Forward Industries Posts $283M Q2 Loss on Solana Drop

Forward Industries reported a $283.1 million net loss for the quarter ended March 31, 2026, driven by a decline in the fair value of its Solana (SOL) treasury. The company recorded $13 million in revenue for the quarter, up from $3.1 million a year earlier, largely from staking rewards.

Under U.S. GAAP the firm recorded $201.7 million in fair value losses and $85.1 million in impairments on digital assets. Forward said those accounting entries reflect estimated changes in fair value and do not represent cash outflows or an immediate impact on liquidity. The Solana token fell from roughly $124 at the start of 2026 to about $83 by March 31.

Staking revenue accounted for nearly all of the revenue increase. Forward’s validator infrastructure produced a gross annual percentage yield of 6.5% to 7.2% before fees since launch. Through March 31 the company had accrued 201,201 SOL in staking rewards and had nearly its entire treasury staked.

At quarter end Forward held 7,044,079 SOL on its balance sheet and had about $16.6 million in cash. Selling, general and administrative expenses fell to $6.6 million from $7.2 million in the prior quarter. The company completed a share repurchase that reduced basic shares outstanding by 7.4% and secured an institutional debt facility with Galaxy Digital. Forward implemented a cost reduction plan in March that it expects will lower operating expenses in coming quarters.

In a statement, Chairman Kyle Samani commented: “Against a backdrop of market volatility, we took decisive actions to position Forward for long-term value creation by securing a highly advantageous institutional debt facility with our strategic partner, Galaxy Digital, and executing a strategic share repurchase that reduced our basic shares outstanding by 7.4%. We also implemented a cost reduction plan in March that we expect to materially lower operating expenses in the coming quarters.”

Other large corporate holders reported similar accounting losses. Upexi posted a $109.3 million net loss for the fiscal quarter ended March 31, 2026, with $92.3 million in unrealized digital asset losses.

Forward reiterated that the accounting losses are non-cash in nature and highlighted staking revenue growth and the measures it has taken to preserve liquidity.