Forward Industries Reports Fiscal Second Quarter 2026 Financial and Operating Results
Rhea-AI Summary
Forward Industries (NASDAQ: FWDI) reported fiscal Q2 2026 results and updates to its Solana-focused treasury strategy.
Key actions included appointing a new CFO, a $27.4 million share repurchase cutting basic shares by 7.4%, a $40 million Galaxy Digital debt facility, a cost reduction plan targeting $4.8 million quarterly SG&A, and a strategic investment and planned deployment with OnRe.
AI-generated analysis. Not financial advice.
Positive
- Repurchased 6,164,324 shares for about $27.4 million at $4.44, reducing basic shares by 7.4%
- Secured $40.0 million institutional debt facility from Galaxy Digital at ~3.4% interest and ~5-month maturity
- Cost reduction plan targeting SG&A (ex‑SBC) quarterly run rate of about $4.8 million
- Strategic equity investment in OnRe, co-leading its $5 million Series A round
- Plans to deploy up to $25 million into OnRe’s ONyc yield‑bearing token on Solana
- Appointed experienced CFO Mark Brazier, adding 25+ years in digital assets and traditional finance
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
No peers with momentum flags or same-day headlines are listed, suggesting the setup appeared company-specific rather than part of a broader sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Q1 2026 earnings | Positive | -0.4% | First full quarter as Solana treasury and strategy update for investors. |
| Dec 11 | FY 2025 results | Negative | -0.3% | Full-year results with revenue decline and large non-cash SOL-related loss. |
Recent earnings-related news has produced mild downside moves, with one event aligning negatively and one showing a small negative divergence versus largely strategic messaging.
Over the past few quarters, Forward Industries has used earnings and financial updates to frame its transition into a Solana-focused treasury business. The Fiscal 2025 results highlighted lower net revenue, higher operating expenses, and a large non-cash SOL-related loss, while launching the Solana treasury strategy. The Fiscal Q1 2026 release emphasized completing the first full reporting period as a Solana treasury and plans to build an active, value-generating platform. Today’s Q2 earnings update continues this narrative with capital allocation and cost-structure actions tied to that strategy.
Historical Comparison
Recent earnings releases for FWDI led to modest average moves of -0.33%, with generally mild downside reactions despite strategic focus on its Solana treasury transition.
Earnings updates trace a progression from launching the Solana treasury in FY 2025, through the first full reporting period in Q1 2026, to Q2’s focus on capital allocation, leverage of SOL holdings, and operating cost discipline.
Market Pulse Summary
This announcement details fiscal Q2 results alongside significant capital allocation steps: a repurchase of 6,164,324 shares for $27.4M, a $40.0M facility at 3.4% using SOL-based collateral, and a cost plan targeting $4.8M quarterly SG&A. It also extends the Solana treasury strategy with potential deployment of up to $25M into ONyc. Investors may track future quarters for how these actions affect earnings, balance-sheet flexibility, and Solana-linked revenues.
Key Terms
master digital currency loan agreement financial
SG&A financial
yield-bearing token technical
tokenized RWAs technical
AI-generated analysis. Not financial advice.
Management to Host Conference Call Today at 5:00 p.m. Eastern Time
AUSTIN, TX, May 14, 2026 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (NASDAQ: FWDI) (the “Company” or “Forward”), the leading Solana treasury company, today announced its financial and operating results for the fiscal second quarter ended March 31, 2026, along with an update on its SOL treasury strategy.
“Our second fiscal quarter was defined by disciplined execution across the business — sharpening our cost structure, strengthening our balance sheet, and deepening our engagement within the Solana ecosystem,” said Kyle Samani, Chairman of Forward Industries. “Against a backdrop of market volatility, we took decisive actions to position Forward for long-term value creation by securing a highly advantageous institutional debt facility with our strategic partner, Galaxy Digital, and executing a strategic share repurchase that reduced our basic shares outstanding by
“At the same time, the Solana ecosystem continues to scale as real financial infrastructure, with adoption of stablecoins, payments, and real-world asset activity compounding at a remarkable pace. We believe Forward is positioned to capitalize on that growth, combining the world’s largest Solana treasury with an active, institutional-grade operating platform designed to compound value over time.”
Second Quarter Fiscal 2026 and Recent Highlights
- Appointed Mark Brazier as Chief Financial Officer: On April 3, 2026, Forward appointed Mark Brazier as Chief Financial Officer, effective April 13, 2026. Mr. Brazier brings over 25 years of experience across digital assets and traditional finance, most recently as Chief Financial Officer and Head of Regulatory at XBTO Global, and previously as Chief Financial Officer at Stablehouse. Kathleen Weisberg will continue to serve the Company as Director of Financial Reporting.
- Completed Strategic Share Repurchase: On March 18, 2026, Forward repurchased 6,164,324 shares of its common stock from an institutional investor for an aggregate purchase price of approximately
$27.4 million , or$4.44 per share. The repurchase reduced the Company’s basic shares outstanding by7.4% and was financed through the institutional debt facility described below. - Secured
$40 Million Institutional Debt Facility with Galaxy Digital: On March 16, 2026, the Company entered into a Master Digital Currency Loan Agreement with Galaxy Digital LLC and drew an initial$40.0 million , collateralized by fwdSOL, with a weighted average interest rate of approximately3.4% and a weighted average maturity of approximately 5 months. The facility provides Forward with highly advantageous access to capital to support capital allocation initiatives and future growth. - Implemented Cost Reduction Plan: On March 19, 2026, the Company announced a cost reduction plan designed to materially improve its ongoing cost structure. The plan includes a reduction in fees under the Services Agreement with Galaxy Digital L.P., a reduction in outside legal fees, marketing expense, and third-party vendor fees, and other operational efficiencies. The Company expects SG&A (excluding stock-based compensation) to average a
$4.8 million quarterly run rate. - Completed Minority Investment and Deployment in OnRe: On May 5th, 2026, Forward announced a strategic investment in OnRe, a regulated onchain reinsurance company, alongside RockawayX, the global multi-strategy digital asset investment firm. The two firms co-led OnRe's
$5 million Series A round. Separately, Forward intends to deploy up to$25 million into ONyc, OnRe's yield-bearing token on Solana. By both investing in and deploying on OnRe, Forward is positioning itself to capitalize on continued demand for tokenized RWAs while simultaneously adding a USD-denominated non-correlated revenue stream to complement its existing SOL-focused strategies
Forward Industries Treasury Update
- Treasury Holdings: As of March 31, 2026, the Company's liquid SOL holdings totaled 7,044,079 SOL.
- Staking: Since inception, the Company's validator infrastructure has generated between
6.5% and7.2% gross annual percentage yield (APY) before fees, outperforming top peer validators[1]. As of March 31, 2026, Forward has generated 201,201 SOL in staking rewards. Nearly all of the Company's SOL holdings are currently staked. - Liquid Staking (fwdSOL): Approximately
25% of the Company's SOL holdings are represented as fwdSOL, the Company's proprietary liquid staking token launched in partnership with Sanctum. fwdSOL enables Forward to earn native staking yield while maintaining liquidity and serves as the collateral supporting the$40 million institutional debt facility with Galaxy Digital.
Ryan Navi, Forward's Chief Investment Officer, added, “During the second fiscal quarter, we focused on strengthening the capital foundation that will enable us to materially accelerate SOL-per-share growth in 2026 and beyond. Our partnership with Galaxy Digital — together with our use of fwdSOL as collateral — has unlocked access to capital at terms we believe are highly attractive relative to the broader market, enhancing our ability to deploy capital efficiently. That flexibility, combined with a meaningfully improving cost structure, positions Forward to pursue strategic transactions that compound both our treasury scale and SOL-per-share over time. Looking ahead, we will remain disciplined in managing risk, deepening our role in the Solana ecosystem, and building a platform designed to deliver long-term value for shareholders.”
Q2 Fiscal 2026 Financial Summary (vs. Q2 Fiscal 2025)
- Revenue: Revenue for the second quarter of fiscal 2026 increased more than 4x to
$13.0 million compared to$3.1 million in the prior year period. The increase was primarily driven by staking revenue generated through the Company's Solana treasury strategy. - Balance Sheet: As of March 31, 2026, Forward had approximately
$16.6 million of cash. Following the entry into the Master Digital Currency Loan Agreement with Galaxy Digital in March 2026, the Company had$40.0 million of institutional debt outstanding, with a weighted average interest rate of approximately3.4% and a weighted average maturity of approximately 5 months. - Selling, General and Administrative Expenses: The second quarter of fiscal 2026 SG&A expenses were
$6.6 million , compared to$7.2 million in the prior quarter. The sequential improvement reflects initial execution against the cost reduction plan the Company announced in March 2026. - Loss on Digital Assets: The Company's second quarter of fiscal 2026 results include a
$201.7 million loss on digital assets and a$85.1 million impairment of digital assets. This U.S. GAAP-required treatment reflects changes in the estimated fair value of the Company's SOL holdings and does not represent an outflow of cash or impact Forward’s liquidity. - Net Loss: Net loss for the second quarter of fiscal 2026 was
$283.1 million compared to a net loss of$1.5 million in the prior year period. The increase in net loss was driven largely by the aforementioned charges related to the decline in fair value of the Company's SOL holdings.
Conference Call and Webcast Details
The Company will host a conference call today, May 14, 2026, to discuss its financial and operating results for the three months ended March 31, 2026.
Forward's executive team will host the conference call and webcast presentation, followed by a question-and-answer period.
Date: Thursday, May 14, 2026
Time: 5:00 p.m. ET
Webcast: FWDI’s FQ2’26 Earnings Conference Call
Participants can also access the Company's earnings call using the call me option here for instant telephone access to the event, which will be active approximately 15 minutes before the scheduled start time.
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
About Forward Industries, Inc.
Forward Industries, Inc. (NASDAQ: FWDI) is a Solana focused digital asset treasury company, with the strategy to buy, hold, stake, trade, invest in, and grow SOL and SOL related digital assets, protocols and businesses. Forward’s mission is to expand and strengthen the Solana ecosystem by acquiring and staking SOL and engaging with, providing tools to and investing in the Solana network, Solana developers and Solana related projects in order to increase shareholder value. In connection with a private placement transaction in September 2025, Forward launched a digital asset treasury strategy supported by industry leading investors and operating partners including Galaxy Digital and Jump Crypto. For more information on the Company's Solana treasury strategy, visit www.forwardindustries.com.
Forward Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of similar meaning. These forward-looking statements address various matters including statements relating to the Company's plan for value creation and strategic advantages, expected cost reductions, market size and growth opportunities. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, failure to realize the anticipated benefits of the digital asset treasury strategy; the ability to realize anticipated cost savings from the cost reduction plan; changes in business, market, financial, political and regulatory conditions; risks relating to the Company's operations and business, including the highly volatile nature of the price of Solana and other cryptocurrencies; the risk that the price of the Company's common stock may be highly correlated to the price of the digital assets that it holds; risks related to increased competition in the industries and markets in which the Company does and will operate (including the applicable digital assets market); risks relating to significant legal, commercial, regulatory and technical uncertainty regarding digital assets generally; risks relating to the treatment of crypto assets for U.S. and foreign tax purposes, as well as those risks and uncertainties identified in the Company's filings with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements.
Contacts
Media Contact
Garrison Yang
Forward Industries, Inc.
comms@forwardindustries.com
Investor Relations Contact
Sean Mansouri, CFA / Aaron D’Souza
Elevate IR
(720) 330-2829
ir@forwardindustries.com
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash | $ | 16,633,010 | $ | 38,166,973 | ||||
| Accounts receivable, net of allowances for credit losses of | ||||||||
| March 31, 2026 and September 30, 2025 | 2,415,032 | 1,635,171 | ||||||
| Contract assets | 542,702 | 1,064,264 | ||||||
| Prepaid expenses and other current assets | 2,028,827 | 355,548 | ||||||
| Total current assets | 21,619,571 | 41,221,956 | ||||||
| Digital assets | 505,669,390 | 1,430,486,289 | ||||||
| Digital assets - restricted | 1,622,920 | - | ||||||
| Digital assets pledged as collateral with related party | 75,847,614 | - | ||||||
| Property and equipment, net | 78,785 | 124,331 | ||||||
| Operating lease right-of-use assets, net | 2,724,531 | 2,303,776 | ||||||
| Other assets | 949,915 | 806,137 | ||||||
| Total assets | $ | 608,512,726 | $ | 1,474,942,489 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Loans payable-related party | $ | 40,000,000 | $ | - | ||||
| Loans payable - digital assets | 10,024,188 | - | ||||||
| Accounts payable | 274,521 | 433,044 | ||||||
| Accounts payable-related party | 551,782 | 923,513 | ||||||
| Deferred income | 612,108 | 292,525 | ||||||
| Current portion of operating lease liability | 481,205 | 450,949 | ||||||
| Accrued expenses and other current liabilities | 2,632,441 | 623,512 | ||||||
| Total current liabilities | 54,576,245 | 2,723,543 | ||||||
| Other liabilities: | ||||||||
| Operating lease liability, less current portion | 2,479,896 | 2,094,079 | ||||||
| Total liabilities | 57,056,141 | 4,817,622 | ||||||
| Commitments and contingencies (See Note 9 and 10) | ||||||||
| Shareholders' equity: | ||||||||
| Common stock, | ||||||||
| shares issued and outstanding, respectively, at March 31, 2026; 86,145,514 shares | ||||||||
| issued and outstanding at September 30, 2025 | 870,695 | 861,455 | ||||||
| Treasury Stock, at cost, 10,754,848 and 0 shares at March 31, 2026 and | ||||||||
| September 30, 2025, respectively | (58,022,336 | ) | - | |||||
| Additional paid-in capital | 1,663,952,928 | 1,655,874,892 | ||||||
| Accumulated deficit | (1,055,344,702 | ) | (186,611,480 | ) | ||||
| Total shareholders' equity | 551,456,585 | 1,470,124,867 | ||||||
| Total liabilities and shareholders' equity | $ | 608,512,726 | $ | 1,474,942,489 | ||||
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three Months Ended March 31, | For the Six Months Ended March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues, net | $ | 12,961,114 | $ | 3,122,933 | $ | 34,396,365 | $ | 7,747,382 | ||||||||
| Cost of sales | 3,889,302 | 3,301,694 | 8,474,940 | 6,793,123 | ||||||||||||
| Gross profit | 9,071,812 | (178,761 | ) | 25,921,425 | 954,259 | |||||||||||
| Sales and marketing expenses | 569,522 | 147,855 | 1,104,885 | 307,925 | ||||||||||||
| General and administrative expenses | 3,584,012 | 1,495,142 | 6,836,641 | 3,141,123 | ||||||||||||
| General and administrative expenses - related party | 2,477,777 | - | 5,922,420 | - | ||||||||||||
| Loss on digital assets | 201,706,226 | - | 761,918,457 | - | ||||||||||||
| Impairment of digital assets | 85,093,048 | - | 118,137,369 | - | ||||||||||||
| Derivative gain, net | (269,027 | ) | - | (269,027 | ) | - | ||||||||||
| Goodwill impairment | - | - | - | 225,000 | ||||||||||||
| Operating loss | (284,089,746 | ) | (1,821,758 | ) | (867,729,320 | ) | (2,719,789 | ) | ||||||||
| Interest income | (77,256 | ) | (12,947 | ) | (274,170 | ) | (28,542 | ) | ||||||||
| Interest income - related party | (114,179 | ) | - | (593,779 | ) | - | ||||||||||
| Interest expense - related party | 59,178 | 11,836 | 59,416 | 23,803 | ||||||||||||
| Other expense, net | - | 1,562 | - | 4,934 | ||||||||||||
| Loss from continuing operations before income taxes | (283,957,489 | ) | (1,822,209 | ) | (866,920,787 | ) | (2,719,984 | ) | ||||||||
| (Benefit from) / provision for income taxes | (875,353 | ) | - | 1,812,435 | - | |||||||||||
| Loss from continuing operations | (283,082,136 | ) | (1,822,209 | ) | (868,733,222 | ) | (2,719,984 | ) | ||||||||
| Income from discontinued operations, net of tax | - | 370,598 | 560,308 | |||||||||||||
| Net loss | $ | (283,082,136 | ) | $ | (1,451,611 | ) | $ | (868,733,222 | ) | $ | (2,159,676 | ) | ||||
| Basic (loss)/earnings per share : | ||||||||||||||||
| Basic loss per share from continuing operations | $ | (2.98 | ) | $ | (1.65 | ) | $ | (8.95 | ) | $ | (2.47 | ) | ||||
| Basic earnings per share from discontinued operations | - | 0.33 | - | 0.51 | ||||||||||||
| Basic loss per share | $ | (2.98 | ) | $ | (1.32 | ) | $ | (8.95 | ) | $ | (1.96 | ) | ||||
| Diluted (loss)/earnings per share: | ||||||||||||||||
| Diluted loss per share from continuing operations | $ | (2.98 | ) | $ | (1.65 | ) | $ | (8.95 | ) | $ | (2.47 | ) | ||||
| Diluted earnings per share from discontinued operations | - | 0.33 | - | 0.51 | ||||||||||||
| Diluted loss per share | $ | (2.98 | ) | $ | (1.32 | ) | $ | (8.95 | ) | $ | (1.96 | ) | ||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 94,924,520 | 1,101,069 | 97,034,832 | 1,101,069 | ||||||||||||
| Diluted | 94,924,520 | 1,101,069 | 97,034,832 | 1,101,069 | ||||||||||||
Capitalization Table as of March 31, 2026
| Net Asset Value Calculation | Quantity | Price | Value ($) | |||||||||||||
| Total SOL Treasury | 7,044,079 | $ | 83.12 | [10] | $ | 585,503,885 | ||||||||||
| Other Digital Assets [12] | 30,081,000 | Various | $ | 11,703,000 | ||||||||||||
| Cash | 16,633,010 | $ | 1.00 | $ | 16,633,010 | |||||||||||
| Institutional Debt [11] | (40,000,000 | ) | $ | 1.00 | ($ | 40,000,000 | ) | |||||||||
| Digital Asset Loans | (10,024,188 | ) | $ | 1.00 | ($ | 10,024,188 | ) | |||||||||
| Total Net Asset Value | $ | 563,815,707 | ||||||||||||||
| Capitalization Table | Quantity | Price [3] | Market Cap ($) | NAV / Share | mNAV [8] | |||||||||||||||||||
| Common Shares | 76,314,617 | $ | 4.43 | [9] | $ | 338,073,753 | $ | 7.39 | 0.600 | x | ||||||||||||||
| ITM Warrants [1] - Vested | 12,272,101 | $ | 0.001 | |||||||||||||||||||||
| ITM Options [2] - Vested | 36,020 | $ | 3.73 | |||||||||||||||||||||
| ITM Options - UnVested | 0 | |||||||||||||||||||||||
| RSUs - Unvested | 675,996 | |||||||||||||||||||||||
| ITM Fully Diluted Share Count | 89,298,734 | $ | 4.43 | $ | 395,593,392 | $ | 6.31 | 0.702 | x | |||||||||||||||
| Advisor & Lead Investor Warrants [4] | 13,376,388 | |||||||||||||||||||||||
| OTM Warrants [5] - Vested | 111,111 | $ | 6.50 | |||||||||||||||||||||
| OTM Options [6] - Vested | 242,146 | $ | 16.37 | |||||||||||||||||||||
| OTM Options - Unvested | 1,320,900 | $ | 8.46 | |||||||||||||||||||||
| PSUs [7] - Unvested | 881,736 | |||||||||||||||||||||||
| Fully Diluted Share Count | 105,231,015 | $ | 4.43 | $ | 466,173,396 | $ | 5.36 | 0.827 | x | |||||||||||||||
| [1] "IN-THE-MONEY WARRANTS" ARE WARRANTS WITH AN EXERCISE PRICE BELOW THE FAIR MARKET VALUE OF THE COMMON SHARES BASED ON 03/31/26 MARKET CLOSE. | [6] "OUT-OF-THE-MONEY OPTIONS" ARE OPTIONS WITH AN EXERCISE PRICE AT OR ABOVE THE FAIR MARKET VALUE OF THE COMMON SHARES BASED ON 03/31/26 MARKET CLOSE. | |
| [2] "IN-THE-MONEY OPTIONS" ARE OPTIONS WITH AN EXERCISE PRICE BELOW THE FAIR MARKET VALUE OF THE COMMON SHARES BASED ON 03/31/26 MARKET CLOSE. | [7] PERFORMANCE STOCK UNITS VESTING IS SUBJECT TO VARIOUS KEY PERFORMANCE INDICATORS, NAMELY SOL PER SHARE ACCRETION. | |
| [3] WEIGHTED AVERAGE EXERCISE PRICE WHERE APPLICABLE. | [8] "MNAV" OR "MARKET PRICE TO NET ASSET VALUE" REPRESENTS THE RATIO OF THE COMPANY'S MARKET CAPITALIZATION TO ITS NET ASSET VALUE, CALCULATED AS TOTAL ASSETS LESS INSTITUTIONAL DEBT. | |
| [4] ADVISOR WARRANTS AND LEAD INVESTOR WARRANTS ARE DESCRIBED IN THE PUBLIC FILINGS OF THE COMPANY. ONE THIRD OF SUCH WARRANTS VEST AT EACH THRESHOLD ( | [9] CLOSING PRICE OF THE COMMON SHARES BASED ON 03/31/26 MARKET CLOSE ( | |
| [5] "OUT-OF-THE-MONEY WARRANTS" ARE WARRANTS WITH AN EXERCISE PRICE AT OR ABOVE THE FAIR MARKET VALUE OF THE COMMON SHARES BASED ON 03/31/26 MARKET CLOSE. | [10] SOL TREASURY PRICE REFLECTS THE CLOSING PRICE OF SOL ON 03/31/26 ( | |
| [11] INSTITUTIONAL DEBT DOES NOT INCLUDE ON-CHAIN DEBT. | ||
| [12] OTHER DIGITAL ASSETS INCLUDES PYUSD, 2Z, AND USDC |
