Upexi (NASDAQ:UPXI) Posts Earnings Results, Misses Expectations By $2.86 EPS

Upexi (NASDAQ:UPXI) issued its earnings results on Tuesday. The company reported ($2.94) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.08) by ($2.86), FiscalAI reports. Upexi had a negative return on equity of 36.10% and a negative net margin of 496.86%.The business had revenue of $10.96 million for the quarter, compared to analyst estimates of $9.42 million.

Here are the key takeaways from Upexi’s conference call:

• Reported a net loss of approximately $178.9 million for the quarter, driven primarily by about $164.5 million of non‑cash fair‑value markdowns on its Solana holdings.
• Executed multiple capital actions — private placements, a $36 million in‑kind convertible note and a subsequent cash offering — reportedly at or above NAV, became S‑3 shelf‑eligible, and announced a $50 million share repurchase program.
• Management highlighted sector‑wide multiple compression and oversupply (over 200 Treasury Companies), which has depressed valuations and contributed to Upexi trading at discounts to NAV.
• Treasury composition as of Dec 31 included roughly 2.17 million SOL (publicly referenced ~2.4M after raises), ~95% staked, ~106k tokens added in the quarter, and about $9.7 million cash on hand.
• Strategy priorities are accretive growth and raising low‑risk, recurring Treasury yield (off‑chain approaches, hedging, discounted locked‑token purchases) with a yield product targeted for rollout in Q2 to boost cash flow and valuation potential.

Upexi Stock Down 16.3%

UPXI stock opened at $0.82 on Thursday. The firm has a market cap of $51.59 million, a PE ratio of -0.19 and a beta of -0.48. Upexi has a 12 month low of $0.81 and a 12 month high of $22.57. The company has a debt-to-equity ratio of 0.68, a current ratio of 3.41 and a quick ratio of 3.39. The firm has a 50 day simple moving average of $1.96 and a 200 day simple moving average of $4.19.

Key Stories Impacting Upexi

Here are the key news stories impacting Upexi this week:

• Positive Sentiment: Revenue and gross-profit strength: Total revenue roughly $8.05M (vs. $4.01M year-ago) and gross profit up 126% YoY to $6.7M, driven by $5.1M of digital-asset (staking) revenue — evidence the digital-treasury model is scaling. Read More.
• Positive Sentiment: Capital actions to shore up balance sheet and signal confidence: company raised ~ $10M in a private placement, priced a $36M convertible-note tied to locked SOL and a $7.4M registered direct offering, and announced a $50M share repurchase program — these moves increased post-quarter cash to about $9.7M. Read More.
• Neutral Sentiment: Strategic positioning: management reiterated a long‑term conviction in Solana, a shift toward a “high‑return treasury” strategy and an S-3 shelf registration that enables future capital market activity — strategy may pay off but increases exposure to SOL price swings. Read More.
• Negative Sentiment: Huge non-cash mark-to-market hit: Q2 reported a net loss of $178.9M (loss per share $2.94) largely due to $164.5M of unrealized losses on digital assets — this drove a large EPS miss vs. consensus and is the main reason investors sold the stock. Read More.
• Negative Sentiment: Liquidity, leverage and dilution risks: cash was only $1.6M at quarter-end (improved to ~$9.7M after financings), short‑term treasury debt and large convertible notes ($144M reported long-term convertible notes) increase leverage and potential dilution — investors may fear further funding needs or adverse dilution. Read More.
• Negative Sentiment: Stock-based compensation and one-time charges: $8.3M in stock‑based comp, impairment and other non-operational items inflated operating expenses, reducing near‑term profitability metrics. Read More.

Insider Activity at Upexi

In related news, CEO Allan Marshall purchased 100,000 shares of the company’s stock in a transaction on Monday, December 15th. The shares were bought at an average price of $2.07 per share, with a total value of $207,000.00. Following the completion of the acquisition, the chief executive officer owned 3,946,261 shares of the company’s stock, valued at approximately $8,168,760.27. This represents a 2.60% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Gene Salkind acquired 100,000 shares of Upexi stock in a transaction dated Monday, November 17th. The shares were bought at an average cost of $2.65 per share, with a total value of $265,000.00. Following the completion of the purchase, the director owned 569,470 shares in the company, valued at approximately $1,509,095.50. This represents a 21.30% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 350,000 shares of company stock worth $793,000. 4.42% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Upexi

A number of institutional investors have recently bought and sold shares of UPXI. Goldman Sachs Group Inc. lifted its stake in Upexi by 105.7% during the fourth quarter. Goldman Sachs Group Inc. now owns 57,455 shares of the company’s stock valued at $97,000 after buying an additional 29,528 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Upexi by 9.0% during the fourth quarter. Geode Capital Management LLC now owns 499,610 shares of the company’s stock valued at $840,000 after acquiring an additional 41,263 shares during the period. Alyeska Investment Group L.P. acquired a new stake in shares of Upexi during the third quarter valued at approximately $7,175,000. Nomura Holdings Inc. purchased a new stake in shares of Upexi in the 3rd quarter valued at approximately $104,000. Finally, Bank of America Corp DE boosted its stake in Upexi by 3,733.8% in the 3rd quarter. Bank of America Corp DE now owns 13,725 shares of the company’s stock worth $79,000 after purchasing an additional 13,367 shares during the period. Hedge funds and other institutional investors own 5.68% of the company’s stock.

Wall Street Analysts Forecast Growth

UPXI has been the topic of several recent research reports. Cantor Fitzgerald reissued an “overweight” rating and issued a $2.00 price target (down previously from $6.00) on shares of Upexi in a report on Wednesday. Wall Street Zen downgraded shares of Upexi from a “hold” rating to a “sell” rating in a research report on Saturday, January 3rd. Weiss Ratings reiterated a “sell (d)” rating on shares of Upexi in a report on Monday, December 29th. Finally, iA Financial set a $8.00 target price on Upexi in a report on Tuesday, January 13th. Two equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $8.33.

Upexi announced that its board has approved a share repurchase program on Thursday, November 13th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 25.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

About Upexi

Upexi (NASDAQ: UPXI) is a full-service digital consultancy that partners with brands to design, develop, and deploy digital products and marketing strategies. The company’s expertise spans user experience and interface design, custom software engineering, and data-driven marketing services. By integrating research, creative design, and technical execution, Upexi helps clients accelerate product development cycles and optimize their digital presence.

The firm serves a diverse, global clientele across sectors such as e-commerce, software-as-a-service (SaaS), healthcare, and finance.