Upexi (UPXI) investor relations material

Executive summary

• Fiscal Q3 2026 was marked by a challenging crypto market, with Solana prices and industry multiples declining, impacting stock performance, but both rebounded from intra-quarter lows.

• Shifted focus to a digital asset treasury strategy centered on Solana (SOL), with significant capital allocation to SOL acquisition, staking, and related activities.

• Exited legacy health, wellness, and hemp-related manufacturing and distribution operations to reallocate resources to digital assets.

• Management executed proactive strategies: share buybacks, capital issuances, cost reductions, and yield enhancement initiatives.

• Operates as a single segment, aggregating all product and digital asset activities.

Financial highlights

• As of March 31, 2026: $3.5M cash, 2.5M Solana tokens (1.4M liquid, 1M locked).

• Q3 staking generated 35,000 tokens ($3.5M revenue); total Q3 revenue was $4.6M, up from $3.2M YoY.

• Net loss for Q3 was $109.3M ($1.67/share), with $92.3M from unrealized digital asset losses.

• Gross margin improved to 80.4% from 49.3% YoY, driven by the elimination of manufacturing operations.

• Short-term debt reduced by $7.6M, including $5.4M in treasury debt.

Outlook and guidance

• Ongoing cash expenses expected to be less than staking revenue by July 1, 2026, assuming 6%-7% staking yield.

• Management expects digital asset revenue to increase as more SOL is staked and the digital asset strategy expands.

• Exploring strategies to increase yield beyond native staking, with initial allocations of $25M-$50M to high-yield strategies.