Lite Strategy Reports Fiscal 2026 Second Quarter Results

Rhea-AI Summary

Lite Strategy (Nasdaq: LITS) reported fiscal 2026 second quarter results for the period ended December 31, 2025, highlighting the launch of active treasury operations. The company generated approximately $600,000 in gross premiums from a new covered‑call program, started a $25 million share repurchase plan, and held $8.8 million in cash.

Management said proceeds from treasury operations funded the repurchase program and noted initiation of pre‑clinical pharmaceutical R&D as a potential monetization pathway.

Positive

• Covered calls generated approximately $600,000 in gross premiums during Q2
• Launched a $25 million stock repurchase program to reduce NAV discount
• Initiated pre‑clinical pharmaceutical R&D for potential out‑licensing or sale

Negative

• Cash and cash equivalents of $8.8 million as of December 31, 2025
• Covered‑call premiums (~$600,000) are the primary disclosed near‑term yield source

Key Figures

Stock repurchase program: $25 million Covered call premiums: nearly $600,000 Active treasury cash: approximately $600,000 +4 more

7 metrics

Stock repurchase program $25 million Authorized stock buyback program referenced for funding via treasury operations

Covered call premiums nearly $600,000 Gross premiums from covered call options in fiscal 2026 Q2

Active treasury cash approximately $600,000 Cash generated by covered call program during fiscal 2026 Q2

Cash and equivalents $8.8 million Cash and cash equivalents as of December 31, 2025

Litecoin max supply 84 million coins Defined cap on total Litecoin supply highlighted in ecosystem section

Litecoin uptime 100% Lifetime network uptime record described for Litecoin

Litecoin anniversary 14th anniversary Anniversary of Litecoin’s genesis block in October 2025

Market Reality Check

Price: $1.10 Vol: Volume 358,331 is below t...

normal vol

$1.10 Last Close

Volume Volume 358,331 is below the 20-day average of 455,437 (relative volume 0.79x). normal

Technical Price at $1.12 is trading below the 200-day MA at $1.83 and 65.33% under the 52-week high.

Historical Context

3 past events · Latest: Nov 17 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Nov 17	Earnings & strategy	Positive	-5.9%	Reported Q1 FY26 results and detailed shift to $100M Litecoin treasury.
Oct 29	Buyback announcement	Positive	+7.8%	Authorized $25M share repurchase program to buy stock below mNAV.
Oct 16	Litecoin milestone	Positive	-13.2%	Highlighted Litecoin’s 14th anniversary and role as primary reserve asset.

Pattern Detected

Crypto- and treasury-related announcements have produced mixed reactions, with one buyback headline aligning positively and two Litecoin-focused or strategic updates seeing negative follow-through.

Recent Company History

Over recent months, Lite Strategy shifted into a Litecoin-focused treasury model and active capital markets strategy. On Oct 16, 2025 it highlighted Litecoin’s 14-year track record and its role as primary reserve asset, which coincided with a -13.15% move. Later, a $25 million share repurchase authorization on Oct 29, 2025 saw shares rise 7.77%. First quarter fiscal 2026 results and a $100 million PIPE plus 929,548 LTC acquisition led to a -5.94% reaction, underscoring inconsistent trading responses to positive strategic news.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-10-08

The company has an effective Form S-3 shelf filed on 2025-10-08, with expiration on 2028-10-08. The shelf is currently shown with 0 recorded usage events in the provided context, indicating no tracked takedowns yet under this registration.

Market Pulse Summary

This announcement emphasizes Lite Strategy’s transition from passive Litecoin accumulation to yield-...

Analysis

This announcement emphasizes Lite Strategy’s transition from passive Litecoin accumulation to yield-generating treasury management, with nearly $600,000 in Q2 covered call premiums and a $25 million buyback program funded by those activities. The company reported $8.8 million in cash and is beginning pre-clinical R&D for potential out-licensing. Historically, crypto-treasury and strategic updates have produced inconsistent price reactions, so investors may monitor execution of the repurchase program, further option income generation, and any capital raised under the effective Form S-3 shelf.

Key Terms

covered call options, stock repurchase program, treasury reserve asset, genesis block

4 terms

covered call options financial

"transform its LTC holdings into a productive reserve asset, utilizing covered call options"

Covered call options are a strategy where an investor sells call options on shares they already own, receiving a payment (premium) now and agreeing to sell those shares at a set price if the buyer exercises the option. It matters because it can create steady income and provide a small cushion against losses, but it limits how much profit you can make if the stock rises sharply—like earning rent by leasing out a house while giving up the chance to sell it at a higher price later.

stock repurchase program financial

"implementing a $25 million stock repurchase program"

A stock repurchase program is when a company buys back its own shares from the market. This can make each remaining share more valuable and shows that the company believes its stock is a good investment. It’s like a business treating its shares like a limited resource, hoping to boost confidence and share prices.

treasury reserve asset financial

"adopt Litecoin (LTC) as its primary treasury reserve asset"

Assets held by a government or corporate treasury as a ready backup to meet short-term obligations and stabilize finances, typically including cash, foreign currencies, short-term government bonds, or gold. Think of it as an emergency fund a household keeps to pay bills during a crisis; for investors, the size and composition of these reserves indicate how well an issuer can weather shocks, honor debt, support its currency, and maintain financial stability.

genesis block technical

"Following the 14th anniversary of its genesis block in October 2025"

The genesis block is the first block in a blockchain, the origin entry that starts the chain of transactions — like the first page of a permanent public ledger or the seed from which all other records grow. For investors it matters because it establishes the network’s initial rules and supply, provides the immutable anchor for provenance and security, and helps assess a token’s authenticity and the project’s foundational integrity.

AI-generated analysis. Not financial advice.

Second Quarter Performance Driven by Successful Deployment of Treasury Operations; Reflecting Commitment to Strategic Focus on Leveraging Litecoin Holdings Complemented by Disciplined Capital Allocation

SAN DIEGO, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Lite Strategy, Inc. (Nasdaq: LITS) (“Lite Strategy” or the “Company”), the first U.S. public company to adopt Litecoin (LTC) as its primary treasury reserve asset, today announced financial results for the fiscal 2026 second quarter ended December 31, 2025.

During the second quarter, the Company successfully launched its strategic initiative to transform its LTC holdings into a productive reserve asset, utilizing covered call options while also implementing a $25 million stock repurchase program.

“The second quarter marked a pivotal shift in our evolution. We moved from simply accumulating LTC to launching our first active capital market operations to create value for stockholders and set Lite Strategy apart from other digital asset vehicles that focus solely on accumulation,” said Jay File, CEO, CFO. “Unlike passive vehicles such as ETFs that offer singular exposure to digital assets, we believe our active strategies will benefit investors by potentially smoothing out market volatility while supporting the core Litecoin ecosystem.”

Mr. File further commented, “Our covered call options trading strategy implemented in the second quarter generated nearly $600,000 in gross premiums. This represents an important first step in our long-term strategy to transform our substantial Litecoin holdings into a productive reserve asset, instead of a static holding on our balance sheet.”

Fiscal 2026 Second Quarter Highlights

• Active Treasury Management: Successfully launched the Company’s covered call option program, generating approximately $600,000 in cash during the quarter. This cash stream demonstrates the Company’s ability to generate yield on its LTC holdings, a key differentiator from passive investment vehicles.
• Share Repurchase Program: Utilized proceeds from active treasury operations to commence the Company’s $25 million stock repurchase program, reflecting management’s commitment to disciplined capital allocation and focus on reducing the discount to NAV.
• Pharmaceutical Operations: Initiation of pre-clinical research and development activities with its drug candidate pipeline in non-oncology disease indications for potential out-licensing or sale-related opportunities.
• As of December 31, 2025, the Company held $8.8 million in cash and cash equivalents.

Over the second half of fiscal 2026, Lite Strategy plans to continue to implement selective strategies in tandem with the experienced treasury management team at GSR, a leading crypto investment firm, to further execute on the share repurchase program and evaluate potential strategic investments or partnerships intended to expand the Company’s operations and generate increasing stockholder value. Management believes this focused approach sets Lite Strategy apart from broader digital asset treasuries and the limited flexibility of ETFs, positioning the Company as a publicly traded vehicle that supports the institutional growth of the Litecoin network while providing stockholders with transparency and accountability.

Litecoin Ecosystem Updates

Following the 14th anniversary of its genesis block in October 2025, Litecoin is the second-oldest cryptocurrency (next to Bitcoin) and is engineered for speed, cost and privacy, with improved storage efficiency and a lifetime uptime record of 100%.

"Litecoin is built on the same ‘hard money’ principles as Bitcoin, developed with scarcity in mind and a defined cap of 84 million coins,” Board Member Charlie Lee said. “The differentiating factor is that Litecoin is designed to be used as it is faster, cheaper, and optimized for global payments. Strategic network upgrades can future-proof Litecoin against concerns such as unwarranted snooping and quantum threats. For example, Litecoin’s deployment of MWEB ensures that personal financial privacy remains a fundamental human right. Litecoin is not just a store of value, it is a better form of money that works for everyone, everywhere.”

To learn more about Lite Strategy, visit the Company’s homepage at https://litestrategy.com.

To learn more about Litecoin and its role in Lite Strategy’s treasury, visit the About Litecoin page at https://litestrategy.com/about-litecoin/.

For current holdings and related Company metrics, visit Lite Strategy’s dashboard at https://litestrategy.com/dashboard/.

About Lite Strategy, Inc. (LITS)

Lite Strategy, Inc. (NASDAQ: LITS) is the first U.S. publicly traded company to adopt Litecoin as its primary reserve asset. Formerly MEI Pharma, Inc., the Company has expanded its business model beyond its portfolio of drug candidates to focus on pioneering institutional-grade digital asset treasury strategies, in partnership with leading innovators across blockchain, finance, and technology.

Forward-Looking Statements

Certain information contained in this press release that are not historical in nature are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding our future actions, prospective products and activities, future performance or results. You should be aware that our actual results could differ materially from those contained in the forward-looking statements, which are based on management’s current expectations and are subject to a number of risks and uncertainties, including, but not limited to, risk relating to being able to utilize our repurchase program to repurchase our shares in the market on attractive terms or at all, maintaining our current listing on Nasdaq, our ability to retain and attract senior management and other key employees, fluctuations in the market price of LTC and any associated impairment charges that we may incur as a result of a decrease in the market price of LTC below the value at which LTC is carried on our balance sheet, changes in the accounting treatment relating to our LTC holdings, our ability to achieve profitable operations, government regulation of cryptocurrencies and online betting, changes in securities laws or regulations, customer acceptance of new products and services including our LTC treasury strategy, the demand for our products and our customers’ economic condition, the impact of competitive products and pricing, our proprietary rights, general economic conditions and other risk factors detailed in our annual report and other filings with the Securities and Exchange Commission. We do not intend to update any of these factors or to publicly announce the results of any revisions to these forward-looking statements.

Contacts:

Justin J. File
CEO, CFO

858-898-0976
investor@litestrategy.com 
Source: Lite Strategy, Inc.

FAQ

How much did Lite Strategy (LITS) generate from covered calls in Q2 2026?

Approximately $600,000 in gross premiums was generated from covered calls in Q2 2026. According to the company, this cash stream represents the first yield-producing step to turn Litecoin holdings into a productive reserve asset while the program is scaled.

What are the details of Lite Strategy's (LITS) $25 million share repurchase program?

The company initiated a $25 million repurchase program and used proceeds from treasury operations to begin repurchases. According to the company, the program is intended to reduce the discount to NAV and reflect disciplined capital allocation priorities.

What cash position did Lite Strategy (LITS) report on December 31, 2025?

Lite Strategy reported $8.8 million in cash and cash equivalents as of December 31, 2025. According to the company, this balance supports ongoing treasury activities and initial funding of the share repurchase program.

Is Lite Strategy (LITS) changing its Litecoin treasury approach in 2026?

Yes. Lite Strategy launched active treasury operations, moving from accumulation to covered‑call trading on LTC. According to the company, this shift aims to generate yield and differentiate the firm from passive digital‑asset vehicles like ETFs.

What non-crypto activities did Lite Strategy (LITS) disclose in Q2 2026?

The company began pre‑clinical research and development for a drug pipeline in non‑oncology indications. According to the company, these activities are intended for potential out‑licensing or sale‑related opportunities.