IP Strategy Holdings (IPST) investor relations material

Executive summary

• Completed a $223.8M PIPE transaction in August 2025, acquiring 53.2M $IP Tokens and shifting to a digital asset treasury strategy focused on validator operations and staking revenue.

• Closed all retail tasting rooms and transitioned spirits production to third-party contract producers, reducing overhead and unabsorbed costs.

• Two reverse stock splits (Nov 2025 and Apr 2026) were executed to maintain Nasdaq compliance.

Financial highlights

• Net revenue for Q1 2026 was $1.71M, up from $1.09M in Q1 2025, driven by crypto and related revenue of $1.45M (none in Q1 2025).

• Net loss for Q1 2026 was $(66.7)M, compared to $(3.0)M in Q1 2025, primarily due to a $62.1M loss from the change in fair value of $IP Tokens.

• Gross profit was $1.17M in Q1 2026, up from $0.27M in Q1 2025, with crypto segment gross margin at 90.2%.

• Spirits segment revenue declined 76% year-over-year to $0.26M, with a gross margin of (54.2)% due to closure of tasting rooms and transition to third-party production.

• Adjusted EBITDA for Q1 2026 was $(3.4)M, compared to $(2.2)M in Q1 2025.

Outlook and guidance

• Management expects improved spirits margins as transition to third-party production continues and overhead is further reduced.

• Liquidity is supported by digital asset holdings, but remains sensitive to $IP Token market volatility.

• Sufficient cash and anticipated operating cash flows are projected to support operations for at least the next 12 months.