Earnings

Next Technology Turns to Profit on Bitcoin Fair-Value Gain

The Tip Desk · November 11, 2026 · 3 min read

The software and Bitcoin holder booked $103.3 million of net income in the three months ended September 30, 2026, after $136.5 million of other income from an unrealized Bitcoin gain.

Next Technology Holding Inc. (NXTT), a Wyoming software developer that also holds Bitcoin, reported net income of $103.3 million for the three months ended September 30, 2026, reversing a $16.9 million net loss a year earlier. The swing was driven by $136.5 million of other income from an unrealized gain on Bitcoin, compared with $34.7 million of other income in the year-ago quarter.

The Bitcoin fair-value result also reversed the company’s sequential trajectory. Other expenses were $164.6 million for the six months ended June 30, 2026 and $126.5 million for the three months ended March 31, 2026. The company said fluctuations in Bitcoin prices materially affect reported results and that it expects that volatility to continue. Fair-value changes are non-cash until realized through sale.

Service revenue was $8.7 million in the September quarter, up 384% from $1.8 million a year earlier. The company said the increase was primarily attributable to the completion of two of four 2026 projects during the third quarter, which recognized a substantial portion of related contract revenue, together with higher contract values. Projects in the comparable 2025 period had a relatively low percentage of completion, which limited revenue then. Earlier in 2026, service revenue was $0.47 million for the three months ended March 31 and $1.3 million for the six months ended June 30.

Cost of revenue rose to $6.1 million from $1.0 million a year earlier, which the company attributed to costs on the projects completed in the third quarter, including external vendors, outsourced development resources and higher personnel expenses. Gross profit was $2.5 million. Gross margin was 29.3%, down from 45.1% a year earlier. The company said gross margin may fluctuate with the mix of software, hardware and services.

Loss from operations was $5.4 million, versus $44.3 million a year earlier. General and administrative expenses were $4.4 million, down 90% from $44.9 million, as a $42.8 million one-time share-based grant tied to the 2025 Bitcoin acquisition that had been recognized in the third quarter of 2025 did not recur. Research and development expenses were $1.2 million, versus nil a year earlier. Selling and marketing expenses were $2.4 million, versus $0.3 million.

Income tax expenses were $27.8 million, versus $7.3 million a year earlier. The company said the year-over-year change primarily reflected deferred income tax expenses associated with the unrealized Bitcoin gain.

Cash and cash equivalents were $163.9 million as of September 30, 2026, versus $159.0 million as of June 30, 2026. Digital assets were carried at a fair value of $488.0 million, versus $351.5 million at June 30. Total assets were $654.3 million and stockholders’ equity was $596.5 million. Contract liability of $2.9 million appeared versus none at December 31, 2025. Deferred tax liabilities were $51.9 million.

The company said it adjusted its Bitcoin strategy to focus on managing existing holdings to reduce risk and enhance liquidity, including through the sale or pledge of Bitcoin from time to time in one or more tranches, and that it does not currently expect to purchase additional Bitcoin. Prior quarterly language had said it expected to continue to accumulate Bitcoin. It said it had not sold or pledged any Bitcoin as of the report date and had not set a target for the amount it seeks to hold.