Operating margins have compressed significantly to 4.8% in 2026Q3, reflecting the difficulty of maintaining profitability amidst a competitive fee environment.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 |
|---|
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | -100% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Net Interest Margin % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | -5.65M | 0 | 0 | 226K | 224K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | -119K | 0 | 0 | 0 | 0 | 481K | 455K | 87K | 325K | 1.22M | 1.62M | 9.25M | 7.51M | 10.26M | 9.02M | 11.13M | 11.92M | 11.76M | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 235M | 242.53M | 253.16M | 311.01M | 333.06M | 291.58M | 266.25M | 337.11M | 350.5M | 342.44M | 350.35M | 334.19M | 332.65M | 320.47M | 330.06M | 318.37M | 297.85M | 315.17M | 453.98M | 478.73M | 525.41M | 487.96M | 494.03M | 457.88M |
| Non-Interest Income | 598.74M | 614.65M | 646.22M | 791.16M | 817.54M | 685.17M | 589.84M | 746.68M | 766.78M | 763.38M | 794.2M | 754.6M | 746.66M | 729.08M | 729.37M | 678.96M | 590.05M | 674.28M | 980.04M | 1.01B | 1.07B | 949.01M | 955.11M | 907.26M |
| Non-Interest Income % | 100.95% | 100% | 100% | 99.97% | 99.97% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Revenue | 593.09M | 614.65M | 646.22M | 791.38M | 817.76M | 685.17M | 589.84M | 746.68M | 766.78M | 763.38M | 794.2M | 754.6M | 746.66M | 729.08M | 729.37M | 678.96M | 590.05M | 674.28M | 980.04M | 1.01B | 1.07B | 949.01M | 955.11M | 907.26M |
| Revenue Growth % | 11.35% | -4.89% | -18.34% | -3.23% | 19.35% | 16.16% | -21.01% | -2.62% | 0.45% | -3.88% | 5.25% | 1.06% | 2.41% | -0.04% | 7.42% | 15.07% | -12.49% | -31.2% | -2.51% | -5.73% | 12.37% | -0.64% | 5.27% | - |
| Non-Interest Expense | 311.59M | 309.79M | 315.15M | 339.12M | 346.36M | 315.8M | 308.24M | 375.21M | 367.1M | 361.77M | 353.06M | 348.93M | 336.86M | 339.4M | 340.68M | 316.4M | 289.57M | 353.11M | 423.23M | 402.02M | 394.07M | 332.3M | 320.75M | 315.58M |
| Efficiency Ratio | 52.54% | 50.4% | 48.77% | 42.85% | 42.35% | 46.09% | 52.26% | 50.25% | 47.87% | 47.39% | 44.45% | 46.24% | 45.12% | 46.55% | 46.71% | 46.6% | 49.08% | 52.37% | 43.18% | 39.99% | 36.95% | 35.01% | 33.58% | 34.78% |
| Operating Income | 45.94M | 61.99M | 77.99M | 133.48M | 133.79M | 79.7M | 11.63M | 52.61M | 48.87M | 57.95M | 89.18M | 65.93M | 69.64M | 60.44M | 49.61M | 33.06M | -9.3M | -5.77M | 102.84M | 124.56M | 146.91M | 128.76M | 140.32M | 133.81M |
| Operating Margin % | 7.75% | 10.09% | 12.07% | 16.87% | 16.36% | 11.63% | 1.97% | 7.05% | 6.37% | 7.59% | 11.23% | 8.74% | 9.33% | 8.29% | 6.8% | 4.87% | -1.58% | -0.86% | 10.49% | 12.39% | 13.78% | 13.57% | 14.69% | 14.75% |
| Operating Income Growth % | - | -20.52% | -41.57% | -0.23% | 67.87% | 585.56% | -77.9% | 7.66% | -15.67% | -35.02% | 35.25% | -5.32% | 15.22% | 21.82% | 50.07% | 455.55% | -61.14% | -105.61% | -17.44% | -15.21% | 14.1% | -8.24% | 4.87% | - |
| Pretax Income | 54.21M | 69.02M | 85.45M | 141.03M | 138.12M | 76.41M | 14.19M | 33.86M | 49.07M | 56.99M | 87.96M | 56.68M | 62.4M | 50.17M | 41.24M | 26.37M | -18.79M | -81.18M | 92.18M | 109.73M | 138.1M | 129.42M | 130.5M | 121.19M |
| Pretax Margin % | 9.14% | 11.23% | 13.22% | 17.82% | 16.89% | 11.15% | 2.41% | 4.53% | 6.4% | 7.47% | 11.07% | 7.51% | 8.36% | 6.88% | 5.65% | 3.88% | -3.18% | -12.04% | 9.41% | 10.91% | 12.95% | 13.64% | 13.66% | 13.36% |
| Income Tax | 13.82M | 17.42M | 21.63M | 35.22M | 34.84M | 16.41M | 5.29M | 8.16M | 12.7M | 20.8M | 31.32M | 19.54M | 19.47M | 17.7M | -8.46M | -2.88M | 25.53M | -28.49M | 34.11M | 40.5M | 52.42M | 50.08M | 50.16M | 45.81M |
| Effective Tax Rate % | 25.48% | 25.24% | 25.31% | 24.97% | 25.22% | 21.47% | 37.28% | 24.11% | 25.87% | 36.5% | 35.61% | 34.47% | 31.2% | 35.27% | -20.5% | -10.92% | -135.89% | 35.1% | 37% | 36.91% | 37.96% | 38.7% | 38.43% | 37.8% |
| Net Income | 40.4M | 51.6M | 63.82M | 105.81M | 103.28M | 60.01M | 8.9M | 25.7M | 36.37M | 36.19M | 56.64M | 37.14M | 42.93M | 32.48M | 49.69M | 29.25M | -44.32M | -52.69M | 58.07M | 69.23M | 85.68M | 79.34M | 80.34M | 75.38M |
| Net Margin % | 6.81% | 8.39% | 9.88% | 13.37% | 12.63% | 8.76% | 1.51% | 3.44% | 4.74% | 4.74% | 7.13% | 4.92% | 5.75% | 4.45% | 6.81% | 4.31% | -7.51% | -7.81% | 5.93% | 6.89% | 8.03% | 8.36% | 8.41% | 8.31% |
| Net Income Growth % | -11% | -19.15% | -39.69% | 2.45% | 72.12% | 574.21% | -65.37% | -29.34% | 0.49% | -36.09% | 52.49% | -13.48% | 32.18% | -34.64% | 69.89% | 166% | 15.89% | -190.73% | -16.11% | -19.2% | 8% | -1.25% | 6.58% | - |
| Net Income (Continuing) | 12.27M | 51.6M | 63.82M | 105.81M | 103.28M | 60.01M | 8.9M | 25.7M | 36.37M | 36.19M | 56.64M | 37.14M | 42.93M | 32.48M | 49.69M | 29.25M | -44.32M | -52.69M | 58.07M | 69.23M | 85.68M | 79.34M | 80.34M | 75.38M |
| EPS (Diluted) | 1.58 | 2.01 | 2.49 | 4.13 | 4.05 | 2.37 | 0.34 | 0.96 | 1.32 | 1.29 | 2.00 | 1.27 | 1.47 | 1.11 | 1.71 | 1.01 | -1.53 | -1.83 | 1.97 | 2.15 | 2.51 | 2.19 | 2.10 | 1.95 |
| EPS Growth % | -19.77% | -19.28% | -39.71% | 1.98% | 70.89% | 597.06% | -64.58% | -27.27% | 2.33% | -35.5% | 57.48% | -13.61% | 32.43% | -35.09% | 69.31% | 166.01% | 16.39% | -192.89% | -8.37% | -14.34% | 14.61% | 4.29% | 7.69% | - |
| EPS (Basic) | - | 2.01 | 2.50 | 4.13 | 4.05 | 2.37 | 0.34 | 0.96 | 1.32 | 1.29 | 2.00 | 1.27 | 1.47 | 1.11 | 1.72 | 1.02 | -1.53 | -1.83 | 1.98 | 2.19 | 2.58 | 2.24 | 2.16 | 2.00 |
| Diluted Shares Outstanding | 25.62M | 25.63M | 51.29M | 51.21M | 51.04M | 50.7M | 52.14M | 53.5M | 55.25M | 55.92M | 56.65M | 58.36M | 58.55M | 58.48M | 58.22M | 57.93M | 57.96M | 57.63M | 58.94M | 64.52M | 68.17M | 72.39M | 76.59M | 77.14M |
Fee compression and AUM outflows
As reported in recent financial statements, the trust's gross margin has hovered near 60%, yet operating margins have compressed to 4.8% in 2026Q3, suggesting that the cost of maintaining institutional-grade security and regulatory compliance is becoming increasingly difficult to absorb amidst a competitive fee environment.
The stability of the gross margin indicates that the core cost of custody remains relatively fixed, but the significant drop in operating margin highlights a lack of scalability. Investors should monitor whether the trust can maintain these margins as lower-cost spot ETP competitors continue to capture market share.
Based on the provided income statement data, the trust's operating income has failed to scale with revenue, falling from $21.5M in 2024Q2 to just $6.5M in 2026Q3, which implies that SG&A expenses are not sufficiently flexible to offset the volatility inherent in asset-based management fees.
The inability to achieve operating leverage suggests that the trust's administrative and legal cost structure is rigid. This lack of efficiency may indicate that the vehicle is struggling to optimize its cost base as AUM fluctuates, potentially limiting profitability during periods of market downturns.
According to the quarterly income statements, net income has experienced significant volatility, declining from $17.4M in 2024Q2 to $5.9M in 2026Q3, a trend that appears to be driven by the direct correlation between Ethereum spot prices and the trust's fee-based revenue model.
The earnings quality is heavily influenced by the underlying asset price, which introduces a layer of cyclicality that is not reflective of operational performance. Analysts should be wary of the fee-driven dilution of the Ether-per-share ratio, which may mask the true economic impact of these management fees on long-term shareholder value.
While the trust relies on its historical liquidity advantage, the recent financial data suggests that the market may be overestimating the stickiness of AUM, as evidenced by the consistent decline in quarterly net income and the persistent pressure on operating margins since 2024.
Short-term observers might argue that the liquidity moat provides a buffer, but the income statement suggests that this advantage is being eroded by the aggressive fee-waiving strategies of newer, lower-cost entrants. The risk remains that institutional capital may prioritize fee efficiency over liquidity depth, leading to further margin compression.
Quick answers to the most common questions about buying ETH stock.
Grayscale Ethereum Mini Trust ETF (ETH) is profitable, generating $51.6M in net income for the fiscal year ending 2025 with a net profit margin of 8.4%.
Grayscale Ethereum Mini Trust ETF (ETH) reported an operating income of $62.0M, resulting in an operating profit margin of 10.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Grayscale Ethereum Mini Trust ETF (ETH) generated $372.1M in gross profit for the year, representing a gross profit margin of 60.5%. This demonstrates the company's core pricing power and production efficiency.