FY 2026 shows Zeta is now essentially a crypto-mining vehicle, but scale did not fix unit economics. The bigger issue is that losses were driven not just by negative mining margins, but by a large cryptocurrency impairment and heavy financing costs.
Zeta Network Group · Fiscal FY 2026 (year ended 30 Jun 2026) · Reported 19 Oct 2026 · US
Key figures
Million USD | FY 2026 | FY 2025 | Change |
|---|---|---|---|
Revenue | 28.36 | 8.73 | +225.0 % |
Gross profit | -5.29 | -0.25 | -5.04M USD |
Net income (loss) | -157.46 | -43.00 | -114.46M USD |
Operating cash flow | -6.95 | -8.34 | +1.39M USD |
Gross margin | -18.6 % | -2.9 % | -15.8 pp |
Net margin | -555.2 % | -492.8 % | -62.4 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Revenue growth came from a longer mining period and higher Bitcoin output, not better economics
Revenue rose 225.0% to $28.36 million in FY 2026, entirely from cryptocurrency mining revenue, as the company mined 312.17 Bitcoins versus 88.54 Bitcoins in FY 2025, when mining had operated for only three months 163. That makes the topline jump mostly a function of elapsed operating time and higher Bitcoin output, while the average production value per Bitcoin fell to approximately $90,855 from approximately $98,557 163.
The quality of that revenue looks weak because cost of revenue rose faster than revenue, up 275.0% to $33.65 million, leaving gross profit at negative $5.29 million versus negative $249,502 a year earlier 162. Management attributes the gross loss to mining revenue measured at fair value being lower than operating expenses including electricity, hosting and depreciation, and its own table shows total cost per Bitcoin of $110,125 against an average production value per Bitcoin of $90,855 164.
The mining model was loss-making before the balance-sheet hits
Operating losses widened to $18.72 million from $4.55 million as negative gross profit deepened, SG&A increased to $4.20 million from $2.63 million, and the company took an $8.58 million impairment on mining equipment 161. Management says the SG&A increase was driven primarily by roughly $0.5 million higher payroll and roughly $1.0 million higher professional fees tied to several equity financing activities and the DMCC disposal 166.
The impairment matters because management concluded the mining equipment would no longer generate sufficient undiscounted future cash flows to recover carrying value, so it wrote the equipment down to an estimated fair value of approximately $17.7 million 167. That suggests the pressure is not just transient quarter-to-quarter mining volatility but a reassessment of asset-level earning power under current conditions 167.
Net loss was dominated by non-operating damage
Net loss widened to $157.46 million from $43.00 million, but the main driver sat below operations: total other expense, net surged to $140.33 million from $9.41 million 161. Management says that increase was primarily due to approximately $19.8 million higher finance expense tied to convertible notes, the July 2025 term loan and financing-cost settlements, plus approximately $114.0 million of cryptocurrency impairment due to the decrease in the fair value of SolvBTC held during FY 2026 168.
That distinction is important for reading the year. The mining business itself was already unprofitable at the gross and operating line, but the extraordinary scale of the reported net loss came from asset-value markdowns and financing costs rather than from mining operations alone 164167168.
Liquidity improved on paper, but funding risk remains central
Net cash used in operating activities from continuing operations improved to $6.95 million from $8.34 million, even as net loss expanded, while cash flow was supported by large non-cash items including approximately $114.0 million of cryptocurrency impairment, approximately $20.7 million of finance expense on convertible notes, approximately $8.6 million of impairment loss of long-lived assets and approximately $9.8 million of depreciation expense 177178. This is better read as accounting losses outrunning cash use than as evidence that the business is self-funding 178.
The balance sheet still looks fragile. As of June 30, 2026, cash and cash equivalents were approximately $44,000, management said current assets included approximately $116.8 million of receivables of cryptocurrency whose fair value is subject to market conditions, and it stated there is substantial doubt about the company’s ability to continue as a going concern for at least twelve months from issuance of the financial statements 175. The company received net proceeds of $255.1 million during FY 2026, but approximately $230.7 million of that was non-cash SolvBTC consideration rather than cash 175.
What to watch next
Whether mining can move above gross breakeven as management cites exposure to Bitcoin price, energy costs, mining difficulty and regulation 158159164.
Whether further asset write-downs emerge after the $8.58 million mining-equipment impairment and the approximately $114.0 million SolvBTC impairment in FY 2026 161168.
Whether additional equity financings are available, since management says it is trying to alleviate going-concern risk through more equity funding with no assurance of success 176.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.