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Galaxy Digital Inc. (GLXY)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter: net income $505M and diluted EPS $1.01 on adjusted EBITDA $629M; results materially exceeded S&P Global consensus (EPS $0.31*, revenue $17.28B*) driven by record trading volumes and gains across digital asset/investment positions .
  • Digital Assets delivered all-time highs: Global Markets adjusted gross profit $295M as trading volumes rose 140% QoQ, including execution of a $9B notional BTC sale (80K+ BTC) for a client; Asset Mgmt & Infrastructure Solutions saw strong inflows and AUS/AUM growth .
  • Balance sheet and platform scaled: cash and stablecoins $1.9B; total equity $3.2B; assets on platform ~ $17B (AUM $8.8B, Assets Under Stake $6.6B) .
  • Data centers: Helios financing secured ($1.4B) and Phase II lease executed with CoreWeave; combined phases now 526MW committed critical IT load with anticipated $1B+ average annual revenue once fully ramped; revenue contribution remains de minimis until 1H26 .
  • Potential stock catalysts: exceptional beat/raise-style quarter, strategic $460M equity investment by a leading asset manager (net $325M to GLXY), GalaxyOne consumer platform launch, and visible Helios construction/financing progress .

What Went Well and What Went Wrong

  • What Went Well
    • “Q3 was the best quarter in Galaxy Digital’s history,” driven by record trading volumes and a $9B notional BTC sale executed with “limited market impact,” underscoring client trust and execution capabilities .
    • Digital Assets achieved record adjusted gross profit ($318M) with Global Markets at $295M; average loan book expanded to $1.8B; assets on platform reached ~$17B .
    • Asset Management & Infrastructure Solutions momentum: >$2B net inflows in alternatives/ETFs; treasury mandates added >$4.5B AUM/AUS with >$40M expected ARR at current prices .
  • What Went Wrong
    • Lending net interest margin compression due to mix shift; management plans prudent risk standards and funding strategies to support scalability .
    • One-time $38M impairment tied to legacy mining equipment as the Helios pivot continues; management does not expect further material impairments (remaining mining equipment < $50M carrying value) .
    • Data Centers revenue remains de minimis until 1H26; Phase I delivery staged through 1H26, with Helios economics only realized post-energization .

Financial Results

Overall performance (GAAP and non-GAAP comparisons)

MetricQ3 2024Q2 2025Q3 2025Consensus (Q3 2025)
Revenues + Gains from Ops ($USD Billions)$8.712 $9.057 $29.219 $17.275*
Net Income ($USD Millions)$(33.3) $30.7 $505.1 —
Diluted EPS ($)$(0.10) $0.08 $1.01 $0.312*
Adjusted EBITDA ($USD Millions)—$211 $629 —
  • Q/Q: Revenues+gains from ops +223% and Adjusted EBITDA +198% vs Q2 2025 .
  • Y/Y: Net income swung to $505M from $(33)M in Q3 2024 .

Segment breakdown (non-GAAP)

Segment MetricQ2 2025Q3 2025
Digital Assets Adjusted Gross Profit ($M)$71.4 $318.0
Digital Assets Adjusted EBITDA ($M)$13.0 $250.0
Data Centers Adjusted Gross Profit ($M)— $2.7
Data Centers Adjusted EBITDA ($M)— $3.7
Treasury & Corporate Adjusted Gross Profit ($M)$228.0 $408.1
Treasury & Corporate Adjusted EBITDA ($M)$198.3 $375.8
Adjusted Gross Profit ($M)$299.2 $728.4
Adjusted EBITDA ($M)$211.2 $629.4

KPIs

KPIQ2 2025Q3 2025
Global Markets Adjusted Gross Profit ($M)$55.4 $295.0
Avg. Loan Book Size ($M)$1,107 $1,768
Total Trading Counterparties (count)1,445 1,532
AMIS Adjusted Gross Profit ($M)$16.0 $23.2
ETFs ($M)$3,327 $3,903
Alternatives ($M)$2,444 $4,859
Assets Under Stake ($M)$3,150 $6,610

Balance sheet and liquidity (select)

MetricQ2 2025Q3 2025
Total Assets ($M)$9,086 $11,523
Total Equity ($M)$2,624 $3,172
Cash & Stablecoins ($M)$1,181 $1,910

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Data Centers revenue contributionThrough 1H26De minimis until 1H26 De minimis until 1H26 Maintained
Helios Phase I delivery (133 MW critical IT load)1H261H26 1H26 Maintained
Helios Phase II (260 MW)20272027 2027 Maintained
Helios Phase III (133 MW)2028Not disclosed previously2028 New/Added
Anticipated avg annual revenue (Phases I–III)Long-term$900M for I+II $1B+ for I–III Raised (scope expanded)
Anticipated EBITDA margin (Helios)Long-term~90% (I+II) ~90% (combined phases) Maintained
Opex/Tax/Dividends—Not providedNot provided—

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025 and Q1 2025)Current Period (Q3 2025)Trend
AI/Data Centers (Helios)Q1: Announced Phase II (260 MW) and I+II >$700M yr-1; ~90% EBITDA margin . Q2: CoreWeave options fully exercised to 800 MW; financing imminent; land/power expansion to 3.5 GW potential .$1.4B Phase I financing closed (SOFR+475 bps; ~10–11%); Phase II lease executed; 526 MW committed; Phase I delivery 1H26; execution milestones on schedule .Positive execution; visibility improving
Trading & Market StructureQ1: Volumes down 20% amid price declines . Q2: July best month; executed $9B BTC block .Volumes +140% QoQ; record GM profit; discussed impacts from forced liquidations and liquidity conditions .Strengthening volumes; risk managed
Treasury CompaniesQ2: 20+ mandates; $1.5–2.0B AOP; cross-platform synergies .$4.5B AUM/AUS added; >$40M expected ARR; mandate example: Forward Industries $1.65B private placement and multi-channel partnership .Scaling mandates/ARR
TokenizationQ2: Tokenized GLXY shares on Solana; advancing on-chain capital markets .Continuing to explore tokenization with regulators and institutions .Strategic progress
Consumer (GalaxyOne)—Launched Oct 6 (yield, FDIC-insured cash via partner bank, crypto/equities); early traction with mass-affluent target .New growth vector
Regulatory/Grid ApprovalsQ2: ERCOT interconnect delays; cleanup of speculative queues .“Near future” approvals possible; stakeholders (ERCOT/WET/AEP) actively engaged .Cautious optimism

Management Commentary

  • “Quarter three was the best quarter in Galaxy Digital’s history… We did a gigantic spot crypto trade… $9 billion… which comes from a long time of relationship building and liquidity building.” – Mike Novogratz, CEO .
  • “GAAP net income… $505 million on record adjusted gross profit of $728 million… driven by outsized contributions from both our digital asset segment and our treasury and corporate investment portfolio.” – Tony Paquette, CFO .
  • “Closing of a $1.4 billion project financing facility with Deutsche Bank for phase one… 80% loan to cost… priced at SOFR plus 475 bps… ~10–11% all-in if held to maturity… plan is to refinance once stabilized to unlock equity.” – Chris Ferraro, President & CIO .
  • “Collectively, our digital asset treasury mandates have added more than $4.5 billion in AUM and AUS… annual recurring fee revenue… more than $40 million.” – CFO .

Q&A Highlights

  • Market deleveraging: Galaxy had no credit losses and navigated forced liquidations well; near-term liquidity thinner (wider spreads) but opportunities emerge as markets digest deleveraging .
  • ERCOT approvals: Management avoided precise timing; noted accelerated engagement with ERCOT/WET/AEP and optimism for approvals “in the near future” .
  • Refinancing upside: On Phase I stabilization (100% RFS, rent in place), a high single-digit cap rate and LTV financing could unlock “multi-hundreds of millions” of equity .
  • Construction financing draw: ~Straight-line semi-monthly draws; ~$430M drawn by quarter-end within $1.4B facility (notes payable total ~$1.15B includes converts) .
  • Competitive positioning: Execution (on time/on budget) is underappreciated; cautious on expensive speculative power assets; focus on Helios build and prudent growth .
  • Tenant mix: CoreWeave remains excellent partner; long-term bias to diversification as credit profiles and economics evolve .
  • GalaxyOne TAM: Targeting mass-affluent; initial users avg net worth ~$2M and income ~$340K; roadmap to broaden wallet features .
  • GPU-aaS: Not pursuing; lack of internal software stack vs specialized providers and uncertain GPU useful life .

Estimates Context

  • Q3 2025 actual vs S&P Global consensus: Revenue $29.22B vs $17.28B estimate*; Diluted EPS $1.01 vs $0.31 estimate*; strong beats on both revenue and EPS [GetEstimates].
  • Coverage breadth: ~10 estimates for revenue and EPS in Q3 2025*, suggesting moderate sell-side coverage; estimate dispersion likely to narrow post-print as analysts adjust models* [GetEstimates].
  • Implications: Upward revisions likely to Digital Assets profitability, treasury mandate ARR, and balance sheet gains cadence; Data Centers forecasts largely unchanged near-term given 1H26 revenue start .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Galaxy delivered a decisive beat on both top line and EPS, propelled by record trading and balance sheet gains; non-GAAP profitability (Adjusted EBITDA $629M) underscores operating leverage in favorable markets .
  • The digital asset flywheel (trading, lending, investment banking, asset management, staking) is scaling with treasury mandates (> $4.5B AUM/AUS; ~$40M+ ARR), improving revenue durability through fees .
  • Helios derisked: $1.4B construction financing closed; Phase II lease executed; visible execution milestones → set up for 1H26 revenue onset and value-unlocking refinance post-stabilization .
  • Near-term risks: crypto market deleveraging can weigh on volumes/fees; lending NIM pressures from mix; execution/timing risk on ERCOT approvals and CoreWeave credit perceptions .
  • Watch list (next 3–6 months): additional treasury wins/ARR updates; GalaxyOne adoption metrics; Helios construction milestones (first data hall power-on, commissioning) and any interconnect approval updates .
  • Medium-term thesis: dual-engine model (Digital Assets + AI data centers) with potential for cash generation at Helios and recurring fee scale in AMIS; optionality from tokenization initiatives and broadened distribution (custodian integrations, consumer channel) .

Appendix: Additional Company Disclosures and Prior Quarters

  • Prior quarter results (Q2 2025): net income $30.7M; Adjusted EBITDA $211M; Digital Assets adjusted gross profit $71.4M; highlighted $9B BTC sale and CoreWeave options to full 800MW .
  • Q1 2025 baseline: net loss $(295)M amid digital asset depreciation; transitioned reporting to U.S. GAAP; announced Helios Phase II expectations and I+II economics (~$700M revenue in first 12 months; ~90% EBITDA margin) .

Other relevant Q3 2025 press releases:

  • GalaxyOne direct-to-consumer platform launched (high-yield cash, crypto, equities) [10/06/2025] [10: press release is Document ID 10: “Galaxy Launches GalaxyOne…”] .
  • $460M strategic equity investment by a leading asset manager; net $325M proceeds for Helios build and general corporate purposes [10/10/2025] .
  • Project financing facility and capital markets activity (notes offering/pricing) announced in late October; continued expansion of institutional integration (e.g., Coinbase Prime) [10/27–10/29/2025] [2] [3].

Citations:

  • Q3 2025 8-K and exhibits .
  • Q3 2025 press release .
  • Q3 2025 earnings call transcript .
  • Q2 2025 press release and call .
  • Q1 2025 8-K .
  • Estimates: S&P Global via tool output (see asterisks).