Q2 FY2026
Filed Aug 12, 2026Q2 revenue rose 66.9% year over year, while a $21,519 net loss on digital assets drove a $27,287 net loss; management expects an operating-cost step-down beginning in Q3 and withdrew June 2027 SPS guidance.
Revenue and Digital Asset Treasury Revenue increased sharply year over year and Total OpEx + COGS excluding fair-value changes declined, but the quarter recorded a net loss as the prior-year digital-asset gain reversed to a loss. Management also chose not to issue June 2027 SPS guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $3,314 | – | 66.9% |
| Digital Asset Treasury Revenueother | $3,256 | – | 170.1% |
| Net (Loss) Gain on Digital Assetsother | ($21,519) | – | (201.5%) |
| Total OpEx + COGS (Ex FV changes)other | $4,635 | – | (22.6%) |
| Net (Loss) Incomeother | ($27,287) | – | (276.8%) |
| Weighted Average Shares Outstanding (Diluted)other | 27,351 | – | 41.5% |
| EPS (Diluted)other | ($1.00) | – | (219.5%) |
| Common Shares Outstandingother | 31.0M | – | – |
| Fully Diluted Shares Outstandingother | 43.7M | – | – |
| mNAVother | 0.8x | – | – |
| SPS growth over the trailing twelve monthsother | 24% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Digital Asset Treasury RevenueNo specific Q2 revenue driver was disclosed. | $3,256 | – | 170.1% |
Q3 2026 / December 2028 outlook
- Operating expensesExpected cost step-down in operating expenses beginning in Q3.
- NoteNo June 2027 SPS guidance will be issued.
- Note1.0 SPS by December 2028.
- NoteThe December 2028 target assumes a constructive crypto environment in both 2027 and 2028.
- NoteFurther cost reductions expected ahead.
Capital returns
- Management will opportunistically retire convertible debt because it trades at a steep discount to par.
- Alternative forms of leverage, including preferred equity, remain on the table.
What drove it
- Revenue increased to $3,314 and Digital Asset Treasury Revenue increased to $3,256.
- Management attributed expected Q3 cost savings primarily to the roll-off of one-time legal and accounting spend, renegotiation and consolidation of third-party relationships, and automation of repetitive internal workflows with AI.
- The company is simplifying its onchain footprint and discontinuing the Treasury Accelerator program.
- Management stated that organic yield remains well above that of benchmark passive vehicles or competing SOL DATs.
- Management cited tokenized-equity activity and RWA growth on Solana as support for its Solana thesis.
Concerns
- Net (Loss) Gain on Digital Assets was ($21,519), compared with $21,194 in 2Q25.
- Net (Loss) Income was ($27,287), compared with $15,432 in 2Q25.
- EPS (Diluted) was ($1.00), compared with $0.84 in 2Q25.
- Management stated that performance among digital asset treasuries has struggled since August 2025 amid a crypto bear market and rotation toward other themes.
- Management withdrew its planned June 2027 SPS outlook, citing the limits of forecasting in the current market.
- Weighted Average Shares Outstanding (Diluted) increased 41.5% year over year to 27,351.
What to watch
- Whether the expected operating-expense step-down begins in Q3 and whether further cost reductions materialize.
- Progress toward the unchanged long-term target of 1.0 SPS by December 2028.
- Use of convertible-debt retirements at discounts to par and any use of alternative leverage, including preferred equity.
- The impact of discontinuing the Treasury Accelerator program and concentrating the company's onchain footprint.
- Digital-asset fair-value movements, which were the principal stated driver of the year-over-year reversal from net income to net loss.
Balance sheet and cash flow
- As of the date of the letter, the company had approximately 31.0 million common shares outstanding and 43.7 million fully diluted shares outstanding.
- Management described its convertible debt as unsecured and long-dated, with no maturity until 2030.
- mNAV is reported on a fully converted basis.
Analysis
DeFi Development reported $3,314 of revenue in 2Q26, up 66.9% from $1,986 in 2Q25. Digital Asset Treasury Revenue was $3,256, up 170.1% from $1,206, making it the principal disclosed revenue line. The filing does not provide a prior-quarter revenue comparison or identify a specific Q2 driver for the revenue increase.
Profitability was pressured by digital-asset valuation results. Net (Loss) Gain on Digital Assets was ($21,519), compared with a $21,194 gain in 2Q25, and Net (Loss) Income was ($27,287), versus $15,432 of net income a year earlier. EPS (Diluted) moved to ($1.00) from $0.84. At the same time, Total OpEx + COGS (Ex FV changes) declined 22.6% to $4,635 from $5,990, indicating that the reported loss occurred despite lower underlying operating costs.
Management's operating focus is on lowering recurring expenses and simplifying the business. It expects an operating-expense step-down beginning in Q3, tied to the roll-off of one-time legal and accounting spend, third-party relationship consolidation, and AI automation. The company is also discontinuing the Treasury Accelerator program and concentrating its onchain footprint. These actions are presented as efforts to preserve more capital for SPS growth.
Capital structure and per-share exposure remain central to management's strategy. The company reported approximately 31.0 million common shares outstanding and 43.7 million fully diluted shares outstanding as of the letter date, while Weighted Average Shares Outstanding (Diluted) rose 41.5% year over year to 27,351. Management intends to opportunistically retire convertible debt trading below par and continues to consider alternative leverage, including preferred equity. It described the convertible debt as unsecured and long-dated, with no maturity until 2030.
The guidance change is material. Management will not issue June 2027 SPS guidance because it considers the timing and magnitude of accretive issuance opportunities, convertible-debt repurchases, and organic yield difficult to forecast in current market conditions. It retained its long-term target of 1.0 SPS by December 2028, subject to its stated assumption of a constructive crypto environment in both 2027 and 2028. Investors should focus on execution of the Q3 cost reduction, digital-asset valuation volatility, share dilution, debt-management activity, and progress toward SPS growth.
Management, verbatim
We control how we operate: growing SOL per share, managing leverage, lowering our cost structure, and communicating clearly with investors.
Joseph Onorati, Chief Executive Officer
We will opportunistically retire our convertible debt — not to reduce leverage, but because our debt trades at a steep discount to par, allowing us to grow SPS over the long term.
Joseph Onorati, Chief Executive Officer
We are taking these actions because we believe a market recovery is on the horizon and we want to maximize our flexibility as Solana recovers.
Joseph Onorati, Chief Executive Officer
Not in the filing
stated, not guessed- Period-end date.
- GAAP designation for the reported income-statement measures.
- Non-GAAP revenue, gross margin, operating income, net income, and EPS measures.
- Gross profit and gross margin.
- Operating income or loss.
- Tax rate and income-tax expense or benefit.
- Prior-quarter comparatives and quarter-over-quarter changes for the reported income-statement metrics.
- Operating cash flow, free cash flow, capital expenditures, and other cash-flow metrics.
- Cash balance, digital-asset balance, total debt balance, and other balance-sheet amounts.
- Repurchase and dividend amounts.
- Additional operating segments or segment profitability.
- Numeric Q3 operating-expense guidance.
- Revenue, gross-margin, tax-rate, and other conventional financial guidance.
- A prior-quarter outlook document for comparison with actual results.
- The remainder of the shareholder letter, which is truncated in the supplied filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.