Solana Company Reports Third Quarter 2026 Financial Results

Treasury staking earned a 5.9% average net annual yield, compared with the Solana network average of approximately 4.9%.

Rhea-AI Summary

Solana Company (NASDAQ: HSDT) reported third-quarter 2026 net income of $105.2 million, reversing a loss in the prior-year period. Revenue reached $3.4 million, versus $0.7 million a year earlier, primarily from staking, which earns rewards for committing tokens to network operations. Diluted earnings were $1.17 per share, versus a $32.89 loss. Results included $102.7 million in unrealized gains on digital assets and related receivables.

The company priced an approximately $15 million registered direct offering at a 5% premium to net asset value per share and used proceeds to purchase approximately 125 thousand SOL. Holdings across all categories totaled approximately 2.4 million SOL, worth approximately $288.2 million at September 30. Pacific Backbone began operating, with approximately 1.3 million SOL delegated. Quarterly share repurchases totaled approximately $2.8 million. The nine-month net loss was $24.9 million.

18 points · 1 major

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0 major · 11 points

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Positive

• Major pointQuarterly net income of $105.2 million reversed a $352.8 million prior-year loss.
• Moderate pointQuarterly revenue of $3.4 million increased from $0.7 million a year earlier; nine-month revenue reached $9.5 million.
• Moderate pointQuarterly gross profit of $2.743 million rose from $594 thousand, with gross margin approximately 82%.
• Moderate pointQuarterly administrative expenses of $3.386 million declined from $5.504 million, primarily on lower bonuses and professional fees.
• Moderate pointNine-month operating loss narrowed to $28.441 million from $42.785 million a year earlier.
• Moderate pointNine-month net loss narrowed to $24.893 million from $366.441 million; loss per share was $0.32 versus $90.14.
• Moderate pointApproximately $15 million offering was priced at a 5% premium to net asset value per share. 12% of market cap
• Moderate pointPacific Backbone began operating with approximately 1.3 million SOL delegated, including 1.0 million from third parties.

10 minor points

• Minor pointStaking revenue of $3.337 million increased from $342 thousand in the prior-year quarter.
• Minor pointDiluted earnings of $1.17 per share compared with a $32.89 loss; basic earnings were $1.21.
• Minor pointUnrealized digital-asset and receivable gains of $102.720 million reversed a $30.540 million prior-year quarterly loss.
• Minor pointQuarterly fund-investment unrealized gains of $1.335 million and digital-asset derivative gains of $1.528 million supported results.
• Minor pointDerivative-liability fair-value gains of $1.741 million contributed to quarterly nonoperating income.
• Minor pointApproximately 125 thousand SOL were purchased using offering proceeds, expanding treasury holdings.
• Minor pointAverage net staking yield of 5.9% APY exceeded the approximately 4.9% network average by 100 basis points.
• Minor point30.8 thousand SOL in quarterly staking rewards were automatically restaked to compound returns.
• Minor pointApproximately $2.8 million in quarterly repurchases retired 1.4 million shares into treasury; year-to-date repurchases reached approximately $8.7 million.
• Minor pointNine-month business-sale gain of $3.065 million contributed to nonoperating income.

Negative

• Moderate pointRegistered direct offering involved new equity issuance at a 5% premium to net asset value per share.
• Moderate pointCash fell to $1.129 million at September 30, 2026, from $7.282 million at December 31, 2025.
• Moderate pointTotal liabilities rose to $19.081 million from $3.016 million at year-end, including $15 million due to broker.
• Moderate pointStockholders’ equity fell to $266.235 million from $300.913 million at December 31, 2025.
• Moderate pointNine-month administrative expenses rose to $19.7 million from $12.7 million, primarily reflecting $6.8 million of PoNS-divestiture severance. 5.6% of market cap

6 minor points

• Minor pointTotal assets declined to $292.648 million from $303.929 million at December 31, 2025.
• Minor pointRealized digital-asset losses were $1.090 million for the quarter and $33.466 million for nine months, versus none.
• Minor pointNine-month fund-investment unrealized loss was $648 thousand, compared with none in the prior-year period.
• Minor pointQuarterly cost of revenue rose to $617 thousand from $103 thousand a year earlier.
• Minor pointOther quarterly revenue declined to $23 thousand from $355 thousand a year earlier.
• Minor pointOther quarterly expense increased to $429 thousand from $155 thousand, primarily relating to foreign-exchange fluctuations.

News Explained

At September 30, 2026, Solana Company reported $1.1 million in cash, $15.0 million due to broker and a $14.8 million receivable from a broker for SOL bought that day; the company says that purchase settled October 1.

Key Figures

Revenue: $3.4 million Gross margin: Approximately 82% Net income: $105.2 million +5 more

Revenue

$3.4 million

Q3 2026; $3.3 million staking revenue and $23 thousand other revenue

Gross margin

Approximately 82%

Q3 2026

Net income

$105.2 million

Q3 2026

Diluted earnings per share

$1.17

Q3 2026

Registered direct offering

Approximately $15 million; priced at a 5% premium to net asset value per share

Proceeds were used to purchase SOL

SOL purchased

Approximately 125 thousand SOL

Purchased with offering proceeds

Average net staking yield

5.9% APY versus approximately 4.9% APY for the Solana network

Q3 2026; reported difference of 100 basis points

Class A common stock repurchased

Approximately $2.8 million; 1.4 million shares

During Q3 2026

Previous Crypto,earnings Reports

2 past events · Latest: Aug 14

Same Type 2 events

1. Aug 14

   Q2 earnings

   24h Move

   -2.4%

   Reported revenue growth but a net loss amid digital-asset valuation effects and operating expenses.

2. Nov 18

   Q3 earnings

   24h Move

   -6.0%

   Reported low staking revenue alongside digital-asset losses and a substantial net loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

registered direct offering, net asset value, staking yield, treasury stock method, +1 more

5 terms

registered direct offering financial

"priced an approximately $15 million registered direct offering"

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

net asset value financial

"at a 5% premium to net asset value per share"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

View in glossary

staking yield financial

"Achieved an average net staking yield of 5.9% APY"

Staking yield is the return or profit earned by holding and locking up a specific digital asset in a blockchain network to support its operations. It’s similar to earning interest on a savings account, providing investors with regular rewards for helping to keep the network secure and functioning properly. This makes staking yield an important factor for investors seeking ongoing income from their digital assets.

treasury stock method financial

"Diluted share count on a Treasury Stock Method basis"

A bookkeeping technique used to estimate how many additional shares would exist if all outstanding stock options, warrants and convertible securities were exercised, assuming the company uses the cash received to buy back shares at the current market price. Investors use it to calculate diluted earnings per share and to gauge potential ownership and profit dilution—like figuring out how a pie would be divided if more people claimed slices and some money was used to buy slices back.

derivative liability financial

"change in the fair value of the Company’s derivative liability"

A derivative liability is an obligation a company owes because of a derivatives contract—such as an option, future, swap, or forward—that has moved against it and now has negative value. Think of it like a settled bet that turned into a bill: if market moves go the other way, the company may have to pay cash or deliver assets. Investors care because these liabilities can create sudden losses, add leverage or counterparty risk, and change a company’s true financial exposure beyond its everyday operations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PHILADELPHIA, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Solana Company (NASDAQ: HSDT) (the “Company” or “HSDT”), a publicly listed digital asset treasury, infrastructure, and services company providing institutional access to the Solana ecosystem, today announced its results for the quarter ended September 30, 2026.

The third quarter was defined by streamlined operations and the expansion of its treasury holdings. The Company generated $3.4 million in revenue as its self-reinforcing flywheel began to turn, reducing operating costs to their lowest level yet. Headlining the quarter, the Company priced an approximately $15 million registered direct offering at a 5% premium to net asset value per share and used the proceeds to purchase approximately 125 thousand SOL.

Third Quarter Operational Highlights

• Pacific Backbone moved from build-out to operation, with approximately 1.3 million SOL of total stake delegated as of September 30, 2026, including 1.0 million SOL delegated by third parties.
• Achieved an average net staking yield of 5.9% APY on treasury holdings, outperforming the Solana network average of approximately 4.9% APY by 100 basis points.
• Held approximately 2.4 million SOL across all categories, with a fair value of approximately $288.2 million as of September 30, 2026.
• Diluted share count on a Treasury Stock Method basis was approximately 85.2 million shares which equates to 0.0274 SOL per Treasury Stock Method diluted shares
• Participated in Solana’s first onchain governance vote, publishing the Company’s positions in advance so that delegators could vote with full knowledge of their operator’s view.
• Delivered over 40 institutional education sessions and advisory workshops with banks, asset managers and exchanges across Asia-Pacific.
  
  

Joseph Chee, Chairman, President, and Chief Executive Officer of Solana Company, said:

“This was a milestone quarter for Solana Company. Our Pacific Backbone infrastructure went live, institutions entrusted us with a million SOL of third-party stake, and that confidence is already flowing through to our revenue. Every turn of our flywheel is now picking up speed. We are building the bridge that brings Asia’s financial institutions onto Solana, and with our new headquarters in Hong Kong, we will be building it right where the demand is. We could not be more excited about the road ahead.”

Cosmo Jiang, General Partner at Pantera Capital and board director at Solana Company, said:

“The third quarter showed exactly what sets Solana Company apart. We beat the network’s staking yield by a full percentage point, and put both sides of our capital toolkit to work, buying back shares below NAV and raising capital above it. Owning SOL is a great start. Owning a company that keeps adding more SOL behind every share is even better, and that is the opportunity we are delivering for our shareholders.”

Third Quarter Financial Highlights

• Generated $3.4 million in revenue, driven primarily by staking revenue on the Company’s SOL holdings, bringing year-to-date revenue to $9.5 million.
• Earned 30.8 thousand SOL in staking rewards, which were automatically restaked to compound returns.
• Repurchased approximately $2.8 million of Class A common stock (1.4 million shares) during the quarter, bringing year-to-date repurchases to approximately $8.7 million.
  
  

Third Quarter 2026 Financial Results

Revenue for the third quarter of 2026 was $3.4 million, consisting of $3.3 million in staking revenue and $23 thousand of other revenue. This represents significant growth from the $0.7 million in the prior-year period.

Cost of revenue for the third quarter of 2026 was $0.6 million, resulting in gross profit of $2.7 million, or a gross margin of approximately 82%, compared to a gross profit of $0.6 million in the prior-year period.

General and administrative expenses for the third quarter of 2026 were $3.4 million, compared with $5.5 million in the prior-year period. The decrease was primarily due to lower bonus expense and professional fees, partially offset by higher trading advisory and custodian fees, For the first nine months of 2026, general and administrative expenses were $19.7 million, compared with $12.7 million in the prior-year period, primarily due to $6.8 million of severance associated with the PoNS divestiture.

Net operating income for the third quarter of 2026 was $101.1 million, compared with net operating expense of $36.0 million in the prior-year period. The resulting income from operations was $103.9 million, compared with a loss of $35.5 million in the prior-year period, and the loss from operations was $28.4 million for the first nine months of 2026.

Nonoperating income, net, for the third quarter of 2026 was $1.3 million, including a $1.7 million gain from the change in the fair value of the Company’s derivative liability of $1.7 million and other expense of $0.4 million relating primarily to a foreign exchange fluctuations.

Reported net income for the third quarter of 2026 was $105.2 million, or earnings of $1.21 per basic and $1.17 per diluted common share, compared with a net loss of $352.8 million, or a loss of $32.89 per basic and diluted common share, in the prior-year period.

Cash and Liquidity

At September 30, 2026, total assets were $292.6 million, including cash and cash equivalents of $1.1 million, current digital assets of $21.0 million and a $14.8 million digital assets receivable from broker for SOL purchased on September 30, 2026 and settled on October 1, 2026, and $252.4 million of long-term digital assets and digital asset exposure across staked positions, restricted assets, receivables and fund investments. Common shares issued totaled 65.1 million, including 3.1 million shares subject to possible redemption; 57.1 million shares were outstanding as of September 30, 2026, excluding mezzanine shares and net of 4.4 million treasury stock.

About Solana Company

Solana Company (Nasdaq: HSDT) is a publicly listed digital asset treasury and infrastructure company purpose-built to maximize SOL per share. The company combines active treasury management, institutional-grade staking and validator operations with bespoke advisory services for financial institutions navigating blockchain adoption. Solana Company executes a self-reinforcing flywheel designed to compound value with every turn. The company's mission is to put more SOL behind every share, bridging public capital markets with the most commercially viable blockchain for institutions and financial applications. Visit https://www.solanacompany.co/ for more information.

Forward Looking Statements

This press release contains statements that constitute “forward-looking statements” within the meaning of the U.S. federal securities laws. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those expressed or implied by such statements. Forward-looking statements may include, among others, statements in relation to the expected benefits and implementation of the Company’s digital asset treasury strategy, the build-out of the Company’s validator infrastructure and advisory businesses, the expected timing and amount of validator rewards, the conversion of the Company’s advisory and third-party staking pipelines, the expected benefits of the divestiture of the Company’s legacy PoNS business, the expected benefits of the Company’s strategic partnerships and collaborations, and the Company’s future growth and operational progress.

These forward-looking statements are based on current expectations, estimates, assumptions, and projections, and involve known and unknown risks, uncertainties, and other factors, many of which are beyond the Company’s control, that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. Important factors that may affect actual results include, among others, capital requirements to achieve the Company’s business objectives; expected benefits and implementation of the Company’s digital asset treasury strategy, validator infrastructure and advisory business, strategic partnerships and collaborations, expected staking, yield and broader opportunities across the Solana ecosystem; the Company’s expected token treasury growth; the impact on the Company of global macroeconomic conditions including risks related to logistics challenges, labor shortages, disruptions in the banking system and financial markets; high levels of inflation and high interest rates on the Company’s ability to operate its business and access capital markets; the success of the Company’s business plan; the Company’s operating costs and use of cash; the Company’s ability to achieve significant revenues; and other risks and uncertainties described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in other subsequent filings with the SEC, including its upcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. These filings are available at www.sec.gov. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Media Contact
M Group Strategic Communications (on behalf of Solana Company)
solanaco@mgroupsc.com

Solana Company
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)

	September 30, 2026				December 31, 2025
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	1,129			$	7,282
Digital assets		21,000				21,000
Digital assets collateral receivable		—				—
Digital assets receivable from broker		14,791				—
Prepaid expenses and other current assets		1,727				2,873
Total current assets		38,647				31,155
Digital assets		190,103				196,724
Digital assets, restricted		40,237				39,219
Digital assets receivable		18,743				31,139
Digital assets fund investment		3,352				5,617
Other long-term assets		1,566				75
Total assets	$	292,648			$	303,929
LIABILITIES, MEZZANINE AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	766				1,890
Accrued and other current liabilities		849				1,126
Due to broker		15,000				—
Total current liabilities		16,615				3,016
Derivative liability		2,466				—
Total liabilities		19,081				3,016
Mezzanine equity
Class A ordinary common stock subject to possible redemption, $0.001 par value; 3,674,008 and 0 shares at $2 and $0 per share as of September 30, 2026 and December 31, 2025, respectively		7,332				—
Stockholders' equity
Class A ordinary common stock, $0.001 par value; 800,000,000 shares authorized; 61,438,645 shares issued and 57,061,210 outstanding and 43,744,207 shares issued and outstanding as of September 30, 2026 and December 31, 2025 (excluding 3,674,008 and zero ordinary shares subject to possible redemption as of September 30, 2026 and December 31, 2025), respectively		61				44
Additional paid-in capital		514,409				513,719
Treasury stock, at cost		(8,677	)			—
Accumulated deficit		(239,744	)			(212,589	)
Accumulated other comprehensive income (loss)		186				(261	)
Total stockholders' equity		266,235				300,913
Total liabilities, mezzanine and stockholders' equity	$	292,648			$	303,929

Solana Company
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except share and per share data)

	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenue
Staking revenue	$	3,337			$	342			$	9,266			$	342
Other revenue		23				355				241				447
Total revenue		3,360				697				9,507				789
Cost of revenue		617				103				874				320
Gross profit		2,743				594				8,633				469
Operating (income) expenses
General and administrative expenses		3,386				5,504				19,691				12,714
Unrealized (gain) loss on digital assets and digital assets receivable		(102,720	)			30,540				(15,885	)			30,540
Realized loss on digital assets		1,090				—				33,466				—
Unrealized (gain) loss on digital assets fund investment		(1,335	)			—				648				—
Gain on digital asset derivatives		(1,528	)			—				(846	)			—
Net operating (income) expenses		(101,107	)			36,044				37,074				43,254
Income (loss) from operations		103,850				(35,450	)			(28,441	)			(42,785	)
Nonoperating income (expense)
Change in fair value of derivative liability		1,741				423,313				1,419				417,394
Loss on derivative liability		—				(545,733	)			—				(545,733	)
Gain on sale of business		—				—				3,065				—
Other (expense) income, net		(429	)			(155	)			(869	)			(132	)
Financing costs		—				(194,743	)			(67	)			(195,185	)
Nonoperating income (expense), net		1,312				(317,318	)			3,548				(323,656	)
Income (loss) before provision for income taxes		105,162				(352,768	)			(24,893	)			(366,441	)
Provision for income taxes		—				—				—				—
Net income (loss)		105,162				(352,768	)			(24,893	)			(366,441	)
Other comprehensive income (loss)
Foreign currency translation adjustments		(41	)			235				447				(393	)
Comprehensive income (loss)	$	105,121			$	(352,533	)		$	(24,446	)		$	(366,834	)
Earnings (loss) per share
Basic	$	1.21			$	(32.89	)		$	(0.32	)		$	(90.14	)
Diluted	$	1.17			$	(32.89	)		$	(0.32	)		$	(90.14	)
Weighted average number of common shares outstanding
Basic		85,021,721				10,724,112				84,291,170				4,065,144
Diluted		86,305,679				10,724,112				84,291,170				4,065,144

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Solana Company HSDT earn in the third quarter of 2026?

Solana Company earned $105.2 million, or $1.21 per basic share and $1.17 per diluted share, compared with a $352.8 million net loss a year earlier. Quarterly revenue was $3.4 million. Results included $102.7 million in unrealized gains on digital assets and related receivables.

How much SOL did Solana Company HSDT hold at September 30, 2026?

Solana Company held approximately 2.4 million SOL across all categories, with a fair value of approximately $288.2 million. Its Treasury Stock Method diluted share count was approximately 85.2 million, equivalent to 0.0274 SOL per diluted share on that basis.

When did Solana Company HSDT settle its September 30 SOL purchase?

The SOL purchased on September 30, 2026, settled on October 1, 2026. At quarter-end, the balance sheet recorded $14.791 million in digital assets receivable from broker.