Eightco Holdings Inc. Reports 23.7% Revenue Decline and Widened Operating Loss in Q1 2026

Eightco Holdings Inc. reported a significant decline in financial performance for the first quarter of 2026, with revenues of $7.56 million, a decrease of 23.7% from $9.91 million in the same period of 2025. The company's gross profit also fell sharply to $215,261, down 73.5% from $813,259 year-over-year. This decline is attributed to the cancellation of customer agreements and reduced order volumes as Eightco transitions away from its liquidation-model operations. The company's operating loss widened dramatically to $10.51 million, compared to a loss of $1.42 million in the prior year.

In terms of expenses, Eightco's selling, general, and administrative (SG&A) costs surged to $10.73 million, a 381.2% increase from $2.23 million in the previous year. This rise is primarily due to higher professional fees related to capital raising and the implementation of the company's Digital Asset Treasury (DAT) strategy, as well as increased compensation and corporate overhead. The company also reported a substantial loss of $66.5 million from changes in the fair value of its digital assets, which were not present in the prior-year period.

Eightco's total assets increased to $340.63 million as of March 31, 2026, up from $250.19 million at the end of 2025, largely due to the acquisition of digital assets and strategic investments. The company held digital assets valued at $175.31 million, primarily consisting of Worldcoin, Ethereum, and U.S. dollar-denominated stablecoins. The company’s cash and cash equivalents decreased significantly to $7.55 million from $58.50 million at the end of the previous year, reflecting substantial cash outflows for investments and operational needs.

The company has made strategic moves to strengthen its position, including the adoption of a Digital Asset Treasury strategy approved in September 2025, which aims to enhance its capital base through digital asset holdings. Additionally, Eightco raised $165.36 million through its at-the-market equity offering program during the quarter, which is expected to support its liquidity and operational needs moving forward. The company anticipates that its near-cash liquidity, combined with its digital asset holdings, will be sufficient to fund operations for the next 12 months.

Looking ahead, Eightco Holdings Inc. faces challenges related to digital asset market volatility and the need to manage its liquidity effectively. The company is focused on executing its DAT strategy while continuing to support its core business, Forever 8, which provides inventory management solutions for e-commerce retailers. The management remains optimistic about the potential of its digital asset investments and the overall growth of its business model, despite the current financial setbacks.