Empery Digital (EMPD) Q1 2026 earnings summary

Executive summary

• Transitioned to a digital asset treasury strategy, focusing on Bitcoin acquisition and share repurchases, following divestiture of four-wheel vehicle business in October 2025.

• Net loss of $85.4 million for Q1 2026, driven by $78.4 million loss on Bitcoin holdings and realized losses from BTC sales.

• Revenue decreased to $225,702 in Q1 2026, reflecting the shift away from product sales to inventory financing and digital asset operations.

• Completed $24.8 million equity offering in March 2026 and repurchased 10.4 million shares for $44.2 million in Q1 2026.

• Ongoing legal dispute with a stockholder regarding board nominations and recent equity issuance.

Financial highlights

• Q1 2026 revenue: $225,702, down from $462,332 in Q1 2025.

• Gross margin: $63,078 in Q1 2026, compared to $(42,260) in Q1 2025.

• Operating expenses: $83.4 million in Q1 2026, with $78.4 million loss on digital assets.

• Net loss: $85.4 million in Q1 2026, compared to $2.5 million in Q1 2025.

• Cash and restricted cash at March 31, 2026: $5.8 million.

Outlook and guidance

• Anticipates lower sales for the remainder of 2026 due to the sale of four-wheel products and focus on inventory financing.

• Expects increased legal and professional fees due to stockholder activism, partially offset by reduced facility costs.

• Plans to launch new two-wheel products in the U.S. and Europe in H2 2026.