Galaxy Digital 2025 Q2 Earnings Strong Performance as Net Income Surges 124.4%

Galaxy Digital (GLXY) reported strong results for Q2 2025, exceeding expectations with a significant turnaround in profitability. The company turned a net loss into a profit, with net income rising to $30.69 million, marking a 124.4% improvement year-over-year. Management raised no explicit guidance, but the performance reflects a broader recovery in digital asset trading and staking operations.

Revenue
Galaxy Digital reported total revenue of $9.06 billion for Q2 2025, an increase of 2.2% compared to $8.86 billion in the same period last year. The Digital Assets segment led with $8.71 billion in revenue, driven by sustained trading activity despite a broader decline in market volumes. Treasury and Corporate operations contributed $345.43 million, reflecting gains on digital asset holdings and investment mark-to-market adjustments.

Earnings/Net Income
The company returned to profitability with a net income of $30.69 million, a dramatic reversal from a net loss of $125.60 million in Q2 2024. Earnings per share (EPS) improved from a loss of $0.37 to $0.10, representing a positive swing of 127.0%. This strong performance indicates a significant operational and financial turnaround, particularly in the Digital Assets segment.

Price Action
Following the earnings release, GLXY’s stock price edged down by 2.47% during the latest trading day. However, it climbed 3.44% over the most recent full trading week and surged 27.26% month-to-date, reflecting strong investor sentiment on a broader time horizon.

Post-Earnings Price Action Review
The strategy of buying Galaxy Digital shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days underperformed over the past three years, yielding a return of -15.82%. This lags behind the benchmark by 20.80%, with a Sharpe ratio of -0.70 and volatility of 103.44%. The negative performance highlights the stock’s high-risk profile and the challenges of relying solely on earnings-driven strategies.

CEO Commentary
Mike Novogratz, CEO of Galaxy Digital, highlighted the company’s strong Q2 performance, particularly in its Digital Assets business, which outperformed broader market declines in spot trading volumes. He emphasized growth in Global Markets and the strategic value of expanding the Helios data center campus to support CoreWeave's AI and HPC operations. Novogratz expressed optimism about the future, especially with the anticipated launch of Data Centers revenue in H1 2026.

Guidance
Galaxy Digital expects to begin generating Data Centers revenue in the first half of 2026 under its lease agreement with CoreWeave, with all related expenses currently being capitalized. The company also anticipates continued growth in Global Markets and maintains strong balance sheet liquidity, supported by $1.2 billion in cash and stablecoins. Adjusted EBITDA is expected to remain positive as digital asset valuations and trading activity stabilize.

Additional News
Galaxy Digital completed the sale of over 80,000 bitcoin on behalf of a client, marking one of the largest notional bitcoin transactions in digital asset history. Additionally, CoreWeave exercised its final option to access an additional 133 MW of critical IT load at Galaxy’s Helios campus, committing to the full 800 MW of gross power. Galaxy also entered into a purchase agreement to acquire 160 acres of land and a 1 GW load interconnection adjacent to the Helios campus, expanding its total landholdings and power capacity. These developments underscore the company’s strategic focus on AI and HPC infrastructure, positioning it for long-term growth in high-demand sectors.