Eightco Holdings Reports 72.7% Revenue Decline and $11.81 Million Operating Loss in Latest Quarter

Eightco Holdings Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2026. The company generated revenues of $2.07 million, a decrease of 72.7% from $7.58 million in the same quarter of the previous year. For the first half of 2026, revenues totaled $9.63 million, down 44.9% from $17.49 million in the first half of 2025. The decline in revenue is attributed primarily to a substantial reduction in orders from its largest customer, which accounted for approximately 99% of total revenues during the quarter. This customer experienced a significant deterioration in financial condition, prompting the company to suspend new order fulfillment.

The company's operating loss for the second quarter was $11.81 million, compared to a loss of $1.21 million in the prior year, reflecting an increase in operating expenses driven by bad debt expenses and impairment charges. Total operating expenses surged to $11.91 million from $2.45 million year-over-year, largely due to increased professional fees and advisory costs associated with the company's Digital Asset Treasury strategy. The company recognized a net income of $17.70 million for the quarter, a stark contrast to the net loss of $1.17 million reported in the same period last year, primarily due to a gain of $29.32 million from the change in fair value of digital assets.

Eightco's total assets increased to $407.49 million as of June 30, 2026, up from $250.19 million at the end of 2025. This growth was fueled by the company's capital-raising efforts, which included net proceeds of approximately $218.1 million from its At-The-Market (ATM) equity offering program. The company held $228.01 million in digital assets at fair value, a significant increase from $175.90 million at the end of 2025. The digital asset portfolio includes Worldcoin, Ethereum, and U.S. dollar-denominated stablecoins, which are part of the company's long-term capital allocation strategy.

Operationally, Eightco has streamlined its focus to its Forever 8 subsidiary, which provides inventory funding and management services to e-commerce retailers. The company has exited non-core operations, including its corrugated packaging business and Web3 activities. As of June 30, 2026, Eightco's employee headcount and customer base have been impacted by these strategic shifts, with the company now concentrating on enhancing its digital asset treasury strategy and its core inventory management business.

Looking ahead, Eightco's management expressed confidence in its liquidity position, with approximately $148.8 million in near-cash liquidity available to fund operations over the next twelve months. However, the company acknowledged the potential for volatility in its earnings due to fluctuations in the market prices of its digital assets. The management is actively monitoring market conditions and may adjust its treasury strategy as necessary to mitigate risks associated with digital asset volatility and customer concentration.