Lite Strategy, Inc. (LITS) FY2026 Earnings: Revenue $0K
LITS — FY2026 Annual Financial Report Analysis
Full Year · Fiscal year 2026 · Published by Pham Hop
Lite Strategy (formerly MEI Pharma) lost $71.2 million in its first year as a Litecoin treasury company, most of it from a $60.1 million drop in the value of the coins bought with a $100 million share sale, leaving about $1.28 of book value per share.
Revenue
$0K
Net income
-$71M
-346.2% YoY
Diluted EPS
$-2.06
+13.8% YoY
Lite Strategy, the company formerly called MEI Pharma, finished its first year as a Litecoin treasury company with a net loss of $71.2 million for the fiscal year ended June 30, 2026, up from $15.9 million a year earlier. About $60.1 million of that loss came from the falling market value of the Litecoin (LTC) it bought with a $100 million share sale in July 2025. The cost of running the company actually went down: research and administrative spending together fell 30% to $12.2 million. The company had no revenue in either year.
At a glance
$34.9 million: the year-end market value of its 832,716 Litecoin, against a cost of $82.4 million. The coins it holds are worth about 58% less than it paid for them.
$5.7 million cash vs. $9.1 million of cash burned by operations this year: cash alone would not cover another year at this pace, so the company is counting on its Litecoin to fund itself. Management says cash plus digital assets will cover at least the next 12 months.
About $1.28 of book value per share, down from about $2.54: the net assets behind each share roughly halved. The company raised money at $3.42 a share and has since been buying stock back at around $1.05–$1.12.
What the company actually is now
This is no longer a normal drug developer, and its income statement doesn't read like one. The 10-K describes three things going on at once:
A Litecoin treasury. In July 2025 it closed a $100.0 million private placement (a PIPE, or private investment in public equity: a share sale to selected investors instead of on the open market). It sold 23.2 million shares at $3.42 plus pre-funded warrants for 6.0 million more. Starting August 2025 it put the full net proceeds into LTC, which it calls its "primary reserve asset". The coins are managed by GSR Strategies, which the filing lists as a related party. GSR is paid a fee of 1.75% of assets under management per year, settled in company shares or warrants rather than cash, under a 10-year agreement. Ending that agreement early would trigger a termination fee.
Covered calls on some of the coins. It sells call options on part of its LTC through GSR Markets. A buyer pays a small upfront fee (the "premium") for the right to buy the coins at a fixed higher price. If LTC stays below that price, the company keeps both the coins and the premium. If LTC rises above it, the coins are handed over. The coins put up as collateral count as a receivable (money or assets owed back to the company), not as coins it holds.
It halted oncology trials in July 2024 and sold its ME-344 compound to Aardvark Therapeutics in October 2024. It restarted a small amount of early-stage (pre-clinical) work on voruciclib outside cancer in the second quarter of fiscal 2026. That work cost $122,000 in R&D for the whole year, down from $3.9 million.
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Leftover drug programs.
Since the pivot the company reports two operating segments: pharmaceutical development and the digital asset treasury. Its SEC industry code is still "pharmaceutical preparations."
Results table
Metric
FY2026 (year to Jun 30, 2026)
FY2025
YoY change
Revenue
$0
$0
n/a
Research & development
$0.1M
$3.9M
-96.9%
General & administrative
$12.0M
$13.5M
-11.0%
Change in fair value of digital assets (loss)
$54.4M
—
new
Change in fair value of digital assets receivable (loss)
$5.7M
—
new
Gain on covered call options
$0.8M
—
new
Net loss
-$71.2M
-$15.9M
loss 4.5x larger (-346.2%)
Net loss per share (basic & diluted)
-$2.06
-$2.39
loss per share 13.8% smaller
Operating cash flow
-$9.1M
-$20.8M
56% less cash burned
Cash & equivalents (year-end)
$5.7M
$18.0M
-68.3%
Litecoin held + pledged, at fair value
$34.9M
—
new
Stockholders' equity
$41.6M
$16.9M
+145.8%
Book value per outstanding share (our calculation)
~$1.28
~$2.54
about -49.5%
There is no operating margin to report because there is no revenue. Book value per share is our calculation: stockholders' equity divided by shares outstanding at year-end (32.4 million this year, 6.66 million last year). Counting the roughly 0.72 million shares behind fee warrants that the company already includes in its loss-per-share math brings it to about $1.26.
Takeaway: The loss per share "improving" from -$2.39 to -$2.06 only reflects the share count rising about fivefold. What matters for this company is what each share owns: book value per share roughly halved, to about $1.28, because the $100 million raised at $3.42 a share went into Litecoin that was worth $34.9 million by year-end. The company's results now move with the price of one cryptocurrency.
What drove the loss
Litecoin's price, almost entirely. The $54.4 million "change in fair value of digital assets" is booked as an operating expense. The filing says it covers three things: unrealized losses from marking the coins to market (valuing them at the current price, as if sold today), losses realized when coins were moved to GSR Markets as option collateral, and losses on coins actually sold. Another $5.7 million loss came from revaluing the coins held as collateral. Together that's about $60.1 million, or roughly 84% of the year's net loss.
The coin table in Note 4 shows the size of the drop. The 832,716 LTC (650,716 held directly and 182,000 pledged to GSR) have a cost of $82.4 million, or about $99 per coin. At year-end they were worth $34.9 million, which implies roughly $42 per coin. Accounting rules (ASC 350-60) require crypto to be valued at market price every quarter, with each change hitting the income statement, so reported profit will keep swinging with LTC's price.
The cost of running the company went down, with more of it paid in stock. G&A fell $1.5 million to $12.0 million. The filing credits "$4.6 million of lower personnel costs, including $3.8 million in termination benefits" (severance paid in the prior year) and $0.6 million less in legal and professional fees. Offsetting part of that were "$2.5 million in noncash asset management and advisory fees" with no prior-year equivalent and $1.3 million more in share-based compensation. The asset management fees are GSR's fee plus an advisory fee to Green Dragon Investment LLC, both paid in warrants. So the new crypto business added roughly $2.5 million a year of costs that are paid in stock instead of cash.
The options brought in little. The company wrote covered calls on $63.8 million of LTC (notional: the value of the coins the options cover) and collected $0.9 million in premiums, about 1.3%. Options on $55.9 million expired unused, which produced a $0.8 million gain. Four contracts on $7.9 million were still open at year-end. That income covered less than a fifth of what was spent on buybacks.
Interest income fell from $1.0 million to $0.3 million because there was less cash earning interest. The prior year also had a one-time $0.5 million gain from the ME-344 sale.
What the headline numbers hide
Cash burn vs. the reported loss. Operating cash outflow was $9.1 million, far below the $71.2 million net loss. The filing reconciles the gap as about $63.1 million of non-cash charges: the Litecoin revaluation, stock-paid fees and share-based compensation. The loss shows how much value was lost, and the cash flow shows how fast cash is going out. At $9.1 million a year of cash use and $5.7 million of cash, the company will have to keep selling coins, raising money or both. The filing says it "could liquidate these assets, or a portion thereof, if needed to fund our operating activities." It sold $5.0 million of LTC during the year.
Where the buyback money came from. The company bought back 4,378,525 shares for $4.9 million, at an average of $1.12 each, under a $25.0 million authorization. That money came from option premiums and from selling Litecoin. In effect the company is selling coins to buy its own shares. That makes sense only while the shares trade below the value of the net assets behind them. The average buyback price of $1.12 was below year-end book value of about $1.28 per share, so buying at those prices raised book value per share. After year-end it bought another 1,999,604 shares at $1.05 (through September 22, 2026).
The fee structure dilutes shareholders, and it grows as the share price falls. GSR's fee is a dollar amount (1.75% of assets) paid in shares at the recent average share price. The first annual fee was settled in September 2025 with warrants for 546,348 shares. The second, paid July 22, 2026, required warrants for 1,322,349 shares. Green Dragon's advisory fee went from 234,149 to 566,721 warrant shares. Those two July 2026 payments, 1.89 million shares, almost cancel out the 2.0 million shares bought back between July and September.
Loss per share improved because of the share count. Weighted-average shares rose from 6.66 million to 34.56 million. The total loss was 4.5 times larger. There is no adjusted, non-GAAP figure to compare against, and no tax line.
A new, hard-to-value investment. In June 2026 the company put $1.0 million into a SAFE (a simple agreement for future equity, a right to shares in a startup's later funding round) with ZK Innovations, Inc., plus warrants for 2% of any network tokens that company creates. It is valued with "significant unobservable inputs" (Level 3), meaning there is no market price to check it against. It is small, but it shows the company investing beyond LTC.
Auditor change and an emphasis paragraph. Deloitte audited FY2025. CBIZ CPAs took over in December 2025 and gave a clean opinion on FY2026. CBIZ added an "Emphasis of Matter" paragraph pointing to the company's concentration in Litecoin, "a digital asset that is subject to high market volatility and speculative trading." It is not a qualified opinion, but auditors add that kind of paragraph when they want readers to notice a risk.
Outlook
Management gave no financial guidance, which is normal for a company like this. What the filing says it plans:
It will keep holding LTC as its primary reserve asset. It mentions an "expanding strategy that could include the commencement of LTC mining or other crypto-focused operational activities." It also has a master loan agreement with BitGo Prime to borrow digital assets or cash, with no loan on the balance sheet at year-end.
It will continue early-stage voruciclib work outside oncology with the aim of licensing or selling the program, not running trials itself.
It "may require one or more capital transactions" in the future. It believes cash plus digital assets cover at least the next 12 months.
Buybacks can continue. By our arithmetic, the company had used a little over $7 million of the $25 million authorization through September 22, 2026.
Our read: apart from the price of Litecoin, the number to watch is book value per share. Three things push it down: cash operating costs of roughly $9 million a year, GSR's 1.75% fee (paid in shares, so it dilutes more when the stock is cheap), and any further drop in LTC. Buybacks below book value push it up. They are paid for by selling coins, though, and that shrinks the asset the strategy is built on. The fiscal-2027 10-Qs will show whether buybacks can keep up with the fee-driven dilution. They will also show whether the company starts mining, borrows against its coins, or raises new equity to cover cash burn. At year-end it had no debt and liabilities of just $1.1 million, so the risk is shrinking equity, not a solvency problem.
Source: Lite Strategy, Inc. Form 10-K for the fiscal year ended June 30, 2026, filed September 28, 2026. All figures are from the filing except where marked "our calculation."