Empery Digital (EMPD) Q4 2025 earnings summary

Executive summary

• Launched a digital asset treasury strategy in July 2025, raising $501M (including $28M in Bitcoin) via private placements to acquire Bitcoin and establish cryptocurrency treasury operations.

• Divested four-wheel vehicle business to Venom in exchange for a 10% equity stake, shifting focus to two-wheel E-Bikes and inventory financing.

• Implemented aggressive share repurchase programs, buying back 23.1M shares for $135.6M by March 2026, funded by borrowings and Bitcoin sales.

• Transitioned to a single operating segment post-digital asset strategy, with continued cost reduction and focus on capital efficiency.

Financial highlights

• 2025 revenue was $975K, down from $4.0M in 2024, reflecting discontinued four-wheel products and lower E-Bike sales.

• Gross margin was negative ($363K) in 2025, compared to negative $14.0M in 2024.

• Operating expenses surged to $153.1M in 2025, driven by $122.7M unrealized loss on Bitcoin and $17.8M in stock-based compensation.

• Net loss from continuing operations was $154.0M in 2025, compared to $44.2M in 2024.

• Cash and restricted cash at year-end 2025 was $9.1M; working capital deficit was $38.5M.

• Accumulated deficit reached $316.4M as of December 31, 2025.

• Stockholders’ equity stood at $269.2M at year-end 2025.

Outlook and guidance

• 2026 sales expected to decrease due to divestiture of four-wheel products and transition to inventory financing.

• Cost of goods sold, sales, and product development expenses projected to decline as product lines narrow.

• General and administrative expenses expected to decrease in 2026 as one-time costs subside.

• Interest expense anticipated to rise due to increased borrowings for share repurchases.