Upexi (NASDAQ:UPXI) reported higher fiscal third-quarter revenue but a large net loss tied primarily to unrealized losses on its Solana holdings, as management said a weak crypto market weighed on both token prices and industry valuation multiples during the quarter ended March 31, 2026.
Chief Executive Officer Allan Marshall said the quarter was marked by “a challenging environment,” citing a decline in the price of Solana and industry multiples. He said Solana fell to an intra-quarter low of about $77 before rebounding to $96 at the time of the call, while Upexi’s valuation multiple also recovered from lows and was “now sitting above NAV” on the company’s fully loaded measure.
Marshall said Upexi remained focused on capital activity despite the market backdrop. The company repurchased approximately 2.5 million common shares for roughly $2 million, or about $0.80 per share, during the quarter. He said buying shares below 1x net asset value increases Solana per share.
The company also issued a $36 million in-kind convertible note in January and completed an approximately $7 million equity and warrants offering. Marshall said the equity and warrants transaction was completed above NAV and increased Solana per share.
Solana Treasury Drives Revenue Growth, But Unrealized Losses Weigh
Chief Financial Officer Andrew Norstrud said Upexi had approximately $3.5 million in cash and 2.5 million Solana tokens as of March 31, including 1.4 million liquid tokens and 1 million locked tokens. During the quarter, staking generated approximately 35,000 tokens, or $3.5 million in revenue.
For the fiscal third quarter, total revenue was $4.6 million, compared with $3.2 million in the prior-year quarter. For the nine months ended March 31, total revenue was approximately $21.8 million, compared with $11.5 million in the prior-year period. Norstrud said the increase reflected the addition of Upexi’s digital asset treasury business in 2025.
Upexi reported a quarterly net loss of approximately $109 million, or $1.67 per share. Norstrud said $92.3 million of the loss was related to unrealized losses on digital assets during the quarter. For the nine-month period, the company recorded an unrealized loss on digital assets of approximately $178.8 million, reflecting a Solana price per liquid token of $83.11 and $71.47 per locked token as of March 31.
Norstrud said Upexi increased its total Solana holdings by about 189,000 tokens during the quarter, representing a 9% increase, or 35% annualized. For the nine months ended March 31, the company generated approximately $14.7 million in digital asset revenue, or about 100,000 tokens.
Expense Reductions Target Self-Sustaining Treasury
Management said Upexi is working to lower its cost structure and align expenses with staking revenue. Marshall said the company has shifted its consumer brands operations from in-house manufacturing, warehouse and logistics to third-party providers, making costs more closely tied to revenue generated by the brands business.
Norstrud said Upexi reduced short-term debt by approximately $7.6 million during the quarter, including a $5.4 million reduction in short-term treasury debt. He also said the company reduced recurring general and administrative expenses from the fiscal second quarter and cut headcount to 10 employees.
Marshall said Upexi expects that by July 1, ongoing cash expenses for operations and interest will be less than treasury staking revenue, assuming a continued 6% to 7% staking yield. Norstrud said some warehouse leases and logistics-related expenses are expected to end during the current quarter, while the company is also looking at ways to reduce more than $500,000 per month of interest expense tied to short-term treasury debt.
Management Sees Solana Fundamentals as Intact
Chief Strategy Officer Brian Rudick said Solana declined from about $125 per token to about $83 during the quarter, a 33% drop, compared with a 22% decline in Bitcoin over the same period. Rudick said Upexi believes Solana’s decline was largely driven by Bitcoin’s weakness, as investors often trade crypto assets together.
Rudick argued that Solana and Bitcoin are “two completely different constructs,” with Bitcoin functioning as a store of value and Solana serving as a “new type of computer” aimed at upgrading financial infrastructure. He said Solana’s fundamentals remain strong in areas such as stablecoins, tokenization and AI-agent payments.
- Rudick said stablecoin transfer volume on Solana totaled $2.1 trillion in the quarter, up 60% from the prior year.
- He said Solana real-world assets reached $2.4 billion in the first quarter, up from $317 million a year earlier.
- He said Solana held a 99% market share of tokenized equities trading volume in the first quarter.
Rudick said lower Solana prices, combined with improving fundamentals, create what he described as an improved risk-reward opportunity for Upexi and Solana.
Company Evaluates Additional Yield Strategies
Marshall said Upexi is examining ways to increase the native Solana staking yield in a “low risk and recurring” manner. He said the company believes the market would value additional yield above native staking if it is recurring and low risk.
In response to an analyst question from Brian Kinstlinger of Alliance Global Partners, Norstrud said native staking yield was “just below 7%” during the quarter. Management also said it is evaluating potential opportunities, including M&A or other strategies, that could increase returns on capital, though any action would need to exceed the yields the company can earn through staking.
During the question-and-answer session, management said any excess cash generated from staking would be used to build the treasury, either by repurchasing shares or buying more Solana, depending on which option is more accretive. Management also said it may initially allocate a smaller amount, such as $25 million or $50 million, toward a higher-yield strategy if returns are attractive, while emphasizing the company is seeking off-chain strategies using traditional Wall Street instruments.
NAV and Capital Structure Remain Key Investor Focus
In response to a question about enterprise value and net asset value, Rudick said Upexi evaluates NAV in two ways depending on whether its in-kind convertible notes convert. He said the company’s fully loaded NAV assumes the converts are converted and Solana is sold to repay the outstanding line, resulting in roughly 1x NAV. He said another method, assuming no conversion, would show the company “way above NAV.”
Rudick said Upexi’s view is that the in-kind convertible notes are more likely than not to convert, which is why management tends to manage the company using the fully loaded NAV measure.
Marshall closed the call by saying Upexi is operating from a “position of strength,” citing what he described as a low average Solana purchase price relative to larger peers, a clean capital structure, leading trading volumes and valuation, and a management team focused on capital markets execution and shareholder value.
About Upexi (NASDAQ:UPXI)
Upexi (NASDAQ: UPXI) is a full-service digital consultancy that partners with brands to design, develop, and deploy digital products and marketing strategies. The company's expertise spans user experience and interface design, custom software engineering, and data-driven marketing services. By integrating research, creative design, and technical execution, Upexi helps clients accelerate product development cycles and optimize their digital presence.
The firm serves a diverse, global clientele across sectors such as e-commerce, software-as-a-service (SaaS), healthcare, and finance.
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