end, we refinanced our existing credit facility, moving the interest rate from 11.5% to 7.5%, and reducing the amount of collateral required for the line. All in, we are in a much stronger position and ready for any market environment that may come. On expense management, we successfully completed our efficiency initiative, which included outsourcing our manufacturing, warehousing, and logistics operations, and reducing full-time employees from 59 a year ago to just 10 today. As previously guided, we expect these efforts to show up in the current quarter ending September 30th, and specifically for our staking revenue to more than cover our ongoing cash expenses on a go-forward basis.

Before concluding, I want to express the fact that this is just our first year, and while the crypto market has not been what we hoped for, we believe it's still in the early innings. The market will turn up again, and when the bull market returns, which it will, the opportunities to create value will be abundant and the premiums will return. The work we have done this year will amplify the capitalization of those as we execute upon them. With that, I'd like to turn the call over to our Chief Strategy Officer, Brian Rudick.

Thanks, Allan, and hello, everyone. Allan covered our strategic priorities and progress at the company, and I will provide an update on Solana. After all, the main determinant of the success of any treasury company will be the performance of its underlying token. Put simply, Solana remains incredibly well-positioned. As a brief review, Solana is a high-performance blockchain and is uniquely positioned as the first second-generation smart contract blockchain. This gives Solana both best-in-class technology from having come later than early-generation blockchains and deep network effects with a plethora of users, developers, and applications. While one may think of Solana and smart contract blockchains as a new computing paradigm, Solana is hyper-focused on internet capital markets, where it aims to provide a single liquidity venue for all the world's assets, accessible to anyone, anywhere, anytime, with just a simple internet connection.

Personally, I like to think of this as reimagining our antiquated global financial infrastructure, which were quite literally built 50 plus years ago, with internet and blockchain-based rails for massive speed and cost advantages and through items like stablecoins, tokenization, and AI agents. With top performance and distribution, Solana is in the catbird seat to lead this revolution. Metrics agree and show that Solana is winning. Key statistics from last quarter include a 48% increase in stablecoin supply over the prior year, tokenized equities growing to over $420 million from virtually zero a year ago, and with trading volume of over $5 billion, amounting to a 97% market share, the cheapest median transaction fee of any chain at just $0.0004, a 53% market share of all blockchain transactions, and strong spot ETF inflows compared to large outflows for others.

A big reason for Solana's success, and a pivotal factor for the future, is Solana's growth with institutions. After all, institutions are likely the fastest way to onboard the masses, given their billions of customers built in trust, billions of dollars of capital and leading developers. Notable corporate announcements during the quarter were numerous and occurred in various areas from key players like in payments and stablecoins from SoFi, Western Union, MoneyGram, and Mastercard, in tokenization and capital markets from State Street, Amundi, Securitize, and Ondo Finance, and in infrastructure from Google Cloud, Amazon Web Services, Moody's Corporation and Allfunds. It's early innings but institutions are reimagining our antiquated financial infrastructure with Solana as the rails, and we are on our way towards internet capital markets. As that continues, Solana and Upexi are well-positioned to benefit.

With that, I'll turn the call over to our Chief Financial Officer, Andrew Norstrud, for a review of our financial performance.

Thank you, Brian. As of June 30th, 2026, the company had approximately $5.8 million in cash, $165.3 million in Solana, and $180.1 million in total assets and $45.6 million in working capital. Turning to the Treasury, as of June 30th, 2026, the company had approximately 2.34 million Solana tokens, having a cost basis of approximately $360.3 million, equating to an average cost per token of $154, and approximately 95% of these tokens were staked. For the year ended June 30th, 2026, the Treasury had approximately $17.4 million in digital asset revenues, or approximately earned 135,000 Solana tokens. There was $195.1 million in unrealized losses and $11.7 million in realized losses.

For the year ended June 30th, 2026, general administrative expenses were $26.4 million, compared to $11.9 million in the prior year. The increase reflects the build-out of the Treasury strategy, includes a $7 million increase in employee compensation, a $4 million increase in public company expenses, a $1.5 million increase in digital asset Treasury fees, a $1.2 million increase in legal fees, and a $1.1 million increase in travel. Stock-based compensation was approximately $21.9 million, compared to $2.4 million the prior year. Interest expense was $13.6 million, compared to $1.2 million in the prior year. The increase reflects the increase in short-term and convertible debt obtained to increase the company's treasury. The company has recently negotiated a lower interest rate on the short-term debt to reduce the interest expense.

There is a gain on extinguishment of debt of approximately $10.3 million. This reflects the debt reduction on an acquisition loan and the partial repayment of a convertible debt that the company stock. Net loss for the fiscal year was $246.1 million, or $3.87 per share, compared to a net loss of $13.7 million or $1.73 per share in fiscal year 2025. The loss was driven primarily by $195.1 million of unrealized losses on digital assets, $11.7 million of realized losses on digital assets, and $21.9 million stock compensation. During the year, we repurchased approximately 2.9 million shares of common stock and an average weighted price of $0.96 per share.