Solana Q1 Earnings Call Highlights
Solana (NASDAQ:HSDT) reported sharply higher first-quarter revenue tied to its digital asset treasury strategy, while a steep decline in the price of SOL drove large non-cash losses and a wider net loss for the period.
Chairman, President and Chief Executive Officer Joseph Chee said the company made “significant progress” in building its “multifaceted digital asset treasury platform” and executing its Solana treasury strategy during a volatile period for crypto markets. He said the company continued to focus on increasing SOL per share through capital markets activity, staking rewards and operational discipline.
Chee also highlighted management changes, including the appointment of Madelene Gani as Chief Operating Officer and Deputy Chief Financial Officer in early April. The company announced on the call that Gani will serve as Chief Financial Officer, Treasurer and Secretary.
Revenue Rises on Staking Activity
Gani said first-quarter revenue totaled $3.6 million, consisting primarily of $3.4 million in staking revenue and $0.2 million in other revenue. That compared with $49,000 in revenue in the first quarter of 2025, before the company’s staking revenue tied to its treasury strategy contributed to results.
Cost of revenue was $180,000, producing gross profit of $3.4 million. In the prior-year period, Solana reported a gross loss of $72,000. Gani said the increase in cost of revenue was primarily related to staking revenue-related costs.
General and administrative expenses rose to $5.2 million from $3.9 million a year earlier, reflecting the expansion of operations associated with the digital asset treasury strategy.
The company recorded an unrealized loss on digital assets and digital assets receivable of about $89.2 million, which Gani attributed to an approximately 33% decline in SOL prices during the quarter. Solana also recorded a $7 million realized loss on digital assets related to strategic sales executed as part of its capital allocation program, as well as a $1.7 million unrealized loss on its digital assets fund investment.
Total operating expenses were $103.1 million, up from $3.9 million in the prior-year quarter. The company reported a loss from operations of $99.6 million, compared with a loss from operations of $4 million a year earlier.
Net loss for the first quarter was $99.8 million, or $1.30 per basic and diluted common share, based on 76.6 million weighted average shares outstanding. That compared with a net loss of $3.8 million, or $382.29 per basic and diluted common share, based on 10,000 weighted average shares outstanding in the prior-year period.
Staking Yield Outpaces System Average
Cosmo Jiang, director at Solana Company and general partner at Pantera Capital, said Pantera has served as asset manager for the company’s digital asset treasury since the close of its PIPE transaction in September 2025.
Jiang said the broader digital asset market was volatile during the first quarter, with Solana declining approximately 32% in price from Dec. 31, 2025, through the end of the quarter. Despite that headwind, he said the company remained focused on growing SOL per share through accretive capital allocation, staking yields and development of revenue-generating businesses.
For the first quarter, Jiang said Solana Company’s average net staking yield was 6.9%, compared with a system-wide average of approximately 6.0%, representing outperformance of 90 basis points. He said the yield was generated through validator selection, active MEV capture and continuous rebalancing, and that staking rewards are automatically restaked to compound returns.
Chee said the company generated staking rewards of 32,500 Solana tokens in the first quarter, compared with 34,000 Solana tokens in the fourth quarter of 2025.
Capital Raise and Share Repurchases
Jiang said the company executed about $3.5 million in share repurchases during the first quarter and $5 million in share repurchases year to date under its previously announced repurchase program. He said the repurchases were funded through strategic SOL sales at prices that were at a discount to the company’s net asset value per share at the time of repurchase, making them accretive to NAV per share.
At the end of April, Solana completed an $8 million strategic capital raise through a structured equity offering. Jiang said a portion of the proceeds was deployed into SOL purchases at favorable entry points. The offering was priced at $2.60 per share, which he said was roughly 1.1 times NAV at the time and “immediately accretive” to SOL per share.
Jiang said the company believes its ability to issue stock at a premium and buy back shares when trading at a discount is a mechanism for creating shareholder value across different market environments.
As of March 31, Solana Company held approximately $193.8 million of Solana across all categories, including liquid holdings, staked positions and receivables, along with $4.4 million of cash and cash equivalents. The company’s diluted share count, including common shares and in-the-money warrants, was 82.5 million as of March 31. As of May 12, the company held 2.37 million SOL tokens, and its diluted share count was 86 million.
APAC Strategy Focuses on Advisory, Infrastructure and Platform Services
Chee said Solana is building a diversified revenue engine aimed at institutional demand in the Asia-Pacific region. He described three integrated service lines: advisory services for traditional financial institutions and corporates, validator infrastructure through what the company calls “Pacific Backbone,” and an AI-powered compliance and operations platform.
Chee said the company expects operational impact from these initiatives to be felt within the current fiscal year. He said the company is targeting use cases such as stablecoin payments and real-world asset tokenization, while offering infrastructure intended to meet the needs of regulated institutions scaling staking and validation activities on Solana.
During the Q session, Maxim Group analyst Matthew Galinko asked about traction and the revenue model for the advisory business. Chee said advisory is intended to be a revenue-generating business line and is being developed closely with the Solana Foundation. He said the company is in the process of signing contracts that could represent “relatively significant revenues” this year.
Chee said some APAC financial institutions have mandates to move more quickly into on-chain products and stablecoin-based payments but need help with execution and project management. He said the company sees an opportunity to charge for managing those projects.
In response to a follow-up question from Galinko, Chee said the company is building the advisory operation carefully and does not intend to let costs run ahead of revenue. He said the company has hired a head of business development and advisory from Boston Consulting Group, along with junior staff, and expects contract revenue to cover the related human resources costs. Additional cash flow would be used to execute the company’s strategy, including purchasing SOL and reinvesting in infrastructure.
Validator Buildout and Cost Discipline
B. Riley Securities analyst Fedor Shabalin asked about the company’s validator infrastructure and the expected impact of its Jito partnership. Chee said the company has developed an execution plan and expects its first three nodes to be operational in late June. He said the company is still pitching third-party SOL holders and has verbal commitments but did not provide a projected number.
Chee said Solana is building validator infrastructure intended to meet “the requirements of the most demanding financial institution across APAC,” including certification efforts to support institutional-grade operations.
Shabalin also asked about buybacks and SOL accumulation. Jiang said the company is evaluating capital markets opportunities and repurchases depending on its market valuation relative to NAV. At current levels, he said the company is more likely to look at raising capital accretively than aggressively buying back shares.
Chee also noted that the company completed the divestiture of its cash-burning PoNS medical device business in the second quarter and said the financial impact of that move would be reflected in second-quarter results. He said investors should not expect a significant cost increase as the company builds its Asia operations, adding that headcount and expenses would be tied to revenue growth rather than allowed to front-run it.
About Solana (NASDAQ:HSDT)
Helius Medical Technologies, Inc (NASDAQ: HSDT) is a medical technology company focused on developing and commercializing non‐invasive neuromodulation platforms designed to enhance neurorehabilitation. Its flagship product, the Portable Neuromodulation Stimulator (PoNS®), delivers mild electrical pulses to the tongue to stimulate neural pathways in conjunction with targeted physical therapy. The device is intended to improve neuroplasticity and support recovery in patients with neurological conditions.
The PoNS system is cleared for use in the United States, Canada and the European Union and is prescribed through specialized rehabilitation clinics.
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