Forward Industries posts $585.6M Q1 loss on Solana write-down

Forward Industries, a Nasdaq-listed company, reported a $585.6 million net loss for the fiscal first quarter ended Dec. 31, 2025. The result included a $560.2 million U.S. GAAP loss on digital assets and a separate $33 million impairment charge tied to lower estimated fair values for Solana (SOL).

The company held about 6.96 million SOL at quarter end. Forward said most of those tokens were bought in September 2025 at an average net cost of $232.08 per token, representing a total investment of roughly $1.59 billion.

Nearly all of the SOL are staked through Forward’s validator infrastructure, generating annualized yields between 6.5% and 7.2% before fees. Since launching the treasury strategy, the company reported earning more than 112,000 SOL in staking rewards. Quarterly revenue rose to $21.4 million from $4.6 million a year earlier, driven mainly by staking income.

Operating costs increased as Forward expanded infrastructure and on-chain activity. Selling, general and administrative expenses climbed to $7.2 million from $2.0 million in the prior-year period. The company ended the quarter with about $25.4 million in cash and reported no institutional debt.

During the quarter Forward launched fwdSOL, a liquid staking token that allows holders to retain liquidity while earning staking yield, and began testing an automated market maker developed with Galaxy and supported by infrastructure from Jump Crypto. Chief Investment Officer Ryan Navi added the initiatives are intended to build an operating platform that increases SOL-per-share over time rather than holding tokens passively.

Chairman Kyle Samani said the quarter was the company’s first full reporting period under its treasury-focused model: “We moved from launching the strategy to actively executing it, demonstrating our ability to operate through market volatility while building the foundation to compound SOL-per-share over time.”

Under U.S. GAAP, digital assets measured at fair value can produce large periodic losses when market prices fall, even as a company continues to generate staking income. Forward said it will continue to expand staking, liquid staking products and validator infrastructure as part of its longer-term strategy to align company value with Solana network growth.