Defi Technologies, Inc.

Hey, everyone. Thanks for joining. Let's give a few moments for the rest of the folks to filter in. We'll wait until 9.01 to get started. But in the meantime, I'll go ahead and remind everyone that this call is being recorded and there will be some forward-looking statements. And then, you know, this is not investment advice. We'll start the call with an overview of our Q3 financials from Paul Pozzocchi. We'll then move on to a statement from our current CEO, Olivia Rusu-Newton, followed by a follow-up from Johan Wattenstrom, our incoming CEO, and then some growth initiatives that are currently in progress and updates from our president, Andrew Forsen. So let's give everybody about another 30 seconds, and then I'll hand it over to Paul. Well, the Q&A is also open to folks. So after the presentation and after comments, we'll go through Q&A from retail and then open it up to and bring on our analysts to ask questions and then wrap up the call. So joining us today, as you can see on the screen, my name is Curtis Schloffman, VP of Marketing and Comms. We have our current CEO, Olivia Rusu-Newton, incoming CEO, Johan Rottenstrom, CFO, Paul Bozocchi, and President Andrew Forsen. With that, I'll hand it on over to Paul to give an overview of the quarterly financials.

Thank you, Curtis. Good afternoon, everybody. Starting with an overview of our AUM, DeFi closed September 30th with AUM of US $989.1 million. Q3 average AUM increased to $950.7 million from $760.2 million in Q2 and $789 million in Q1 due to crypto price movements and positive cash flows into our ETP products. Q3 saw $38.8 million cash flow into our ETP products, bringing our year-to-date positive cash flows to $116.2 million. Moving on to revenues. Our Q3 revenue was $22.5 revenues for the nine months ended September 30 to $80 million. Q3 effective staking and lending income yield was 3.1% on the 950.7 average AUM, a reduction from the 3.6% realized during Q2. The 0.5% absolute term reduction is due to lower protocol rewards realized in the quarter. We staked approximately 5%. percentage of our AUM in sync with market conditions and internal risk management policies to ensure we can meet ETP commitments on a timely basis. Our Q3 effective management fee yield was 1.2%, up slightly from the 1.1% realized in Q2 due to additional new management fee bearing products, reminding our investors we don't charge management fees on Bitcoin and Ethereum products. We closed Q3 with 99 products and reached our 100 product goal during October 2025. Moving on to a revenue bridge from our guidance. The company previously disclosed revenue guidance of $218.6 million. This consisted of $116.6 million of core revenues and $102 million of DeFi Alpha related revenues. DeFi Alpha opportunities have been delayed from the forecast due to the proliferation of digital asset treasury companies and the consolidation in digital asset price movements in the later half of 2025, thereby delaying arbitrage opportunities and compressing available arbitrage profits. Furthermore, given the unpredictable nature of DeFi Alpha transaction revenues, we understand most analysts were not factoring these revenues into their financial evaluation models. and guide that the $102 million of DeFi Alpha-related revenues will be deferred over a longer period. We believe the core revenue forecast of $116.6 million will be achievable if cryptocurrency prices post a modest rally into year-end from current levels. Given Bitcoin is currently in a material supply distribution phase and the price is still holding in and around $100,000, plus or minus a few percent, with the increasing institutional and retail bolstered by the recent $100 million equity financing, and our relationships will allow the company to source attractive arbitrage opportunities which others cannot. Moving on to our operating income, Q3 operating income came in at $9 million and $32.6 million for the nine months ended September 30th, reflecting our strong focus on profitability. Q3 IFRS net income after tax came in at $3.9 million and $33.8 million for the nine months ended September 30th, In terms of our crypto investments, our venture portfolio now consists of 12 private investments, with our largest being our 5% stake in Amina Bank that makes up 83% of our portfolio's fair value. Amina Bank continues to perform exceptionally well, growing its AUM quarter over quarter and year over year to approximately 3.5 billion Swiss francs at this time. 100 million equity raise. The 100 million equity raise in September of 2025 will assist the company to increasing its staking back to the 70% plus target by providing more capital to facilitate ETP market making on a larger AUM base, provide working capital for DeFi Alpha trades, and support our other revenue and AUM growth initiatives. The company is also always on the lookout for accretive M&A opportunities. As of September 30th, the company had $119.5 million of cash on hand, treasury crypto holdings of $46.2 million for a combined total of $165.7 million. Management is confident that this capital will support future growth and also provide downside protection in the event of market turbulence. Thank you. Handing it over to Olivier.

Thanks, Paul, and welcome and happy to have everyone who's joined us on this call. Q3 2025 was another exceptional quarter of execution and consistent profitability. We delivered revenues of $22.5 million and operating income of $9 million, marking our third consecutive profitable quarter this year. I think this really reflects the scalability and resilience of our model through kind of macro headwinds that we've kind of experienced, I would say, throughout the last kind of 10 months or so. Allure continued to be a major driver of performance, achieving net inflows every month year to date and delivering 38.8 million of inflows during the quarter and 116.2 million year to date. Importantly, Q3 marked our highest average AUM on record over US $900 million per month. And all of the aforementioned figures are also in US dollars, just for the record, ending the quarter at $989.1 million. I mean, in terms of Valor's trajectory, it's quite clear. As AUM compounds reoccurring revenue scales with continued product launches and internal expansion, Valor remains at the center of a long-term growth strategy. On to our other very exciting acquisition that we made about a year and a half, two years ago. Stillman Digital continues to see exceptional trading volume and produced 2.2 million in trading commissions in Q3. continuing to strengthen its position in institutional trading. They recently integrated into the Talos network, which is an FX and stable coin capabilities network that deepens our liquidity provisioning and exposure. And senior hires have been made to exponentially drive higher volumes and improved execution. Stillman's steady growth and high margin model further enhance our profitability. And we expect a lot more going forward as that business grows. We remain exceptionally well capitalized with just under $120 million in cash and $46.2 million in digital assets for a combined $165.7 million on our balance sheet as of September 30th. This financial strength enables us to fund growth, maintain flexibility and return value to shareholders. During this quarter, we also repurchased just under a million shares for $2.44 million. Our NCIB buyback shareback program is still in place, and I think we will continue to execute that moving forward with the larger cash position that we have. Something that Paul reflected on, but in terms of A company, Velour specifically, as well as DeFi, having never done an institutional capital raise, the ratio to our AUM, I felt was a bit on the lower side of things. I think we kind of timed our financing well. And it gives us a lot of further capabilities to, you know, do buybacks, acquisitions and other strategic initiatives. While we've adjusted 2025 revenue guidance to $116.6 million, as DeFi Alpha opportunities have been delayed due to the proliferation of DAT or digital asset treasury companies and the consolidation in digital asset price movement in the latter half of 2025, the underlying business remains strong, diversified and profitable. Our asset management, trading and research divisions are all contributing to a foundation that compounds cash flow and shareholder value. Velour's record AUM levels demonstrate sustained investor demand for regulated digital asset exposure. Stillman's institutional footprint continues to expand, and our balance sheet gives us the strength to capitalize on opportunities across all lines of business. We are executing, scaling, and delivering profitability quarter after quarter. Our model works, our platform is compounding, and our focus remains on long-term sustainable growth. As we look forward, I want to take a moment to announce my resignation as CEO. After three transformative years as CEO and chairman, I've made the decision to step down. This has been one of the most rewarding chapters of my career. Not without its ups and downs, as we see, obviously, across crypto cycles. I'm extremely proud of what our team has achieved together. We've scaled and institutionalized Velour's ETP platform, strengthened our capital base, executed strategic M&A, and delivered record financial results to our shareholders. And obviously, you know, came out of a mountain of debt that we did so by focusing on revenue generation without the need for diluting shareholders. I'm deeply grateful for the support of the employees, partners, investors throughout this journey. Johan Wadenstrom, who's I consider a dear friend. I've got to know him over the course of the last eight, nine years. We founded Velour together before we set up DeFi. Has been by my side since day one. We've been through ups and downs, round and rounds together. And we'll step in as CEO and executive chairman. Johan's leadership, discipline, and deep understanding of our business make him the right person to guide DeFi Technologies into the next phase of growth. Thank you all for continued trust and support. I could not be prouder of what we built and even more excited for what lies ahead. And... Yeah, I'm not going anywhere. I continue to remain a significant shareholder partner and an advisor day to day. Hopefully I won't annoy anyone too much with all of my pestering and my focus will go towards BTQ Technologies, which has been a 13 plus year endeavor. And I think we're at a critical juncture for digital assets being protected by quantum security. And it's a real risk for the entire industry, along with businesses such as Valor. BTQ and Valor, as well as DeFi, will have working relationships and joint ventures going forward as well. That's it from my side. I'll pass it on to you, Anne.