Galaxy Digital (NasdaqGS:GLXY) Stock Rebounds As Helios Gains Meet Deeper Losses

Galaxy Digital is up about 5% today, a sharp move for a stock that has fallen roughly 34% over the past three months. The bounce comes even though the company just posted another quarterly loss of about $85 million and remains unprofitable over the past year.

The real headline is margin pressure meeting long-horizon ambition. Data centers are now generating positive adjusted EBITDA, while digital assets still contribute to the group-level loss. Short-term traders are reacting to the latest results, and long-term investors are weighing a capital-intensive buildout and a balance sheet reliant on debt funding against a low P/S multiple.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): US$8,710.5m vs. US$9,056.6m (revenue declined year on year)
• Net Loss (Q2 2026 vs. Q2 2025): US$85.3m loss vs. US$14.5m profit (swung from profit to loss year on year)
• Basic EPS (Q2 2026 vs. Q2 2025): US$0.44 loss per share vs. US$0.10 earnings per share (turned from earnings to loss per share year on year)
• Adjusted EBITDA for Operating Businesses (Q2 2026 vs. Q1 2026): US$1m vs. a loss in Q1 2026 (moved to slightly positive adjusted EBITDA at the operating level)

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Galaxy Digital Starts to Prove the Dual-Infrastructure Pitch

Bulls argue Galaxy Digital can turn its crypto trading and custody franchise into steadier fee income while Helios data centers add long duration, contracted cash flows. Q2 shows the first concrete proof points. Helios moved from construction site to income producing asset, with data centers delivering US$20m of adjusted gross profit and US$11m of adjusted EBITDA and management calling Q3 the first full quarter of Phase I leasing revenue. That is a clear milestone for the AI and high performance computing, or HPC, leg of the story.

On the crypto side, adjusted gross profit of US$66m in Digital Assets grew despite weaker token prices and volumes. New products like GOFR, Curator and Morgan Stanley channel partnerships pushed recurring style activity forward. The firm wide net loss of US$85m and negative US$77m adjusted EBITDA show the model is not yet balanced, but operationally the pieces bulls point to are starting to show up in the numbers.

Compare Galaxy Digital's early EBITDA progress and new product momentum with what institutional analysts are signaling on the stock. See the consensus price target analysis for Galaxy Digital to check whether Wall Street expectations align with this positive setup.

Galaxy Digital Bears Still See Execution Gaps

The core bear worry on Galaxy Digital is that Helios concentration, AI cycle risk and still early on chain products leave the group with heavy fixed costs and fragile cash flows. This quarter does not close that loop. Helios finally produced US$11m of adjusted EBITDA, yet firm wide adjusted EBITDA stayed at a loss of US$77m and GAAP net loss was US$85m. That keeps the earnings drag alive even as data center revenue starts.

Bears also flag dependence on a single large tenant and rising capital intensity. Q2 CapEx climbed to US$448m and Phase II is funded by US$3.5b of high yield debt, while CoreWeave remains the anchor across phases. On the crypto side, adjusted gross profit of US$66m looks healthy, but AUM and assets under supervision of about US$7b declined and fee pools remain sensitive to market activity. The multi leg model is progressing, but not yet de risked.

After heavy CapEx, volatile crypto fees and a single key tenant, you may want to review our independent risk analysis for Galaxy Digital which shows 3 important warning signs

Take Charge of Your Next Move

If the mix of Helios data center progress and ongoing losses at Galaxy Digital has your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and wait for an entry point that fits your plan. Once you are invested, keep the story in context with a Portfolio Command Center that filters out noise and highlights the updates that matter most to your holdings. For a broader view on Galaxy Digital and related stocks, tap into thousands of investor views through the Community. By spotting potential catalysts and risks early, you give yourself a better chance to stay ahead of the market and act with confidence.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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