Galaxy Digital reports third-quarter net income of $323 million after second-quarter loss of $85 million

Galaxy Digital Inc. (GLXY) said Tuesday it earned $323 million in net income for the third quarter ended Sept. 30, after a net loss of $85 million in the second quarter.

The company released the results in a press release and a quarterly update presentation, both furnished with a regulatory filing. It also filed a financial supplement.

Here's how the company did:

• Diluted earnings per share: $0.66 vs. $1.01 a year earlier
• Adjusted earnings per share: $0.83 vs. $1.12 a year earlier
• Revenues: $8.06 billion vs. $28.40 billion a year earlier
• Adjusted gross profit: $569 million vs. $43 million in the second quarter
• Adjusted EBITDA: $455 million vs. a loss of $77 million in the second quarter

Adjusted EBITDA is a non-GAAP measure, or earnings before interest, taxes, depreciation and amortization, adjusted to exclude equity-based compensation and other items. Adjusted gross profit excludes transaction expenses and impairments of digital assets.

Revenue fell from a year earlier. Transaction expenses were $8.02 billion, against $28.29 billion in the same period last year.

For the nine months ended Sept. 30, the company reported net income of $21 million, down from $240 million a year earlier.

Founder and Chief Executive Officer Mike Novogratz said: "Galaxy delivered a strong third quarter, reflecting the strength of our established Digital Assets franchise, significant appreciation across our investments portfolio, and the growing contribution from our Data Centers business."

Novogratz added: "Our strategy is centered on two significant opportunities in the global economy: the modernization of financial markets through digital assets and the expansion of AI infrastructure."

Segment results

Digital Assets adjusted gross profit was $71 million, up from $66 million in the second quarter. Adjusted EBITDA was a loss of $9 million, against a loss of $11 million.

The company said its digital asset trading volumes grew 12% from the prior quarter. Industry spot volumes, based on data from The Block, declined over the same period.

The average loan book size was $1.8 billion, up 27% from the prior quarter. Total trading counterparties reached 1,763, up 1%.

Assets under management and assets under stake totaled $10.4 billion, up 46% from the prior quarter. Asset management generated more than $160 million of net inflows, driven by the end-of-quarter launch of the Galaxy Sharplink Onchain Yield Fund.

The company also entered a multi-year agreement with BNY, which oversees more than $60 trillion in assets under custody. The agreement covers digital asset infrastructure for institutional markets, including staking support on BNY's Digital Asset Custody platform. Galaxy is also serving as a design partner.

Data Centers adjusted gross profit was $79 million, up from $20 million in the second quarter. Adjusted EBITDA was $69 million, up from $11 million. Data center leasing revenue was $79 million, against $19 million in the second quarter.

Treasury & Corporate adjusted gross profit was $419 million, against a loss of $42 million in the second quarter. Its adjusted EBITDA was $395 million, against a loss of $78 million.

Helios and data centers

The company said the quarter was the first full one of revenue-generating operations under the Helios I, Phase I lease. All 133 MW of critical IT load had been delivered to CoreWeave by the end of the second quarter.

Helios I, Phase II is fully financed and under construction, the company said. Data hall deliveries are scheduled to begin in the second quarter of 2027. The release also said the company completed a $3.5 billion offering of senior secured notes to fund that construction.

Galaxy continues talks with prospective tenants for an additional 830 MW of approved capacity at Helios II that is not yet under lease. The company's total gross power pipeline is now over 5.7 GW.

Costs and balance sheet

At Sept. 30, the company had $3.0 billion of total equity. Cash, stablecoins and U.S. Treasuries totaled $4.9 billion.

The company said about 48% of its equity capital was allocated to Data Centers, 33% to Digital Assets and 19% to Treasury & Corporate.

Impairment of digital assets was $102 million, down from $198 million a year earlier. Notes interest expense was $93 million, up from $14 million. Depreciation and amortization was $22 million, against $7 million.

Noncurrent notes payable rose to $6.31 billion from $2.43 billion at Dec. 31, 2025. Compensation and benefits were $82 million, against $85 million a year earlier. The release does not give headcount.

Capital return

On Oct. 26, the board authorized repurchases of up to $200 million of Class A common stock. The company said repurchases will be made opportunistically and subject to securities laws and exchange requirements.

A previous $200 million program disclosed in February 2026 was completed on Oct. 15. Under that program, Galaxy repurchased about 9.8 million Class A shares in total. The new authorization has no fixed expiration date and may be suspended at any time.

At Sept. 30, the company had 191,883,290 Class A shares outstanding. The release does not include full-year financial guidance.