Forward Industries Reports $283M Q2 Loss on Solana Markdowns

Forward Industries posted a $283.1 million net loss for the fiscal second quarter ended March 31, 2026. The company attributed the loss to declines in the fair value of its Solana (SOL) holdings that offset $13 million in staking revenue.

Under U.S. GAAP, Forward recorded $201.7 million in losses and $85.1 million in impairments on digital assets. Solana’s market price fell from about $124 at the start of 2026 to roughly $83 by March 31. The company wrote that the accounting entries reflect changes in estimated fair value and do not represent a cash outflow or an immediate impact on liquidity.

Quarterly revenue rose to $13 million, up from $3.1 million a year earlier, driven mainly by staking rewards from the company’s Solana treasury strategy. 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 accumulated 201,201 SOL in staking rewards and had nearly its entire SOL treasury staked. Forward closed the quarter with 7,044,079 SOL on its balance sheet and about $16.6 million in cash.

Selling, general and administrative expenses fell to $6.6 million from $7.2 million in the prior quarter after the company implemented a cost reduction plan in March that it expects will materially lower operating expenses in future quarters.

Forward secured an institutional debt facility with Galaxy Digital and completed a strategic share repurchase that reduced basic shares outstanding by 7.4%.

Kyle Samani, chairman, wrote in the company’s release: “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 corporate holders of Solana reported similar accounting pressures. Upexi posted a $109.3 million net loss for the same quarter, with $92.3 million of that figure recorded as unrealized digital asset losses.

Forward described the quarter as reflecting non-cash accounting volatility on its SOL holdings alongside the cash-generating results of its staking operations and highlighted SOL-per-share growth and ongoing validator performance as business drivers.