Solana Company made a $105.2 million net profit in the third quarter of 2026. The Nasdaq-listed SOL treasury company, which trades as HSDT, owes almost all of it to the rising price of the SOL it holds. Underneath that sits a smaller business that is starting to work: $3.3 million of staking revenue and a validator operation now holding 1 million SOL of other people's stake.
The Philadelphia company's third-quarter release, published after the market closed on 11 November 2026, shows the swing. Net income of $105.2 million, or $1.17 per diluted share, compares with a $30.3 million net loss in the second quarter and a $352.8 million loss a year earlier. Of that profit, $102.7 million is an unrealised gain on digital assets, the line where a rise in SOL's price shows up before anything is sold.
SOL's 60% rise drove HSDT's $105.2M third-quarter profit
Solana Company's profit is a mark-to-market result: SOL rose sharply in the quarter, and the company holds about 2.4 million of it. Cosmo Jiang, a Pantera Capital general partner who sits on Solana Company's board, told the earnings call that "SOL rose approximately 60% during the third quarter from roughly $74 to roughly $118."
At 30 September the company held about 2.4 million SOL across liquid, staked and receivable positions, with a fair value of about $288.2 million, according to the release. Total assets were $292.6 million against $19.1 million of liabilities. Cash was $1.1 million; nearly everything else is SOL or a claim on SOL.
The same accounting cuts the other way. For the first nine months of 2026, after SOL fell in each of the first two quarters as Jiang noted on the call, Solana Company still shows a net loss of $24.9 million, according to the release's income statement.
HSDT's staking business: $3.3M revenue and a 5.9% yield
The operating business is staking. Revenue was $3.4 million in the quarter, of which $3.3 million came from staking and $23,000 from everything else, up from $697,000 a year earlier. The company earned about 30,800 SOL in rewards and restaked all of it, according to the release.
After a $0.6 million cost of revenue, gross profit was $2.7 million, an 82% margin. General and administrative costs fell to $3.4 million, so staking revenue now roughly matches overheads.
Those costs were $11.1 million in the second quarter, which carried $6.8 million of severance from selling the legacy PoNS business, according to the company's second-quarter release. Chief financial officer Agustina Tjandrasuwita told the call that costs "would probably normalize between what our current rate is and what our historic rate, something in between."
The headline yield claim is that the treasury earned an average net 5.9% a year, against a network average of about 4.9%. Jiang split the 5.9% on the call: "roughly 5.1% was inflationary rewards or emissions, roughly 50 basis points for a block rewards and roughly 20 basis points were MEV."
How Solana Company beats the network staking yield
The 50 basis points of block rewards is the part a normal staker does not get. On Solana, the fees paid to include transactions in a block go to the validator that produced it. A proposal to pay part of those fees to stakers passed a governance vote in 2025 but has not been switched on. Until it is, delegators only see block fees if their validator agrees to share them.
Jiang's explanation points the same way. Asked about the 100 basis points, he pointed to validator selection, saying "there are certain customizations that we can agree to with our validators to get to these higher yields." A holder with 2.4 million SOL to place can negotiate terms that an individual delegator cannot.
The gap has widened since the spring. The company's Q3 slides put its second-quarter outperformance at 46 basis points, according to Investing.com's summary of the deck, and part of the change is a lower network average to measure against.
Our own data shows that fall. The average staker's realised yield after commission, measured from how stake accounts actually grew, slipped from about 5.6% at the end of June to about 5.0% at the end of September. It was 4.93% in the epoch that began on 10 November.
The average Solana staker's realised yield fell from about 5.8% in early May to about 5.0% by the end of September, then held just under 5% into November.
View on Solana Compass →The figures are the simple mean across validators, sampled at the start of the epoch nearest each date. For a sense of what a typical delegator earns now, our live yield and validator dashboard tracks the rate epoch by epoch.
Pacific Backbone validators reach 1 million SOL of third-party stake
Pacific Backbone, the validator operation Solana Company built in Tokyo in the second quarter, had about 1.3 million SOL delegated at 30 September, of which 1.0 million SOL came from third parties, according to the release. We covered the Tokyo launch in our report on HSDT's Q2 results.
By our count, that is about 0.3% of the roughly 435 million SOL actively staked across 698 operators with active stake at epoch 1084, which began on 11 November.
Chief executive Joseph Chee called it "a milestone quarter" in the release, saying "institutions entrusted us with a million SOL of third-party stake, and that confidence is already flowing through to our revenue."
On the call, Chee said external delegation "only started like very late July" and "went up a lot quicker than we thought." He also set expectations lower for the next quarter: "the kind of growth rate we're seeing in this third-party...is probably going to slow down a bit in the fourth quarter." The company's slides put total stake at about 1.5 million SOL by 3 November, according to the Investing.com summary.
Third-party stake matters because it earns the company commission on SOL it does not own. A treasury's staking income rises only when it buys more SOL; a validator's income rises when others delegate to it.
Buying back shares below NAV, issuing above it
Solana Company both bought back and issued shares in the quarter. It repurchased about 1.4 million shares for $2.8 million, bringing buybacks for the year to about $8.7 million, according to the release. Jiang told the call those shares were bought "at a discount to NAV," at an average of $1.96 each.
On 30 September it then priced a registered direct offering of about $15 million at $3.433 a share, a 5% premium to net asset value per share, and used the money to buy about 125,000 SOL. Selling shares for more than the SOL behind them, and buying them back for less, both raise the SOL held per share. The release puts that figure at 0.0274 SOL per diluted share.
How HSDT compares with Forward Industries and SOL Strategies
Among listed Solana treasury companies reporting this week, HSDT is mid-sized. Forward Industries held 8,501,298 SOL at 30 September and 8,727,694 SOL by 9 November, according to its mid-quarter update, the same release in which it took a $50 million bank credit facility backed by staked SOL.
SOL Strategies runs a smaller treasury of about 465,000 SOL but has about 3.56 million SOL delegated to its validators, according to its preliminary fiscal fourth-quarter release. About C$3.4 million of its C$4.0 million revenue came from Houdini Swap fees, as we reported in our SOL Strategies results coverage.
That makes HSDT the one of the three whose revenue is almost entirely staking. Its 1.0 million SOL of third-party stake is under a third of the 3.56 million SOL delegated to SOL Strategies' validators, but it arrived in roughly two months.
What to watch at Solana Company next quarter
The fourth-quarter numbers will show whether third-party stake keeps growing after Chee's expected slowdown, and how much commission it brings in. Chee's release quote names the company's new Hong Kong headquarters as its base for bringing Asian financial institutions onto Solana.
MEV, the tips traders pay to get transactions ordered, much of it through Jito JTO$0.318-5.1%'s block engine, added only about 20 basis points this quarter by Jiang's count. With SOL's price moving the profit line by tens of millions of dollars a quarter, the staking revenue line is where growth in the operating business will show.
