Stablecoin Development Corporation (SDEV) Q1 2026 earnings summary

Executive summary

• Completed strategic transformation to an on-chain holding company focused on protocol-aligned digital asset ecosystems, primarily SKY tokens, with a name and ticker change effective April 2026.

• Achieved $22.3 million operating income and $552.4 million GAAP net income in Q1 2026, reversing a $3.3 million operating loss from Q1 2025, driven by significant non-cash warrant-related gains.

• Raised $134 million in January 2026 via a private placement of pre-funded warrants, receiving cash, stablecoins, and SKY tokens, establishing a digital asset treasury strategy.

• Divested legacy businesses in 2025; historical results now presented as discontinued operations.

Financial highlights

• Net income from continuing operations was $552.4 million for Q1 2026, compared to a net loss of $3.3 million in Q1 2025.

• Staking revenue reached $2.5 million, with 35.4 million SKY tokens earned in Q1 2026; unrealized gain on digital assets was $22.7 million.

• Cash and cash equivalents increased to $18.4 million as of March 31, 2026, from $8.0 million at year-end 2025; digital assets at $160.1 million, total assets at $179.7 million.

• Non-cash loss on fair value of warrant liabilities in excess of proceeds at issuance was $5.3 billion, offset by a $5.8 billion non-cash gain on changes in fair value of warrant liabilities.

• Income tax expense for the period was $3.5 million.

Outlook and guidance

• Management expects operating expenses to shift toward digital asset custody, cybersecurity, compliance, and specialized legal/accounting services.

• Existing cash and equivalents expected to fund planned operating expenses through at least May 2027; future growth dependent on market conditions and capital access.

• Plans to continue holding, staking, acquiring, and potentially monetizing SKY tokens and other digital assets, with future results impacted by unrealized gains/losses and non-cash warrant effects.