Empery Digital (EMPD) investor relations material

Executive summary

• Transitioned to a digital asset treasury strategy, focusing on Bitcoin holdings and capital-efficient operations, while divesting four-wheel vehicle business and expanding into AI/data center infrastructure investments.

• Entered strategic partnerships and made significant investments in EMHU LLC and Cardinal Data Power for AI data center development.

• Continued to operate as a single segment, with a focus on digital assets, e-bike sales, and inventory financing.

Financial highlights

• Revenue for Q2 2026 was $80,019, down from $190,173 in Q2 2025; six-month revenue was $305,721, down from $652,505 year-over-year.

• Net loss for Q2 2026 was $43.0 million, and $128.4 million for the six months, compared to $3.9 million and $6.4 million losses in the prior year periods.

• Loss on digital assets (primarily Bitcoin) was $27.9 million for Q2 and $106.3 million for the six months, representing 87% of operating expenses.

• Operating expenses surged due to legal fees ($7.8 million related to stockholder litigation) and bad debt expense from Venom receivables.

• Cash, cash equivalents, and restricted cash at June 30, 2026, totaled $3.6 million, with a working capital deficit of $5.6 million.

Outlook and guidance

• Management expects sales to decrease for the remainder of 2026 due to the divestiture of four-wheel products and lower Brat e-bike sales.

• Legal and professional fees are expected to remain elevated due to ongoing litigation, partially offset by anticipated insurance recoveries.

• Plans to expand inventory financing and evaluate further data center infrastructure investments.