TON Strategy Company Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- TON Strategy Company reported strong Q2 2026 results with total revenue of $15 million, up from $3 million in Q1, driven by higher staking rewards from its Graham holdings.
- Gross profit was $14.3 million or 95% of revenue, compared to $2.8 million or 95% in Q1.
- Operating income from continuing operations was approximately $0.5 million, an improvement from a $3.7 million loss in Q1, despite non-cash charges including a $5.5 million accelerated stock compensation expense and a $2.9 million Kingsway Advisory Agreement write-off.
- Net income from continuing operations before income taxes was $83.5 million, compared to a net loss of $91.3 million in Q1, largely due to an $82.8 million net gain from changes in the fair value of Graham holdings.
- The company ended Q2 with approximately 230.5 million gram tokens, including 229.9 million gram staked, earning 9.4 million gram during the quarter with a 17% annualized staking yield.
- The fair value of digital assets increased to approximately $369.5 million at June 30, 2026, from $272 million at March 31, 2026.
- The company substantially wound down legacy Verb operations during Q2, terminating vendor agreements and reducing expenses, expected to save $4 to $5 million annually.
- TON Strategy terminated its advisory agreement with Kingsway Capital Partners in August 2026 and stopped payments in March 2026.
- The company rebranded its native token from Tonquin to Graham (ticker GRA) following a community vote effective June 8, 2026, restoring the original currency name from Telegram’s white paper.
- Significant technical upgrades to the Tom blockchain in April and June 2026 improved network speed (block times reduced from 2.5 seconds to 400 milliseconds), transaction finality (from 10 seconds to 1 second), throughput (10x increase), and reduced transaction fees sixfold to less than $0.01.
- New APIs and infrastructure improvements enhanced support for staking pools, validator operations, decentralized applications, and data indexing, strengthening Tom’s ability to support payments and AI agent applications within Telegram.
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Transcript
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Good morning, and welcome to TON Strategy Company's second quarter 2026 earnings conference call. Joining us today are Chief Executive Officer, Kevin Wilson, and Chief Financial Officer and Chief Operating Officer, Sarah Olsen. Earlier today, the company filed its quarterly report on Form 10-Q for the quarter ended June 30, 2026, and issued a press release with its financial results. Both are available in the Investors section of the company's website. An accompanying presentation was posted to the Investors section of the company's website before today's call and will be referenced during management's prepared remarks. The press release, quarterly report, presentation, and webcast replay of today's call will be available on the company's website. Following management's prepared remarks, the company will address selected questions submitted in advance by shareholders.
Before we begin, I would like to remind everyone that today's call includes forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to the company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2025, and its quarterly report on Form 10-Q for the quarter ended June 30, 2026, for a discussion of these risks and uncertainties. The company undertakes no obligation to update any forward-looking statements except as required by law. Today's remarks may also refer to non-GAAP financial measures and supplemental measures that are not defined under GAAP. Any required reconciliations and explanations of these measures are included in the earnings release.
With that, I'd like to turn the call over to TON Strategy Company CEO, Kevin Wilson.
Please go ahead. Thank you, operator, and good morning, everyone.
For today's call, I'll begin with an overview of our Q2 operating progress and recent developments across TON. Sarah will then review our financial results and staking performance. I will come back on to discuss our capital allocation framework, our priorities for the second half, and the longer-term opportunity we see developing around TON and Telegram. The second quarter demonstrated the productivity of our Gram treasury at current scale, while we also made important progress in simplifying the rest of the business around that treasury and the TON ecosystem. We ended June with approximately 230.5 million Gram, including approximately 229.9 million Gram deployed in staking. During the quarter, we earned approximately 9.4 million Gram compared to approximately 2.2 million in the first quarter and recognized $15 million of staking revenue.
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