DEFT — DeFi Technologies Inc.

Earnings Call Summary for DeFi Technologies (Q1 2026)

1. Key Financial Results and Metrics:

• Revenue: $11.2 million, up from $9.7 million in the previous quarter.
• Net Income: $4.9 million, indicating profitability despite challenging market conditions.
• Assets Under Management (AUM): Average AUM was approximately $503 million, with a low point of $427 million during the quarter. As of April 2026, AUM has increased to over $530 million.
• Management Fee Yield: Approximately 1%, down from 1.2% in prior periods due to a higher weighting of lower-fee Bitcoin products.
• Staking Yield: Declined to 2.5% due to market volatility and the performance of altcoins.
• Cash Position: Over $103 million in cash and equivalents, with positive working capital of $47.3 million.

2. Strategic Updates and Business Highlights:

• The company is focusing on expanding its institutional product offerings, including UCITS funds and actively managed certificates, to attract larger institutional investors.
• The appointment of Jakob Lindbergh as Chief Revenue Officer aims to enhance distribution and institutional relationships.
• Continued development of proprietary custody technology and venture capital portfolio restructuring to enhance shareholder value.
• The Valor platform now includes 103 listed products across multiple exchanges, showcasing a diversified product strategy.

3. Forward Guidance and Outlook:

• Management remains optimistic about improving market conditions throughout 2026, which could enhance AUM growth and revenue acceleration.
• Guidance for Stillman Digital indicates expected revenue growth of 15% to 20%, targeting $11 million to $12 million for the year.
• The company is taking a conservative approach to overall revenue guidance due to uncertainties around new product launches and market conditions.

4. Bad News, Challenges, or Points of Concern:

• The digital asset sector is experiencing a challenging market environment, impacting investor activity and overall AUM.
• AUM levels are still below prior periods, reflecting the broader market downturn.
• Concerns regarding share price manipulation investigations remain unresolved, with management unable to provide specific updates due to legal sensitivities.
• The company is cautious about its Nasdaq listing status but reassured investors that there is no immediate risk of delisting.

5. Notable Q&A Insights:

• Management clarified that share buybacks are a potential future option but depend on cash flow and are not related to Nasdaq listing concerns.
• The company is focused on building institutional relationships and expanding its product offerings to meet demand from larger investors.
• There is a strong emphasis on the importance of custody services in integrating with traditional finance and enhancing operational efficiency.
• Analysts inquired about the potential for revenue growth from new products, with management indicating that significant contributions are expected in the second half of 2026.

Overall, DeFi Technologies demonstrated resilience in a challenging market, maintaining profitability and a strong balance sheet while pursuing strategic growth initiatives aimed at institutional investors.