Forward Industries, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2026. The company achieved revenues of $10.8 million for the quarter, a substantial increase of 332.1% compared to $2.5 million in the same quarter of the previous year. For the nine-month period, revenues reached $45.2 million, up 341.1% from $10.2 million in the prior year. The gross profit margin also improved dramatically, rising from a negative 24.9% in the previous year to 62.2% in the current quarter, primarily due to high-margin staking revenue generated from its digital asset treasury strategy.
Despite the revenue growth, Forward Industries reported a net loss of $68.96 million for the quarter, compared to a loss of $850,000 in the same quarter last year. The nine-month net loss was $937.69 million, a significant increase from $3.01 million in the prior year. The losses were largely attributed to a $49.75 million loss on digital assets and a $15.22 million impairment charge, reflecting the volatility in the market value of its digital asset holdings, particularly Solana (SOL).
Strategically, Forward Industries has pivoted to focus on digital assets, particularly SOL, following a private placement transaction in September 2025. The company has been actively acquiring, staking, and trading SOL and related digital assets, aiming to strengthen the Solana ecosystem. In addition, the company has engaged in share repurchase programs, buying back 13.3 million shares at a cost of approximately $69.86 million during the fiscal year. The company also secured $105 million in debt financing through Galaxy Digital LLC, with a weighted average interest rate of 2.6%, enhancing its liquidity position.
Operationally, Forward Industries has seen a shift in its business model, moving away from its original equipment manufacturer (OEM) distribution segment, which was sold in May 2025. The company now operates primarily in two segments: digital assets and design services. The digital assets segment generated $7.35 million in revenue during the quarter, while the design segment contributed $3.44 million. The company has also reported a significant increase in general and administrative expenses, primarily due to higher personnel costs and share-based compensation related to its new digital asset strategy.
Looking ahead, Forward Industries remains focused on executing its digital asset treasury strategy, with plans to continue investing in SOL and related projects. The company believes its existing cash balance, digital asset holdings, and access to financing will be sufficient to meet its liquidity needs through at least August 2027. However, the company acknowledges the inherent risks associated with digital asset volatility and market conditions, which could impact its financial performance in the future.
About Forward Industries, Inc.
Forward Industries, Inc. is a global design, sourcing, and distribution company serving medical and technology markets. It provides OEM accessories, including carrying cases for diagnostic kits and portable electronics, sourced mainly from China. Its design services encompass hardware and software development for diverse industries. The company emphasizes quality, supply chain management, and innovation to deliver high-quality, cost-effective solutions to top-tier clients worldwide.
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