Despite increased pledge earnings, Solana's Q2 still lost $30.3 million

Solana lost US$30.3 million in the second quarter. Although revenue reached US$2.5 million, almost all of which came from SOL Pledge

revenue increased significantly from US$43,000 in the same period last year, but decreased from US$3.6 million in the first quarter.

Solana received 31,200 SOL rewards and automatically re-pledged them.

Digital assets have achieved a loss of US$25.4 million, which severely dragged down quarterly results.

Cash fell to $3.6 million and total assets fell to $176.1 million.

Solana said in its August 14 financial report that pledges contributed $2.512 million of its quarterly revenue of $2.526 million, while other businesses generated only $14,000 in revenue.

Compared with the same period in 2025 (revenue of US$43,000), the Nasdaq-listed company's revenue increased significantly after establishing a large Solana vault. But based on its first-half data, revenue was still down about 30% from $3.6 million in the first quarter.

In the second quarter, the company received 31,200 Solana (SOL) rewards through pledges and automatically re-pledged these tokens. Recollecturing allows positions to continue to earn rewards rather than being sold or converted into cash.

Cost of revenue was US$77,000, gross profit was US$2.4 million, and gross margin was approximately 97%. The high profit margins generated by pledges are not enough to cover operating expenses and losses related to the company's digital assets.

SOL sales drove most of the quarterly loss

Operating expenses reached $35.1 million in the second quarter, up from $3.3 million in the same period last year. As a result, Solana reported an operating loss of $32.7 million, compared to a loss of $3.3 million in the second quarter of 2025.

A realized loss of US$25.4 million from digital asset sales was the main reason for the increase in losses. During the company's earnings conference call, management said the loss came from "strategic sales executed as part of the capital allocation plan."

At the same time, the accounts include US$2.4 million in unrealized gains on digital assets and receivables. Solana also recorded an unrealized loss of $298,000 on digital asset fund investments and a loss of $682,000 on digital asset derivatives.

Administrative expenses increased to $11.1 million from $3.3 million in the same period last year. Approximately $6.8 million of this came from severance costs related to the divestiture of PoNS's medical equipment business, and the remaining approximately $4.3 million was for other administrative expenses.

The company completed the sale of its PoNS business in the second quarter and gradually exited its former medical equipment business. Solana received $3.1 million in gain from the transaction, partially offsetting the impact of operating losses.

After accounting for gains on sales, changes in the value of derivative liabilities of $322,000, and other expenses of $259,000, non-operating income totaled $2.4 million. Much of the latter comes from fluctuations in the exchange rate between the Canadian dollar and the US dollar.

After including these items, the company's net loss was $30.3 million, or basic and diluted loss per share of $0.38. The loss for the same period last year was $9.8 million, or $79.73 per share, but the per share figures are difficult to compare directly due to changes in the number of shares outstanding.

Solana's first-half loss reached US$130.1 million

In the first six months of 2026, revenue increased to US$6.1 million from US$92,000 in the same period in 2025. Among them, pledges contributed US$5.9 million and other income contributed US$218,000.

Operating expenses increased to $138.2 million in the first half, including $86.8 million in unrealized losses on digital assets and receivables. Realized digital asset losses amounted to $32.4 million, while digital asset fund investments incurred unrealized losses of $2 million. [TAG As a result, Solana reported a six-month net loss of $130.1 million, or $1.66 per share. Management stated on the earnings call that fair value changes recorded under U.S. accounting standards did not reduce its cash balance or the number of SOL tokens generated through pledges.

The company adopted a business model with SOL at its core in September 2025, which was still called Helius Medical Technologies at the time. The company launched its treasury strategy through a $500 million private equity round led by Pantera Capital and Summer Capital.

Participants purchased shares at $6.88 per share and received warrants exercised at $10.13. The deal includes potential gains of up to $750 million from the exercise of warrants, but the additional capital depends on whether investors choose to exercise them.

By October 2025, the renamed company had more than 2.2 million SOLs, valued at more than US$525 million at the time. The company also reported having more than $15 million in cash at the time.

Its June 2026 balance sheet shows a significant reduction in asset size. Total assets fell to $176.1 million from $303.9 million at the end of 2025, and shareholders 'equity fell to $165.6 million from $300.9 million.

Cash and cash equivalents fell to $3.6 million from $7.3 million. The current digital assets are US$21 million, and another US$2.3 million is listed as digital asset mortgage receivables.

Total long-term digital assets and related exposure was US$147.3 million. According to the company, the figure covers pledged positions, restricted assets, receivables and digital asset fund investments.

NASDAQ investors are still exposed to SOL price fluctuations

Since HSDT is traded on the NASDAQ Capital Market, U.S. investors can indirectly gain SOL exposure through their stocks without directly holding tokens. The company's documents also show that its financial condition is highly dependent on SOL prices, pledge returns and the ability to raise funds through stock sales.

In the second quarter, Solana reported net income of US$7.9 million through a registered direct share offering led by Mirae Asset and participated by HashKey Capital. The company sold approximately 3.08 million shares at $2.60 per share and said the proceeds could be used to purchase SOL, working capital and corporate expenses.

At the same time, the company spent approximately US$2.3 million to repurchase 1.3 million shares. The total repurchase amount in the first half of the year was approximately US$5.9 million, covering 2.9 million treasury shares held as of the end of June.

As of June 30, the company's issued shares were 60.4 million shares, of which 57.4 million shares were outstanding after deducting treasury shares. Its cumulative losses increased to US$342.6 million from US$212.6 million at the end of 2025.

Based on market data, the HSDT closed at US$1.70 on August 14, down 5.56% during the regular trading session. Shares rebounded slightly to $1.71 after hours, while reported total revenue was about $400,000 less than analysts 'expectations of $2.9 million.

Verifier revenue may start in the third quarter

In addition to pledging its own treasury, Solana is building infrastructure to generate revenue from third-party assets. Its first cluster of institutional validators has been launched in Tokyo under an initiative called "Pacific Backbone".

, said the company's recurring business began to develop with the launch of Tokyo operations and PoNS exiting the cost base.

Chee said: "With our first validator cluster operational in Tokyo and the complete divestiture of traditional businesses, recurring revenue streams that leverage our institutional infrastructure are beginning to take root."

Management expects the Tokyo cluster to start contributing verifier related revenue in the third quarter. According to comments during the earnings conference call, the operation received its first third-party pledge commitment in July, approximately 500,000 SOL units.

Solana previously included Helius and Twinstake in its pledge system, enabling it to pledge SOL directly from Anchorage Digital Bank's escrow. When announced in October 2025, Helius and Twinstake ranked among the top 25 validators of the Solana network by number of SOLs commissioned.

Under Pacific Backbone, the company also partnered with Jito Foundation in May to develop institutional-level Solana infrastructure in Asia Pacific. Management stated that administrative expenses are expected to return to near Q1 levels as severance payments arising from the PoNS sale are eliminated from the books.

After the quarter ended, Solana completed a US$2 million acquisition of a Hong Kong trust company on July 15. The transaction will be included in its third-quarter financial statements.