Upexi, Inc.

What they do

Upexi manages a treasury allocated primarily to Solana, which it acquires, holds, stakes through third-party validators, and selectively buys in locked form at a discount. It also operates as a brand owner that develops, manufactures, and distributes consumer products, though that business is being wound down. As of March 31, 2026, the company held approximately 1,383,079 liquid SOL and 978,852 locked SOL tokens. Financial reporting is organized as a single segment, following the sale of E-Core Technology Inc. and its subsidiaries.

Revenue drivers

• Digital asset / staking revenue — Revenue earned by delegating SOL to third-party validators on proof-of-stake networks; was $3.5M in the quarter ended March 31, 2026, versus none a year earlier.
• Legacy consumer products — Branded health, wellness and other consumer-product sales; contributed $1.05M in the March 31, 2026 quarter, down 66.8% year over year as the company exits lines and operations.
• Treasury capital markets activity — Management intends to issue equity and convertible debt to fund purchases of additional SOL when it deems issuance accretive.
• Discounted locked SOL purchases — The company buys locked Solana at a discount to spot, intending to realize gains as the discount moves to par over time.

Recent performance

For the quarter ended March 31, 2026, revenue was $1.05M versus $3.16M a year earlier, while digital asset revenue added $3.5M. Gross margin rose to about 80.4% from 49.3%, driven by eliminating manufacturing and distribution operations. The quarter produced a net loss of $109.3M, including a $92.3M unrealized loss on digital assets, a $6.8M realized loss on asset sales, and a $1.9M realized loss on conversion to USD. Full fiscal 2025 revenue was $15.8M with a net loss of $13.7M, and operating cash flow was negative $8.4M. At March 31, 2026, total assets were $200.4M, cash was $3.5M, and shareholder equity was negative $51.9M.

Strategy

The company shifted its treasury policy early in 2025 to hold digital currency directly on the balance sheet, moving away from FDIC-insured accounts, with SOL as the exclusive treasury asset. It stakes roughly 95% of its SOL across multiple validators, re-evaluating allocations monthly on performance, yield and economics, and states it does not hedge its SOL. Management plans to use equity and convertible debt issuance to buy more Solana, and to acquire locked tokens at a discount to spot. Resources are being reallocated toward the digital asset strategy as legacy health, wellness and consumer-product lines and certain manufacturing and distribution operations are exited.

Risks

• SOL price concentration — The treasury is dedicated exclusively to Solana and is unhedged, so SOL price declines flow directly through the income statement, as shown by the $92.3M unrealized loss in the March 31, 2026 quarter.
• Negative shareholder equity and cash burn — Shareholder equity was negative $51.9M and cash was $3.5M at March 31, 2026, with fiscal 2025 operating cash flow of negative $8.4M.
• Listing-rule failures — The company reported delisting notices or listing-rule failures in 8-K filings on June 26 and July 31, 2026.
• Dilution and no dividends — The 10-K states the company does not intend to pay cash dividends and may issue additional common stock or convertible securities at prices below prior offerings.

Outlook

Management expects digital asset revenue to increase as staked SOL grows, SOL prices rise, and the digital asset strategy expands. It does not expect significant increases in legacy consumer-product revenue in future quarters and expects sales and marketing expenses to decline as remaining products receive less marketing spend. No guidance figures were provided in the excerpts.