Q3 FY2026
Filed Nov 9, 2026Sharplink Q3 2026 total revenue up 24% to $13.5 million; net income of $751.4 million driven by crypto asset gains; nine-month net loss of $328.4 million
Quarterly revenue grew 24% year on year and SG&A fell 8%, but the quarter's net income of $751,443 thousand came mainly from unrealized ($676,695 thousand) and realized ($75,215 thousand) gains on crypto assets. For the nine months, the company reported an operating loss of $(325,003) thousand and a net loss of $(328,392) thousand, including impairments of crypto assets at cost of $268,803 thousand.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended Sep 30, 2026GAAP | $13.46M | – | 24% |
| Revenue from staking, three months ended Sep 30, 2026GAAP | $13.06M | – | 27% |
| Revenue from affiliate marketing, three months ended Sep 30, 2026GAAP | $400K | – | – |
| Cost of revenues from affiliate marketing, three months ended Sep 30, 2026GAAP | $280K | – | – |
| Selling, general and administrative expenses, three months ended Sep 30, 2026GAAP | $11.01M | – | decreased 8% |
| Stock-based compensation, related party, three months ended Sep 30, 2026GAAP | - (shown as nil in the table) | – | – |
| Impairment of crypto assets at cost, three months ended Sep 30, 2026GAAP | $1.04M | – | – |
| Total operating expenses, three months ended Sep 30, 2026GAAP | $12.33M | – | – |
| Realized gain on crypto assets, net, three months ended Sep 30, 2026GAAP | $75.22M | – | – |
| Unrealized gain on crypto assets at fair value, net, three months ended Sep 30, 2026GAAP | $676.7M | – | – |
| Total gains from operations, net, three months ended Sep 30, 2026GAAP | $751.9M | – | – |
| Operating income, three months ended Sep 30, 2026GAAP | $753.0M | – | – |
| Interest income, three months ended Sep 30, 2026GAAP | $516K | – | – |
| Income tax expense, three months ended Sep 30, 2026GAAP | −$2.10M | – | – |
| Net income, three months ended Sep 30, 2026GAAP | $751.4M | – | – |
| Net income per diluted share, three months ended Sep 30, 2026GAAP | $3.45 | – | – |
| Net income per basic share, three months ended Sep 30, 2026GAAP | $3.46 | – | – |
| Total revenue, nine months ended Sep 30, 2026GAAP | $37.04M | – | – |
| Revenue from staking, nine months ended Sep 30, 2026GAAP | $35.72M | – | – |
| Revenue from affiliate marketing, nine months ended Sep 30, 2026GAAP | $1.32M | – | – |
| Cost of revenues from affiliate marketing, nine months ended Sep 30, 2026GAAP | $970K | – | – |
| Selling, general and administrative expenses, nine months ended Sep 30, 2026GAAP | $29.95M | – | – |
| Stock-based compensation, related party, nine months ended Sep 30, 2026GAAP | - (shown as nil in the table) | – | – |
| Impairment of crypto assets at cost, nine months ended Sep 30, 2026GAAP | $268.8M | – | – |
| Total operating expenses, nine months ended Sep 30, 2026GAAP | $299.7M | – | – |
| Realized gain on crypto assets, net, nine months ended Sep 30, 2026GAAP | $88.65M | – | – |
| Unrealized gain (loss) on crypto assets at fair value, net, nine months ended Sep 30, 2026GAAP | −$151.0M | – | – |
| Total gains (losses) from operations, net, nine months ended Sep 30, 2026GAAP | −$62.32M | – | – |
| Operating income (loss), nine months ended Sep 30, 2026GAAP | −$325.0M | – | – |
| Net income (loss), nine months ended Sep 30, 2026GAAP | −$328.4M | – | – |
| Net income (loss) per diluted share, nine months ended Sep 30, 2026GAAP | $(1.55) | – | – |
| Cash and cash equivalents as of Sep 30, 2026GAAP | $47.90M | – | – |
| Total assets as of Sep 30, 2026GAAP | $2.17B | – | – |
| Total stockholders' equity as of Sep 30, 2026GAAP | $2.17B | – | – |
| Crypto assets at fair value as of Sep 30, 2026GAAP | $1.62B | – | – |
| Crypto assets at cost as of Sep 30, 2026GAAP | $482.0M | – | – |
| Crypto assets, total, as of Sep 30, 2026other | approximately $2.1 billion | – | – |
| ETH holdings as of Sep 30, 2026other | approximately 892,708 ETH | – | – |
| ETH holdings as of Nov 2, 2026other | approximately 895,117 ETH | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Staking revenueThe company states that staking revenue growth reflects Sharplink's ongoing ETH treasury management activities. The release gives no further breakdown. | $13,056 thousand (three months ended Sep 30, 2026); $35,718 thousand (nine months ended Sep 30, 2026) | – | 27% |
| Affiliate marketing revenueThe filing does not explain the change in affiliate marketing revenue. Printed prior-year figures were $570 thousand for the quarter and $1,980 thousand for the nine months. | $400 thousand (three months ended Sep 30, 2026); $1,324 thousand (nine months ended Sep 30, 2026) | – | – |
Capital returns
- Treasury stock was 4,071,231 shares at cost of $(41,743) thousand as of Sep 30, 2026, compared with 1,938,458 shares and $(31,721) thousand as of Dec 31, 2025 (balance sheet).
- Outstanding common shares were 217,267,066 as of Sep 30, 2026, compared with 196,707,797 as of Dec 31, 2025 (balance sheet).
- The release does not state cash spent on share repurchases, dividends, or any ATM issuance proceeds in the period. The forward-looking statements list the ATM facility and the stock repurchase program as risk factors only.
What drove it
- The company states that the increase in net income was driven principally by unrealized and realized gains on crypto assets, with unrealized gains of $676.7 million and net realized gains of $75.2 million.
- The company states that the unrealized gains primarily reflect ETH market conditions in the third quarter of 2026.
- The company states that staking revenue growth reflects its ongoing ETH treasury management activities.
- The company states that SG&A decreased 8% as it continued to carefully manage the operating costs of its treasury platform.
- On Sep 28, 2026 the company completed the staking of $200 million of ETH through Lido, receiving wstETH.
- The Galaxy Sharplink Onchain Yield Fund launched in August 2026 with $125 million in initial commitments: $100 million from Sharplink and $25 million from Galaxy Digital. The Fund began deploying capital into onchain opportunities in Q3.
- The company reports a strategic equity investment in Blockspace, an Ethereum infrastructure company focused on validation and staking infrastructure.
Concerns
- For the nine months ended Sep 30, 2026, the company reported an operating loss of $(325,003) thousand and a net loss of $(328,392) thousand, against an operating income of $527 thousand and a net loss of $(127) thousand in the prior-year period.
- Impairment of crypto assets at cost was $268,803 thousand for the nine months, compared with $94,763 thousand in the prior-year period. The filing states that these impairments are not reversed for subsequent market recoveries.
- Unrealized gain (loss) on crypto assets at fair value was $(150,971) thousand for the nine months, a loss, while the quarter shows an unrealized gain of $676,695 thousand. Reported net income is therefore highly sensitive to ETH fair value movements, as the filing's forward-looking statements note.
- Affiliate marketing revenue fell to $400 thousand from $570 thousand in the quarter and to $1,324 thousand from $1,980 thousand for the nine months. The filing does not explain the decline.
- SG&A for the nine months was $29,954 thousand, compared with $15,523 thousand in the prior-year period.
- Cash and cash equivalents were $47,902 thousand at Sep 30, 2026. Operating and free cash flow are not reported in the filing.
- The company provides no forward guidance in this release.
What to watch
- Whether further impairments of crypto assets at cost are recorded in future periods, given the nine-month impairment charge of $268,803 thousand and the company's statement that these charges are not reversed.
- The trajectory of ETH holdings, which rose from approximately 892,708 ETH at Sep 30, 2026 to approximately 895,117 ETH at Nov 2, 2026.
- Capital deployment and returns from the Lido staking position ($200 million staked on Sep 28, 2026) and the Galaxy Sharplink Onchain Yield Fund, which the filing does not quantify beyond the commitments.
- Staking revenue trend, which rose to $13,056 thousand in the quarter from $10,274 thousand.
- Fair value movements in crypto assets, which drove the quarter's net income and the nine-month loss.
- Detail in the Form 10-Q for the three and nine months ended Sep 30, 2026, cited by the company as the source of further information.
Balance sheet and cash flow
- Cash and cash equivalents were $47,902 thousand as of Sep 30, 2026, compared with $28,539 thousand as of Dec 31, 2025. USDC stablecoin was nil at Sep 30, 2026, compared with $1,882 thousand at Dec 31, 2025.
- Crypto assets at fair value were $1,615,154 thousand as of Sep 30, 2026, compared with $1,899,683 thousand as of Dec 31, 2025. Crypto assets at cost were $481,958 thousand, compared with $500,912 thousand. The filing does not explain these year-end changes.
- Investments at fair value were $24,840 thousand as of Sep 30, 2026, compared with nil at Dec 31, 2025. The release describes a strategic equity investment in Blockspace but does not link this balance to a specific investment.
- Total assets were $2,171,785 thousand as of Sep 30, 2026, compared with $2,431,766 thousand as of Dec 31, 2025. Total liabilities were $6,103 thousand, compared with $12,749 thousand, and total stockholders' equity was $2,165,682 thousand, compared with $2,419,017 thousand.
- The company states that unrealized gains reflect changes in the fair value of its ETH holdings and do not represent cash proceeds or a change in the number of ETH and ETH-equivalent tokens held. The release also states that impairment charges reduce the carrying value of LsETH, weETH and wstETH under U.S. GAAP and are not reversed for subsequent market recoveries.
- No cash flow statement was included in the filing. Operating cash flow and free cash flow are not reported.
Analysis
Sharplink reported third quarter 2026 total revenue of $13,456 thousand, up 24% from $10,844 thousand a year earlier. Staking revenue rose 27% to $13,056 thousand, while affiliate marketing revenue fell to $400 thousand from $570 thousand. SG&A decreased 8% to $11,013 thousand from $12,024 thousand, and the company says it is managing the operating costs of its treasury platform. Total operating expenses were $12,333 thousand against $19,536 thousand, with the impairment of crypto assets at cost falling to $1,040 thousand from $6,950 thousand in the quarter.
The headline net income of $751,443 thousand, or $3.45 per diluted share, is almost entirely the result of gains on crypto assets. The filing reports an unrealized gain of $676,695 thousand and a realized gain of $75,215 thousand, against a total operating revenue line of $13,456 thousand. The company states that these gains reflect ETH market conditions and do not represent cash proceeds. Operating income of $753,033 thousand therefore reflects the fair value line rather than the staking or affiliate businesses.
The nine-month figures present a different picture. Total revenue was $37,042 thousand against $12,282 thousand, but the company recorded an operating loss of $(325,003) thousand and a net loss of $(328,392) thousand, or $(1.55) per diluted share. The main drivers were impairments of crypto assets at cost of $268,803 thousand and an unrealized loss of $(150,971) thousand. The company states that impairment charges reduce carrying values and are not reversed for later market recoveries.
On the balance sheet, cash rose to $47,902 thousand from $28,539 thousand at Dec 31, 2025, while crypto assets at fair value fell to $1,615,154 thousand from $1,899,683 thousand. Total assets were $2,171,785 thousand and equity was $2,165,682 thousand. The company deployed capital during the quarter: $200 million of ETH was staked through Lido on Sep 28, 2026, the Galaxy Sharplink Onchain Yield Fund began deploying capital from $125 million in commitments, and the company made an equity investment in Blockspace. Treasury stock rose to 4,071,231 shares at $(41,743) thousand. The release does not state repurchase cash flows, and no cash flow statement is included.
The release contains no forward guidance, so no outlook can be compared with actual results. The figures that deserve attention are the nine-month impairment charge, the sensitivity of reported net income to fair value changes in crypto assets, and the ETH holdings count, which the company reports as approximately 892,708 ETH at Sep 30, 2026 and approximately 895,117 ETH at Nov 2, 2026.
Management, verbatim
Our relentless focus translates into tangible financial results, highlighted by double-digit revenue growth, improved operating leverage and a material increase in net income.
Joseph Chalom, Chief Executive Officer
These milestones reflect our belief that ETH should be managed as a productive operating asset rather than simply held for potential appreciation.
Joseph Chalom, Chief Executive Officer
Not in the filing
stated, not guessed- No forward guidance for revenue, gross margin, operating expenses or tax rate was provided in this release, and no previous outlook was supplied.
- Prior-year and prior-quarter percentage changes for net income, operating income and EPS are not printed.
- Prior-quarter (Q2 2026) figures are not printed in the release.
- No cash flow statement: operating cash flow, investing cash flow and free cash flow are not reported.
- Cash paid for share repurchases, dividends and ATM proceeds are not stated in the release.
- Dec 31, 2025 balance sheet comparatives are printed but are not prior-year same-period figures, so prior_year fields for balance sheet metrics are null.
- Affiliate marketing revenue change percentage is not printed.
- The company does not state the reason for the decline in affiliate marketing revenue or for the decline in crypto assets at fair value from Dec 31, 2025.
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.