Key Highlights

  • GLXY reported third-quarter diluted EPS of $0.66 and net income of $322.8 million.
  • Adjusted EBITDA was $454.7 million, versus a loss of $77.3 million in the second quarter.
  • Data center leasing revenue was $79.1 million in the first full quarter of Helios Phase I revenue.
  • Cash, stablecoins and U.S. Treasuries totaled $4.9 billion, up 99% from the second quarter.
  • The board authorized a new buyback of up to $200 million on October 26.

Galaxy Earnings: What Drove $0.66 per Share After a Second-Quarter Loss?

Galaxy Digital (NASDAQ:GLXY) reported third-quarter results on Tuesday, October 27, with net income of $322.8 million and diluted EPS of $0.66, against $505.1 million and $1.01 a year earlier. Adjusted EPS was $0.83, compared with $1.12. The screen estimate for EPS was $0.20.

Adjusted EBITDA was $454.7 million, a swing from a loss of $77.3 million in the second quarter. The Treasury and Corporate segment produced $395.0 million of that figure on investment appreciation, while Data Centers contributed $68.7 million and Digital Assets a loss of $9.0 million.

Revenue and gains from operations were $8.69 billion, down from $29.22 billion, though transaction expenses fell from $28.29 billion to $8.02 billion, so the decline reflects lower pass-through volume. Galaxy provided no numerical guidance.

Galaxy Helios: How Large Is the Data Center Contribution Now?

Data center leasing revenue was $79.1 million, up from $18.9 million in the first half (calculated), as the third quarter was the first full quarter of revenue from Helios Phase I. Adjusted gross profit for the segment was $79 million, up from $20 million in the second quarter.

All 133 megawatts of critical IT load for CoreWeave (NASDAQ:CRWV) has been delivered. Phase II is fully financed and under construction, with data hall deliveries scheduled to begin in the second quarter of 2027.

Galaxy said 830 megawatts of approved capacity at Helios II remain unleased, with discussions with prospective tenants under way and conditions described as increasingly favorable. The gross power pipeline exceeds 5.7 gigawatts.

Capital spending was $757 million in the quarter versus $448 million in the second quarter. Property and equipment, net, rose to $2.95 billion from $1.42 billion at year end.

Galaxy Digital Assets: Are Trading and Lending Volumes Growing?

Digital Assets adjusted gross profit was $71 million, up 9% from the second quarter. Global Markets contributed $53 million, with trading volumes up 12% sequentially. The average loan book rose 27% to $1.8 billion, and trading counterparties numbered 1,763.

Asset management and infrastructure solutions contributed $19 million, with more than $160 million of net inflows. Platform assets, combining assets under management and under stake, grew 46% to $10.4 billion. Galaxy also signed a multi-year staking and infrastructure agreement with BNY (NYSE:BK).

On a nine-month basis, net income was $21.1 million versus $240.3 million.

Galaxy Balance Sheet: What Does $6.7 Billion of Notes Mean for the Buyback?

Cash, stablecoins and U.S. Treasuries were $4.9 billion, including $1.32 billion of cash. Total assets were $16.4 billion, up from $11.3 billion at year end, while notes payable rose to about $6.7 billion from about $2.9 billion, including a $3.5 billion senior secured offering for Helios Phase II. Total equity was $2.99 billion.

The $200 million repurchase program announced in February was completed on October 15, with about 9.8 million Class A shares bought. On October 26, the board authorized a new program of up to $200 million with no fixed expiration.

Investors will watch Phase II construction progress, any lease for the unleased Helios II capacity, and the interest burden. Notes interest expense was $93.4 million in the quarter, up from $14.4 million.