Empery Digital (EMPD) investor relations material

Executive summary

• Q3 net income was $24.0M, primarily reflecting a $37.0M unrealized gain on Bitcoin; 9M net loss was $104.5M, driven chiefly by a $69.3M Bitcoin fair-value loss and stockholder litigation costs.

• Strategy combines a Bitcoin treasury with planned data-center investments; 936 BTC were held at quarter-end, including 765 BTC pledged as loan collateral.

Financial highlights

• Q3 revenue was $99,606 vs. $199,984 YoY; 9M revenue was $405,327 vs. $852,489. Q3 gross loss was $185,748; 9M gross loss was $190,854.

• Q3 operating income was $24.4M vs. an operating loss of $34.0M YoY; 9M operating loss widened to $101.0M from $39.6M.

• Q3 net income was $24.0M vs. a net loss of $29.2M YoY; 9M net loss was $104.5M vs. $35.5M. Basic/diluted Q3 EPS was $0.85/$0.80; 9M EPS was $(3.51).

• 9M operating expenses included a $69.3M Bitcoin fair-value loss; Q3 recorded a $37.0M gain. Sales and marketing included $2.1M bad-debt expense tied to Venom receivables and deposits.

Outlook and guidance

• Management expects 2026 revenue to decline vs. 2025, reflecting the four-wheel divestiture, reduced inventory financing after ending Venom financing, and lower Brat sales during product development.

• New two-wheel product launch is planned for Q4 2026, with additional products in H1 2027; timing for the motorcycle model under development remains uncertain.

• Management expects Q4 operating cash use to decline from 9M levels, supported by lower litigation/proxy costs and expected D&O insurance proceeds; G&A costs remain elevated near term.

• Management expects cash on hand, operating cash generation, derivative premiums, available credit and Bitcoin sales to fund operations, EMHU commitments and debt repayment for at least one year from issuance of the financial statements.