FG Financial Pref Share FGFPP 8 02/28/23 | 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 -40.27 M.

Segment Revenue

• Total Revenue: FG Nexus Inc. reported total revenue of $232 thousand for the three months ended March 31, 2026, a decrease from $238 thousand in the prior-year period .
  • Digital Assets: This segment generated no revenue in either the three months ended March 31, 2026, or March 31, 2025 .
  • Merchant Banking Advisory Fees: Revenue remained constant at $128 thousand for both the three months ended March 31, 2026, and March 31, 2025 .
  • Rental Income (Other Segment): Rental income decreased to $104 thousand for the three months ended March 31, 2026, from $110 thousand in the same period of 2025 .

Operational Metrics

• Loss from Operations: The loss from operations significantly increased to -$40,224 thousand for the three months ended March 31, 2026, compared to -$2,274 thousand for the three months ended March 31, 2025 . This increase was primarily driven by -$36,700 thousand in digital asset losses in 2026, which included -$18,000 thousand in unrealized mark-to-market adjustments on ETH digital assets and -$18,700 thousand in realized losses on the sale and conversion of ETH .
• Net Loss from Continuing Operations: The net loss from continuing operations increased to -$40,263 thousand for the three months ended March 31, 2026, from -$8,629 thousand in the prior-year period . This was mainly due to unrealized mark-to-market adjustments, realized losses on ETH, and increased operating expenses from digital asset treasury operations .
• Net Income (Loss) from Discontinued Operations: The company reported net income from discontinued operations of $1,625 thousand for the three months ended March 31, 2026, a significant improvement from a net loss of -$1,126 thousand in the same period of 2025 . This includes a $1,600 thousand gain on the sale of the remaining portion of its reinsurance business .
• Total Net Loss: The total net loss was -$38,638 thousand for the three months ended March 31, 2026, compared to -$9,755 thousand for the three months ended March 31, 2025 .
• General and Administrative Expenses: These expenses increased by 57.5% to -$3,680 thousand in 2026 from -$2,337 thousand in 2025, attributed to higher compensation, professional fees, audit fees, and public relations expenses for the new ETH treasury operations .
• Stock-Based Compensation: This decreased to -$117 thousand in 2026 from -$175 thousand in 2025 .
• Gain (Loss) on Equity Holdings: The company recorded a gain of $32 thousand in 2026, a notable improvement from a loss of -$6,419 thousand in 2025 . This includes a $32 thousand equity method gain on Saltire shares in 2026, compared to a -$1,500 thousand equity method loss on Saltire shares in 2025 .

Cash Flow

• Net Cash Used in Operating Activities from Continuing Operations: This increased to -$6,229 thousand for the three months ended March 31, 2026, from -$2,923 thousand for the three months ended March 31, 2025, due to higher operating expenses and increased working capital uses .
• Net Cash Provided by Investing Activities from Continuing Operations: This increased to $21,410 thousand in 2026 from $1,519 thousand in 2025, primarily due to $22,010 thousand from ETH sales and $150 thousand from note receivable repayment, partially offset by -$500 thousand in equity holding purchases .
• Net Cash Used in Financing Activities from Continuing Operations: This increased to -$14,427 thousand in 2026 from -$720 thousand in 2025, including -$14,000 thousand for common and preferred share buyback programs, -$28 thousand in principal debt payments, and -$370 thousand in preferred share dividends .
• Cash and Cash Equivalents at End of Period: Ended at $14,141 thousand on March 31, 2026, up from $4,437 thousand on March 31, 2025 .

Unique Metrics

• Digital Asset Holdings: As of March 31, 2026, FG Nexus Inc. held 20,637 ETH with a fair value of $43,455 thousand and 7,659 wrapped staked ETH (wstETH) with a carrying value of $17,233 thousand, for a combined fair value of digital assets of $60,700 thousand .
• Common Stock Repurchase Program: During the three months ended March 31, 2026, approximately 0.6 million shares of Common Stock were purchased at a total cost of approximately $8,700 thousand . As of May 6, 2026, approximately 29.1% of its Common Stock outstanding prior to the program’s implementation had been repurchased .
• Preferred Stock Repurchase Program: In the first quarter of 2026, approximately 212 thousand Series A Preferred Stock shares were repurchased at a total cost of approximately $5,300 thousand . As of May 6, 2026, approximately 27.2% of Series A Preferred Stock outstanding prior to the program’s implementation had been repurchased .

Future Outlook and Strategy

FG Nexus Inc. is shifting its strategy to focus on operating as a digital asset treasury, primarily holding Ether (ETH), and pursuing tokenization opportunities for real-world assets . The company’s Board is reviewing a potential business combination with FG Communities, Inc. to become a leader in real-world asset tokenization, which is expected to materially impact future operations if completed . Additionally, the sale of its Quebec property is anticipated to close in the second quarter of 2026, generating approximately $8.0-$9.0 million USD in net pretax proceeds .