Streamex Corp. (STEX) Earnings Call Transcript & Summary

Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the StreamX Q2 2026 Business and Quarterly Update Call. [Operator Instructions] I would now like to turn the call over to Adele Carey, Senior Vice President of Alliance Advisors IR. Please go ahead.

Great. Thank you so much, Jordan, and good afternoon, everyone. Welcome to StreamX Corp's second quarter 2026 earnings and corporate update call. I'm joined today by Henry McPhee, Co-Founder and Chief Executive Officer, and Christine Plummer, Chief Financial Officer. Before we begin, I'd like to remind everyone that today's call will contain forward-looking statements based on our current expectations and assumptions. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed today. Please refer to the cautionary language on slides 2 and 3 of today's presentation, as well as risk factors detailed in our most recent filing, Form 10-K and Form 10-Q, filed with the SEC. The team will also reference certain non-GAAP financial measures during this call. Reconciliations to the most directly comparable GAAP measures are available in our filings in the appendix to today's deck. And now I'm more than happy to turn the call over to Henry McPhee.

Thanks, Adele. And thank you everyone for joining us. I'm super excited to be able to get into it. In the first quarter, we proved the product. In the second quarter, we built the distribution around it. 5 partnerships that between them give an institution a way in, a way to verify what they own, a way to custody it, and a way out. What has not yet followed is scale and assets. GLDY assets outstanding were broadly unchanged in the second quarter. And I'm going to spend real time today on why, what we're seeing from the market, and why we think the next phase looks very different from this 1. I'm also going to spend some time introducing GLDC because it's the most commercially significant thing that we have built. It opens up the product to everyone and adds an entirely new revenue line for the company. Before we start, I would ask you to review our disclosures, which are on the screen and in our filings. As stated by Adele, today's presentation and our remarks contain forward-looking statements. Again, please review our disclosures here. Past performance is not indicative of future results and any comparisons given throughout the presentation are there to explain the difference in structure, not to project a return. Okay. Now, getting into it. Here's the shape of the call. Christine will start by taking you through the second quarter results. The balance sheet, the liquidity, cash runway, and capital structure. Then I will come back in and cover 4 things. What we built this quarter, where GLDY stands and how insurmountable it is, how institutional adoption happens in this category, GLDC and what it means for our revenue, and the market that we're building into. I will finish this with the specific things to hold us to over the next 90 days, and then we'll take questions. We collected questions submitted ahead of this call. Most of them are answered inside these sections, but we'll also be taking live questions during the Q&A period at the end. So 60 seconds of context before we get started, because some people are new to the story and because we still routinely are misfiled on some sites. First, StreamX is a financial technology company. We built and we operate a tokenization platform for commodity capital markets, and we are the issuer of the assets on it, which means the economics stay with us rather than being paid away to a third-party platform. We built the legal structure, the ecosystem, and the independent attestation framework before we scaled, not after. We are not a cryptocurrency company. We are not a gold ETF. GLDY is a tokenized security with a yield mechanism. We are not a mining or royalty company. We take no exploration or resource risk, and we are not a single product story. Gold is the first commercial proof of a platform designed to be repeated. We are NASDAQ listed with no debt, $41.8 million of total liquidity at June 30th, a product live and selling since February. And a note on the last line on the left of this page, this is a recurring revenue platform. Revenue scales with asset growth and with trading volume. With that, over to you, Christine.

Thank you, Henry, and good afternoon, everyone. I will start with the headlines on this page, then take you through the detail. I'll spend most of my time on liquidity because that is where the questions were. 4 things on this page. We recognized our first income, $0.1 million of gold lease income, the first income earned under the tokenized gold platform. Operating expenses came down by $20.4 million, or 57.1%, against the first quarter. Net loss came down by $32.2 million, or 69% on the same basis. The balance sheet stayed strong, debt-free, a $41.8 million liquidity position, $32.8 million of working capital, and a net decrease in cash of $14.7 million across the first half. Just 1 note on the period comparison, because it runs through this whole section. We are comparing the second quarter with the first quarter of 2026, not with the prior year quarter. We acquired StreamX Exchange Corporation on the 28th of May in 2025. So the prior year periods contain only about 1 month of the acquired business and do not give a meaningful basis for comparison. The prior year comparatives are in the Form 10-Q for anyone who wants them. So moving on to the right of the page, the operating markers. GLDY assets under management of 3,111 ounces as of the 30th of June. External ownership of GLDY up to 9%, 27.3 ounces of dividends earned, with 19.4 ounces paid in the quarter. Our first attestation completed. The partnership ecosystem live across custody, distribution, liquidity, secondary markets, and derivatives. And GLDC expected to launch in the second half. In the second quarter, we recognized $146,000 of gold lease income. That is the first income in the company's history. I want to be precise rather than promotional about it. Approximately $12,000 relates to first quarter income recognized in the second quarter as an immaterial correction. So income earned in the quarter itself was approximately $134,000. It is a small number, but what matters is that the mechanism is proven and repeatable. Loss from operations was $15.2 million in the second quarter against $35.7 million in the first. Operating expenses came down by $20.4 million or 57.1%, driven principally by a lower stock-based compensation charge and lower consulting and platform development costs. Net loss for the quarter was $14.6 million against $46.7 million in the first quarter. A reduction of $32.2 million or 69%. Loss per share was $0.08. For the 6 months, net loss was $61.2 million, and the net decrease in cash was $14.7 million. And I want to be clear about what is inside that loss, because at face value, it could be misleading. It includes $32.5 million of non-cash stock-based compensation, approximately $12 million of non-cash interest, and a $3.1 million loss on extinguishment. The last 2 both relating to the convertible debentures we settled in February, and neither of which will recur. The cash cost of running this business is materially lower than the loss line suggests, and that is the bridge into the pages that follow. The balance sheet is the reason we can focus on growth rather than financing. Total assets of $159.6 million as of June 30th against $173.3 million as of 31st of March. Liabilities of $12.4 million down from $14 million. Total stockholders' equity of $147.1 million, working capital of $32.8 million, and no debt at either date. What moved during the quarter was deliberate. We reduced marketable securities by $10.9 million and redeployed that capital. $6 million to USDC, $5 million of which is expected to be dispersed as the loan to Wintermute. We also funded a $2 million subscription for 2,000 non-voting shares of MetaLayer Digital Fund 1. We recorded a gold-denominated receivable for in-kind lease yield and contractual revenue share earned in the second quarter but not settled in it. We entered into a non-cancellable operating lease for office space in Winter Park, Florida, which is what brings the right of use asset and the lease liability onto the page. The objective behind all of that is on the page, and it is straightforward. De-risk the balance sheet, fund growth, and reposition capital towards tokenized commodity infrastructure and the digital asset ecosystem. A number of shareholders asked us to be concrete about liquidity. So I'm going to give you 2 numbers, rather than 1, and tell you why they are different. Our total liquidity position at June 30th was $41.8 million, cash and marketable securities of $18.5 million, digital assets of $6 million, physical gold carried at cost of $15.5 million, and our MetaLayer investment at $1.8 million. Of that, approximately $19.5 million is immediately available today. The difference is 3 specific disclosed items, and I'd rather you hear them from me than derive them from the filings. $5 million of our digital assets is on loan to Wintermute. It is contractually returnable, but not until 365 days after the first day of GLDY trading, which was on May 27, 2026. So we do not treat it as available. Our MetaLayer investment is subject to a lockup. The earliest redemption date available to us is 30th of September, 2026. The physical gold is inventory backing the GLDY reserve. It is a real asset and it is monetizable, but selling it is a capital decision rather than a cash balance. Alongside that, we have working capital of $32.8 million, total equity of $147.1 million, and no debt of any kind. We retired $38 million of convertible notes in February, and all related security interest and liens were released. Now, moving on to the question that was actually asked, how many years? Our operating cash burn in the second quarter was approximately $1.6 million a month. Within that, we can identify roughly half a million dollars a month of items we do not expect to repeat, accounting and other consulting services, one-time personal costs, and a marketing program that has now run its course. Stripping those out gives us an expected run rate of approximately $1.1 million a month going into the third quarter. At that run rate, our immediately available funds alone cover approximately 18 months. The total liquidity position covers approximately 3 years, and it is important to note that this is assuming no revenue, which, as you can see, we've begun to generate as of this quarter. So to answer directly, it is years, not months, with no debt and before any of the additional levers available to us. Those levers, none of which are assumed in the figures I've just given, the MetaLayer redemption becomes available at the end of September. We have a stated capital strategy of monetizing portions of the company's GLDY holdings, which we executed on during the first half. And we have engaged an advisor to evaluate strategic alternatives for the pure IP patent portfolio where we have not received a definitive offer and therefore assume nothing. 1 thing that is not on the slide, we are not managing this business toward the end of a runway. We are managing it toward a fee base, and the operating leverage is genuine. The cost base is largely fixed and built, and the fee streams scale with assets and with turnover. I would now like to address the items on this page. First the share counts, which are presented as of June 30th. 112 million of common shares outstanding, 69 million of exchangeable shares that convert 1-for-1, and 182 million fully diluted including the exchangeables. There are also 3 items we have been asked about. Share repurchases. On July 1st, the board authorized the repurchase up to 10 million shares at a price not exceeding $2. No shares have been repurchased to date. Timing and execution remain at the Board's discretion and are subject to the trading restrictions that apply to us. I'm not going to signal our intentions beyond confirming the authorization is live and the board is actively engaged with it. Internal controls. The material weaknesses disclosed in our 2025 annual report were not remediated as of the 30th of June. And accordingly, we concluded our disclosure controls and procedures were not effective as of that date. To be clear about what that does and does not mean. This did not result in any identified misstatement and there were no changes to previously released results. Remediation is underway. They will not be considered fully remediated until the controls have operated for a sufficient period and we have tested them. I expect to report progress each quarter until they are closed. Our auditor, effective [ July 1 ], the audit committee appointed EisnerAmper, succeeding CBIZ. There were no disagreements on any matter of accounting principles, financial statement disclosure, or auditing scope or procedure. With that, I will hand back to Henry.

Thanks, Christine. So let me start with what we actually did this quarter. 5 partnerships and initiatives done since May. And I would ask you to look at them in sequence rather than a list, because each 1 removes a specific reason a potential GLDY investor could not participate. On May 27th, Orca, a 24/7 decentralized exchange venue for tokenized securities, with GLDY as the inaugural asset. Compliance enforced automatically at the venue level and a revenue share stream back to StreamX. That is trading infrastructure. On the 29th of June, [ Seabird Financial ] and tZERO, brokers can now offer GLDY to their clients for trading on an SEC-registered ATS across approximately $20 billion of network assets. This is the first traditional brokerage channel into the product. On the 1st of July, our independent reserve attestation from EisnerAmper occurred, with monthly attestations continuing and an annual audit, this was the single most requested item in institutional due diligence. And it's now on track to grow every month. On the 21st of July, Inspira Financial, qualified custody for GLDY so RIAs and wealth managers can hold the asset inside of frameworks that they already operate in. $63 billion and more than 8 million accounts within Inspira. On the 23rd of July, Wintermute, instant liquidity, 24 hours a day, 365 days a year with roughly $12 million of seed liquidity across institutional grade venues and settlement moved from T+2 to T+0. We have the venue, then the brokerage, then verification, custody, liquidity. That is a complete institutional stack. And 6 months ago, we had none of it. This is what it adds up to. The strategy here is leverage. We're not trying to acquire investors 1 at a time. We are enabling brokerages, custodians, and retirement platforms to offer our assets to their own clients, which takes the addressable opportunity from thousands of investors to millions without us having to reach any of them directly. Everything on this page is live except Equity Trust, which covers U.S. tax-advantaged retirement accounts and is in progress. There's more than 359,000 accounts and over $72 billion worth of capital. That is a very large pool of gold-allocating capital, and it's still a major channel that is open. With that, I want to address something directly, because I think it's the most misunderstood part of our story. There's a perception that buying GLDY requires an investor to have a view on tokenization. That is not the case. It does not. And increasingly, it does not require them to interact with the technology at all. First, through their broker or advisor, an advisor can allocate to GLDY the same way that they would allocate to anything else, through [ Seabird ] reported in the statements their client already receives. The token is an implementation detail they never have to touch. Second, exposure through swap structures that now gain exposure without holding the token directly removes an operational objection that has gated the largest pools of gold capital. The allocator gets the full economics without having to onboard a new instrument at all. This is especially important for ETFs and hedge funds and is now available. And third, a path that is purely quantitative, the carry. Funds looking for a spread between GLDY and the gold futures funding are buying a return, not a thesis. They do not need a view on tokenized gold as a category at all, which is exactly what makes that useful entry point for us right now. The trade itself gets superpowered by GLDY, adding a 3.5% yield to the long leg of the trade and makes it better than anything before. I wrote an article on this that can be found in my X if you want more information on the trade idea. We are in active discussions for allocation across all 3 of those paths, and the product allocator actually buys is straightforward. A gold that pays them a yield. Held by a custodian they already trust, tradable around the clock. Everything else is our problem, not theirs. Which brings me to something that we've been investing in pretty heavily and not talked about enough. Corey Handy joined us in May as VP of Product and Design. He had 18 years designing fintechs and payment products at PayPal, Microsoft, and DraftKings, and he was the founder and CEO of Kepler Savings. He is rebuilding the StreamX experience from end to end. And I want to explain why that is a priority rather than a polish item. Every additional step between interest and a funded account is a place where an investor stops. For a first-of-its-kind product, that friction compounds because the buyer is already doing something unfamiliar. Reducing it is 1 of the highest return uses of engineering time that we have. So Corey has rebuilt the account opening and accreditation flow with fewer steps between arriving and being verified. He simplified the funding paths, added functionality for instant liquidity to allow investors to get in and out of the asset at any time. He's built a clear view of what you own, what it's worth, distribution you've received in ounces and in dollars. And he is building purpose-built flows for advisors and custodians who have entirely different requirements from a direct investor. The distribution is built, the experience is what converts it. Now into the GLDY update. On performance, the product has done everything that we set it with. The net asset value has tracked the gold price 1-to-1 exactly as designed since launch. We have paid 4 yield distributions, every 1 on schedule, and more than 27 ounces distributed to holders in total. And we paid them in gold. The yield is funded by gold leasing and we have independent attestations by EisnerAmper every month with an annual audit. On assets, we ended the quarter with 3,111 ounces behind GLDY and 3,096 at the end of March, broadly unchanged. I've given you that in ounces deliberately, you will get an ounce count every quarter from here whichever way it moves. Here is the important point and the 1 that I want you to take away. The product is not the constraint. GLDY does everything that we said it would and we believe it remains the best gold asset available anywhere. It is the only 1 that pays its holders and the work this quarter was clearing what stands between it and institutional capital. So let me tell you what we've learned about how the capital actually arrives. Institutional allocation to a new asset class does not arrive on a slope. It arrives in steps. Look at what this category actually looks like. Comparable yield-bearing tokenized products, real products run by serious institutions have $688 million and $2.25 billion of assets with 56 and 101 holders respectively. The largest tokenized treasury fund in the world, run by the largest asset manager in the world, has roughly 115 holders. These are products where a very small number of investors move billions of dollars. This is how the market works right now, and it's worth understanding before drawing conclusions from a holder count or quarterly change. There's 3 things that follow from that. First, Wall Street rewards a fast follower. Allocators are not paid to be the first into the new structure. They are paid to be early into a proven 1. That's rational institutional behavior and not a verdict on the asset. Second, our partners are telling us the same thing. The consistent message that we get back from our brokerage and custody partners, including through the [ Seabird ] network, is the signal their clients are waiting for. Third, and this is the part that matters, we have spent 2 quarters removing every reason to wait. Custody, attestation, brokerage access, qualified custody, 24/7 liquidity. Those are precisely the things that an allocator points to when they justify going first and they are now in place. So with all that being said, we expect the first institutional allocation to be an inflection. And as this page says, we expect that in the third quarter. In a market that's concentrated, the second and third orders follow much faster than the first, and we are positioned for that. Now, into the gate scoreboard. So, here is the list. Every gate that sits between an announced partnership and funded assets, and exactly where we stand against it. The legal wrapper, physical custody, institutional digital custody, independent attestation, and secondary liquidity are complete. Brokerage access is live through [ Seabird ] and tZERO. Qualified custody for RIAs and wealth managers is live through Inspira. 3 rows are not marked complete. The U.S. retirement accounts for Equity Trust is in process. Our attestation track record is continuing to build and accrues 1 month at a time. And the accreditation barrier, which is Rule 506(c), excluding most investors from buying, is removed by GLDC. We are also going to republish the scoreboard with every status change at each quarterly update, adding more lines as additional partnerships and integrations go live. Importantly, this lets you measure us against the work done. Now into something that I am especially excited about, GLDC. This is truly the most commercially significant thing that we are building right now. Each GLDC is backed 1-to-1 by GLDY or other gold assets, which are backed 1-to-1 by physical gold. It is permissionless, meaning anyone, anywhere, with no minimum, no creation fees, no redemption or transfer fees, and it's issued by an independent, Auriferous Foundation. StreamX acts as the servicer to the foundation, is not a self-issuer. We carry monthly attestations through EisnerAmper with GLDY and an annual audit and proof of reserve oracle. There's 3 reasons why this matters. It is 1 reserve. Every GLDC minted requires a GLDY to be minted behind it. So GLDC assets are GLDY assets. This is not a second product competing with the first. Growth in GLDC is growth in the exact number that you have been watching. It opens the product beyond accredited investors, which is the single largest constraint on our buyer base today, and the reserve behind it is productive. Because that reserve is GLDY, it accrues 3.5% through gold leasing. PAX and Tether Gold sit on idle bullion. Structurally, they have nothing to be able to fund an ecosystem with. We do, and that changes what we can build on it. A full on-chain ecosystem with borrow-lend markets and deep liquidity. This is the most important part that I want shareholders to understand because it is an entirely new revenue line for this company and it's not in anyone's model. Walk through with me. First, someone buys GLDC and capital comes in. A GLDY is then minted behind it, backed 1-to-1 by physical gold. Because the reserve is GLDY, that reserve is productive. It earns 3.5% through gold leasing. And StreamX benefits because GLDC assets drive GLDY assets, which is our base as our own fee streams are earned on. The reserve income itself accrues to the foundation and pays StreamX its servicing fee and funds the incentives that build out the ecosystem. Look at what that means at scale. A 3.5% reserve rate, $100 million of GLDC is roughly $3.5 million in annual reserve income. $250 million is $8.8 million, $500 million is $17.5 million, and $1 billion is $35 million. Those figures are obviously illustrative and they're not guidance, but are gross of costs, before any amounts are applied to holder incentives or ecosystem programs. But the shape is the point. That model, if it sounds familiar, it should. A stablecoin issuer earns the yield of the reserves that are backing this token and holders are not paid for it. The reserve income is overwhelmingly the majority of a company like Circle's revenue, and it scales with supply at close to zero marginal cost. This is that model with gold in the place of treasuries. And through the servicing agreement with the foundation, service fees accrue on top of the 3 fee streams that we already earn on every GLDY token issued. The tokenization fee, the annual lease rate fee, and the transfer fee. It does not replace them, it is additive. Here's how the 3 sort of sit against 1 another. GLDC is the only gold token built on a productive reserve. GLDY is the only 1 paying a yield to holders. We are the only ones with a permissionless gold token backed by a yield-bearing 1, and the only ones with no fee to enter or exit on GLDC. And now the bottom row, the incumbents have between 39,000 and 82,000 holders and billions in assets. They're much bigger than us today. But look at what they are. Tens of thousands of holders and they pay nothing. Nobody has a yield-bearing gold token and a permissionless 1. That gap is the entire opportunity. 2 products together are exactly what we built to be able to close it. Now briefly on silver, because several people asked. So in May, we guided to a silver launch in the third quarter. We've moved it to 2027. It was a capital allocation decision. The highest return use of our engineering capacity and our balance sheet right now is depth on gold, GLDC and the on-chain functionality around it, not breadth across metals. And the reason why we can make that choice cheaply is the thing that we've been building all along. The legal wrapper, the custody, the attestation process, and the venue all exist and are proven. Launching silver is now a launch decision rather than a build project, weeks of work rather than quarters. That optionality is exactly what the platform was designed for. Silver is sequenced. The last line on the page is an honest summary of why gold and GLDC have more upside per dollar of effort, and we would rather be the definitive product on 1 commodity than an early entrant in 2. Now, getting into the end, I want to step back for a couple of minutes. Because the size of what we're building into is why we're doing this at all. Tokenized real-world assets on-chain now stand at roughly $38 billion, excluding stablecoins, up from $11.8 billion just 2 years ago. With holders past 1.7 million. BCG and ADDX put out tokenized illiquid assets at around $16 trillion by 2030, roughly 10% of global GDP. And this is no longer a category that needs defending. BlackRock, Franklin Templeton, Apollo, WisdomTree, they all have live tokenization programs. J.P. Morgan has tokenized deposits and collateral settlements in production through Kinexys. DTCC is piloting tokenized settlements across Russell 1000 equities, Index ETFs, and treasuries with more than 50 firms. The New York Stock Exchange has announced 24/7 tokenized security venue, and the NASDAQ has filed to list tokenized equities. The largest institutions in finance have decided that this is where the markets are going. Now, point that at commodities. [ Statista ] puts the nominal value of global commodities market at approximately $146 trillion in 2026. Inside that, gold alone is roughly $32 trillion, $11 trillion of which is financial gold and $560 billion sits in gold ETFs earning nothing at all for the people who own it, actually costing them. This is 1 commodity. Commodity markets are among the largest assets on earth and the least modernized part of finance. They still run on paper, ledgers, and trust intermediaries, and we are simply not wrapping them. We are making them better than what exists today. Physical gold and gold ETFs are non-earning assets that settle slowly and trade on a schedule. Ours pays a yield, trades around the clock, and settles instantly. Every asset we bring onto these rails inherits those properties, and we will earn 3 fee streams on each 1 for the life of every token issued. Whoever owns the rails when commodity markets move on-chain owns the economics of that migration for decades. That is the company that we are building. Gold is the first proof of it, not the whole of it. So here's what to hold us to over the next 90 days. First, convert the first institutional allocations into GLDY. That is the priority above anything else and is what turns a proven product into a growing 1. Second, onboard our first institutional partners with names on the register, not just in the distribution list. Third, launch initial liquidity bootstrapping for GLDC in the third quarter. The founding holder base built before the token exists. GLDC will be launched once the initial liquidity bootstrapping is complete, then complete the Equity Trust IRA integration and keep attesting and keep distributing monthly yield without interruptions. A word on what initial liquidity bootstrapping is, because the mechanism matters. This is the first step onto GLDC and a way for us to secure additional capital for GLDC so that there is a robust market at launch. Think of it like a waitlist where investors can subscribe to buy GLDC on launch and get incentives to be early. Overall, the multi-year opportunity is in front of this company and is real. The way we earn right into it is the next 90 days. With that, this concludes the presentation portion of the call, and I want to say thank you to everyone for attending today. I'm extremely excited for the future of StreamX, and the next 90 days will be transformational. I feel truly like we are at an inflection point and can't wait to show you. Now let us take questions. We collected some questions ahead of the call and you can also submit your questions live on the online link. We'll work through as many as possible. If we can't get to you, please feel free to reach out to ir.streamx.com and submit them there. A member of the team will make sure to get back to you. Okay, now into the questions.

First question, I'm going to give this to you, Christine. So the revenue for the quarter was $146,000. When does this become a real revenue line?

Great. Thank you, Henry. Revenue scales with 2 things today. Assets outstanding through the annual lease rate fee and turnover and through the transfer fee. Both are functions of adoption. So Henry, when you describe on GLDC as a third stream and it is a different shape, reserve income that scales with supply. What I would point to across all of them is the operating leverage. The cost base to run this platform is largely fixed and already built. And so we will continue to see with growth, the growth of our revenue line.

Awesome. Thank you, Christine. And next question for you as well. So the 10-Q says StreamX holds 91% of GLDY. So external holders are about 280 ounces.