Upexi reports fiscal Q4 loss, trims costs, cuts debt

Upexi (NASDAQ: UPXI ) released fourth-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

The full earnings call is available at Summary Upexi marked the end of its fiscal year with a focus on the Solana Treasury Strategy, having raised $300 million in capital to support it. 1 million in unrealized losses on digital assets and increased expenses. Management highlighted significant expense reductions, including a reduction in full-time employees from 59 to 10, and outsourcing manufacturing and logistics. 5%.

8 million and maintained a strategic focus on growing Solana holdings. The company remains optimistic about future market conditions, believing in a forthcoming bull market for digital assets, particularly Solana. Upexi's strategic initiatives include leveraging partnerships, like that with Hive Mind, to expand market reach and enhance staking yields. Full Transcript OPERATOR 2026 financial results conference call.

Please note this event is being recorded. I would now like to turn the conference over to Valter Pinto, Managing Director of KCSA Strategic Communications. Please go ahead. Valter Pinto, Managing Director, KCSA Strategic Communications Thank you, operator.

Good evening and welcome everyone to the Upexi fiscal fourth quarter and full year 2026 financial results conference call. I'm joined today by Alan Marshall, Chief Executive Officer, Andrew Norstrud, Chief Financial Officer, and Brian Rudick, Chief Strategy Officer. Before I begin, I'm 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'll 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 United States and they may be different from non-GAAP financial measures used by other companies. The reconciliations 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'd now like to turn the call over to Upexi CEO Alan Marshall. Alan Marshall, Chief Executive Officer 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. S. administration and its agencies were turning from a headwind to a tailwind for digital assets.

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 worked to fortify the balance sheet, the debt reduction, 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. 8 million as of June 30, up 65% from the prior quarter end.

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 was 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.

Brian Rudick, Chief Strategy Officer Thanks, Alan, and hello everyone. Alan 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. And with top performance and distribution, Solana is in the capper's seat to lead this revolution. Metrics agree and show that Solana is winning. 04 cents, 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: in payments and stablecoins from SoFi, Western Union, MoneyGram, and MasterCard; in tokenization in capital markets from State Street, Amundi, Securitize, and Ando; and in infrastructure from Google Cloud, Amazon Web Services, Moody's, and oil funds.

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. And with that I'll turn the call over to our Chief Financial Officer, Andrew Norstrud, for a review of our financial performance. Andrew Norstrud, Chief Financial Officer Thank you, Brian.

6 million in working capital. 34 million Solana tokens, having a cost basis of approximately three hundred and sixty point three million, equating to an average cost per token of one hundred and fifty-four, and approximately 95% of these tokens were staked. 4 million in digital asset revenues, or approximately earned 135,000 Solana tokens. 7 million in realized losses for the year ended June 30, 2026.

9 million in the prior year. 1 million increase in travel. 4 million the prior year. 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. 3 million. This reflects the debt reduction on an acquisition loan and the partial repayment of a convertible debt that the Company stocked.

73 per share in fiscal year 2025. 9 million stock compensation. 8 million under the 50 million repurchase program our board authorized in November of 2025. 5 million.

1 million a year ago. The year-over-year change in stockholders' equity primarily reflects the impact of the unrealized losses on our digital asset treasury and other changes associated with the execution of our treasury strategy. Management continues to focus on growing Solana holdings on a per-share basis through disciplined capital activities, staking yield and opportunities, purchase of discounted locked tokens, while maintaining prudent leverage and risk management. And now I'll turn it back over to Alan for concluding remarks.

Alan Marshall, Chief Executive Officer Thanks, Andrew. I wanted to close the call by reiterating the progress we have made despite the difficult market environment for crypto. The improvements to our balance sheet and the material reduction to our expenses leave us in a position to capitalize on the inevitable upturn. The company results will improve materially when this happens, and all the groundwork we did will be amplified with material improvement in the Solana price.

With that, I'll turn it over to the operator for questions. OPERATOR Thank you. If you would like to ask a question, please press Star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

You may press Star two if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Brian Kinslinger with Alliance Global Partners. Please proceed.

Brian Kinslinger, Analyst at Alliance Global Partners Great. Thanks so much. Two questions. My first one is, I'm curious if you can discuss the progress and/or ways you can maximize yield and some of the avenues you're exploring to achieve your goals.

And then, what are your top priorities for Upexi in the current fiscal year? And then I'll ask my second questions. Alan Marshall, Chief Executive Officer Brian, do you want to take that one, or do you want me to take it? Brian Rudick, Chief Strategy Officer Sure.

Happy to. Yeah, Brian, thanks for the call. I'd say that we slow-played this a bit. We looked at several different opportunities.

At first one was quite attractive from both risk and return perspective. Recall, we have a quite high bar. We want to make sure it's very low risk and we want to make sure that it can be recurring and also something that investors understand. What I'd say is some of the opportunities that we were looking at got less attractive during the quarter and we think that as the crypto market comes back, a lot of those opportunities will improve as well and we can become much more active there.

So not a ton to report there, but we're still actively looking and that is something that we do want to do. Brian Kinslinger, Analyst at Alliance Global Partners Great. My second question is, can you explain, with the stock price well below the strike price for the converts, why is management choosing to calculate NAV as though these will convert, as it seems like they won't? 4 times, and so capital raising would be accretive to SOL per share.

Love to hear your thought process on those converts. Alan Marshall, Chief Executive Officer I think we spoke about this in the past. I mean you're speculating on SOL price and asking us to do that and I just don't think we're in a position to do that. I mean in July of 2025 within 150 days SOL went from 234 to 82.

So I mean we have 281 days assuming we don't either, you know, extend them or find a way to convert them like we did with the Hive Mind deal. So anything we do would have speculation in it. So we reported these, we know what the dates are and presume that they're not going to convert in 281 days when SOL, like I said, went from 234 to 82 in 150 days. It's just an assumption I'm not willing to make.

I mean we did this transaction assuming they would convert and if SOL were back at 200 they would convert. So I guess we could do a, you know, like a percentage-wise on what we think it is, but it'd all be speculation. So this is, we're just being consistent with how we reported it. Like Andy said, we have, you know, we report on our website.

We think we'll be able to, you know, either create value with these converts, find a way to convert them. Solana could go above a level that would make them convert. So you're making one assumption that it's not going to convert and I just don't know how we could responsibly make that same, you know, again I guess speculation. If I was that good at speculating, I would have sold all my Solana at 234 and bought it back at 82.

Okay, fair enough. Brian Rudick, Chief Strategy Officer Thank you, Brian. One thing I would add is if you take the embedded option in our in-kind notes and you run it through any sort of options pricing model like Black-Scholes, that delta is actually still quite high. It's because, like, the vol on our stock is extremely high.

Like, we would trade with the beta to SOL and SOL is quite volatile, as you know. So that suggests that there's actually still a really, really darn high chance that they do end up converting. And I think, like, that volatility is often overlooked. So wanted to mention that as well.

Brian Kinslinger, Analyst at Alliance Global Partners Thank you. Alan Marshall, Chief Executive Officer And just not to go further, but you saw we did the Hive Mind deal, we converted early. So even if somehow we had to possibly reprice them if it was close or something, so maybe there would be some additional dilution. We just can't do it, we just can't do a zero, we can't do an all-or-none kind of transaction.

So, like, speculation—we just, it's just hard, you know, for us right now. Thanks. Thanks for the question. OPERATOR Our next question is from Gareth Garchetta with Cantor Fitzgerald.

Please proceed. Gareth Garchetta, Analyst at Cantor Fitzgerald Hey guys, I wanted to touch on the June private placement. It looks like you were able to retire just under 20 million of principal for around 10 million at the time, so a pretty meaningful discount to face value.