Amber International Holding Limited

Good morning. Welcome to AMBER International Fiscal Year 2025 Third Quarter Financial Results. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If you'd like to ask a question at that time, you may press star 1 from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Mia, AMBER Premium's official agent FI ambassador. Mia, you may begin.

Good morning, and welcome to AMBER International Holding Limited's third quarter 2025 earnings call. I am Mia, AMBER Premium's official agent FI ambassador and your moderator today. Before we begin, please note that today's discussion may contain forward-looking statements within the meaning of U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially. For a more detailed description of these and other risks and uncertainties, please refer to our filings with the Securities and Exchange Commission. Joining us on today's call are Michael Wu, Chairman of the Board and CEO, who will share our strategic vision and AI transformation initiatives. Vicky Wang, President, who will focus on our core business updates, current positioning, offerings, and goals. Yi Bao, Chief Product Officer, who will update us on our product development and innovation pipeline. Josephine Ngai, CFO, who will review our financial results and provide guidance. And Steve Zhang, our Head of Capital Markets. Following their remarks, we will open the line for Q&A. With that, let me now turn the call over to Michael Wu, our Chairman of the Board and CEO.

Thank you, Mia, and thank you all for joining us today. Q3 was a defining quarter for Amber International. We delivered operating income of $1.4 million within an 8% operating margin. a strong profitability and a clear validation of the operating leverage we have been building quarter after quarter. This improvement reflects not only disciplined cost management, but also a stronger, more durable revenue mix anchored in the premium client engagement and high-quality business activity. Underneath the financials, client behavior tells an even more compelling story. Assets on platform grew 20% quarter-on-quarter to $1.84 billion, supported by robust inflows and deepening client relationships. Trading activity accelerated across segments, reaffirming that our platform remains a trusted, high-touch partner for sophisticated investors, particularly in volatile markets where our differentiated capabilities matter most. These results demonstrate the strength of our core. We are Asia's leading digital wealth management platform, serving the region's most sophisticated clients with a private banking experience built on technology and unmatched access to digital asset opportunities. This business is profitable, resilient, and scalable, and it continues to set the foundation for our long-term strategy. As part of our ongoing commitment to maximizing shareholder value and demonstrating our confidence in the long-term prospects of our business, I'm pleased to announce that our board of directors has authorized a share repurchase program of up to $50 million of our outstanding ADS over the next 12 months, starting from December 1st, 2025. This decision follows directly from the strong Q3 results we just shared with you. The authorization reflects our board's confidence on multiple fronts. First, in the durability and the scalability of our core digital wealth management business. Second, in our ability to generate sustainable cash flows. And third, in our belief that the current valuation does not fully reflect Ember International's intrinsic value and long-term potential. We intend to execute this program opportunistically over the next 12 months, balancing repurchases with our ongoing investments in technology, AI capabilities, and platform expansion. Importantly, this buyback does not signal a shift away from growth. Rather, it demonstrates that we can deliver both returning value to shareholders today while building the AI-powered crypto finance platform of tomorrow. As many of you know, Ember is more than a crypto finance platform. At all core, we are and have always been a technology-driven company. Remain at the forefront of technology, we must be relentlessly forward-looking, technology-driven, and bold in building what comes next. That brings me to the broader strategic arc. From our founding of Amber AI in 2017, we have held a steadfast belief. Two technologies, crypto and AI, would fundamentally reshape finance and the broader economy. That conviction has only grown, and today we are uniquely positioned to capitalize on their convergence. This quarter, we continued to make significant strides in embedding AI at every layer of our operations. Most notably, we have successfully launched the Work with Mia portal and advancing AI integration across both our internal and external processes. Mia, our AI agent and your host today, now plays a hands-on role in nearly every aspect of our content generation and social media management, ensuring a new level of operational efficiency and consistency. Inside the organization, Mia is now live within our internal Slack workspace, acting as a proactive, always available teammate, accelerating knowledge sharing and empowering our staff to operate with greater agility. Additionally, we have developed a proprietary knowledge-based engine inspired by Amber's unique needs and modeled after Perplexity, which is currently undergoing a comprehensive security review prior to full deployment. Together, these initiatives are not simply efficiency upgrades. They are reinforcing Amber as a true technology-driven leader at the intersection of AI and crypto finance. We remain committed to harnessing AI to improve the client experience, drive scalable and sustainable growth, and further sharpen our competitive edge. Q3 showed that the foundation of our business is strong. The transformation is accelerating, and the long-term vision remains deeply compelling. AI for crypto in the near term employing the most advanced agent technologies to scale and personalize premium services, empowering us to better serve sophisticated clients and improve our unit economics. And looking further out, crypto for AI, building the rails for the coming agent economy, where crypto and AI converge to redefine how value is created and transferred, with Amber positioned at the very heart of this future. Thank you.

Thank you, Michael. As Michael mentioned, in Q3, we are carrying forward the same strategic focus from Q2, really doubling down on our high net worth, ultra high net worth individuals and institutional segments. And we're doing that by advancing our infrastructure, new product initiatives, and operational disciplines. We are already seeing clear evidence that the strategy is taking hold Our revenue is more diversified, client engagement is deeper, and our business fundamentals are stronger. That's why we are increasingly confident in both the growth momentum of our business and its sustainability. As we ask you against the strategy, our core business performance is now showing clear and encouraging progress. Asset and platform increased to $1.84 billion, up 20% from $1.53 billion in Q2, driven largely by strong net new asset inflows and stronger client allocations. Together with a significant increase in trading volumes, this clearly shows that clients are not only staying in business, but are growing their engagement across multiple product lines despite market volatility. We have also brought on board experienced professionals with background in leading financial institutions, including JP Morgan and Morgan Stanley, which enables stronger client coverage and a level of professional standard that is still unmatched in our part of the industry. Now let me turn to our financial results for the quarter. Total revenue for Q3 was $15.3 million. The major step down is expected as we begin to shift our revenue mix towards higher margin, higher quality revenue streams, and more scale of business. As a result, operating profitability were meaningful improved quarter over quarter with operating margin rising to 8% in Q3 from minus 4% in Q2. Meanwhile, our core activity continued to gain momentum with transaction volumes up 40% and payment volumes up 26% quarter-over-quarter. Under this improving revenue mix, execution solution revenue saw strong progress, increasing 57.6% quarter-over-quarter to $3.17 million from $2.01 million in Q2. This growth was driven by greater institutional OTC market share and more sophisticated trading needs from clients. It underscores our focus on execution quality and disciplines optimization. Payment solution revenue also delivered robust growth, rising 39.9% quarter over quarter to $1.2 million, supported by stronger institutional adoption and higher client engagement across the platform. To support this shift towards higher quality revenue, we have been steadily expanding our product offering and upgrading our underlying infrastructure. So we can better meet a wider range of client objectives and base profiles. So looking ahead, we plan to build on this foundation by further enhancing our execution capability and product line. In particular, we are looking to grow our structured product suite. including FDNs and daily due currency offerings to help clients generate yields across different market environments while maintaining robust downside protection through stronger risk monitoring. On the trading side, we're focused on further optimizing our pricing models and refining our OTC workflows. So our clients can benefit from more competitive execution and timely access to more market opportunities. We will also keep pushing forward on our RWA initiatives, which are designed to unlock more diversified yields and improve capital efficiency across both traditional and digital exposures. And Yi will elaborate further on this shortly. In addition, we are developing digital asset inhabitants solutions to support long-term wealth planning for family offices and ultra-high net worth clients. This is a natural extension of our ambition to deliver private banking-grade service in digital assets. There's a clear institutional framework for succession and estate planning. By making digital assets a seamless part of their broader wealth plans, We're making more confidence for this client to put more meaningful capital to work with this over time. On the client acquisition side, with our front office team growing, we are taking a more proactive approach to reaching premium clients. We are rolling out curated offline and online engagement programs in key wealth communities across Asia. This initiative will definitely help us to increase our visibility in elite networks, accelerate trust-based client acquisition, and strengthen long-term relationships with elite clients. Taken together, we are very confident that we are moving in the right direction, investing in high quality revenue, enhancing our product and execution capabilities, and continue to deepen engagement with our core client segments. We believe that these steps will position us well for long-term growth and value creation in the quarters ahead.

Okay. Thanks, Vicky. I would like to update you on the two areas where we continue to invest for future growths. The first part will be the evolution of our platform and product suits, and the second part is the build-out of our real-world assets. or RWA tokenization capabilities. These are the same pillars I highlighted last quarter, and in Q3, we moved meaningfully from vision to execution. For platform evolution and product innovation, our starting point remains the same. Crypto is structural, cyclical, and our product roadmap is built to support clients through both down and up cycles. from capital preservation and yields to access, leverage, and alpha. In Q3, we made concrete programs on three fronts. First, we are integrating OTC into the platform. We are streamlining the OTC debt execution, operations, and the product illustration within our application and the website. Whether a client trades via flow traders, relationship managers, or self-directs on the platform. They are increasingly getting a single holistic view of their total assets and exposure with us. This reduces internal friction and gives institutional and family offices clients cleaner real-time visibility. Second, we are building our AI co-pilot. We advanced development and AI co-pilot designed to make a platform more proactive and adversary, not just transactional. It will support the daily account recaps and the key P&L and risk drivers, and the portfolio and account reviews highlighting what requires attention, and the target markets and product insights within each client's risk parameters. We have started internal pilots And we see this as a core enabler of scalable and high-touch coverage. Third, about the new structured products. On the product side, we soft-launched more advanced structures, such as the leveraged accumulator, decumulator, and the FCM-type payoffs. This solution helps sophisticated clients express views and enhance yield with defined payoff ranges. anchored in robust risk management and suitability. Combined with our existing suits, this strengthens our ability to serve clients across different stages of the market cycle. Overall, platform evolution is about making our efforts to institutions, family office, and accredited investors more seamless, more intelligent, and easier to scale. These initiatives directly support our goal of improving unique economics while delivering superior client experiences, enabling us to serve more sophisticated clients profitably without proportional increases in headcounts. Then let's turn into RWA tokenization. In Q3, we saw growing in bonds interest from listed companies, family offices, and corporates exploring how to bring assets on-chain. For capital efficiency, distribution, and more programmable instruments, the demand drivers are clear. The challenge for most organizations is execution. In response, we focused on productizing our capabilities into an internal RWA platform solution rather than treating each opportunity as a one-off project. The goal is a standard, seamless SOP we can offer as a technology service provider, covering the onboarding and structuring, insurance technology capability, and the servicing of tokenized instruments, and the custody and connectivity to distribution values. We are on track to set up the core RWA platform in Q4 and expect it to start generating revenues thereafter. mainly via technology and service fee initially. Over time, we see this platform sitting naturally alongside our trading and structured product business, and enabling clients to hold tokenized products directly within their broader digital wealth portfolio with us. To close, both pillars, platform evolution and RWA tokenization, are fully aligned with our institutional strategy. They deepen our value proposition to sophisticated clients, leverage our existing regulatory and product strengths, and expand our addressable markets while improving scalability and unique economics. I'm encouraged by the programs in Q3 and looking forward to the milestones ahead in Q4 and beyond. I will hand over the mic to our CFO, Josephine Ngo.

Thank you, Yi. Good morning, everyone. I will now review our financial results for the third quarter and September 30, 2025, and explain how they align with our business strategy. Please note that all financial results discussed during this call reflects continuing operations only. Since we optimize our business to drive return to the shareholders through proactive monitoring on our operations and market trends, and certain operations under iClick were classified as held for sale as of the end of third quarter of 2025. This quarter, we delivered solid record results across key financial metrics, demonstrating the strength of our business model and the growing institutional demand for our solutions. Regenerated total revenue of 16.3 million US dollars which increased significantly from 0.6 million U.S. dollars a year ago. It is primarily attributable to robust growth in wealth management solutions and execution solutions, as well as integrations of revenue from marketing and enterprise solutions following the merger with iClick. In addition, the continuous expansions of MDDM business also contribute to the revenue growth. Revenue from our wealth management solutions was $7.5 million, which significantly increased from $0.5 million in the same period last year. The execution solutions generate $3.2 million revenue this quarter, compared with $0.1 million in the third quarter of 2024. Regarding the payment solutions, It was increased to $1.2 million this quarter, compared with $0.1 million in the third quarter of 2024. Revenue for marketing and enterprise solutions was $4.4 million after the reclassification of income statements from disposing units in Q4, which was consolidated in the listed company after the merger last year. What particularly encouraging about this result is the ongoing improvement in our profit profile year over year. Gross profit for the third quarter of 2025 reached 11.8 million US dollars compared to 0.4 million US dollars in the same period of 2024. Gross profit margin demonstrates an upward trend to 72.3% in the third quarter of 2025 from 44.7% in the third quarter last year. The operating income was $1.4 million in the third quarter of 2025 and achieved a turnaround from $1.8 million operating loss in the third quarter of 2024 as a result of our growth in gross profit and strengthened operating leverage. The net income from continuing operations was $2.2 million, compared to net loss from continuing operations of $0.8 million in the back quarter of 2024 as a result of the fall going. As of September 30, 2025, the company had cash and cash equivalents, time-deprocessed and restricted cash of $39.9 million, compares to $9.3 million as of December 31, 2024. This strong cash position, supported by both our July 2025 private placements, provides us with strategic possibilities to invest in high return growth initiatives, including our WHO organizations and our AI-powered platform capabilities. On an on-game basis, The adjusted EBITDA from continuing operations reached $2.9 million, and adjusted net income from continuing operations was $2.7 million. I will now provide an update on our forward-looking outlook. Based on current market conditions and our preliminary estimates, we expect 2025 full-year revenue from our AMBER premium segments to be in the range of $50 million to $52.5 million. This guidance reflects our expectations on sustainable institutional demand and the diversification of our revenue stream across wealth management, execution, and payment solutions. This outlook is also based on current market conditions and our assessments of continued institutional adoptions of digital assets and reflects the company's preliminary estimates of market and operating conditions, expected foreign exchange fluctuations, and customer demand, which are all subject to change. Please also refer to the factors set out under the section titled Safe Harvest Statement in the earnings. Looking ahead, in addition to the external business strategy that we mentioned before, Internally, we're implementing disciplined cost management to drive continued improvement in operating leverage as we scale. We are also enhancing our financial reporting system to provide transparent insight into our performance as we integrate the operations following our merger. We maintain strong liquidity and balance sheet flexibility in order to support our global expansion. pensions, and strategic partnerships. To improve the profitability demonstrates that our institutional approach is resonating with clients and creating values for shareholders. With that, I will turn the call back to Mia. Thank you.

Thank you, Josephine. That concludes our prepared remarks for today. We will now open the line for Q&A. Operator, please begin.

Thank you. If you'd like to ask a question at this time, you may press star 1 from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, for our first question. Thank you, and the first question comes from the line of Brian Dodson with Clear Street. Please receive your questions.

Hi, good morning. So, first question on the share repurchase authorization. As you're thinking about utilizing that, would you take a more opportunistic or programmatic approach to retiring common shares?

Hi, Brian. Thanks for the question.

Regarding the execution of this share repurchase program, you know, I mean, we are taking a, you know, an open minded approach. We may repurchase ADS through open market transactions, prevailing market prices. We might conduct privately negotiated transactions. We might do block trades or any combination of these. Again, we will conduct all purchases in compliance, but regarding the specific timing, the type of transactions, the amount will all depend on a lot of factors, including the share price itself, the volume, market conditions, working capital requirements, and other general business conditions. And again, given the decision is from our board of directors, our board will also review the program periodically and may authorize adjustments to the terms, size, based on evolving business needs and the market conditions.

Yeah, great, thanks. And then do you think you could just touch on some of the key drivers of better-than-expected volumes in 3Q? And, you know, I know it's early in 4Q, but what are you seeing so far? Do you expect that strength to continue?

Yeah, hi, Brian. Yeah, this is Ian. For the volume side, I think you may see the number in Q3, post-execution payment volumes pick up dramatically. In Q3, the main driver is about the risk of ETH price you can see in the Q3. It prompts the ETH miners, some of the previous ETH miners to take profits and engage in the directional trading, which sparks our execution volume a lot. Also, the ETH price really will spark the imagination of the small cap tokens, and so like headphones, et cetera. They're just doing the rebalancing with their portfolios, and then they engage us with execution service. And also, yeah, there was some high-profile IEO, et cetera, projects. They just maybe engage us to do some, I mean, the buy and selling activity as well. So this will be the key drivers of the execution volume side. In terms of the Q4, I could anticipate that if the market volatiles continues, we can imagine there was the active trading behaviors and which will engage us to or using our execution of the trading desk capabilities going forward. I hope I answered your question.

Yeah, that was very helpful, particularly the commentary regarding volatility. Thanks very much.

Thank you, Brian.

Our next question is from the line of Ed Engel with CompassPoint. Pleased to see you with your questions.

Hi, everyone. Thanks for taking my question. I know over in Hong Kong, we're coming off a pretty big, the FinTech Festival over there. Then obviously, we had Token 24-9 the past couple weeks. Just wondering, as you start to see more of these mainstream financial institutions kind of attend these conferences, how are your conversations with this kind of group and how close do you think we are to potentially one day forming a partnership with a company like one of these more traditional institutions?

Thanks. Hi.

Thanks for the question. I think I'm attending several panels in the Hong Kong FinTech Festival and the Singapore FinTech Festival. I think there are interests mainly focused on the stablecoins and the RWA perspective, and they just want maybe funding some solutions for them to tokenize their money market funds, real estates, stocks, public stock, private shares, and they want a one-stop service even for them to distribute. So this is what the inbound, lots of the inbound interest coming to us. So we, as I mentioned during the past session, we are actively engage with them, talking about how could we help them to do the other initiatives. And in terms of the stablecoins, yes, as you may know, Hong Kong is throwing out the stablecoin regulation and the license regime. And we anticipate there will be some of the stablecoins partners in the future to maybe discuss about how to list within our licensed regulatory platform, et cetera. Yeah, but it's still, I mean, some preliminary discussion. Yeah, but to answer your questions, we do find that lots of the traditional institutions, they are quite interested in the stablecoin and RWA kind of initiatives, and we're definitely one of the, maybe the potential service providers among their options. Thank you.

um great appreciate the color and then um i guess since the uh flash crash or liquidations for the industry um back in early october curious on a medium perspective um does this create any opportunity um for kind of amber i guess to increase market share in any of the areas um thanks uh hi this is steve i'll take that one so as with um you know cycles before typically in these kind of events

There are players whose risk management might not be completely up to par that would be hurt by such a liquidation event. However, that presents opportunities for market share to shift to players with more stringent risk control and platforms where folks perceive to have more stability or financial stability. or financial backing. So I think we did benefit from that shift in the past month or so. And we continue to hope to capitalize on these opportunities as some of the other smaller desks and smaller players retrench from such an event. So right now, we're still looking at this as an additional incremental opportunity for us.

Great. Thanks, everyone, and congrats on all the progress. Thank you. Thank you. There are no additional questions at this time. Mia, do you have any comments? Thank you. I'll turn the call back to Mia for closing remarks.

We're going to answer one more question.

Sure. Yeah, we have some questions from the system. There's a question from Kelvin. The question reads, since the merger, MS stock price has softened, how do you position your valuation versus peers, and what key metrics should investors focus on So, you know, I think, again, fundamentally, we are, as we mentioned, you know, we are building what we believe a company at the frontier of technologies. We really position Amber to be at the forefront of crypto and AI, and we do believe the two technologies will not only converge, but they will reshape finance and the broader economy. Therefore, we are really taking a long-term approach technology-driven growth approach towards our business and towards how we build the company. Rome is not built in one day. We have a lot of patience, a lot of commitment to realize that really, really greater and ambitious vision. Now, in the meantime, that does not mean we only focus on the long term. We do care about how to maximize the shareholder values. Market sometimes does its own thing, but You know, that's why both, you know, we are focused day-to-day to improve our business, to generate revenue, to generate profits. As you can see, you know, the business is profitable. The business is strong. The business is highly resilient across market cycles. At the same time, you know, we are, you know, taking, you know, different approaches. We are trying different ideas. And, you know, the board in this case, you know, blessed us with this, you know, share buyback program. Again, we are trying to both with a very long-term approach build towards our vision, and we do think Ember has an opportunity to become really a cornerstone of that future we envision. At the same time, in the immediate term, we care a lot about how to return values to shareholders and taking all kinds of measures in that as well. In terms of valuation versus peers, again, I do think we are quite uniquely positioned. Most listed crypto companies, a lot of them either fall into the category of retail-focused crypto exchanges or into the category of crypto miner or miner-related companies. Ember isn't either. We are positioned as Asia's leading digital wealth management platform, and we do service a very unique and extremely strong client base of institutions and family offices and high networks alike. So we do think we are in a unique position, and it's a bit harder to compare us directly with other companies. But if you really want to look at metrics, you do see we are a profitable company. We're growing our revenue. Of course, the industry can be cyclical, but at the same time, I think over time, If you look at the company's history going backwards and if you see the companies going forward, I do think you will continue to see growth in revenue and profitability. Another question reads, congrats on Q3. I'm curious about your outlook on the crypto market and how you expect it to influence revenue and the profitability going forward. I think my colleagues E and Steve both touched upon this question a little bit. I think it's very hard to predict the market in the short term. Long term, we're extremely confident about the growth. of the crypto industry, the crypto market, and the blue chip assets, such as Bitcoin itself. But in the near term, there will be volatility. We do see, you know, Since October, there has been a sharp price decline and overall shrinking liquidity in the crypto market in the near term. That will impose challenges to some investors, to some investor confidence. At the same time, there are also factors potentially benefiting us, such as what Steve mentioned. There are other potential smaller players or players who are less robust in terms of their risk management that will leave market share and leave potential client activities towards us or players like us. It's hard to predict the market itself, but again, if we bring the horizon a bit further and look at the long term, we are both extremely confident about the industry, about the market long term, and also confident about our own growth.

I think that's all the questions we have answered today. Thank you. There are no additional phone questions.

Thank you all for joining us today. This quarter represents a pivotal step as we accelerate our AI-driven transformation and reinforce our commitment to institutional excellence. reaffirming Amber International's position as a global leading digital wealth management platform. We sincerely appreciate your continued trust and support, and we look forward to sharing further updates with you in the upcoming quarter. This concludes today's call. Thank you, and have a great day.