Galaxy Digital Holdings Ltd., a company publicly traded on NASDAQ under the ticker GLXY, disclosed its financial performance for the fourth quarter recently, revealing results that underwhelmed market expectations and led to notable adjustments in analyst projections.
The company reported quarterly revenue of $10.37 billion, which was significantly below the anticipated $13.21 billion forecasted by market analysts. In addition, Galaxy Digital recorded a loss per share of $1.08, exceeding the expected loss of 52 cents per share, indicating a more severe deficit than investors had initially predicted.
Despite these earnings setbacks, Galaxy Digital affirmed that substantial assets remain under its management. The company ended the quarter with assets under management valued at $6.4 billion and assets staked amounting to $5 billion, underscoring its ongoing financial engagements within its market sphere.
Operationally, Galaxy Digital conveyed that it remains on course to fulfill a key infrastructure commitment: delivering 133 megawatts (MW) of critical IT load capacity to CoreWeave during the first half of 2026, as outlined in their Phase I lease agreement. This project represents a strategic development aimed at enhancing the company’s technological footprint and service offerings.
Market reaction to the earnings announcement was swift, with Galaxy shares declining 7.5% to close at $20.33 the following day, reflecting investor concerns regarding the firm's financial trajectory.
Subsequent to the earnings release, several financial analysts updated their price targets for Galaxy Digital, reflecting revised expectations based on the new information available:
- Mike Colonnese of HC Wainwright & Co. retained his Buy rating on Galaxy Digital shares but lowered the price target from $45 to $40.
- James Yaro from Goldman Sachs maintained a Neutral rating on the stock while reducing the price target from $27 to $24.
- Morgan Stanley’s James Faucette upheld his Overweight rating but substantially cut the price target from $43 to $36.
These amendments in price targets suggest a recalibration of analyst outlooks, balancing the company’s existing operational strengths with the recent disappointing earnings results.
The financial market and investors remain attentive to Galaxy Digital’s strategic projects and asset base, although the recent quarterly performance underscores the challenges involved in maintaining growth and profitability in a fluctuating economic environment.
Key Points:
- Galaxy Digital reported Q4 revenue of $10.37 billion, missing the anticipated $13.21 billion target.
- The company posted a loss per share of $1.08, exceeding the expected 52-cent loss.
- Assets under management stood at $6.4 billion, with $5 billion in staked assets at the end of the quarter.
- Galaxy Digital is progressing toward delivering 133 MW of critical IT load to CoreWeave in H1 2026 under a Phase I lease agreement.
- Following the earnings report, analysts from HC Wainwright, Goldman Sachs, and Morgan Stanley lowered their price targets on Galaxy Digital while maintaining their respective ratings.
Risks and Uncertainties:
- The substantial missed revenue and higher-than-expected loss per share may indicate operational or market pressures that could persist.
- Stock price volatility, as evidenced by a 7.5% decline post-earnings, reflects market sensitivity to the company’s financial results.
- The success of Galaxy Digital’s planned IT capacity delivery to CoreWeave is critical for its strategic growth and timing uncertainties could affect future performance.
- Analyst price target downward revisions signal caution, suggesting potential challenges in achieving optimistic valuation levels.