ZeroStack Q1 Net Loss $36.7M; Assets Down 65%; Strategic AI & Pharma Focus
ZeroStack Corp. reported a net loss of $36.7 million for Q1 2026, a significant increase from $0.76 million in Q1 2025, primarily driven by a $60.7 million loss from changes in the fair value of digital assets. The company's total assets decreased by 65% to $45.19 million from $130.24 million at year-end 2025. ZeroStack is undergoing a strategic shift, focusing on AI infrastructure through investments in 0G Tokens and its global pharmaceutical distribution business, Phatebo GmbH, following the divestment of its cannabis-related businesses in Q3 2025. The company also plans an Exchange with Texas Blocker Corp. and a redomicile to Texas, subject to shareholder approvals. Management believes existing cash and staking rewards are sufficient for going concern for at least one year.
Key Highlights
- Net loss for Q1 2026 was $36.66 million, compared to $0.76 million in Q1 2025.
- Loss from changes in fair value of digital assets was $60.74 million in Q1 2026.
- Total assets decreased 65% to $45.19 million at March 31, 2026, from $130.24 million at December 31, 2025.
- Revenue for Q1 2026 increased to $7.27 million from $6.87 million in Q1 2025.
- Cash and restricted cash at March 31, 2026, was $2.30 million, down from $5.62 million at December 31, 2025.
- Company is shifting focus to decentralized AI infrastructure via 0G Tokens and pharmaceutical distribution.
- Planned Exchange with Texas Blocker Corp. involves issuing 9.1 million ZeroStack shares/warrants.
- Divested cannabis-related businesses in Q3 2025, eliminating $2.2 million in debt.