ZeroStack (ZSTK) Q1 2026 earnings summary

Executive summary

• Transitioned to a decentralized AI treasury and digital asset strategy, focusing on OG Token holdings and staking, while maintaining a global pharmaceutical distribution business through Phatebo GmbH.

• Disposed of legacy hemp and cannabis business in September 2025 to concentrate on digital assets and pharmaceuticals.

• Completed significant private placements and entered into a major share exchange agreement with Texas Blocker Corp., expected to close in July 2026.

Financial highlights

• Revenue for Q1 2026 was $7.3 million, up from $6.9 million in Q1 2025, driven by $2.8 million in OG Token staking rewards.

• Gross profit increased to $3.1 million (43% margin) from $0.5 million (8% margin) year-over-year.

• Net loss for Q1 2026 was $36.7 million, compared to $0.8 million in Q1 2025, primarily due to a $60.7 million loss from changes in fair value of digital assets.

• Operating expenses rose sharply to $65.8 million from $2.2 million, mainly due to digital asset fair value losses.

• Cash at March 31, 2026 was $2.3 million, down from $5.6 million at year-end 2025.

Outlook and guidance

• Management believes current cash and staking rewards are sufficient to meet obligations for at least one year.

• Ongoing focus on expanding digital asset operations and leveraging AI infrastructure, with continued pharmaceutical distribution.

• The share exchange with Texas Blocker Corp. is expected to close around July 14, 2026, making Texas Blocker a wholly owned subsidiary.