Upexi (NASDAQ:UPXI) said it strengthened its balance sheet, reduced operating expenses and continued to build its Solana treasury during fiscal 2026, though declines in digital-asset values drove a substantially wider full-year net loss.
The company’s fiscal fourth quarter ended June 30, 2026, marking one year since Upexi began its Solana treasury strategy. Chief Executive Officer Allan Marshall said the company launched the strategy in April 2025 and raised $100 million in an equity financing, followed by an additional $200 million raise in July 2025 that included convertible notes.
Balance Sheet Actions and Expense Reductions
As of June 30, Upexi reported $5.8 million in cash, up 65% from the preceding quarter, $165.3 million in Solana holdings and $180.1 million in total assets. The company reported working capital of $45.6 million.
During June, the company extinguished approximately $20 million of debt. Subsequent to the fiscal year-end, Upexi refinanced its existing credit facility, reducing its interest rate to 7.5% from 11.5% and lowering the collateral required under the facility, Marshall said.
Upexi also completed an efficiency initiative that outsourced manufacturing, warehousing and logistics operations. The company reduced its full-time workforce to 10 employees from 59 a year earlier. Marshall said the savings from those actions are expected to be reflected in the quarter ending Sept. 30, and that staking revenue is expected to exceed ongoing cash expenses on a go-forward basis.
Solana Treasury Results
Chief Financial Officer Andrew Norstrud said Upexi held approximately 2.34 million Solana tokens as of June 30, with a cost basis of about $360.3 million, or an average cost of $154 per token. About 95% of the tokens were staked.
For the fiscal year, the treasury generated approximately $17.4 million in digital-asset revenue and earned roughly 135,000 Solana tokens, Norstrud said. However, the company recorded $195.1 million in unrealized losses on digital assets and $11.7 million in realized losses during the year.
Chief Strategy Officer Brian Rudick outlined his view that Solana remains positioned for adoption in payments, stablecoins, tokenization and broader capital-markets applications. Rudick cited figures including a 48% year-over-year increase in stablecoin supply, tokenized equities exceeding $420 million and more than $5 billion in trading volume. He also referenced announcements involving companies including SoFi, Western Union, MoneyGram, Mastercard, State Street, Google Cloud and Amazon Web Services.
Those developments, Rudick said, reflect growing institutional engagement with Solana-based infrastructure.
Full-Year Loss Widens
Upexi reported a fiscal 2026 net loss of $246.1 million, or $3.87 per share, compared with a net loss of $13.7 million, or $1.73 per share, in fiscal 2025. Norstrud attributed the wider loss primarily to unrealized and realized digital-asset losses as well as $21.9 million in stock-based compensation.
General and administrative expenses increased to $26.4 million from $11.9 million in the prior year. The increase included higher employee compensation, public-company expenses, digital-asset treasury fees, legal costs and travel expenses related to the buildout of the treasury strategy.
Interest expense rose to $13.6 million from $1.2 million in the previous year, reflecting short-term and convertible debt used to increase the treasury, according to Norstrud. The company also recorded a gain on debt extinguishment of approximately $10.3 million.
- Total stockholders’ equity was negative $53.8 million at June 30, compared with positive equity of $90.1 million a year earlier.
- Upexi repurchased about 2.9 million common shares during the year at an average weighted price of $0.96 per share, spending approximately $2.8 million under its $50 million repurchase authorization.
- After year-end, Upexi issued approximately 2.5 million shares through its at-the-market program for gross proceeds of about $2.5 million.
Capital Allocation and Convertible Notes
During the question-and-answer session, Marshall said management is evaluating ways to create value through capital allocation, including potential negotiations with noteholders, extensions and other structures. He said the company intends to raise capital only when it views the transaction as accretive under potential future Solana-price scenarios.
Addressing the company’s treatment of convertible notes in calculating net asset value, Marshall said Upexi assumes the notes could convert rather than making a prediction about Solana’s future price. Rudick added that high volatility in both the company’s shares and Solana supports the possibility of conversion under options-pricing models.
Management said it is also reviewing opportunities to increase treasury yield, though Rudick said some prospective opportunities became less attractive during the quarter. The company maintains relationships with multiple validators for staking, Norstrud said, rather than relying on a single provider.
Marshall said Upexi expects its results to improve if Solana prices recover, while emphasizing that the company has focused its recent efforts on debt reduction, liquidity and operating efficiency.
About Upexi (NASDAQ:UPXI)
Upexi, Inc (NASDAQ: UPXI) is a consumer products company that develops, acquires and manages a portfolio of brands sold through e-commerce and other retail channels. Its business focuses on building products with recurring consumer demand and expanding their distribution across marketplaces, direct-to-consumer websites and brick-and-mortar retail.
The company’s portfolio has included brands in categories such as health and wellness, food and beverage, beauty, household products and pet care.
