Empery Digital Inc. filed its quarterly report on Form 10-Q for the period ended September 30, 2026, with the SEC on November 6, 2026, disclosing a third-quarter net income of $23,986,094 alongside a nine-month net loss of $104,451,888.

Key Highlights

  • Q3 net income: Empery Digital reported net income of $23,986,094 for the three months ended September 30, 2026, compared to a net loss of $29,171,328 in the same period of 2025.
  • Nine-month net loss: For the nine months ended September 30, 2026, the company reported a net loss of $104,451,888, versus a net loss of $35,531,655 for the same period of 2025.
  • Digital asset gain in Q3: The company recorded a gain on digital assets of $36,986,989 for the three months ended September 30, 2026, after recording a loss of $14,106,222 in the prior-year quarter.
  • Related party legal fees: Operating expenses included related party legal fees of $7,007,297 for the third quarter and $14,835,298 for the nine-month period, with no comparable amount in 2025.
  • Total assets declined: Total assets were $182,182,026 as of September 30, 2026, compared to $372,436,094 as of December 31, 2025, with digital assets falling from $126,926,895 to $14,272,816.
  • Cash position rose: Cash and cash equivalents increased to $78,052,383 as of September 30, 2026, from $8,963,856 at December 31, 2025.
  • Shares outstanding: The registrant reported 27,749,492 shares of common stock outstanding as of November 5, 2026.

Empery Digital's Q3 2026 Financial Results: Digital Asset Swings Drive Volatility

According to the filing, Empery Digital Inc. (NASDAQ:EMPD) reported revenue of $99,606 for the three months ended September 30, 2026, down from $199,984 in the prior-year period. Cost of goods sold exceeded revenue at $285,354, resulting in a gross margin loss of $185,748 for the quarter. For the nine months ended September 30, 2026, revenue was $405,327 against cost of goods sold of $596,181, producing a gross margin loss of $190,854.

The most significant driver of the Q3 net income, according to the filing, was a gain on digital assets of $36,986,989 for the three-month period. This contrasted with a loss on digital assets of $14,106,222 in the three months ended September 30, 2025. For the nine-month period, the cumulative loss on digital assets was $69,280,274, the filing disclosed. General and administrative expenses for the nine months were $13,375,087, down from $23,797,668 in the prior-year period, while sales and marketing expenses rose to $2,937,950 from $1,085,696. The company also recorded related party legal fees of $14,835,298 for the nine-month period, a new expense category with no 2025 equivalent.

On the balance sheet, the filing shows digital assets restricted by lenders as collateral for loans declined sharply to $63,927,546 from $230,048,488 at December 31, 2025. Total stockholders' equity was $137,376,673 at September 30, 2026, compared to $269,214,217 at year-end 2025. The accumulated deficit grew to $420,820,821 from $316,368,933 over the same period. Treasury stock also increased, with 26,310,005 shares held as of September 30, 2026, versus 13,771,094 shares at December 31, 2025. The company noted a new data center investments line item of $22,900,000 on the balance sheet, which carried no balance at year-end 2025.

What Was Disclosed

Empery Digital Inc. filed its Form 10-Q for the quarter ended September 30, 2026, reporting a Q3 net income of $23,986,094 driven by a digital asset gain, while the nine-month net loss reached $104,451,888. Total assets fell significantly from year-end 2025 levels.