Galaxy Posts $323M Q3 Profit, Adds $200M Buyback

Galaxy’s investment gains lead the Q3 rebound

Consolidated net income of $322.8 million compared with the $85 million Q2 loss. The improvement was sequential: profit remained about 36% below the $505.1 million earned a year earlier, calculated from Galaxy’s reported figures.

Diluted earnings were $0.66 per Class A share, versus $0.83 on an adjusted basis. Those per-share figures are distinct from consolidated income, which includes noncontrolling interests. Adjusted EBITDA, an earnings measure excluding specified expenses and other adjustments, reached $455 million.

Treasury and Corporate contributed $419 million of adjusted gross profit, about 74% of the group’s $569 million total. In Galaxy’s published earnings-call transcript, Chief Financial Officer Anthony Paquette cited appreciation in digital assets and private investments, including Etched and Forward Industries.

Investment revaluations can lift reported earnings without creating the same recurring revenue stream as client fees or contracted rent. The concentration of this quarter’s gains therefore leaves an important distinction between portfolio performance and operating profitability.

Digital Assets generated $71 million in adjusted gross profit but still recorded a $9 million adjusted EBITDA loss. Trading volume rose 12% quarter over quarter, while the average loan book increased 27% to $1.8 billion.

Asked about the segment’s profitability, Paquette said a one-time accounting change had prevented a positive result. He did not quantify that adjustment in his answer. His explanation does not change the reported loss or establish that future quarters will be profitable.

Galaxy also reported $10.4 billion in combined assets under management and stake, up 46%. Its footnote identifies $1.2 billion appearing in both alternatives and staking. These categories therefore overlap and should not be interpreted as separate pools of customer money that can simply be added without adjustment.

The new $200M buyback remains optional

Galaxy completed its previous $200 million repurchase program on October 15, buying approximately 9.8 million Class A shares. The fresh authorization is a separate allowance for future purchases, rather than evidence that another $200 million has already been spent.

It has no fixed expiration date, may be suspended or discontinued, and does not oblige the company to buy any shares. Purchase timing depends on prices, market conditions, legal requirements and Galaxy’s other capital needs.

Paquette said on the call that $445 million of exchangeable notes mature in December 2026. Management said it had sufficient balance-sheet resources to repay them, while continuing to evaluate financing alternatives.

The company ended September with about $4.9 billion in cash, stablecoins and U.S. Treasuries. Management attributed much of the increase to financing for Helios construction. That pool is not interchangeable with quarterly profit or a promise that all liquidity will fund repurchases.

Helios adds leasing income before its 2027 expansion

Data Centers produced $79 million in adjusted gross profit and $69 million in adjusted EBITDA during its first full quarter of Helios I Phase I leasing. Delivered revenue-generating capacity stayed at 133 MW, showing that the quarterly earnings increase came without a new capacity delivery.

The segment nevertheless reported a $435,000 GAAP net loss. The positive adjusted EBITDA figure excludes costs captured in net income, so it does not mean the data-center division generated $69 million of bottom-line profit.

Galaxy’s August results had already disclosed the $3.5 billion financing for Phase II. It is earlier funding reiterated in the latest release, rather than a newly raised sum announced with Q3 earnings.

The crypto franchise also continues to expand institutional services, including the previously announced staking partnership with BNY. Such agreements broaden potential fee sources; their existence alone does not establish a contribution sufficient to offset operating costs.

Broader sentiment improved modestly: Alternative.me’s index read 51, or Neutral, on October 28, versus 48 the previous day. It measures market sentiment, not Galaxy’s balance-sheet strength.

The next concrete checkpoints are December’s note maturity and scheduled Phase II data-hall deliveries beginning in Q2 2027. Galaxy was still discussing tenants for 830 MW of additional approved Helios II capacity; its release disclosed no signed lease for that capacity or timetable for using the new buyback authorization.