Solana Company Reports Third Quarter 2026 Financial Results
Solana Co (HSDT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Solana Company Reports Third Quarter 2026 Financial Results Philadelphia - November 11, 2026 - Solana Company (NASDAQ: HSDT ) (the “Company” or “ HSDT ”), a publicly listed digital asset treasury, infrastructure, and services company providing institutional access to
How this was made
The 30-second read
Why it matters
The Q3 earnings beat and a premium‑priced direct offering suggest stronger cash flow and investor confidence, likely supporting the stock price in the short term.
Market read
First‑time earnings disclosure for a micro‑cap crypto‑focused firm; could trigger sector‑wide re‑rating of similar digital‑asset businesses.
What to watch
Potential regulatory scrutiny of crypto‑staking businesses and the sustainability of the current yield premium.
Solana Company reports Q3 2026 total revenue of $3.4 million and net income of $105.2 million, with the net income driven by an operating line for unrealized gain on digital assets
Quarterly revenue rose from $697 thousand to $3,360 thousand and G&A fell from $5,504 thousand to $3,386 thousand. Net income of $105,162 thousand sits alongside a line for unrealized (gain) loss of (102,720) thousand within operating items. Nine-month results remain a net loss of $(24,893) thousand, and cash fell to $1,129 thousand.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Total revenue (three months)GAAP | $3.36M | – | – |
| Q3 2026 Staking revenue (three months)GAAP | $3.34M | – | – |
| Q3 2026 Other revenue (three months)GAAP | $23K | – | – |
| Q3 2026 Cost of revenue (three months)GAAP | $617K | – | – |
| Q3 2026 Gross profit (three months)GAAP | $2.74M | – | – |
| Q3 2026 Gross margin (three months)GAAP | approximately 82% | – | – |
| Q3 2026 General and administrative expenses (three months)GAAP | $3.39M | – | – |
| Q3 2026 Unrealized (gain) loss on digital assets and digital assets receivable (three months)GAAP | −102.7M | – | – |
| Q3 2026 Realized loss on digital assets (three months)GAAP | $1.09M | – | – |
| Q3 2026 Unrealized (gain) loss on digital assets fund investment (three months)GAAP | −1.33M | – | – |
| Q3 2026 Gain on digital asset derivatives (three months)GAAP | −1.53M | – | – |
| Q3 2026 Net operating (income) expenses (three months)GAAP | −101.1M | – | – |
| Q3 2026 Income (loss) from operations (three months)GAAP | $103.8M | – | – |
| Q3 2026 Change in fair value of derivative liability (three months)GAAP | 1.74M | – | – |
| Q3 2026 Other (expense) income, net (three months)GAAP | −429K | – | – |
| Q3 2026 Nonoperating income (expense), net (three months)GAAP | $1.3M | – | – |
| Q3 2026 Net income (loss) (three months)GAAP | $105.2M | – | – |
| Q3 2026 Basic EPS (three months)GAAP | $1.21 per basic common share | – | – |
| Q3 2026 Diluted EPS (three months)GAAP | $1.17 per diluted common share | – | – |
| YTD 2026 Total revenue (nine months)GAAP | $9.51M | – | – |
| YTD 2026 Staking revenue (nine months)GAAP | $9.27M | – | – |
| YTD 2026 Other revenue (nine months)GAAP | 241K | – | – |
| YTD 2026 Cost of revenue (nine months)GAAP | 874K | – | – |
| YTD 2026 Gross profit (nine months)GAAP | 8.63M | – | – |
| YTD 2026 General and administrative expenses (nine months)GAAP | $19.7M | – | – |
| YTD 2026 Unrealized (gain) loss on digital assets and digital assets receivable (nine months)GAAP | −15.88M | – | – |
| YTD 2026 Realized loss on digital assets (nine months)GAAP | 33.47M | – | – |
| YTD 2026 Unrealized (gain) loss on digital assets fund investment (nine months)GAAP | 648K | – | – |
| YTD 2026 Gain on digital asset derivatives (nine months)GAAP | −846K | – | – |
| YTD 2026 Net operating (income) expenses (nine months)GAAP | 37.07M | – | – |
| YTD 2026 Loss from operations (nine months)GAAP | −$28.4M | – | – |
| YTD 2026 Change in fair value of derivative liability (nine months)GAAP | 1.42M | – | – |
| YTD 2026 Gain on sale of business (nine months)GAAP | 3.06M | – | – |
| YTD 2026 Other (expense) income, net (nine months)GAAP | −869K | – | – |
| YTD 2026 Financing costs (nine months)GAAP | −67K | – | – |
| YTD 2026 Nonoperating income (expense), net (nine months)GAAP | 3.55M | – | – |
| YTD 2026 Net loss (nine months)GAAP | −$24.89M | – | – |
| YTD 2026 Basic EPS (nine months)GAAP | $(0.32) per basic common share | – | – |
| YTD 2026 Diluted EPS (nine months)GAAP | $(0.32) per diluted common share | – | – |
| Average net staking yield on treasury holdings (Q3 2026)other | 5.9% APY | – | – |
| Solana network average staking yield (Q3 2026)other | approximately 4.9% APY | – | – |
| SOL held across all categories (as of September 30, 2026)other | approximately 2.4 million SOL | – | – |
| Fair value of SOL holdings (as of September 30, 2026)other | approximately $288.2 million | – | – |
| Total SOL stake delegated (as of September 30, 2026)other | approximately 1.3 million SOL | – | – |
| SOL stake delegated by third parties (as of September 30, 2026)other | 1.0 million SOL | – | – |
| SOL per Treasury Stock Method diluted share (Q3 2026)other | 0.0274 SOL per Treasury Stock Method diluted share | – | – |
| SOL earned as staking rewards and automatically restaked (Q3 2026)other | 30.8 thousand SOL | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Staking revenueThe filing says total revenue was driven primarily by staking revenue on the Company's SOL holdings. Prior-year Q3 2025 staking revenue was $342 thousand. Nine-month staking revenue was $9,266 thousand. | $3,337 thousand (three months ended September 30, 2026) | – | – |
| Other revenueNo driver stated in the filing. Prior-year Q3 2025 other revenue was $355 thousand. Nine-month other revenue was 241 thousand. | $23 thousand (three months ended September 30, 2026) | – | – |
Capital returns
- Repurchased approximately $2.8 million of Class A common stock (1.4 million shares) during Q3 2026.
- Year-to-date repurchases of approximately $8.7 million, as stated in the filing.
- Treasury stock at cost printed as (8,677) thousand at September 30, 2026, against a dash at December 31, 2025.
- Priced an approximately $15 million registered direct offering at a 5% premium to net asset value per share and used the proceeds to purchase approximately 125 thousand SOL.
- CEO Joseph Chee and board director Cosmo Jiang refer to buying back shares below NAV and raising capital above it. The filing does not print the NAV per share or the share price.
What drove it
- The filing says revenue was driven primarily by staking revenue on the Company's SOL holdings.
- The filing says the Pacific Backbone infrastructure moved from build-out to operation, with approximately 1.3 million SOL of total stake delegated as of September 30, 2026.
- The filing attributes the Q3 decrease in general and administrative expenses primarily to lower bonus expense and professional fees, partially offset by higher trading advisory and custodian fees.
- The filing attributes the nine-month G&A increase primarily to $6.8 million of severance associated with the PoNS divestiture.
- The filing attributes the change in the derivative liability fair value line to a $1.7 million gain, and other expense of $0.4 million to foreign exchange fluctuations, as stated by the Company.
- The filing reports a Q3 unrealized (gain) loss line of (102,720) thousand within operating items, and does not print a driver for it beyond the line itself.
Concerns
- Q3 operating income of $103,850 thousand sits next to an unrealized (gain) loss line of (102,720) thousand. Excluding that line, the filing's operating results are not presented on a separate basis.
- Nine-month loss from operations is $(28.4) million and nine-month net loss is $(24,893) thousand, while Q3 shows net income of $105,162 thousand.
- Nine-month realized loss on digital assets is 33,466 thousand, compared with 1,090 thousand in Q3 2026.
- Cash fell from $7,282 thousand at December 31, 2025 to $1,129 thousand at September 30, 2026, while the filing reports $8.7 million of year-to-date share repurchases.
- Share count figures conflict. The narrative says 65.1 million common shares issued and 3.1 million shares subject to possible redemption. The balance sheet prints 61,438,645 shares issued and 3,674,008 shares subject to possible redemption.
- Q3 gross margin is printed only as approximately 82% with no prior-year margin figure.
- The filing does not print year-over-year or quarter-over-quarter percentage changes for revenue or operating lines.
What to watch
- The receivable from broker of $14,791 thousand and due to broker of $15,000 thousand, including whether the October 1, 2026 settlement is reflected in the next filing.
- Staking revenue trend as the Pacific Backbone stake of approximately 1.3 million SOL is reported in future periods.
- Unrealized and realized digital asset lines, which drive the swing between operating income and loss in the nine-month and quarterly figures.
- Cash balance of $1,129 thousand against ongoing G&A and the repurchase program.
- Reconciliation of the share count between the narrative and the balance sheet in the forthcoming Form 10-Q for the quarter ended September 30, 2026, which the filing references.
Balance sheet and cash flow
- Cash and cash equivalents: $1,129 thousand at September 30, 2026, compared with $7,282 thousand at December 31, 2025.
- Total assets: $292,648 thousand at September 30, 2026, compared with $303,929 thousand at December 31, 2025.
- Current digital assets: $21,000 thousand at September 30, 2026, compared with $21,000 thousand at December 31, 2025.
- Digital assets receivable from broker: $14,791 thousand at September 30, 2026, compared with a dash at December 31, 2025. The filing describes it as SOL purchased on September 30, 2026 and settled on October 1, 2026.
- Due to broker: $15,000 thousand at September 30, 2026, compared with a dash at December 31, 2025.
- Digital assets (non-current): $190,103 thousand at September 30, 2026, compared with $196,724 thousand at December 31, 2025.
- Digital assets, restricted: $40,237 thousand at September 30, 2026, compared with $39,219 thousand at December 31, 2025.
- Derivative liability: $2,466 thousand at September 30, 2026, compared with a dash at December 31, 2025.
- Total liabilities: $19,081 thousand at September 30, 2026, compared with $3,016 thousand at December 31, 2025.
- Total stockholders' equity: $266,235 thousand at September 30, 2026, compared with $300,913 thousand at December 31, 2025.
- Accumulated deficit: (239,744) thousand at September 30, 2026, compared with (212,589) thousand at December 31, 2025.
- The filing states $252.4 million of long-term digital assets and digital asset exposure across staked positions, restricted assets, receivables and fund investments at September 30, 2026.
- Operating cash flow and free cash flow are not printed in the filing.
Analysis
Solana Company reported third-quarter 2026 total revenue of $3,360 thousand, up from $697 thousand in the prior-year quarter, with staking revenue of $3,337 thousand making up almost all of it. Other revenue fell to $23 thousand from $355 thousand. Cost of revenue was $617 thousand, which gives gross profit of $2,743 thousand and a gross margin the filing describes as approximately 82%. The filing does not print a prior-year margin. Nine-month revenue was $9,507 thousand against $789 thousand a year earlier, and the filing ties the year-to-date revenue growth to staking on its SOL holdings. The average net staking yield of 5.9% APY is printed against a Solana network average of approximately 4.9% APY.
General and administrative expenses were $3,386 thousand in Q3 2026, against $5,504 thousand in Q3 2025. The filing attributes the decrease primarily to lower bonus expense and professional fees, partly offset by higher trading advisory and custodian fees. Nine-month G&A was $19,691 thousand against $12,714 thousand, which the filing attributes primarily to $6.8 million of severance associated with the PoNS divestiture. Operating results are dominated by digital asset lines. Q3 shows an unrealized (gain) loss line of (102,720) thousand against a 30,540 thousand loss in the prior-year quarter, and the net operating line is (101,107) thousand. Income from operations is $103,850 thousand, and net income is $105,162 thousand, or $1.21 basic and $1.17 diluted per share. The prior-year quarter was a net loss of $(352,768) thousand. Nine-month figures show a loss from operations of $(28.4) million and a net loss of $(24,893) thousand, with a realized loss on digital assets of 33,466 thousand in the nine months.
Capital allocation in the quarter included approximately $2.8 million of share repurchases (1.4 million shares), which brings year-to-date repurchases to approximately $8.7 million. The Company also priced an approximately $15 million registered direct offering at a 5% premium to net asset value per share and used the proceeds to buy approximately 125 thousand SOL. Holdings are approximately 2.4 million SOL, with a fair value of approximately $288.2 million at September 30, 2026. Cash declined to $1,129 thousand from $7,282 thousand at December 31, 2025, and the balance sheet shows a $14,791 thousand receivable from broker against a $15,000 thousand payable to broker.
The filing gives no guidance, so no comparison against prior outlook is possible. The narrative and balance sheet disagree on the share count. The narrative cites 65.1 million common shares issued and 3.1 million redeemable shares, while the balance sheet prints 61,438,645 shares issued and 3,674,008 redeemable shares. Several percentage changes that a reader might expect, such as year-over-year revenue growth, are not printed and are left null.
Management, verbatim
This was a milestone quarter for Solana Company. Our Pacific Backbone infrastructure went live, institutions entrusted us with a million SOL of third-party stake, and that confidence is already flowing through to our revenue.
Joseph Chee, Chairman, President, and Chief Executive Officer of Solana Company
We beat the network's staking yield by a full percentage point, and put both sides of our capital toolkit to work, buying back shares below NAV and raising capital above it.
Cosmo Jiang, General Partner at Pantera Capital and board director at Solana Company
Not in the filing
stated, not guessed- Company-level guidance for future periods is not provided in the filing.
- Prior-year and prior-quarter percentage changes for revenue, gross profit, G&A and operating lines are not printed.
- Prior-year gross margin is not printed; only the Q3 2026 margin of approximately 82% appears.
- Prior-year figures for several digital asset lines are shown as dashes in the table and are left null.
- Prior-quarter (Q2 2026) figures are not printed in the release.
- Operating cash flow, investing cash flow and free cash flow are not printed.
- Net asset value per share and the share price used for the registered direct offering are not printed.
- Share count conflicts between the narrative (65.1 million issued, 3.1 million redeemable) and the balance sheet (61,438,645 issued, 3,674,008 redeemable) are not explained.
- Digital asset cost basis, fair value of digital assets by category and the terms of the Q3 registered direct offering are not printed beyond the items cited.
- Basic and diluted weighted average share counts are excluded from key metrics per the share-count rule.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Solana Company (NASDAQ:HSDT) is a publicly listed digital‑asset treasury and infrastructure firm that provides institutional staking and validator services on the Solana blockchain.
Ticker impact
Solana Company filed an 8‑K reporting Q3 2026 results with $3.4 M revenue, $105.2 M net income and a $15 M direct offering used to buy 125 k SOL.
upward pressure as the market prices in the earnings beat and capital raise at a premium.
First‑time disclosure of profitable quarter and a premium share offering signals improved fundamentals and may attract fresh capital.
Market effects
Highlights growing institutional interest in Solana staking and treasury services, potentially benefiting other blockchain infrastructure firms.
Shows expanding crypto‑related financial services activity in Asia‑Pacific, especially Hong Kong.
Adds to the broader narrative of digital‑asset companies achieving profitability, which may influence crypto‑focused funds.
Counterpoint
The company’s revenue base remains modest; high net income is driven by accounting of digital assets, which could be volatile.
Key entities
- companySolana Company
Digital‑asset treasury and infrastructure provider listed on Nasdaq.
- investorPantera Capital
Board director and general partner commenting on the results.
