Forward Industries, Inc. Common Stock 2026 Q3 Earnings Call

Please go ahead. Thank you, operator, and good afternoon, everyone.

Welcome to Forward Industries' earnings call for our fiscal third quarter, which ended June 30, 2026. Joining me on today's call are Kyle Samani, our Chairman; Ryan Navi, our Chief Investment Officer; and Mark Brazier, our Chief Financial Officer. Earlier this afternoon, we issued a press release announcing our financial and operating results for the quarter. That release, along with the presentation accompanying today's remarks, is available on the investor relations section of our website at www.forwardindustries.com. Before we begin, I need to remind everyone that certain statements made on today's call are forward-looking statements within the meaning of the federal securities laws. These statements include, among other things, statements regarding our Solana treasury strategy, our expectations for Loss per share growth, our expected returns on certain investments, our capital allocation plans, pending or potential acquisitions, and regulatory developments.

Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied on this call. We describe these risks in our filings with the Securities and Exchange Commission, including our most recent Form 10-K and subsequent Form 10-Q filings. We undertake no obligation to update any forward-looking statement except as required by law. In addition, during today's call, we will refer to certain operating metrics, including SOL holdings, Loss per share, and MNAV. These are operational measures we use to describe our treasury strategy. They are not prepared in accordance with US GAAP, and they should be considered alongside, not as substitutes for, our GAAP financial results. Definitions and methodology for these metrics are included on our website. With that, I'll turn the call over to our Chairman, Kyle Samani.

Kyle? Thank you, Georgia, and thank you to everyone joining us this afternoon.

This was our third full quarter executing the Solana treasury strategy we launched last September, and I want to open with the numbers that matter most to how we run this company. As of June 30th, we held approximately 7.6 million SOL tokens and SOL equivalents. SOL per share on a fully diluted basis was 0.0730, which is up from 0.0669 at March 31st, which translates to an annualized growth rate of approximately 36%. That momentum has continued into the current quarter. As of August 3rd, we hold approximately 7.8 million SOL tokens, having added approximately another 254,000 SOL tokens just over a month ago at an average SOL cost of approximately $75 per token, bringing our SOL per share to 0.0754.

Every decision we make is in service of growing SOL per share on a risk-adjusted basis, and this quarter, our team continued to deliver on that promise for our shareholders. That growth has come alongside real scale. As the world's largest Solana treasury strategy, Forward reached an important milestone this quarter. Effective June 29, Forward was added to the Russell 2000 and Russell 3000 indices as part of their semi-annual reconstitutions. Index inclusion reinforces the growing institutional recognition of our strategy, scale, and execution. We believe it will broaden our shareholder base, improve trading liquidity, and increase our visibility amongst both institutional investors who track these benchmarks directly, as well as retail investors who allocate to the Russell indices as passive investments. Forward's inclusion is a testament to what our team has built and to the scale this company has reached in a short period of time.

It's been a busy quarter for the Solana ecosystem as well, which has continued to demonstrate not only resiliency, but accelerated growth as the ecosystem of choice for institutions, corporations, and individual users. In calendar Q2, Solana had one of the most active stretches in its history. The network processed 3.8 billion transactions in June alone. Monthly token holder addresses reached an all-time high of 167 million in April, and tokenized real-world assets on the network crossed $2.5 billion. Earlier this year, the Solana Foundation reported that SOL-denominated value locked on the network crossed 80 million SOL for the first time. On economic activity, applications on Solana generated approximately $257 million in application revenue in the June quarter alone, according to DefiLlama. That made it the ninth consecutive quarter that Solana applications outearned those on every other blockchain, representing roughly 40% of application revenue across all of Web3 and crypto.

In May alone, Solana applications earned more than those on Ethereum and Hyperliquid combined. Real users paying real fees to real businesses is the signal we care about, and no other network comes close. Solana's tremendous growth and notable achievements this quarter continue to reinforce our conviction and validate our company's decision to build a Solana treasury strategy and to be an active participant in driving the ecosystem forward. Solana's network infrastructure also keeps getting faster and more resilient. Firedancer, which is the independent validator entity client that Jump Crypto launched on Mainnet last December, continues to gain adoption across the validator set. The upcoming Alpenglow consensus upgrade unlocks meaningful, faster finality. We recognize that digital asset markets have remained soft.

As a company with a permanent capital base and a long-term view on the Solana ecosystem, we view quarters like this as an incredible opportunity to continue doubling down on our conviction in Solana as the fundamentals continue to improve and accelerate. Against that backdrop, Forward's position inside the ecosystem keeps compounding. Forward accumulated approximately 508,000 SOL tokens during the quarter, increasing our total SOL held from 7 million to 7.6 million, while growing SOL per share from 0.0669 to 0.0730. We continue to stake almost all of our SOL holdings to Forward Validator, which continues to be a top 10 validator with approximately 1.8% of network stake weight. Part of our strategy is to selectively allocate capital to high-conviction opportunities that extend beyond our core SOL holdings, investments that generate durable, uncorrelated returns while deepening our position in the Solana ecosystem.

During the quarter, we put that strategy to work for the first time by taking a minority stake in OnRe, a Solana-based reinsurance platform, and becoming a liquidity provider in OnRe's RWA token called ONYC, an initiative which Ryan will cover in more detail here shortly. Looking ahead, Forward is incredibly well-positioned with access to industry-leading cost of capital, a strong balance sheet, and minimal debt. As some of you may have seen with our M&A activity this last quarter, Forward already has begun to leverage our advantageous position, and we expect to continue aggressively pursuing the opportunities that we have in this current market to drive long-term shareholder value. Ryan and Mark will now take you through more details on how we executed in the quarter.

Ryan? Thanks, Kyle, and good afternoon, everyone.

Starting with the treasury. As of August 3, 2026, Forward held approximately 7.8 million Solana, which equates to roughly 1.3% of total Solana circulating supply. This compares to 7.6 million SOL as of June 30 and 7.0 million as of March 31. The sequential increase came from roughly 403,000 SOL acquired through open market purchases and 106,000 SOL and SOL equivalents earned through staking rewards during the quarter. Staking is the foundation of our treasury. We stake nearly all of our Solana to generate a consistent compounding source of SOL denominated yield on top of our holdings. Cumulative staking rewards since we launched the strategy in September 2025 now total approximately 307,000 SOL.

As of quarter end, the vast majority of our SOL continues to be staked to the Forward Validator, which gives us the ability to borrow against the position without interrupting staking rewards and continues to generate positive carry under the terms of our agreements with our institutional lending partners. As of June 30, 2026, our fully diluted NAV was 0.908. This is based on a SOL closing price of $73.53, a fully diluted share count of 103,525,881, and a closing price of $4.22 for FWDI stock. Forward increased its SOL holdings by over 500,000 in Q3 at an average cost of approximately $79 per SOL token, highlighting our team's continued focus on growing our Solana treasury. That focus has not slowed in the current quarter.