Galaxy Digital Holdings returned to profitability in the third quarter of 2026, reporting $323 million in net income, a sharp reversal from the $85 million loss recorded in the previous quarter. The Mike Novogratz-led firm also announced a new $200 million Class A common stock repurchase program on Oct. 26.
Adjusted gross profit climbed to $569 million from $43 million in Q2, while adjusted EBITDA reached $455 million, compared with a negative $77 million in the prior quarter. Net income remained below the $505 million reported a year earlier.
The Treasury & Corporate segment was the largest driver, posting $419 million in adjusted gross profit after a $42 million loss in Q2. Management attributed much of the improvement to higher valuations of digital asset holdings and private investments, including positions in AI chip startup Etched and a Solana-related treasury firm.
Digital asset operations were more modest. Trading volumes rose 12% quarter over quarter despite weaker broader spot-market activity, and the average loan book grew 27% to $1.8 billion. The firm's Onchain Financing Rate product, launched in July, draws on DeFi lending markets including Aave and Morpho. Adjusted gross profit in Digital Assets increased to $71 million from $66 million, but the segment remained negative on an adjusted EBITDA basis at -$9 million.
Galaxy reported $10.4 billion in combined assets under management and assets under stake at the end of September, up 46% from June. Data center adjusted gross profit rose to $79 million from $20 million, including the first full quarter of revenue from the Helios I Phase I lease after delivering all 133 MW of critical IT load to CoreWeave. Galaxy has expanded its gross data-center power pipeline to more than 5.7 GW, with Helios I Phase II construction continuing ahead of first data-hall deliveries in Q2 2027.
During the earnings call, Novogratz said Galaxy expects to exit 2027 with an annualized leasing revenue run rate of $800 million to $850 million as Helios I Phase II comes online. The firm also completed a $3.5 billion senior secured notes offering to finance the second phase. Its previous $200 million buyback program was completed on Oct. 15, with about 9.8 million shares repurchased.
The company ended September with $4.9 billion in cash, stablecoins and U.S. Treasuries, $3 billion in total equity, and $1.7 billion in net digital assets and investments.
