ZeroStack | 10-Q: FY2026 Q1 Revenue: USD 7.274 M

Revenue: As of FY2026 Q1, the actual value is USD 7.274 M.

EPS: As of FY2026 Q1, the actual value is USD -3.68.

EBIT: As of FY2026 Q1, the actual value is USD -62.59 M.

Revenue

• Total Revenue for the three months ended March 31, 2026, was $7,274 thousand, an increase from $6,866 thousand in the same period of 2025.
  • Commercial & Wholesale revenue decreased to $4,503 thousand in 2026 from $6,866 thousand in 2025.
  • Digital Assets generated $2,771 thousand in revenue in 2026, compared to $0 thousand in 2025, primarily due to 0G Token staking rewards.

Cost of Sales

• Total Cost of Sales was $4,128 thousand in 2026, a decrease from $6,331 thousand in 2025.
  • Commercial & Wholesale cost of sales was $4,128 thousand in 2026, down from $6,331 thousand in 2025.
  • Digital Assets had no cost of sales in either period.

Gross Profit

• Total Gross Profit increased to $3,146 thousand (43% gross margin) in 2026 from $535 thousand (8% gross margin) in 2025, mainly due to staking activities.
  • Commercial & Wholesale gross profit was $375 thousand in 2026, down from $535 thousand in 2025.
  • Digital Assets gross profit was $2,771 thousand in 2026, compared to $0 thousand in 2025.

Operating Expenses

• Total Operating Expenses surged to $65,799 thousand in 2026 from $2,154 thousand in 2025, mainly due to losses from changes in fair value of digital assets.
  • Loss from changes in fair value of digital assets was $60,742 thousand in 2026, compared to $0 thousand in 2025.
  • Salaries and consulting fees increased to $965 thousand in 2026 from $705 thousand in 2025.
  • Share based compensation rose to $2,771 thousand in 2026 from $172 thousand in 2025.
  • Professional fees were $653 thousand in 2026, up from $534 thousand in 2025.
  • Asset impairment was $0 thousand in 2026, down from $46 thousand in 2025.
  • Other expenses, net were $668 thousand in 2026 and $697 thousand in 2025.

Operating Loss

• Total Operating Loss significantly increased to - $62,653 thousand in 2026 from - $1,619 thousand in 2025.

Non-Operating Income

• Total Non-Operating Income was $25,984 thousand in 2026, compared to $1,366 thousand in 2025.
  • This included a $23,000 thousand gain from revaluing the Zero Gravity Convertible Note and a $3,100 thousand gain on its settlement in 2026.
  • In 2025, it included a $1,100 thousand gain on the disposal of insolvent entities.

Net Loss from Continuing Operations

• Total Net Loss from Continuing Operations was - $36,660 thousand in 2026, compared to - $341 thousand in 2025.

Net Loss for the Period

• Total Net Loss was - $36,660 thousand in 2026, compared to - $758 thousand in 2025.

Cash Flow

• Net cash used in operating activities was - $3,847 thousand for the three months ended March 31, 2026, compared to - $2,661 thousand for the same period in 2025.
• Net cash provided by financing activities was $571 thousand in 2026, compared to $0 thousand in 2025, primarily due to net borrowings on credit facilities in Germany.
• Net cash provided by investing activities was $0 thousand in 2026, compared to $370 thousand in 2025.
• Cash and restricted cash at end of period was $2,303 thousand as of March 31, 2026, down from $3,711 thousand at March 31, 2025.

Unique Metrics

• Digital Assets Held: As of March 31, 2026, ZeroStack Corp. held $38,405 thousand in digital assets, primarily 77,783,151 0G Tokens valued at $38,347 thousand and 0.856737 Bitcoin valued at $58 thousand.
• Digital Asset Staking Rewards: ZeroStack Corp. earned 4,364,724 0G Tokens, or $2,800 thousand (net of 2% commission), in rewards for the three months ended March 31, 2026, from staking activities which began on January 21, 2026.
• Digital Asset Settlement: On March 31, 2026, the company settled the Zero Gravity Convertible Note by transferring 50,000,000 0G Tokens, resulting in a $3,100 thousand gain on settlement and recording $24,400 thousand in realized losses on the use of digital assets for repayment.
• Concentration Risk: Approximately 85% of ZeroStack Corp.’s total assets were held in 0G cryptocurrency as of March 31, 2026, exposing the company to concentration risk with digital asset custodians and trading platforms.

Future Outlook and Strategy

ZeroStack Corp. is transitioning its strategy to focus on being a decentralized AI treasury company, investing in AI infrastructure through strategic ownership of 0G Tokens and operating as an AI-focused asset management company. The company expects to close the Exchange around July 14, 2026, which will classify ZeroStack Corp. as a U.S. domestic corporation for federal income tax purposes. Proceeds from the PIPE Offering and Zero Gravity Convertible Note are intended to further the new digital asset treasury strategy linked to 0G Tokens and expand the use of 0G Tokens’ native AI functionality. ZeroStack Corp. is committed to achieving sustained growth to offset overhead costs and reach profitability, and may require additional capital through equity or debt financings in the future.