FG Nexus | 10-Q: FY2026 Q1 Revenue: USD 232 K

Revenue: As of FY2026 Q1, the actual value is USD 232 K.

EPS: As of FY2026 Q1, the actual value is USD -5.88.

EBIT: As of FY2026 Q1, the actual value is USD -40.32 M.

Overall Continuing Operations Performance (Three Months Ended March 31, 2026 vs. 2025)

• Total Revenue: Decreased to $0.2 million in 2026 from $0.2 million in 2025, a -2.5% change .
• General and Administrative Expenses: Increased to -$3.7 million in 2026 from -$2.3 million in 2025, a 57.5% increase . This was primarily due to higher compensation costs, professional fees, audit fees, and public relations expenses related to launching new ETH treasury operations .
• Stock-Based Compensation: Decreased to -$0.1 million in 2026 from -$0.2 million in 2025, a -33.1% change .
• Realized Loss on Digital Assets: Increased to -$18.7 million in 2026 from $0 in 2025 .
• Unrealized Loss on Measurement of Fair Value of ETH Digital Assets: Increased to -$18.0 million in 2026 from $0 in 2025 .
• Loss from Operations: Increased to -$40.2 million in 2026 from -$2.3 million in 2025, a 1,668.9% increase, primarily due to digital asset losses and increased operating expenses for digital asset treasury operations .
• Interest Income (Expense), Net: Improved to $0.04 million in 2026 from -$0.004 million in 2025 .
• Gain (Loss) on Equity Holdings: Improved to $0.03 million in 2026 from -$6.4 million in 2025 . The 2026 figure includes an equity method gain on Saltire shares of $32 thousand .
• Loss on Financial Instruments: Increased to -$0.1 million in 2026 from $0 in 2025 .
• Foreign Currency Transaction Loss: Increased to -$0.03 million in 2026 from $0 in 2025 .
• Loss from Continuing Operations Before Income Taxes: Increased to -$40.3 million in 2026 from -$8.7 million in 2025, a 363.1% increase .
• Income Tax Benefit: Decreased to $0.009 million in 2026 from $0.068 million in 2025, an -86.8% change .
• Net Loss from Continuing Operations: Increased to -$40.3 million in 2026 from -$8.6 million in 2025 .
• Net Income (Loss) from Discontinued Operations: Improved to $1.6 million in 2026 from -$1.1 million in 2025 .
• Net Loss Attributable to Common Shareholders: Increased to -$39.0 million in 2026 from -$10.2 million in 2025 .

Segment Revenue (Three Months Ended March 31, 2026 vs. 2025)

• Digital Assets: $0 revenue in both 2026 and 2025, with no revenue generated from ETH native staking activities during Q1 2026 .
• Merchant Banking: $0.1 million in advisory fees in both 2026 and 2025 .
• Other: $0.1 million in rental income in both 2026 and 2025 .
• Total Revenue: $0.2 million in 2026 compared to $0.2 million in 2025 .

Segment (Loss) Income Before Taxes (Three Months Ended March 31, 2026 vs. 2025)

• Digital Assets: -$37.2 million in 2026 compared to $0 in 2025, including -$18.7 million in realized loss and -$18.0 million in unrealized loss on measurement of fair value of ETH digital assets .
• Merchant Banking: -$0.4 million in 2026 compared to -$6.7 million in 2025, including a gain on equity holdings of $32 thousand in 2026 .
• Other: $0.006 million in 2026 compared to $0.01 million in 2025 .

Segment Assets (As of March 31, 2026 vs. December 31, 2025)

• Merchant Banking: $17.2 million as of March 31, 2026, up from $14.7 million as of December 31, 2025 .
• Digital Assets: $60.7 million as of March 31, 2026, down from $119.4 million as of December 31, 2025 .
• Other & Corporate: $17.8 million as of March 31, 2026, down from $29.8 million as of December 31, 2025 . The December 31, 2025 figure included $13.9 million of assets from discontinued operations related to the reinsurance business .
• Total Assets: $95.7 million as of March 31, 2026, down from $163.8 million as of December 31, 2025 .

Cash Flow (Three Months Ended March 31, 2026 vs. 2025)

• Net Cash Used in Operating Activities from Continuing Operations: -$6.2 million in 2026 compared to -$2.4 million in 2025, an increase primarily due to higher operating expenses and working capital uses .
• Net Cash Provided by Investing Activities from Continuing Operations: $21.7 million in 2026 compared to $1.5 million in 2025 . The 2026 figure includes $22.0 million from ETH sales and $0.2 million from note receivable repayment, partially offset by $0.5 million for equity holding purchases .
• Net Cash Used in Financing Activities from Continuing Operations: -$14.4 million in 2026 compared to -$0.6 million in 2025 . The 2026 figure includes -$14.0 million for common and preferred share buybacks .
• Net Increase (Decrease) in Cash and Cash Equivalents from Continuing Operations: $1.0 million in 2026 compared to -$1.4 million in 2025 .
• Net Decrease in Cash and Cash Equivalents from Discontinued Operations: -$0.25 million in 2026 compared to -$0.7 million in 2025 .
• Net Increase (Decrease) in Cash and Cash Equivalents: $0.7 million in 2026 compared to -$2.1 million in 2025 .

Unique Metrics

• ETH Digital Assets: As of March 31, 2026, FG Nexus Inc. held 20,637 units of ETH with a fair value of $43.5 million, a decrease from $119.4 million as of December 31, 2025 .
• Wrapped Staked ETH (wstETH): As of March 31, 2026, FG Nexus Inc. held 7,659 tokens of wstETH with a carrying value of $17.2 million .
• Equity Holdings: As of March 31, 2026, equity holdings totaled $17.1 million, including a 23.8% economic interest in Saltire Capital Ltd. ($14.9 million carrying amount) and a 40.0% economic interest in Devondale Holdings LLC ($1.8 million carrying amount) . FG Nexus Inc. also purchased $0.5 million in common shares of USFM Corporation .
• Common Stock Repurchase Program: During Q1 2026, FG Nexus Inc. repurchased approximately 0.6 million shares of its Common Stock for $8.7 million, with approximately $165.1 million remaining available under the program as of March 31, 2026 .
• Preferred Stock Repurchase Program: During Q1 2026, FG Nexus Inc. repurchased approximately 212 thousand shares of its Series A Preferred Stock for $5.3 million, with 677 thousand shares still purchasable under the program as of March 31, 2026 .

Future Outlook and Strategy

FG Nexus Inc. is reviewing potential strategic alternatives, including a possible business combination with FG Communities, Inc., to enhance long-term stockholder value and advance its strategy in tokenization of real-world assets . This potential transaction aims to align its digital asset platform with an income-producing real estate business . Additionally, the company has signed a non-binding letter of intent to sell its Quebec property for an expected $8.0-$9.0 million USD in net pretax proceeds, anticipated to close in Q2 2026 .