AURE — Q3 2026 Financial Report Analysis

A gold-price drop drove a $25.1 million quarterly loss at a company with no revenue

Aurelion, which until November 2025 was called Prestige Wealth, used to run a small Hong Kong wealth-management business. It is now a "digital gold treasury": its main asset is 33,318 units of XAUt, a token issued by Tether Gold where each unit represents one troy ounce of physical gold. In its fiscal third quarter (the three months to June 30, 2026; Aurelion's fiscal year ends September 30), it booked no revenue and a net loss of $25.1 million, against a $1.5 million loss a year earlier. The company says the loss was "primarily driven by fair value loss on XAUt held resulting from the depreciation of gold during the quarter." The company marks its gold to market each quarter, so a lower gold price goes straight into its profit and loss.

At a glance

• Net loss of $25.1 million ($0.72 per share): $22.3 million of that came from marking down gold-linked holdings. It was not cash spent; it is the lower value of what the company already owned.
• Net asset value (NAV) of $91.9 million, or $2.44 per share: NAV is what would be left for shareholders if the gold were sold and the debt repaid. The company's own measure is digital assets plus cash ($134.7 million) minus debt ($42.8 million).
• Cash of $1.6 million against roughly $2.1 million a quarter in running costs: the company says it will sell some of its unpledged gold tokens if it needs money. Running costs are effectively paid for out of the gold pile.

The numbers

Prior-year per-share figures are restated for the 1-for-10 share consolidation of February 19, 2026. "n/m" = not meaningful: a percentage change from a loss to a bigger loss, or from zero, says nothing useful.

Where the $25.1 million went

The income statement has three gold-related lines. Together they make up 91% of the $24.4 million operating loss:

• $17.48 million unrealized loss on XAUt, covering both the tokens Aurelion holds directly and the tokens it has pledged as loan collateral. "Unrealized" means the tokens were not sold. They are just worth less on paper.
• $3.71 million unrealized loss on XAUE, a new yield-bearing protocol. Aurelion has put 8,000 of its XAUt units into it (more on this below).
• $1.11 million realized loss, which the company describes as "the loss/(gain) recognized at the inception of subscribing for XAUE with XAUt". In other words, swapping gold tokens into the protocol cost it about $1.1 million on day one.

The size is consistent with the gold price. The company's gold-linked assets were worth $155.5 million at March 31. Spread across 33,318 units, that is roughly $4,667 per ounce (our calculation from the balance sheet). The company values XAUt at $3,996 on June 30, about 14% lower, which takes the same holding down to about $133.1 million. That drop of about $22.3 million matches the fair-value lines almost exactly.

Without the gold markdown, the business lost about $2.1 million from operations: $2.07 million of general and administrative expense plus $38,000 of marketing. Add $0.62 million of loan interest and the company needs roughly $2.7 million a quarter just to stand still. With 33,318 ounces, gold has to rise about $82 per ounce every quarter to cover that cost (our calculation). Every $100 move in gold changes the company's value by about $3.3 million.

The balance sheet is the business now

At June 30, 2026, total assets were $135.3 million:

Two things stand out:

1. Most of the gold isn't freely available. Half the holding is pledged to the lender. Another quarter sits in the XAUE protocol, which the company can redeem "at its own discretion at any time, subject to the terms of the agreement." Only about a quarter (roughly 8,700 ounces, about $35 million) is plain, unencumbered XAUt.
2. The lender is a related party. Northstar Digital (HK) lent the money under a $50 million, three-year facility signed October 10, 2025. The interim financial statements say Northstar counts as a related party because Antalpha Platform Holding Company, Aurelion's parent company, "is subject to the significant influence of Northstar Digital (HK) Limited." The loan was secured on XAUt worth $66.7 million at signing. Aurelion repaid $9.37 million early in the first half.

What the headline numbers hide

• The year-ago revenue comparison is shaky. The press release shows $2.98 million of revenue for April–June 2025. But the company's FY2025 annual report (20-F) puts revenue for the whole year to September 30, 2025 at $1.79 million, nearly all from an "AI Solutions" service fee. Revenue for that one quarter is larger than the full-year total, which implies a negative fourth quarter, and neither filing explains it. The 20-F also shows a $3.5 million provision for uncollected receivables in FY2025. In any case, the old business is gone. There was zero revenue in both the first half and the third quarter of FY2026.
• Earnings are driven by the gold price, not by operations. In the first half (October–March), a rising gold price produced a $21.3 million unrealized gain and $16.7 million of net income. One quarter later, the same accounting produced a $25.1 million loss. Over nine months, the company is about $8.4 million in the red (our calculation: +$16.65M in the first half, -$25.06M in the third quarter). Neither the profitable first half nor this loss tells you much about the underlying business. The steady part is roughly $2.1 million a quarter of running costs.
• Cash keeps leaving. Operating cash flow in the first half was -$2.91 million while reported net income was +$16.65 million. Gains on paper did not turn into cash. The third-quarter release has no cash flow statement, but cash fell another $0.48 million to $1.59 million. The interim statements' going-concern note says management would "orderly liquidate a portion of its uncollateralized XAUt holdings" if it needs money, so in practice the gold holding pays for running costs.
• The loan grew faster than its interest. The loan balance rose from $41.20 million at March 31 to $42.79 million at June 30, an increase of $1.59 million. Interest booked for the quarter was only $0.62 million. The release doesn't explain the other roughly $1.0 million.
• Per-share figures are diluted by a much larger share count. The weighted diluted share count went from 6.9 million to 34.6 million after the October 2025 private placements, which brought in about $100 million in subscriptions (paid in cash and/or USDT). So the loss per share grew about 3.3 times while the total loss grew about 17 times. The $2.44 NAV per share uses 37.6 million shares, which include pre-funded and primary warrants. It does not include the other warrants issued in October 2025 or the warrant for up to 31.7 million Class A shares (count before the share consolidation) issued to a consultant in December 2025.
• Leadership has turned over. A new CEO (Frank Zheng) and a new chairman took over on June 30, 2026. A new chief accounting officer, previously financial controller at Antalpha, started on September 14.

Takeaway: Aurelion is now, in effect, a leveraged holding of about 33,300 ounces of tokenized gold with no operating revenue. Its results move with the gold price: about $3.3 million for every $100 per ounce. That sits on top of a fixed cost of about $2.7 million a quarter in expenses and interest, which is slowly paid for by selling or pledging gold. The $25.1 million loss is mainly gold falling about 14% in the quarter, not the business getting worse. But it is also not evidence that the planned technology business exists yet.

What to watch next

Management's stated plan is to turn Aurelion into "the risk-control and technology layer for on-chain gold" with "durable, recurring, technology-driven revenue." It gives no revenue target, timeline or financial guidance. Our read:

• Any revenue at all. After three straight quarters of zero, the first booked revenue from the gold-infrastructure strategy would be the real test of the plan. Until then, the company's value per share is its NAV per share, minus whatever running costs eat into it.
• Yield from XAUE. Returns from the protocol show up as "an increase in the gold backing of each unit," not as cash payouts. Watch whether the XAUE line grows faster than the gold price. So far, entering the protocol has cost a $1.1 million realized loss and a further $3.7 million unrealized loss.
• Cash runway and gold sales. With $1.6 million of cash, the company will likely need to sell gold tokens or raise new money within a quarter or two. A shrinking ounce count is the tell.
• Collateral headroom. The loan was set up with collateral worth $66.7 million against $50 million borrowed. At June 30, pledged gold was worth $66.4 million against $42.8 million owed. A further sharp fall in gold would narrow that cushion.
• Next filing: the fiscal-year results (FY ending September 30, 2026). Last year's 20-F was filed on January 6, so the full-year numbers will most likely come in late 2026 or early January 2027, possibly preceded by a press release.

Source: Aurelion Inc. Form 6-K furnished July 27, 2026, Exhibit 99.1 ("Aurelion Reports Third Fiscal Quarter 2026 Financial Results"), unaudited. Balance-sheet, cash-flow and loan detail for the first half come from the company's Form 6-K of June 24, 2026 (interim financial statements to March 31, 2026); full-year FY2025 revenue comes from its Form 20-F filed January 6, 2026. The release does not include segment detail or a full management discussion.