Empery Digital (EMPD) Q2 2025 earnings summary

Executive summary

• Adopted a Bitcoin treasury strategy, raising $501 million in private placements and acquiring 4,026.71 BTC for $473 million as of July 2025, while continuing electric powersports operations under the Empery Mobility brand.

• Closed significant equity offerings, including an underwritten public offering and an at-the-market (ATM) program, and repaid all outstanding senior notes.

• Expanded the board and management team, approved a $100 million stock repurchase program, and launched a new 2025 Stock Plan with substantial stock option grants.

• Launched new website and social media channels to provide real-time BTC portfolio metrics and company updates.

• Continuing to evaluate and respond to tariff impacts on imported products.

Financial highlights

• Revenue for Q2 2025 was $702,936, down from $940,863 in Q2 2024; six-month revenue was $1,438,985, down from $1,974,411 year-over-year.

• Net loss for Q2 2025 was $3,899,897, compared to $606,418 in Q2 2024; six-month net loss was $6,360,327, a significant improvement from $26,654,462 in the prior year period.

• Gross margin improved to $(148,540) in Q2 2025 from $(2,172,566) in Q2 2024, reflecting lower cost of goods sold and reduced inventory write-downs.

• Cash, cash equivalents, and restricted cash totaled $11.9 million as of June 30, 2025, with working capital of $13.0 million.

• General and administrative costs increased by $1.3 million in Q2 2025, mainly due to share-based compensation.

Outlook and guidance

• Management expects revenue to decrease in Q3 2025 due to lower finished goods inventory and shipment delays from third-party manufacturers.

• Anticipates increased sales and marketing, general and administrative, and product development expenses in the remainder of 2025, primarily due to stock-based compensation and digital asset strategy implementation.

• Cash on hand, expected operational cash flow, and proceeds from private placements are projected to fund operations beyond one year.

• Actively evaluating strategic alternatives to mitigate tariff impacts, including U.S. assembly and price adjustments.

• Focus remains on cost reduction and building dealer network to drive future sales.