FG Nexus Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how FG Nexus Inc. (formerly Fundamental Global) performed this year. Think of this as a plain-English breakdown—no confusing Wall Street jargon, just the facts you need to decide if this company fits your portfolio.

1. What does this company do?

FG Nexus has reinvented itself as a digital-first investment firm. They have moved away from traditional businesses to focus on two main areas:

• Digital Assets: They hold Ethereum (ETH) as their primary treasury asset. They earn interest by "staking" their coins, which means they let the network use their holdings to verify transactions in exchange for rewards. As of the end of 2025, they held about 14,500 ETH, worth roughly $37.4 million.
• Merchant Banking: They act as a sponsor for new companies, helping them go public—often through SPACs. They manage a portfolio of private and public investments, using their expertise to help companies raise money and navigate mergers.

2. The Profit Reality Check

The company’s bottom line is sobering. In 2025, they reported a $67.6 million loss, which is much worse than their $24.3 million loss in 2024.

This jump in losses is mostly due to their "Crypto Bet":

• Market Swings: Because they hold so much Ethereum, the company’s value fluctuates with the price of crypto. In 2025, they took a $38.3 million hit because the value of their ETH dropped compared to what they originally paid for it.
• Operating Costs: Running this new model is expensive. Their administrative costs jumped 54% to $14.5 million. This covers the legal fees and public relations needed to launch their crypto operations.
• Revenue Growth: On a positive note, revenue grew from $0.8 million to $2.4 million. This came from $1.5 million in staking rewards and $0.9 million in advisory fees. This represents a 200% increase in total revenue.

3. Major Wins and Changes

• Aggressive Buybacks: Management is betting on their own stock. Between October 2025 and March 2026, they spent $34.9 million to buy back about 25.8% of their shares. This signals they believe the stock is undervalued and increases your ownership percentage as a remaining shareholder.
• Spring Cleaning: They sold almost all their legacy businesses to focus entirely on their digital strategy. This generated about $12.2 million in cash, which they reinvested into their ETH treasury and daily operations.

4. Key Risks

• Crypto Volatility: The company’s health is now tied to the unpredictable price of Ethereum. A 10% move in ETH price impacts their balance sheet by roughly $3.7 million.
• Cybersecurity: They rely on third-party firms to hold their crypto. If those firms are hacked or go bankrupt, FG Nexus could lose its primary assets.
• Preferred Stock: They have Series A Preferred Stock worth about $45 million. These shares receive $2.00 in annual dividends per share. The company must pay these dividends before common shareholders receive any profit.

5. Future Outlook

Management is running a high-tech experiment. They are essentially a "crypto-treasury" company. Their annual revenue of $2.4 million is currently much lower than their $14.5 million in operating costs. This creates a high "burn rate," meaning they are spending cash faster than they earn it. Their future depends on their digital assets growing in value and their ability to earn more high-margin advisory fees.

Investor Takeaway: FG Nexus is currently a high-risk, high-reward play. Because their revenue is small compared to their operating costs, they are essentially a bet on the long-term appreciation of Ethereum and their ability to successfully launch new companies. If you are considering an investment, ask yourself if you are comfortable with the volatility of the crypto market, as that is now the primary driver of this company's value.