Abaxx Technologies Inc (ABXXF) (Q3 2026) Earnings Call Highlights: Record Trading Volumes and ... GuruFocus News Thu, November 12, 2026 at 6:07 PM EST 6 min read ABXX.TO -8.19% GC=F +0.16% ABXXF -7.39% This article first appeared on GuruFocus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Record trading volume and open interest on Abaxx Exchange in Q3 2026, with total contracts up 71% and average daily volume up 61% quarter-over-quarter.
Gross transaction and clearing fees reached a record $7 million, up 56% from Q2 2026, demonstrating strong revenue growth.
Strong balance sheet with $68.4 million in cash and short-term investments, providing a runway of four to five quarters.
Successful launch of innovative products like physically deliverable LNG and gold futures, with new cash-settled contracts expanding the product suite.
Independent investigation concluded that short seller allegations were unjustified, validating the integrity of the company and its platform.
Net loss of $20.4 million in Q3 2026, though improved from Q2, indicating ongoing profitability challenges.
Liquidity-related credits nearly offset gross fees, resulting in minimal net revenue and highlighting reliance on incentives to build liquidity.
Operating expenses remain high at $17.4 million (including one-time costs), with normalized cash burn of $15 million per quarter.
LNG volumes have flatlined recently, and European LNG contract is suspended due to regulatory reporting requirements, delaying potential growth.
No specific guidance on breakeven or China volume contribution, leaving uncertainty about future revenue realization.
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Q: Can you talk about actions you could take to preserve capital if you prefer to delay the next capital raise? A: CEO Josh Crum emphasized the company's seven-year track record of hitting milestones while controlling dilution and said management has both funding options and reduced-capital options. He noted the fixed operating base is stable, there is no current need to cut spending, and that growing trading fees and eventual revenue capture should extend the runway. (Josh Crum, Founder and CEO)
Q: When do you believe you can reach breakeven, and what indicators would reduce reliance on liquidity credit incentives? A: Crum said breakeven depends on the depth and diversity of the market, which is improving monthly, particularly in precious metals. He said the company expects to map forecasts at year-end and believes it can begin lowering incentives and capturing net revenue once commercial banks onboard, though there is no urgency given the ample cash runway. (Josh Crum, Founder and CEO)
Q: Why are you buying back stock now, while still generating operating cash outflows and with the cash position declining? A: Crum said the buyback is deliberately small, covering up to 400,000 shares, or about 1% of shares outstanding, and is driven by a share-count target rather than a capital target. He argued the stock is dislocated from the company's milestones and that cash conversion should occur well before additional funding is needed. (Josh Crum, Founder and CEO)
Q: What do trading firms, clearing members and banks need to see before committing and onboarding? A: President of Abaxx Exchange Joe Raia said bank onboarding is slow due to balance-sheet capital requirements, but non-bank clearing firms have strengthened their balance sheets and are helping fill the gap. Crum added that demand is driven by commercial clientsminers, energy traders and utilitiesfor products that do not exist at competitors, and scale and liquidity are what will push their banks to onboard. (Joe Raia, President of Abaxx Exchange; Josh Crum, Founder and CEO)
Q: How important is near-24/7 (22/5) trading, and what product development might follow? A: Raia said 22/5 trading is an important step to expand into Europe and North America, allowing participants to trade during their business hours, manage risk when related markets are open, and arbitrage between Asian and Western gold and gas markets. He said the company expects to list new products and bring on new participants with the extra hours. (Joe Raia, President of Abaxx Exchange)
Q: Can you discuss the path to volume ramping in LNG and why it hasn't happened yet? A: Raia cited market volatility and geopolitical issues, noting LNG prices have risen from about $10 to $30 per MMBtu, roughly tripling the cost of a single cargo and making firms more cautious about trading spot cargoes. He also noted onboarding takes time and that LNG is a greenfield market that did not previously exist on any exchange. (Joe Raia, President of Abaxx Exchange)
Q: How is China contributing to volumes today, and are Chinese participants in the LNG mix? A: Raia said India participants will trade across products and that the region's volumes should continue to increase. He declined to disclose China-specific numbers, noting Chinese firms cannot trade directly on the exchange and must come through Singapore broker-dealers such as Yongan and others, and said the company will add China numbers as that activity develops. (Joe Raia, President of Abaxx Exchange)
Q: What is the status of the European LNG contract, and could it be a volume catalyst? A: Raia said the contract was suspended due to a new European REMIT reporting requirement for power and gas markets. Abaxx has completed its side of the development and is waiting for clearing firms to finish connecting, after which the company hopes to have news. (Joe Raia, President of Abaxx Exchange)
Q: How much of the roughly $15 million quarterly burn is truly fixed versus flexible, and is there room for efficiency savings? A: Crum said the budget is consistent, with no additional large CapEx or software purchases on the current trajectory, and that headcount and normalized software licensing are stable. He said AI has cut the need for outsourced software development, particularly on the front end, but the company has not seen a need to reduce headcount given confidence in upcoming milestones. (Josh Crum, Founder and CEO)
Q: Is the commercial team's primary focus India and Asia versus the US and Europe, and how is onboarding progressing with European participants, including for weather contracts? A: Raia said the sales team has expanded globally, with a new London office staffed by three people and a salesperson in North America, and that 22/5 trading will support expansion. On weather, he said the NWEX partnership is taking longer due to volatility in gas and energy markets, but trading firms recommitted their focus at the Weather Risk Management Conference in London. Crum added that Abaxx's Canadian-Singaporean positioning is a competitive advantage because demand growth for LNG and other commodities is concentrated in Asia. (Joe Raia, President of Abaxx Exchange; Josh Crum, Founder and CEO)
Q: How will the 22/5 trading hours launch affect the budget? A: Crum said the impact is not significant because the markets are highly electronic with no trading pits or large physical infrastructure to scale. He said adding shifts is minor from a budget perspective, while 22/5 trading is significant for volume and revenue because it opens products to arbitrage against North American settlement times. (Josh Crum, Founder and CEO)
Q: How do Abaxx's digital title and tokenization approach differ from Hong Kong tokenization efforts, and how does the CNH cash-settled gold contract fit in? A: Raia said Asian gold and silver markets are growing, with Abaxx's Singapore-deliverable contracts attracting refiners and commercial firms, and that discussions in Hong Kong have been substantial. Crum said Abaxx's tokenization approach prioritizes legal finality and identity over bearer tokens, arguing that retail and offshore tokenization structures have seen little institutional use because linking tokens to specific bars, brands, locations and custodians is legally problematic. (Joe
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
