Galaxy Digital share surge after swinging to profit as trading volumes surge

Galaxy Digital Inc. (NASDAQ: GLXY) reported a sharp turnaround in its third-quarter results, swinging to a profit and delivering earnings and revenue far above Wall Street expectations.

The digital asset financial services firm cited record trading volumes and increased institutional interest in cryptocurrencies as key drivers of its performance.

Shares of Galaxy Digital jumped 3.08% to $40.87 in trading on Tuesday following the announcement.

Through Monday’s close, the stock had more than doubled year to date and gained 17.3% during the quarter.

Earnings and revenue beat expectations

For the quarter ended September 30, Galaxy Digital reported adjusted earnings of $1.12 per share, compared with a loss of 16 cents per share in the same period last year.

The results exceeded the mean analyst estimate of 16 cents per share, with forecasts ranging from a loss of 21 cents to earnings of 77 cents per share.

On a reported basis, the company earned $505.06 million in net income, marking one of its strongest quarters since 2021.

A year earlier, Galaxy had posted a loss of $33.3 million, or 10 cents per share.

Revenue surged 20,329% year-over-year to $29.22 billion, far surpassing analyst expectations of $14.39 billion.

The company’s revenue also topped an alternative forecast of $17.1 billion compiled by FactSet.

Galaxy attributed the surge to strong digital asset trading and advisory activity across its platform.

The company’s quarterly digital asset trading volumes rose 140% sequentially, fueled by heightened spot and derivatives trading.

Galaxy also disclosed that it executed the sale of more than 80,000 Bitcoin on behalf of a client, reflecting the growing appetite for institutional crypto trading services.

Institutional demand and regulatory tailwinds

Galaxy Digital, which bridges traditional finance and the digital economy, offers trading, investment banking, and asset management services tailored to institutional clients entering the crypto space.

Executives said that recent US legislation enacted under the Trump administration has provided long-awaited regulatory clarity, boosting confidence and participation in the digital asset market.

"It's like you took a bunch of third graders and locked them in a gymnasium and fed them candy," Jason Urban, Galaxy’s global head of trading, said earlier this year, referring to the recent surge in crypto trading activity.

"We just blew open the doors to the playground, and now everybody's out running around."

The company said institutional engagement has accelerated alongside regulatory developments, prompting higher trading and investment flows across both spot and derivatives markets.

Analyst forecasts and outlook

Analysts have steadily raised expectations for Galaxy Digital’s earnings in recent months.

The mean estimate for the company’s quarterly earnings increased by 20.2% over the past three months, according to data from FactSet.

However, one analyst issued a negative revision in the past 30 days.

The consensus analyst rating for Galaxy Digital remains “buy,” with 11 analysts recommending either “strong buy” or “buy” and none assigning “hold” or “sell” ratings.

Galaxy Digital’s strong third-quarter performance highlights the growing integration between traditional finance and digital assets.

As cryptocurrency adoption accelerates, the company’s trading and investment services appear well-positioned to benefit from continued institutional momentum in the sector.