Core Insights - Upexi, Inc. (NASDAQ:UPXI) operates in a dynamic market with a diverse range of products and services [1] - Cantor Fitzgerald has adjusted its rating for Upexi to Overweight while lowering the price target from $6 to $2, indicating a more cautious outlook [1][6] - The recent Q2 2026 earnings call is pivotal for understanding Upexi's financial performance, including revenue and profit margins [2][6] Stock Performance - Upexi's stock is currently priced at $0.97, reflecting a 7.13% decrease with a change of $0.07 [3] - The stock has shown volatility, fluctuating between $0.97 and $1.08 today, with a yearly peak of $22.57 and a low of $0.97 [3] - Upexi's market capitalization is approximately $61.63 million, with a trading volume of 4,830,481 shares on the NASDAQ exchange [4][6] Investor Insights - The adjustments by Cantor Fitzgerald and insights from the earnings call provide a clearer picture of Upexi's current standing and future potential, aiding investors in making informed decisions [5][6]

Financial Data and Key Metrics Changes - For the second quarter, total revenue was approximately $8.1 million, an increase of approximately $4 million or just over 100% compared to $4 million in the prior year quarter [15] - The net loss for the quarter was approximately $178.9 million or approximately $2.94 per share, primarily driven by $164.5 million of unrealized losses on digital assets [15][16] - The company had approximately $1.6 million in cash and 2.17 million Solana tokens as of December 31st [14] Business Line Data and Key Metrics Changes - Digital asset revenue for the six months ended December 31st, 2025, was approximately $11.2 million, reflecting the addition of the digital asset treasury business [14][15] - The treasury had an unrealized loss on digital assets of approximately $86.4 million, reflective of the Solana price per token of $124.48 at December 31st, 2025 [14][16] Market Data and Key Metrics Changes - The price of Solana fell 40% during the quarter and has fallen a further 31% since the quarter end [4][5] - The spot Solana ETFs launched and have seen over $850 million of net inflows since [11] Company Strategy and Development Direction - The company aims to increase yield, hedge positions using a maturing options market, and capitalize on top opportunities created by market volatility [8] - The strategic plan includes raising capital above NAV to increase digital assets per share and issuing in-kind convertible notes at a premium to NAV [18] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future despite challenges, citing improving fundamentals for Solana and the potential for price appreciation [5][6] - The company believes that the subsector will work through oversupply through M&A or asset sales, and anticipates multiple expansion in a bull market [7][8] Other Important Information - The company became shelf-eligible during the quarter and filed a shelf registration statement on Form S-3 with the SEC [12] - A $50 million share repurchase program was announced, adding another tool for capital management [12] Q&A Session Summary Question: Any change in terms of capital raising strategy given the pressure on Solana? - Management stated there has been no change in perspective and they continue to aim to raise capital above NAV [22] Question: How to weigh buying SOL versus keeping a reserve? - Management emphasized the importance of maintaining cash reserves during volatile periods and mentioned the potential for hedging positions as the options market matures [24][25] Question: Any updates on generating additional yield outside of staking? - Management is exploring a strategy that can generate high yield in a low-risk way, with a focus on recurring and low-risk opportunities [35]

Financial Data and Key Metrics Changes - For the second quarter, total revenue was approximately $8.1 million, an increase of approximately $4 million or just over 100% compared to $4 million in the prior year quarter [15] - For the six months ended December 31st, 2025, total revenue was $17.3 million, compared to $8.4 million in the prior period [15] - The net loss for the quarter was approximately $178.9 million or approximately $2.94 per share, primarily driven by $164.5 million of unrealized losses on digital assets [15][16] - The company had approximately $1.6 million in cash and 2.17 million Solana tokens as of December 31st [14] Business Line Data and Key Metrics Changes - Digital asset revenue for the six months ended December 31st, 2025, was approximately $11.2 million, reflecting the addition of the digital asset Treasury business [14][15] - The Treasury had an unrealized loss on digital assets of approximately $86.4 million, reflective of the Solana price per token of $124.48 at December 31st, 2025 [14][16] - The company increased the number of Solana tokens in its Treasury during the quarter by approximately 106,000 tokens [16] Market Data and Key Metrics Changes - The price of Solana fell 40% during the quarter and has fallen a further 31% since the quarter end [4][5] - The Spot Solana ETFs launched and have seen over $850 million of net inflows since [11] Company Strategy and Development Direction - The company aims to increase yield, hedge positions using a maturing options market, and capitalize on top opportunities created by market volatility [8] - The strategic plan includes raising capital above NAV to increase digital assets per share and issuing in-kind convertible notes at a premium to NAV [18] - The company is focused on developing a high-yield strategy that is low-risk and familiar to traditional investors, with plans to launch this strategy in the second quarter [29][36] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future despite a turbulent start to 2026, citing potential for Solana price appreciation and the ability to increase Solana per share [6][8] - The company believes that the subsector will work through oversupply through M&A or asset sales, and expects multiple expansion in a bull market [7][8] - Management emphasizes the importance of maintaining cash reserves and being prudent in capital allocation during volatile market conditions [24][25] Other Important Information - The company became shelf-eligible during the quarter and filed a shelf registration statement on Form S-3 with the SEC [12] - A $50 million share repurchase program was announced, adding another tool for capital management [12] Q&A Session Summary Question: Any change in terms of capital raising strategy given the pressure on Solana? - Management stated there has been no change in perspective and they continue to aim for raising capital above NAV [22] Question: Weighing buying SOL versus keeping a reserve? - Management emphasized the importance of maintaining cash reserves during volatile periods and being prudent with capital [24] Question: Any updates on generating additional yield outside of staking? - Management is in the exploratory phase for high-yield strategies that are low-risk and will provide more details in the future [35]

Financial Data and Key Metrics Changes - For the second quarter, total revenue was approximately $8.1 million, an increase of approximately $4 million or just over 100% compared to $4 million in the prior year quarter [17] - The net loss for the quarter was approximately $178.9 million or approximately $2.94 per share, primarily driven by $164.5 million of unrealized losses on digital assets [18] - The company had approximately $1.6 million in cash and 2.17 million Solana tokens as of December 31st [15] Business Line Data and Key Metrics Changes - Digital asset revenue for the six months ended December 31st, 2025, was approximately $11.2 million, reflecting the addition of the digital asset Treasury business [15] - The Treasury had an unrealized loss on digital assets of approximately $86.4 million, reflective of the Solana price per token of $124.48 at December 31st, 2025 [16] Market Data and Key Metrics Changes - The price of Solana fell 40% during the quarter and has fallen a further 31% since the quarter end [4] - The Spot Solana ETFs launched and have seen over $850 million of net inflows since [12] Company Strategy and Development Direction - The company aims to increase yield, hedge positions using a maturing options market, and capitalize on top opportunities created by market volatility [9] - The strategic plan includes raising capital above NAV to increase digital assets per share and issuing in-kind convertible notes at a premium to NAV [20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future despite a turbulent start to 2026, believing that the subsector will work through oversupply through M&A or asset sales [6] - The company is focused on growing Solana's holdings on a per-share basis through disciplined capital activities and maintaining prudent leverage and risk management [18] Other Important Information - The company became shelf-eligible during the quarter and filed a shelf registration statement on Form S-3 with the SEC [13] - A $50 million share repurchase program was announced, adding another tool for capital management [13] Q&A Session Summary Question: With the recent pressure on Solana, is there any change in terms of your capital raising strategy? - Management stated that they have not changed their perspective and continue to aim for raising capital above NAV [24] Question: How do you weigh buying SOL versus keeping a reserve? - Management emphasized the importance of maintaining cash reserves due to market volatility and indicated a cautious approach to capital allocation [26] Question: Can you elaborate on generating additional yield outside of staking? - Management is exploring a strategy that can generate high yield in a low-risk way, focusing on familiar market activities rather than on-chain options [30][37]

Financial Performance - Total revenue for the quarter was approximately $8.1 million, a 102.5% increase from $4.0 million for the same quarter ended December 31, 2024[5] - Digital asset revenue was $5.1 million for the quarter, primarily consisting of staking income[5] - Gross profit increased 126% year-over-year to $6.7 million, driven by the addition of the digital asset treasury business[5] - Net loss totaled $178.9 million, or $(2.94) per share, compared to a net loss of $1.3 million, or $(1.24) per share, for the quarter ended December 31, 2024[5] - Unrealized losses on digital assets amounted to $164.5 million, reflecting non-cash quarter-end fair value adjustments[5] Capital Management - The company raised approximately $10 million from a private placement during the quarter[2] - A $50 million share repurchase program was implemented to enhance shareholder value[2] - Current cash on hand stands at approximately $9.7 million as of February 9, 2026[5] Strategic Initiatives - The company announced a strategic shift to a high-return treasury strategy[5] - Upexi holds over two million SOL, benefiting from potential price appreciation of Solana[7]

Treasury Strategy - The company has shifted its treasury strategy to hold digital currency assets, primarily focusing on Solana (SOL), to achieve higher yields on excess cash [183]. - Approximately 95% of the company's Solana treasury is currently staked, with plans to maintain or increase this percentage in the future [185]. - The staking program aims to generate returns by delegating SOL to multiple validators, reducing risk and maximizing yield [193]. - The company plans to utilize intelligent capital markets issuance, including equity and convertible debt, to acquire more Solana at discounted prices [191]. - The treasury strategy is expected to enhance shareholder value as the price of Solana may rise, increasing the value of the treasury [184]. - The company maintains a certain amount of liquid SOL and cash to meet current obligations, ensuring liquidity management [192]. - The company does not hedge its SOL holdings and has no plans to do so in the future [183]. - The treasury policy exclusively focuses on Solana, with no intention to allocate capital to other digital assets [183]. - The company maintains over 98% of its SOL treasury in cold wallets, ensuring enhanced security against potential risks [219]. - The company is onboarding a third qualified custodian as part of its risk management process to further mitigate treasury risks [222]. Financial Performance - Revenue for the three months ended December 31, 2025, was $2,908,527, a decline of approximately $1.1 million or 27.4% compared to the same period last year [238]. - Digital asset revenue increased by approximately $5.1 million compared to the same period last year, driven by investments in digital assets and staking revenue [239]. - Cost of revenue increased by approximately $0.3 million or 30%, resulting in a gross margin of approximately 53.9%, down from 74.3% in the prior year [240]. - General and administrative expenses rose by approximately $4.0 million or 257%, primarily due to changes in business strategy and increased public company expenses [243]. - Unrealized losses on digital assets increased by approximately $164.5 million, reflecting the company's investments in digital assets [244]. - Net loss for the six months ended December 31, 2025, was $(112,176,808), a significant increase compared to $(2,926,887) in the same period last year [249]. - Cash flows used in operating activities were $(12,461,887) for the six months ended December 31, 2025, compared to $(3,358,636) for the same period last year [260]. - The company had current assets of $171,250,451 and current liabilities of $77,852,422 as of December 31, 2025, resulting in working capital of $93,398,029 [259]. - Other operating expenses increased by approximately $15.1 million or 2,247%, largely due to increased stock-based compensation [257]. - The company expects to have sufficient working capital to fund operations over the next twelve months and has a shelf registration statement effective January 8, 2026 [263]. Asset Management - The Asset Manager is entitled to an asset-based fee of 1.75% per annum on the assets under management, calculated and paid monthly [230]. - The company has entered into a Custodial Services Agreement with BitGo for digital asset storage, with a monthly fee based on the market value of assets in storage plus $500 [214]. - The Asset Management Agreement with GSR Strategies LLC is set to last until April 23, 2045, unless terminated earlier under specific conditions [232]. - The company disputes allegations of default under the Asset Management Agreement and has initiated arbitration proceedings against the Asset Manager [234]. Staking and Network Details - Staking rewards are distributed based on the proportion of stake relative to the total active stake in the network, influenced by validator performance and network conditions [208]. - Solana's staking yield comprises inflationary rewards, transaction fees, and maximal extractable value (MEV), with historical transaction fees now fully allocated to validators [225]. - The Solana network's transaction fees are fixed at 0.000005 SOL per transaction, plus a variable fee based on computation resources used [204]. - The total supply of SOL is 606.5 million, with a circulating supply of 538.2 million, and inflationary rewards currently at 4.3%, set to decrease by 15% every epoch-year until reaching a floor of 1.5% [225].

Core Insights - Upexi, Inc. reported a digital asset revenue of $5.1 million for the fiscal second quarter ended December 31, 2025, with a gross profit increase of 126% year-over-year to $6.7 million [1][7]. Financial Highlights - Total revenue for the quarter was approximately $8.1 million, compared to $4.0 million for the same quarter ended December 31, 2024 [7]. - Revenue from operations in the consumer brands business totaled $2.9 million [7]. - The net loss for the quarter was $178.9 million, or $2.94 per share, compared to a net loss of $1.3 million, or $(1.24) per share, for the same quarter in 2024 [7]. - The net loss was primarily driven by $164.5 million of unrealized losses on digital assets and $8.3 million of stock-based compensation expense [7]. - Cash and cash equivalents were reported at $1.6 million as of December 31, 2025, with current cash on hand at approximately $9.7 million as of February 9, 2026 [7]. Operational Highlights - The company raised approximately $10 million from a private placement and announced a $50 million share repurchase program [2]. - Upexi is focused on a high-return treasury strategy and has announced the pricing of a $36 million private placement convertible note in exchange for locked Solana [7]. - The company continues to grow its Solana holdings and is encouraged by the increased development and adoption of Solana across the financial landscape [2]. Company Overview - Upexi, Inc. is a leading digital asset treasury company focused on acquiring and holding Solana (SOL) while also being a brand owner in consumer products [9]. - The company operates with a disciplined approach to capital issuance, staking, and discounted locked token purchases, currently holding over two million SOL [9].

THE SOLANA TREASURY COMPANY SUMMER 2025 • INVESTOR PRESENTATION • NASDAQ: UPXI Summer 2025 — NASDAQ: UPXI FORWARD LOOKING INFORMATION This presentation contains "forward-looking statements", including statements regarding Upexi, Inc. and its subsidiaries, within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All of the statements in this presentation, including financial projections, whether written or oral, that refer to expected or anticipated future a ...

Group 1 - Upexi, Inc. is a leading digital asset treasury company focused on acquiring and holding Solana (SOL) in a disciplined manner, currently holding over two million SOL [3] - The company employs three key value accrual mechanisms: intelligent capital issuance, staking, and discounted locked token purchases to benefit from potential price appreciation of Solana [3] - Upexi will participate in one-on-one investor meetings at A.G.P.'s Digital Asset Innovation Summit from February 22-25, 2026, in Beaver Creek, Colorado [1][2] Group 2 - The management team includes Brian Rudick, the Chief Strategy Officer, who is available for investor meetings [2] - Upexi operates in a risk-prudent manner to appeal to a wide range of investors and position itself for various market environments [3] - The company also specializes in the development, manufacturing, and distribution of consumer products, enhancing its brand ownership [3]

Group 1 - Upexi, Inc. is a leading digital asset treasury company focused on acquiring and holding Solana (SOL) in a disciplined manner, currently holding over two million SOL [3] - The company employs three key value accrual mechanisms: intelligent capital issuance, staking, and discounted locked token purchases to benefit from potential price appreciation of Solana [3] - Upexi will participate in one-on-one investor meetings at A.G.P.'s Digital Asset Innovation Summit from February 22-25, 2026, in Beaver Creek, Colorado [1][2] Group 2 - The management team includes Brian Rudick, Chief Strategy Officer, who will be available for meetings during the summit [2] - Upexi operates in a risk-prudent manner to appeal to a wide range of investors and position itself for various market environments [3] - The company also specializes in the development, manufacturing, and distribution of consumer products, enhancing its brand ownership [3]