Galaxy Digital (Nasdaq: GLXY) reported net income of $323 million for the third quarter of 2026 on Tuesday 27 October, against a loss of $85 million in the second quarter, according to the earnings release it filed with the SEC. Adjusted EBITDA came to $455 million. Galaxy also disclosed a new share buyback of up to $200 million, authorised by its board on 26 October, eleven days after its first $200 million programme was completed.
Most of that profit did not come from trading. Galaxy’s Treasury & Corporate segment, which holds the firm’s own digital assets and private stakes, produced $419 million of adjusted gross profit as those holdings were marked higher. The Digital Assets business, which covers trading, lending, asset management and staking, made $71 million of adjusted gross profit and still showed an adjusted EBITDA loss of $9 million. The fastest-growing line was data centres, now leased to CoreWeave.
Mike Novogratz, Galaxy’s founder and chief executive, said in the release that “Galaxy delivered a strong third quarter, reflecting the strength of our established Digital Assets franchise”. He also pointed to gains on the investment portfolio and to the data centre business. Galaxy’s strategy, he said, rests on “the modernization of financial markets through digital assets and the expansion of AI infrastructure”.
The stock rose. GLXY traded at $16.52 at 17:45 UTC, up about 5.3% from Monday’s close of $15.68, after moving between $15.85 and $16.98 since the 13:30 UTC open, according to Yahoo Finance market data. The Nasdaq session runs until 20:00 UTC, so the closing move was not known when this article was written.
Q3 2026 Galaxy Digital earnings in figures, against Q2 and a year ago
The release compares the quarter with the previous one for most lines, and with the third quarter of 2025 only for net income, earnings per share and revenue. Profit is down about 36% on the year, from $505 million. The table below uses the figures in the SEC filing; Galaxy did not give a Q3 2025 figure for adjusted gross profit or adjusted EBITDA.
| Measure | Q3 2026 | Q2 2026 | Q3 2025 |
|---|---|---|---|
| Net income | $323M | -$85M | $505M |
| Diluted earnings per share | $0.66 | not given | $1.01 |
| Adjusted earnings per share | $0.83 | not given | $1.12 |
| Adjusted gross profit | $569M | $43M | not given |
| Adjusted EBITDA | $455M | -$77M | not given |
| Revenues and gains from operations | $8.69B | $8.71B | $29.22B |
The revenue line needs care. It includes the full value of digital assets Galaxy sells to clients, so it moves with trading flows and prices rather than with profit. It was almost flat from the second quarter while profit swung by more than $400 million, and at $29.22 billion it was more than three times higher a year ago, when profit was also higher. Adjusted gross profit and adjusted EBITDA are Galaxy’s own measures, not standard accounting figures; the release reconciles them with net income.
Where the $323 million came from
The segment table tells the story. Galaxy now reports three segments: Digital Assets, Data Centers, and Treasury & Corporate. The last one swung from a $42 million adjusted gross loss in the second quarter to a $419 million gain in the third, and from an adjusted EBITDA loss of $78 million to a profit of $395 million.
| Segment | Adj. gross profit Q3 | Adj. gross profit Q2 | Adj. EBITDA Q3 | Adj. EBITDA Q2 |
|---|---|---|---|---|
| Digital Assets (total) | $71M | $66M | -$9M | -$11M |
| of which Global Markets | $53M | $49M | not given | not given |
| of which Asset Management & Infrastructure Solutions | $19M | $17M | not given | not given |
| Data Centers | $79M | $20M | $69M | $11M |
| Treasury & Corporate | $419M | -$42M | $395M | -$78M |
| Galaxy total | $569M | $43M | $455M | -$77M |
Treasury & Corporate is where Galaxy keeps its balance sheet: its own crypto, its venture book and stakes in other companies. Management attributed the gain mainly to higher valuations of digital assets and private investments, including AI chip startup Etched and Forward Industries, a company that holds Solana as a treasury asset, according to The Block’s report on the results. The release itself names the Forward Industries investment.
Put simply, about 74% of the quarter’s adjusted gross profit came from the value of things Galaxy owns going up. That money is real on paper, but it can reverse. In the second quarter, the same segment lost $42 million.
That is the main reason the net figure is a poor guide to how the operating businesses did. The two operating segments, Digital Assets and Data Centers, produced $150 million of adjusted gross profit between them, compared with $86 million in the second quarter. Better, but a fraction of the headline.
The trading business grew, and the segment was still in the red
Global Markets, Galaxy’s trading and lending arm, made $53 million of adjusted gross profit, up from $49 million. Galaxy said its trading volumes rose 12% from the previous quarter while spot volumes across the market fell. The number of trading counterparties barely moved, at 1,763 against 1,741.
Lending grew faster. The average loan book reached $1.8 billion, up 27% in a quarter, which Galaxy put down to demand for the Galaxy Onchain Financing Rate (GOFR). GOFR launched in July and, according to The Block, draws on DeFi lending markets such as Aave and Morpho, the lending network we profile here.
Even so, the whole Digital Assets segment ended the quarter with an adjusted EBITDA loss of $9 million, a little better than the $11 million loss in the second quarter. Management said on the call that the segment would have been profitable without an accounting adjustment, The Block reported, but did not give its size. The release’s reconciliation tables book a $102 million impairment of digital assets this quarter, all of it in Digital Assets, against $181 million in the second quarter. Galaxy did not say whether that charge is the adjustment management had in mind.
Asset management and staking: $10.4 billion
The asset management side is growing. Assets under management and under stake reached $10.4 billion on 30 September, up 46% from June, the release says. ETFs held $2.5 billion (from $1.8 billion), alternative funds $3.3 billion (from $2.6 billion) and assets under stake $4.6 billion (from $2.8 billion). There is some double counting: the release notes that $1.2 billion sits both in staked assets and in alternatives. For readers new to the terms, our glossary explains how staking works and what a crypto ETF is.
Net inflows into asset management topped $160 million, Galaxy said, helped by the launch of the Galaxy Sharplink Onchain Yield Fund at the end of the quarter. It also signed a multi-year agreement with BNY, the custody bank that oversees more than $60 trillion of assets, according to the release. The segment’s adjusted gross profit was $19 million, up from $17 million.
Helios, CoreWeave and the lease Galaxy walked away from
Data Centers is the segment that grew fastest. Adjusted gross profit rose to $79 million from $20 million, and adjusted EBITDA to $69 million from $11 million. The reason is the Helios campus in Texas: the third quarter was the first full quarter of rent from Phase I of Helios I, leased to CoreWeave, which had received all 133 MW of critical IT load by the end of June.
The build-out is expensive. Galaxy spent $757 million of capital expenditure on data centres in the quarter, after $448 million in the second, and the segment’s assets reached $6.8 billion, against $2.5 billion three months earlier. Phase II of Helios I is fully financed through $3.5 billion of senior secured notes and is under construction, with the first data halls due to be handed over from the second quarter of 2027.
Then there is Helios II, about 830 MW of approved capacity with no tenant yet. The release says Galaxy is still in talks with prospective tenants. On the call, Novogratz said Galaxy passed on a possible Helios II lease over the summer because tighter power supply and stronger demand from AI companies led it to rethink the terms, according to The Block. Galaxy puts its total gross power pipeline above 5.7 GW.
Novogratz also said Galaxy expects to end 2027 with leasing revenue running at $800 million to $850 million a year as Phase II comes online, The Block reported. That target is not in the release, which contains no numerical guidance. For scale, the whole Data Centers segment booked $79 million of adjusted gross profit in the third quarter.
A second $200 million buyback, with the stock below the first one’s average price
The board approved the new repurchase authorisation of up to $200 million of Class A shares on 26 October. The release says buybacks depend on market conditions, have no fixed end date and can be suspended at any time; Galaxy does not have to spend the full amount.
The first programme, announced in February 2026, ended on 15 October after about 9.8 million shares were bought. Galaxy did not disclose an average price. Both inputs are in the filing, though, and dividing $200 million by 9.8 million shares gives roughly $20.40 a share. That is Coindaro’s calculation, not a Galaxy figure, and it is above the $16.52 the stock traded at on Tuesday at 17:45 UTC. The release says the 9.8 million shares bought this year more than offset the dilution from equity-based pay. Galaxy had 191,883,290 Class A shares outstanding at the end of September.
Buybacks have become a common move for listed crypto companies this autumn, as we reported on Monday in our piece on Strategy and Bitmine using cash for their own securities. Galaxy is different from those treasury companies: it runs operating businesses and does not exist mainly to hold one coin.
Balance sheet: $4.9 billion of cash, stablecoins and Treasuries
At the end of September, Galaxy held $1.32 billion in cash, $812 million in stablecoins and $2.76 billion in US Treasuries, $4.9 billion in all against $2.5 billion at the end of June. Total assets rose to $16.4 billion from $10.8 billion, much of it the data centre build. Total equity stood at $3.0 billion.
The other side of that growth is debt. Notes payable on the balance sheet came to about $6.75 billion, of which $441 million is due within a year. At the end of 2025 the figure was about $2.86 billion. Among the quarter’s highlights, the release lists the completed $3.5 billion offering of senior secured notes for Helios I Phase II, and the Data Centers segment’s liabilities rose to $5.3 billion from $1.5 billion in three months. Rent from CoreWeave and, later, from a Helios II tenant is what has to carry that debt.
What Galaxy’s quarter means for readers following crypto stocks
The third quarter shows a company with two engines and one large swing factor. The swing factor is the value of its own holdings, which added $419 million this time and took away $42 million last time. Anyone reading a headline profit from Galaxy should check that segment first.
Crypto prices were not the only driver: the gains included private companies such as Etched. For context, bitcoin traded near $80,660 and ether near $2,351 at 17:29 UTC on Tuesday, both lower over seven days. On Monday, Galaxy’s research team made our news for a different reason, its study of the 11.1 million bitcoin no one can attribute.
This article reports company results and is not a recommendation to buy or sell GLXY or any crypto asset.
Open questions after the Q3 report
Several things were not answered on Tuesday. Galaxy did not give the size of the accounting adjustment it says kept Digital Assets in the red, nor the average price paid in its first buyback. It named no tenant for Helios II and gave no date for one. The $800 million to $850 million leasing target was spoken on the call, not written in the filing.
The next dates are known. A replay of the webcast is on Galaxy’s investor relations site, and a telephone replay runs until 1 December, and the first data halls of Helios I Phase II are due from the second quarter of 2027. The fourth-quarter report will show whether the new buyback has started and whether the trading business turned an EBITDA profit.