Galaxy Digital Inc-A(GLXY) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights Galaxy Digital reported strong Q3 2025 financial results, with net income surging to $505 million and Adjusted EBITDA reaching $629 million, alongside record digital asset trading and data center expansion Financial Highlights Galaxy Digital reported strong financial results for Q3 2025, with significant increases across key metrics. Net income surged to $505 million, and Adjusted EBITDA reached $629 million, driven by record performance in Digital Assets and gains from digital asset and investment positions. The company also saw substantial growth in total assets and equity Select Financial Metrics | SELECT FINANCIAL METRICS | Q3 2025 | Q2 2025 | Q/Q % Change | | :----------------------- | :------ | :------ | :----------- | | Total Assets | $11,523M | $9,086M | 27 % | | Total Equity | $3,172M | $2,624M | 21 % | | Cash & Stablecoins | $1,910M | $1,181M | 62 % | | Net Digital Assets and Investments | $2,141M | $1,871M | 14 % | | Net Income / (Loss) | $505M | $30.7M | 1,546 % | | Adjusted EBITDA | $629M | $211M | 198 % | - Net income for Q3 2025 was $505 million, with diluted EPS of $1.01 and adjusted EPS of $1.12[5] - Adjusted EBITDA reached $629 million for Q3 2025, primarily due to record results in the Digital Assets operating business and gains on digital asset and investment positions[5] Corporate Updates Galaxy Digital achieved record quarterly digital asset trading volumes, expanded its Helios data center development with CoreWeave, secured significant project financing, and launched a new financial technology platform, GalaxyOne. The company also received a substantial equity investment from a major asset manager - Record quarterly digital asset trading volumes increased by 140% versus Q2 2025, driven by increased spot and derivatives activity and a large client bitcoin sale[5] - Total assets on platform reached an all-time high of approximately $17 billion at quarter end[5] - Executed a lease agreement with CoreWeave for Phase II of the Helios data center development, bringing CoreWeave's total commitment to the full 800 MW of approved power capacity at Helios for AI and HPC operations[5] - Secured a $1.4 billion project financing facility, fully funding the $1.7 billion Phase I build at Helios[5] - Launched GalaxyOne on October 6, 2025, a financial technology platform providing U.S.-based individual investors access to high-yield cash, cryptocurrencies, and equities trading[5] - Announced a $460 million equity investment on October 10, 2025, with net proceeds of $325 million to fund Helios development and general corporate purposes[5] Segment Performance Overview This section provides an overview of segment performance, highlighting strong growth in Digital Assets, strategic development in Data Centers, and significant gains in Treasury & Corporate operations Digital Assets The Digital Assets segment delivered strong performance in Q3 2025, with significant growth in adjusted gross profit and EBITDA, driven by record activity in Global Markets and sustained momentum in Asset Management & Infrastructure Solutions Segment Reporting Breakdown | Segment Reporting Breakdown | Q3 2025 | Q2 2025 | Q/Q % Change | | :-------------------------- | :------ | :------ | :----------- | | Digital Assets Adjusted Gross Profit | $318M | $71.4M | 345 % | | Digital Assets Adjusted EBITDA | $250M | $13.0M | 1,817 % | - Digital Assets generated adjusted gross profit of $318 million and adjusted EBITDA of $250 million, fueled by record results in Global Markets and strong performance in Asset Management & Infrastructure Solutions[10] Global Markets Global Markets achieved record adjusted gross profit in Q3 2025, driven by a 140% increase in digital asset trading volumes, heightened spot and derivatives activity, and a record quarter for Investment Banking - Global Markets delivered record adjusted gross profit of $295 million in Q3 2025[9] - Galaxy's digital asset trading volumes increased 140% in the quarter, reaching all-time highs, including a $9 billion notional bitcoin sale on behalf of a client[9][11] Key Performance Indicators | KEY PERFORMANCE INDICATORS | Q3 2025 | Q2 2025 | Q/Q % Change | | :------------------------- | :------ | :------ | :----------- | | Global Markets Adjusted Gross Profit | $295M | $55.4M | 432 % | | Loan Book Size (Average) | $1,768M | $1,107M | 60 % | | Total Trading Counterparties | 1,532 | 1,445 | 6 % | - The average loan book size expanded to $1.8 billion in Q3 2025, supported by increased client activity[17] Asset Management & Infrastructure Solutions Asset Management & Infrastructure Solutions generated $23 million in adjusted gross profit, driven by over $2 billion in net inflows into alternatives and ETFs. The segment ended the quarter with nearly $9 billion in assets under management and $7 billion in assets under stake - Asset Management & Infrastructure Solutions generated $23 million of adjusted gross profit in Q3 2025, primarily from over $2 billion of net inflows into alternatives and ETFs[13] Key Performance Indicators | KEY PERFORMANCE INDICATORS | Q3 2025 | Q2 2025 | Q/Q % Change | | :------------------------- | :------ | :------ | :----------- | | Adjusted Gross Profit | $23.2M | $16.0M | 44 % | | ETFs | $3,903M | $3,327M | 17 % | | Alternatives | $4,859M | $2,405M | 102 % | | Assets Under Stake | $6,610M | $3,150M | 110 % | - Galaxy ended Q3 with nearly $9 billion in assets under management and $7 billion in assets under stake, with digital asset treasury mandates adding over $4.5 billion in assets[18] Data Centers The Data Centers segment, specifically the Helios campus, is on track to deliver critical IT load to CoreWeave in H1 2026. Galaxy has fully funded Phase I, expanded the campus, and anticipates over $1 billion in average annual revenue from committed critical IT load Segment Reporting Breakdown | Segment Reporting Breakdown | Q3 2025 | Q2 2025 | Q/Q % Change | | :-------------------------- | :------ | :------ | :----------- | | Data Centers Adjusted Gross Profit | $2.7M | - | N.M. | | Data Centers Adjusted EBITDA | $3.7M | - | N.M. | - Galaxy expects immaterial adjusted gross profit and EBITDA from Data Centers until H1 2026, when Phase I of the lease agreement with CoreWeave is scheduled to start delivering critical IT capacity and recognizing revenue[10] - Helios Data Center Campus remains on schedule to deliver 133 MW of critical IT load to CoreWeave in the first half of 2026 under the Phase I lease agreement[16] - CoreWeave exercised its final option, committing to the full 800 MW of approved power capacity at Helios for AI and HPC operations[19] Helios Data Center Development Phases | Phase | Contracted Critical IT Load | Expected Delivery Date | Anticipated Average Annual Revenue | | :---- | :-------------------------- | :--------------------- | :--------------------------------- | | I | 133MW | 1H26 | | | II | 260MW | 2027 | | | III | 133MW | 2028 | | | Total | 526MW | | $1B+ | Treasury & Corporate The Treasury & Corporate segment demonstrated strong financial performance in Q3 2025, driven by significant gains across its diversified digital asset and investment positions Segment Reporting Breakdown | Segment Reporting Breakdown | Q3 2025 | Q2 2025 | Q/Q % Change | | :-------------------------- | :------ | :------ | :----------- |\ | Treasury & Corporate Adjusted Gross Profit | $408M | $228M | 79 % | | Treasury & Corporate Adjusted EBITDA | $376M | $198M | 90 % | - Treasury & Corporate generated adjusted gross profit of $408 million and adjusted EBITDA of $376 million, primarily due to gains across digital asset and investment positions[10] Financial Position The company's financial position as of September 30, 2025, shows $3.2 billion in total equity, strategically allocated across segments, with diversified digital asset and investment exposure in Treasury & Corporate Balance Sheet Overview Galaxy Digital's balance sheet reflects a total equity of $3.2 billion as of September 30, 2025, allocated across its three primary segments: Digital Assets, Data Centers, and Treasury & Corporate - The Company's total equity capital as of September 30, 2025, is $3.2 billion[22] - Equity capital is allocated approximately 40% to Digital Assets, 25% to Data Centers, and 35% to Treasury & Corporate[23] Treasury & Corporate Net Digital Asset and Investment Exposure The Treasury & Corporate segment maintains a diversified exposure to the digital asset ecosystem, including spot positions, ETFs, equities, venture investments, private equity holdings, and fund investments, excluding derivatives instruments - The Treasury & Corporate segment's exposure includes a diversified allocation across spot positions, ETFs, equities, venture investments, private equity holdings, and fund investments[23] - The net digital asset and investment exposure for the Treasury & Corporate segment as of September 30, 2025, excludes derivatives instruments[25] Corporate Information This section provides details on the Q3 2025 earnings conference call and an overview of Galaxy Digital Inc.'s global leadership in digital assets and data center infrastructure Earnings Conference Call Galaxy Digital hosted an investor conference call and an Earnings AMA on October 21, 2025, to discuss its Q3 2025 financial results, with replays available online - An investor conference call was held on October 21, 2025, at 8:30 AM Eastern Time, with a live webcast available on the company's investor relations website and YouTube channel[30] - Galaxy also hosted an Earnings AMA via X Spaces on October 21, 2025, at 11:35 AM Eastern Time[31] About Galaxy Digital Inc. Galaxy Digital Inc. is a global leader in digital assets and data center infrastructure, providing institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology, alongside developing cutting-edge data center infrastructure for AI and HPC workloads - Galaxy Digital Inc. is a global leader in digital assets and data center infrastructure, headquartered in New York City with offices across North America, Europe, the Middle East, and Asia[32] - Its digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology[32] - The company develops and operates data center infrastructure, including the 800 MW Helios campus in Texas, which has an additional 2.7 GW of power under study[32] Disclosures & Non-GAAP Measures This section outlines important disclaimers, cautionary statements regarding forward-looking information, and definitions of non-GAAP financial measures used in the report Disclaimer The disclaimer states that the TSX and Ontario Securities Commission have not approved or disapproved of the information or disclosure record contained in the report - The TSX has not approved or disapproved of the information contained herein[33] - The Ontario Securities Commission has not passed upon the merits of the disclosure record of Galaxy[33] Cautionary Statement About Forward-Looking Statements This section warns that the press release contains forward-looking statements based on current expectations, which involve risks and uncertainties that could cause actual results to differ materially. Investors are cautioned against undue reliance on these statements, and the company assumes no obligation to update them - The press release contains forward-looking statements regarding future expectations, hopes, beliefs, intentions, or strategies, including business plans and goals related to the CoreWeave lease[35] - These statements are based on current expectations and beliefs but involve risks and uncertainties that may cause actual results to differ materially, such as inability to maintain Nasdaq listing, costs related to AI/HPC plans, changes in regulations, and market conditions[35][36] - The company assumes no obligation to update or revise any forward-looking statements, and investors should not place undue reliance on them[36] Non-GAAP Financial Measures This section defines and explains the use of non-GAAP financial measures such as adjusted gross profit, adjusted EBITDA, and EBITDA margin. It clarifies that these measures are supplemental, unaudited, and should not be considered substitutes for GAAP results, providing reconciliations to GAAP measures - Adjusted gross profit, adjusted EBITDA, and EBITDA margin are non-GAAP financial measures presented as supplemental disclosure[38] - These non-GAAP measures should not be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP[38] - Adjusted EBITDA excludes items like equity-based compensation, notes interest expense, taxes, depreciation, and certain gains/losses, as these are non-cash, unpredictable, or not driven by core operations[43] - Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are provided on pages 10-12[39] Consolidated Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements, including statements of financial position, operations, and details on the ownership structure of GDH LP Limited Partnership Interests Consolidated Statements of Financial Position Galaxy Digital's consolidated statements of financial position show a significant increase in total assets and total equity from December 31, 2024, to September 30, 2025, driven by growth in digital intangible assets, digital assets loan receivables, and property and equipment Consolidated Statements of Financial Position (in thousands) | (in thousands) | September 30, 2025 | December 31, 2024 | | :--------------- | :----------------- | :---------------- | | Assets | | | | Total current assets | $9,057,186 | $5,880,890 | | Total non-current assets | $2,465,530 | $1,238,965 | | Total assets | $11,522,716 | $7,119,855 | | Liabilities | | | | Total current liabilities | $6,730,442 | $3,887,925 | | Total non-current liabilities | $1,619,955 | $1,037,578 | | Total liabilities | $8,350,397 | $4,925,503 | | Equity | | | | Total equity | $3,172,319 | $2,194,352 | - Cash and cash equivalents increased from $462.1 million at December 31, 2024, to $1,137.4 million at September 30, 2025[48] - Digital intangible assets (including fair value) grew from $2,547.6 million to $3,785.1 million over the same period[48] Consolidated Statements of Operations Galaxy Digital reported a significant turnaround in net income for Q3 2025, reaching $505.1 million compared to a loss of $33.3 million in Q3 2024. This was driven by substantial increases in revenues and gains from operations, despite higher transaction and impairment expenses Consolidated Statements of Operations (in thousands) | (in thousands) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | | :--------------- | :------------------------------ | :------------------------------ | | Revenues and gains / (losses) from operations | $29,218,853 | $8,712,290 | | Total operating expenses | $28,674,608 | $8,751,430 | | Net income / (loss) before taxes | $545,202 | $(41,215) | | Income taxes expense / (benefit) | $40,145 | $(7,885) | | Net income / (loss) | $505,057 | $(33,330) | | Basic EPS | $1.19 | $(0.10) | | Diluted EPS | $1.01 | $(0.10) | - Revenues and gains from operations for the nine months ended September 30, 2025, were $51.1 billion, up from $27.4 billion in the prior year period[51] - Net income for the nine months ended September 30, 2025, was $240.3 million, compared to $229.2 million in the same period of 2024[51] Ownership of GDH LP Limited Partnership Interests Following the Reorganization Transactions on May 13, 2025, Galaxy Digital Inc. holds 47.0% of the GDH LP Limited Partnership Interests, with noncontrolling interests holding 53.0%. This represents a shift from the prior structure where Galaxy Digital Holdings Ltd. and Class B Unit Holders held interests Ownership of GDH LP Limited Partnership Interests | | September 30, 2025 | December 31, 2024 | | :-------------------------- | :----------------- | :---------------- | | Galaxy Digital Inc. | 179,312,261 (47.0%) | — (0%) | | Noncontrolling interests | 201,885,332 (53.0%) | — (0%) | | Galaxy Digital Holdings Ltd | — (0%) | 127,577,780 (37.1%) | | Class B Unit Holders | — (0%) | 215,862,343 (62.9%) | | Total | 381,197,593 (100.0%) | 343,440,123 (100.0%) | - As a result of the Reorganization Transactions on May 13, 2025, Galaxy Digital Holdings Ltd. was acquired by Galaxy Digital Inc., and Class B Unit Holders of GDH LP became noncontrolling interests of Galaxy Digital Inc.[55] Non-GAAP Reconciliations This section provides detailed reconciliations of non-GAAP financial measures, including adjusted gross profit, adjusted EBITDA, and adjusted income (loss) per share, to their most directly comparable GAAP measures Reconciliation of Revenue and Gains/(Losses) from Operations This section provides a reconciliation of GAAP revenues and gains/(losses) from operations to adjusted gross profit for Q3 2025 and Q2 2025, detailing the impact of transaction expenses and impairment of digital assets across Digital Assets, Data Centers, and Treasury & Corporate segments Reconciliation of Revenue and Gains/(Losses) from Operations (in thousands) | (in thousands) | Digital Assets (Q3 2025) | Data Centers (Q3 2025) | Treasury and Corporate (Q3 2025) | Total (Q3 2025) | | :--------------- | :----------------------- | :--------------------- | :------------------------------- | :-------------- | | Revenues and gains / (losses) from operations | $28,805,865 | $2,662 | $410,326 | $29,218,853 | | Less: Transaction expenses | $28,290,508 | — | $2,269 | $28,292,777 | | Less: Impairment of digital assets | $197,702 | — | — | $197,702 | | Adjusted gross profit | $317,655 | $2,662 | $408,057 | $728,374 | Reconciliation of Revenue and Gains/(Losses) from Operations (in thousands) | (in thousands) | Digital Assets (Q2 2025) | Data Centers (Q2 2025) | Treasury and Corporate (Q2 2025) | Total (Q2 2025) | | :--------------- | :----------------------- | :--------------------- | :------------------------------- | :-------------- | | Revenues and gains / (losses) from operations | $8,711,215 | — | $345,434 | $9,056,649 | | Less: Transaction expenses | $8,596,478 | — | $33,462 | $8,629,940 | | Less: Impairment of digital assets | $43,307 | — | $84,170 | $127,477 | | Adjusted gross profit | $71,430 | — | $227,802 | $299,232 | Reconciliation of Adjusted EBITDA This section reconciles net income to adjusted EBITDA for Q3 2025 and Q2 2025, detailing adjustments for equity-based compensation, interest expense, taxes, depreciation, and other non-operating items across the Digital Assets, Data Centers, and Treasury & Corporate segments Reconciliation of Adjusted EBITDA (in thousands) | (in thousands) | Digital Assets (Q3 2025) | Data Centers (Q3 2025) | Treasury and Corporate (Q3 2025) | Total (Q3 2025) | | :--------------- | :----------------------- | :--------------------- | :------------------------------- | :-------------- | | Net income / (loss) | $234,392 | $2,104 | $268,561 | $505,057 | | Add back: Equity based compensation | $11,989 | $1,645 | $8,423 | $22,057 | | Add back: Notes interest expense and other expense | — | — | $14,415 | $14,415 | | Add back: Taxes | — | — | $40,145 | $40,145 | | Add back: Depreciation and amortization expense | $3,812 | — | $3,585 | $7,397 | | Add back: Mining related impairment loss / loss on disposal | — | — | $38,027 | $38,027 | | Add back: Reorganization and domestication costs | — | — | $1,401 | $1,401 | | Adjusted EBITDA | $249,921 | $3,659 | $375,772 | $629,352 | Reconciliation of Adjusted EBITDA (in thousands) | (in thousands) | Digital Assets (Q2 2025) | Data Centers (Q2 2025) | Treasury and Corporate (Q2 2025) | Total (Q2 2025) | | :--------------- | :----------------------- | :--------------------- | :------------------------------- | :-------------- | | Net income / (loss) | $(2,535) | — | $33,226 | $30,691 | | Add back: Equity based compensation | $11,826 | — | $6,957 | $18,783 | | Add back: Notes interest expense and other expense | — | — | $12,042 | $12,042 | | Add back: Taxes | — | — | $11,470 | $11,470 | | Add back: Depreciation and amortization expense | $3,560 | — | $3,898 | $7,458 | | Add back: Unrealized (gain) / loss on notes payable – derivative | — | — | $125,150 | $125,150 | | Add back: Reorganization and domestication costs | — | — | $4,867 | $4,867 | | Adjusted EBITDA | $12,963 | — | $198,264 | $211,227 | Reconciliation of Adjusted Income (Loss) per Share This section reconciles diluted income (loss) per share to adjusted income (loss) per share for the three and nine months ended September 30, 2025, by including the impact of noncontrolling interest holders exchanging their LP units for Class A common stock - Adjusted income (loss) per share represents diluted income (loss) per Class A common stock, assuming all outstanding noncontrolling interest holders exchanged their LP units in GDH LP for Class A common stock of the Company[61] Reconciliation of Adjusted Income (Loss) per Share (in thousands, except for share data and per share amounts) | (in thousands, except for share data and per share amounts) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | | :---------------------------------------------------------- | :------------------------------ | :------------------------------ | | Net income used to calculate diluted EPS | $223,156 | $(33,330) | | Noncontrolling interest income, net of tax | $253,139 | — | | Net income used to calculate adjusted income (loss) per share | $476,295 | $(33,330) | | Weighted average number of Class A Common Stock shares for diluted EPS | 221,463,809 | 341,208,036 | | Noncontrolling interest weighted average shares outstanding | 202,646,202 | — | | Weighted average number of Class A Common Stock shares for Adjusted income (loss) per share | 424,110,011 | 341,208,036 | | Adjusted income (loss) per share | $1.12 | $(0.10) |