DDC Enterprise (DDC) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 reached $20.2M, a 29% year-over-year increase, driven by expanded retail penetration and distribution in the core Asian-food business.

• Gross profit rose 17.5% year-over-year to $6.1M, while gross margin declined by 300 basis points to 30.4% due to a shift toward higher-volume formats.

• Adjusted EBITDA turned positive at $1.2M for the period, reflecting positive operating leverage.

• Net loss was $38.4M, primarily due to $34.3M in non-cash, mark-to-market unrealized fair value losses on Bitcoin holdings.

• Bitcoin holdings increased to 2,899 BTC as of June 30, 2026, up 145% since December 2025.

Financial highlights

• Revenue: $20.2M, up 29% year-over-year.

• Gross profit: $6.1M, up 17.5% year-over-year.

• Gross margin: 30.4%, down 300 bps year-over-year.

• Adjusted EBITDA: $1.2M, positive for the period.

• Net debt: $10.2M as of June 30, 2026, reduced from $60.6M at year-end 2025 after repaying $51.0M in loans pledged by digital assets.

• Liquidity: $21.6M in cash and short-term investments.

• Basic and diluted net loss per Class A share was $(1.17) for 1H2026.

Outlook and guidance

• Board authorized an 18-month share repurchase program of up to $10M or 20% of outstanding Class A shares, providing flexibility for capital allocation.

• Capital allocation priorities are to fund the operating business, protect liquidity, evaluate Bitcoin purchases, and repurchase shares selectively.

• Management will continue balancing investment in food business scaling with prudent treasury decisions and liquidity management.

• Future Bitcoin acquisitions will be evaluated based on market conditions, liquidity, risk, and expected per share value accretion.