Galaxy Digital Inc-A(GLXY) - 2025 Q1 - Quarterly Results

Financial Performance Consolidated Statements of Operations Galaxy Digital reported a Q1 2025 net loss of $295.4 million, a sharp reversal from prior period net incomes, driven by reduced revenues and elevated expenses Consolidated Statements of Operations | Financial Metric ($ in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenues and gains / (losses) from operations | $12,855,875 | $16,352,386 | $9,828,423 | | Total operating expenses | $13,247,697 | $16,222,765 | $9,421,489 | | Net income / (loss) before taxes | ($301,544) | $113,184 | $397,454 | | Net Income / (loss) | ($295,432) | $117,521 | $388,127 | Segment Performance Analysis In Q1 2025, the Digital Assets segment generated a small operating income, while Data Centers and Treasury & Corporate segments recorded significant operating losses Operating Income / (Loss) by Segment | Operating Income / (Loss) by Segment ($ in thousands) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Digital Assets | $3,529 | $29,407 | | Data Centers | ($2,899) | ($2,148) | | Treasury and Corporate | ($392,452) | $102,342 | | Total Operating Income / (Loss) | ($391,822) | $129,601 | Digital Assets Segment The Digital Assets segment reported an operating income of $3.5 million in Q1 2025, a notable decrease from Q4 2024, despite high revenues from digital asset sales - The segment's revenue is predominantly from Digital asset sales ($12.85 billion) and Blockchain rewards ($80.7 million)[11] Digital Assets Segment | Digital Assets Segment ($ in thousands) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Revenues and gains / (losses) from operations | $13,063,899 | $15,888,009 | | Total operating expenses | $13,060,370 | $15,858,602 | | Operating Income | $3,529 | $29,407 | Data Centers Segment The Data Centers segment consistently reported an operating loss of $2.9 million in Q1 2025, with no revenues recorded for the period - The segment reported an operating loss of $2.9 million in Q1 2025, with no revenues recorded [7] Treasury and Corporate Segment The Treasury and Corporate segment incurred a substantial operating loss of $392.5 million in Q1 2025, a sharp reversal from prior quarter's income, driven by significant losses on digital assets and investments Treasury and Corporate Segment | Treasury and Corporate Segment ($ in thousands) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Revenues and gains / (losses) from operations | ($208,024) | $464,357 | | Total operating expenses | $184,428 | $362,015 | | Operating Income / (Loss) | ($392,452) | $102,342 | - Key drivers of the negative performance in Q1 2025 were a net loss on digital assets of $70.4 million and a net loss on investments of $112.8 million[7] Financial Position Consolidated Statements of Financial Position As of March 31, 2025, total assets decreased to $6.34 billion, primarily due to reduced digital intangible assets, leading to a decline in total equity to $1.90 billion Balance Sheet Highlights | Balance Sheet Highlights ($ in thousands) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $6,336,192 | $7,119,855 | | Cash and cash equivalents | $509,438 | $462,103 | | Digital intangible assets | $2,123,860 | $2,547,581 | | Total Liabilities | $4,434,548 | $4,925,503 | | Digital assets borrowed | $1,760,455 | $1,497,609 | | Collateral payable | $943,513 | $1,399,655 | | Total Equity | $1,901,644 | $2,194,352 | Segment Financial Position As of March 31, 2025, the Digital Assets segment held the largest share of assets and liabilities, with both major segments experiencing a decrease in total assets from year-end 2024 Segment Assets & Liabilities | Segment Assets & Liabilities ($ in thousands) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Digital Assets | | | | Total assets | $3,169,254 | $3,723,814 | | Total liabilities | $2,691,823 | $3,163,499 | | Data Centers | | | | Total assets | $264,600 | $199,694 | | Total liabilities | - | - | | Treasury and Corporate | | | | Total assets | $2,902,338 | $3,196,347 | | Total liabilities | $1,742,725 | $1,762,004 | Non-GAAP Financial Measures Reconciliation of Non-GAAP Adjusted Gross Profit In Q1 2025, total adjusted gross profit was a loss of $203.6 million, a sharp reversal from Q4 2024, primarily driven by a significant adjusted gross loss in the Treasury and Corporate segment Adjusted Gross Profit by Segment | Adjusted Gross Profit by Segment ($ in thousands) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Digital Assets | $64,731 | $100,954 | | Treasury and Corporate | ($268,295) | $359,636 | | Total Adjusted Gross Profit | ($203,564) | $460,590 |