Galaxy Digital 2025 Q2 Earnings Misses Targets Despite Record Net Income

Galaxy Digital (GLXY) reported its fiscal 2025 Q2 earnings on Aug 05th, 2025. The company missed earnings estimates with an EPS of $0.08 versus $0.10 expected, despite posting a record net income of $30.69 million—a 124.4% turnaround from a $125.60 million loss in the prior year. Management provided cautious guidance, noting strong Q3 beginnings and ongoing momentum in key operations.

Revenue

Galaxy Digital reported total revenue of $9.06 billion in Q2 2025, representing a modest 2.2% year-over-year increase from $8.86 billion in Q2 2024. The company’s Digital Assets segment remained the primary revenue driver, contributing $8.71 billion, while Treasury and Corporate operations added $345.43 million. The performance underscores a continued focus on digital assets as the core business strength.

Earnings/Net Income

Galaxy Digital returned to profitability with an EPS of $0.10 in Q2 2025, a significant turnaround from a $0.37 loss per share in Q2 2024, reflecting a 127.0% positive change. The company reported net income of $30.69 million, a 124.4% swing from a net loss of $125.60 million in the prior year. Despite these strong net results, the company’s earnings fell short of estimates, highlighting mixed signals in its financial performance.

Price Action

The stock price of Galaxy Digital edged down 2.47% during the latest trading day, climbed 3.44% over the past full trading week, and surged 27.26% month-to-date, reflecting volatility and mixed investor sentiment.

Post-Earnings Price Action Review

Despite the earnings beat on the bottom line, the stock underperformed in the 30-day post-earnings period over the past three years, with the strategy of buying shares after a revenue increase on the report date yielding a return of -15.82%. This performance lagged behind the benchmark by 20.80%, indicating a high-risk profile with a Sharpe ratio of -0.70 and volatility of 103.44%. The maximum drawdown recorded was 0.00%, reinforcing the erratic nature of the stock following earnings releases.

CEO Commentary

Michael Edward Novogratz, CEO of Galaxy Digital, emphasized a strong performance across all business lines, calling July the best month in company history. He highlighted the expansion of the asset management business with $2 billion in added assets and the smooth execution of a $9+ billion Bitcoin trade. The CEO also outlined growth in the data center business, including the acquisition of 1 gigawatt of capacity at Helios and the upcoming third phase of CoreWeave. Novogratz expressed optimism about long-term opportunities in tokenization and onchain capital markets, and praised the regulatory environment under the Trump administration. His leadership tone remained bullish, underscoring confidence in strategic partnerships and long-term growth.

Guidance

Galaxy Digital noted that Q3 began strongly, with July being the highest-performing month in its history. The company expects continued momentum in digital assets, particularly as Bitcoin reaches all-time highs and trading volumes remain significant. It anticipates the full execution of Phase 1 at the Helios data center and expects revenue from CoreWeave. The firm is also pursuing project-level debt financing for Phase 1 and has secured a 160-acre land purchase adjacent to Helios, potentially adding 1 gigawatt of power. While no specific financial targets were provided, the company is building toward long-term opportunities in tokenization and onchain capital markets.

Additional News

On Aug. 6, 2025, Galaxy Digital reported a revenue of $8.66 million for Q2, a 2.5% decline year-over-year. The firm’s adjusted EBITDA was $211 million, driven by an increase in virtual assets on its balance sheet. Galaxy expanded its Bitcoin holdings to 17,102 coins, valued at $1.94 billion, adding 4,272 BTC in Q2. The company also held $325 million in Ethereum, $180 million in SOL, and $45.8 million in XRP. Despite these strong asset positions, its earnings per share missed estimates at $0.08 versus the expected $0.10. Following the earnings miss, GLXY stock fell over 5%, trading at $27.36. Other leading crypto stocks also declined, including MicroStrategy, Coinbase, Robinhood, and Circle. The broader market reaction reflected concerns over earnings performance and macroeconomic uncertainty.