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Total Volume: Reached 888,902 contracts in Q2 2026, a 276% increase from Q1, with year-to-date volume surpassing 1.1 million contracts.
Average Daily Volume (ADV): Reached 14,572 contracts in Q2, growing to 34,136 contracts per day in July.
Average Daily Open Interest: Increased to 641 contracts in Q2, up from 280 in Q1, and reached 1,119 in July.
Transaction and Clearing Fees: Generated $4.5 million in Q2, which covered liquidity-related credits to liquidity providers, resulting in a small positive revenue.
Net Cash Spend: Increased to $16.3 million in Q2, compared to $12.3 million in Q1 2026 and $13.2 million in Q4 2025.
Net Loss: Reported a net loss of $28.8 million for Q2 2026, compared to a net loss of $21.6 million in Q1 2026, including a non-cash unrealized loss on derivatives of $6.1 million.
Operating Expenses: Corrected Q2 2026 operating expenses were $19.2 million, compared to restated operating expenses of $15 million in Q1 2026, reflecting a 28% increase.
Cash Position: Raised $69 million during Q2 at $54.25 per share, ending the quarter with $95.1 million in cash and cash equivalents.
Gold Futures Volume: Q2 volume reached 630,000 contracts, up 287% from Q1, with July volume increasing another 188% from June.
LNG Volume: Combined Gulf of Mexico and NPA volume reached 121,000 contracts in Q2, up 102% from Q1.
Silver Futures Volume: Launched May 22, traded a total of 107,477 contracts before the end of Q2, with July volume increasing 80% over Q1 volumes.
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For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Abaxx Technologies Inc (ABXXF) reported its strongest quarter to date, with total volume reaching 888,902 contracts in Q2 2026, a 276% increase from Q1, and year-to-date volume surpassing 1.1 million contracts, a seven-fold increase over the full year of 2025.
The company achieved significant network expansion, including onboarding Yongan International Singapore as its first mainland China-backed clearing member, and making its market data available on Bloomberg and LSEG, reaching over 400,000 institutional screens.
Abaxx Technologies Inc (ABXXF) successfully raised $69 million in Q2 at $54.25 per share, ending the quarter with $95.1 million in cash, providing a secure financial position to fund its growth plans for the next four to six quarters.
The company's precious metals complex, particularly gold and silver, is showing strong traction, with a clear path to stand-alone breakeven by 2028, potentially carrying the exchange's baseline operational costs.
Abaxx Technologies Inc (ABXXF) is making progress on its technology front, with MarketOS advancing toward commercial implementation and a new agreement to support the Cambodian National Futures Exchange, creating a path for third-party revenue generation.
The company's liquidity-building programs are working as designed, with average daily volume reaching 34,136 contracts in July and single-day volume surpassing 100,000 contracts for the first time, attracting commercial interest and onboarding requests.
Abaxx Technologies Inc (ABXXF) reported a net loss of $28.8 million for Q2 2026, an increase from the $21.6 million loss in Q1, partly due to a $6.1 million unrealized loss on derivatives from a decline in its share price.
The company faced unfounded and meritless allegations from Viceroy Research, which required significant time and resources to address, including regulatory and legal actions, and an independent investigation by the audit committee.
Abaxx Technologies Inc (ABXXF) acknowledged accounting errors in its Q2 2026 financial statements, which overstated operating expenses by $1.3 million, leading to a refiling and highlighting control weaknesses that needed to be addressed.
The company's net cash spend increased to $16.3 million in Q2, up from $12.3 million in Q1, and management expects to continue reinvesting transaction and clearing fees back into liquidity programs, meaning rising volumes will not immediately flow to the bottom line.
Abaxx Technologies Inc (ABXXF) has moderated its expansion plans for MarketOS go-to-market this fall to manage dilution, trading some speed for patience and potentially slowing down the commercialization of its technology beyond the exchange.
The company's path to profitability remains uncertain, with management stating it is still a few quarters away from being able to project guidance and break-even for individual products, and net fee capture per contract is not expected to inflect sharply positive until the end of its funded runway.
Q: On the liquidity provider programs, how fast and how meaningfully should we see the net revenue capture rate improve from here?A: Josh Crumb (CEO) explained that while individual contracts will follow the typical exchange trajectory, Abaxx is unique in building a new clearinghouse alongside the contracts. The economic activity benefits the entire ecosystem (clearing members, ISVs, brokers) even if net capture is low. David Greely (CSO) added that as commercial participants, who pay full fees, enter the market, the average revenue per contract will naturally rise. Joe Raia (President, Abaxx Exchange) noted that liquidity provider programs are a standard, long-term tool, citing his own experience launching one at NYMEX in 2003 that still exists, and that market makers typically represent 45%-50% of volume at established exchanges.
Q: You have about $100 million in cash. In what areas are you seeing the strongest return potential, and can you reach breakeven without raising more capital?A: Josh Crumb (CEO) stated that the Q2 expense jump was due to a one-time ramp-up in the commercial team and that Q3/Q4 should see a more consistent run rate. He emphasized a disciplined approach to dilution, stating they will slow investment if the cost of capital dictates. He reiterated that they see a path for the precious metals complex to reach stand-alone breakeven and potentially carry the exchange's baseline operational costs from 2028, but this is an early assessment.
Q: What should we look for as guideposts to track the timing of commercial participants becoming more evident?A: Joe Raia (President, Abaxx Exchange) highlighted that while open interest is a good indicator, deep liquidity and the ability to get in and out of contracts are equally important. He noted that existing non-bank clearing firms are seeing significant firms move to them for new clearing relationships, particularly in India. Josh Crumb (CEO) added that onboarding a Tier 1 bank as a clearing member is a key milestone, as it improves the clearinghouse's credit profile and confidence for larger institutional positions.
Q: Regarding MarketOS, is the time to deployment taking longer than originally expected?A: Josh Crumb (CEO) clarified that the timeline for internal use at Abaxx Clearing is on track. The moderation is focused on the third-party go-to-market expansion. They have shifted some resources to Abex Labs and the Agentic opportunity, and are focusing the team on the internal collateral use case. He noted they are leveraging AI for development efficiency, which has allowed them to reduce some outsourced development costs.
Q: Are some of the metals contracts now reaching the point of "liquidity"?A: Joe Raia (President, Abaxx Exchange) confirmed they are, while noting aspirations to grow further. David Greely (CSO) added that commercial participants are now seeing the volume, open interest, narrower bid-ask spreads, and order book depth they need, which is driving a higher level of requests to go live than previously seen.
Q: How focused should investors be on the change in open interest across your contracts?A: Joe Raia (President, Abaxx Exchange) stated it is an important milestone but not the only one, citing an example of a contract with high open interest but no trading liquidity. Josh Crumb (CEO) added a critical distinction: incumbents often have high open interest from block trades against PRA assessments, not central limit order book activity. Abaxx's contracts are designed for best execution, so their liquidity can naturally drive more trading than a PRA-based contract.
Q: Can you talk about the pipeline for new products and contracts going forward?A: Joe Raia (President, Abaxx Exchange) declined to give specific details for competitive and regulatory reasons, but confirmed they have a significant pipeline across various asset classes (energy, environmental, agriculture, base metals, precious metals) that will be rolling out over the next few months, driven by direct requests from clearing and trading firms.
Q: Was the accounting change your call, or was there something else that triggered the change?A: Steve Fray (CFO) explained that it was part of the ongoing quarterly review with auditors, not a specific trigger. The application of IFRS to these relatively new liquidity programs is complex, and their understanding evolved as the programs matured. Josh Crumb (CEO) added that most comparable companies report under US GAAP or Chinese standards, making the IFRS application for commodity exchanges a nuanced area.
Q: Regarding the incentives, would you pull back on liquidity programs in relation to newer contracts?A: Josh Crumb (CEO) framed this as the classic battle between investing in network growth versus investing toward breakeven. He stated that with a better cost of capital, they should be investing at the scale of their opportunity, but they are taking it quarter-by-quarter and will control dilution. He emphasized they are competing against companies 100 times their size with a much smaller budget.
Q: Given Yongan's large client base, when do you expect more material volumes to come from them?A: Joe Raia (President, Abaxx Exchange) said they are excited about the relationship and the "FOMO" it creates in the region. He noted that once a large clearing firm connects and opens access to its clients, volume can start quite quickly, potentially less than six months. They are planning co-marketing events and expect the relationship to drive further onboarding requests from other Chinese FCMs.
Q: Your gold contract took about nine months to see larger volumes, but silver took about a month. Is that because silver is being used by the same clients already onboarded?A: Joe Raia (President, Abaxx Exchange) confirmed that is part of it, but also highlighted a real pent-up demand in the region. He noted they listened to their clearing firms, who heard direct requests from customers for a silver contract. The existing connectivity and familiarity with Abaxx's markets allowed the silver contract to ramp up much faster than typical, which he called "quite impressive" even for him.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.