Galaxy Q2 2026 earnings: Data-center contribution could not offset treasury losses

Galaxy Digital (Nasdaq: GLXY) reported Q2 2026 GAAP revenue of $8.56 billion, down about 1.2% from $8.66 billion a year earlier, while diluted EPS fell to $(0.09) from $0.08. For the quarter ended June 30, 2026, the company recorded an $85.3 million net loss as lower digital-asset prices weighed on results, although Data Centers became a positive contributor as Helios Phase I capacity entered service.

Core earnings data

Galaxy’s GAAP revenue is recorded alongside substantial transaction expenses, so the headline revenue figure does not directly represent the company’s economic margin. Revenue and gains from operations totaled $8.71 billion, but $8.49 billion of transaction expenses and $181.3 million of digital-asset impairment reduced adjusted gross profit to $43.4 million.

The year-over-year net result deteriorated, but sequential non-GAAP results improved considerably from Q1. Adjusted gross profit returned to positive territory, while the adjusted EBITDA loss narrowed by about $110 million.

Adjusted gross profit, adjusted EBITDA, and adjusted EPS are non-GAAP measures. Galaxy’s adjusted gross profit reconciliation deducts transaction expenses and digital-asset impairment from revenue and gains from operations.

Business and segment performance

Galaxy’s segments moved in different directions. Digital Assets improved despite lower market activity, Data Centers became profitable on an adjusted EBITDA basis, and Treasury & Corporate remained the principal consolidated earnings drag.

Digital Assets

Global Markets generated $49 million of adjusted gross profit, up 58% sequentially, even though Galaxy’s trading volume declined 7%. The company noted that industry trading volumes fell by more than a double-digit percentage during the same period. Its average loan book increased 1% to $1.44 billion, and total trading counterparties rose 3% to 1,741.

Asset Management & Infrastructure Solutions produced $17 million of adjusted gross profit, down 6% from Q1. Combined assets under management and assets under stake fell 12% to $7.1 billion, primarily because digital-asset prices declined during the quarter. ETF assets decreased 18%, alternatives fell 7%, and assets under stake declined 13%.

Data Centers

Q2 was the Data Centers segment’s first quarter of revenue-generating operations. It recorded $18.9 million of GAAP leasing revenue as Helios Phase I deliveries ramped, with all 133 MW of contracted critical IT load in service by quarter-end. That capacity represents 200 MW of gross power delivered to CoreWeave under a 15-year lease.

Galaxy also began construction on the 260 MW critical IT capacity expansion for Helios Phase II, with data hall deliveries expected to start in Q2 2027. Subsequent to quarter-end, the company expanded its potential Texas power pipeline to more than 5.7 GW through three additional sites, although parts of that capacity remain subject to development and ERCOT interconnection approvals.

Treasury & Corporate

Treasury & Corporate produced a $42.5 million adjusted gross loss and a $78.2 million adjusted EBITDA loss. Both were smaller than in Q1, but unrealized losses on digital assets and investment positions kept the segment—and therefore Galaxy’s consolidated results—in negative territory.

Data-center contribution did not fully offset treasury losses

Galaxy’s operating businesses are becoming less dependent on a single earnings source. Digital Assets and Data Centers together generated $86 million of adjusted gross profit and approximately $1 million of adjusted EBITDA during Q2, helped by the start of Helios leasing operations.

However, the Treasury & Corporate segment absorbed that operating contribution. Its $78 million adjusted EBITDA loss reduced consolidated adjusted EBITDA to $(77) million, demonstrating that balance-sheet exposure to digital assets and investments continued to outweigh the emerging data-center contribution during the quarter.

Profitability, liquidity, and the balance sheet

Digital-asset impairment rose to $181.3 million from $127.5 million a year earlier. Although total operating expenses declined slightly because transaction expenses were lower, several other cost lines increased: compensation and benefits rose to $84.0 million from $65.0 million, technology expense increased to $16.3 million from $11.6 million, and notes interest expense climbed to $25.1 million from $14.2 million.

Galaxy ended Q2 with lower cash and stablecoin holdings but higher total assets and data-center investment than in Q1. The balance-sheet changes reflect the company’s continued allocation of capital toward infrastructure while maintaining material digital-asset exposure.

Cash and stablecoins consisted of $895.7 million of cash and cash equivalents and $1.56 billion of stablecoins. On July 28, after the quarter ended, a Galaxy subsidiary completed a $3.5 billion offering of senior secured notes due in 2031 to fund Helios Phase II construction; that financing was not part of the June 30 balance sheet.

Risks investors need to watch

• Digital-asset price exposure: Lower prices drove impairment, unrealized investment losses, and a 12% decline in combined assets under management and assets under stake. Further declines could continue to pressure earnings and asset-based business metrics.
• Negative consolidated profitability: Data Centers turned positive on an adjusted EBITDA basis, but Galaxy still recorded a $77 million consolidated adjusted EBITDA loss. Higher compensation, technology, and interest expenses may make sustained profitability more difficult.
• Data-center construction and financing: Quarterly data-center capital expenditure reached $448 million, and Galaxy raised $3.5 billion after quarter-end for Phase II. Construction delays, higher costs, or financing constraints could affect capacity delivery.
• Capacity commercialization and approvals: Galaxy’s power pipeline exceeds 5.7 GW, but much of it is potential rather than operating capacity. Additional Helios capacity remains unleased, while some newer sites require ERCOT interconnection approvals; the operating Phase I capacity is also tied to CoreWeave under a long-term lease.

Summary

Galaxy’s Q2 2026 results showed an improving sequential operating picture but continued consolidated losses. Helios Phase I established Data Centers as a positive contributor, and Digital Assets increased adjusted gross profit despite weaker market activity. The main issue remains whether those operating businesses can grow enough to offset Treasury & Corporate market losses, rising selected costs, and the capital requirements of the data-center expansion.

More questions

Why is Galaxy’s GAAP revenue so much larger than adjusted gross profit?

Galaxy records substantial gross revenue from transaction-based activities, with correspondingly large transaction expenses. In Q2, $8.71 billion of revenue and gains from operations was offset by $8.49 billion of transaction expenses and $181.3 million of digital-asset impairment, leaving $43.4 million of adjusted gross profit.

How much of Galaxy’s data-center pipeline was operating at quarter-end?

Galaxy had delivered 133 MW of revenue-generating critical IT load at Helios Phase I by June 30. The company’s more than 5.7 GW power pipeline includes potential future capacity and should not be treated as operating or fully contracted capacity.

Was the $3.5 billion debt offering included in Q2 liquidity?

No. The senior secured notes offering closed on July 28, after the June 30 quarter-end. Galaxy said the proceeds will fund construction of Helios Phase II.