Defi Technologies, Inc.

Everyone, we'll just give a couple more seconds for folks to filter in, and then we'll get started. And then if you do have questions, you can put them in the chat. We'll get them later, to them later in the meeting. But we will be inviting analysts on live. I'll go through that here in a second. But first of all, hi, everyone, and welcome to the DeFi Technologies 2025 Fourth Quarter Financial Review and Shareholder Call. I'm Curtis Laufman, VP of Marketing and Communications. Joining me on the call today, our Chief Executive Officer, Yolanda Lautenstrom. Chief Financial Officer Paul Bozocchi and President Andrew Forsen. We'll begin with opening remarks from Johan Wattenstrom, followed by a review of our fourth quarter and full year 2020 financial results from Paul, and then an update on growth initiatives and strategic priorities from Andrew. After that, we'll open up the line for Q&A. Investors can enter their questions in the chat throughout the call. we won't be able to get to everything. And if we don't get to it on this call, please do email ir at defi.tech or curtis, C-U-R-T-I-S at defi.tech, and I'll get to your questions as soon as possible. But then we'll invite some of our analysts on the live to ask questions of the management team. Before we begin, I'd like to remind everyone that certain statements made during today's call may constitute forward-looking information under applicable securities laws. These statements include but are not limited to comments regarding expected financial performance, business development, strategic initiatives, market expansion, product growth, and future opportunities. Forward-looking statements are based on management's current expectations and assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied. With that, I'll turn it over to our CEO, Johan Watenscham.

Thank you, Curtis. Thank you, everyone, for joining us today. As many of you know, as a co-founder, I've been very much involved in the business since its inception and stepped into the CEO role during the fourth quarter. I'm very encouraged by where the business stands as of today. and by the foundation we built for the next phase of growth. Our 2025 results reflect the strength of the platform we have built and the progress we have made over the last several years. If you look at our IFRS revenue trajectory, the scale of that process becomes very clear. In 2021, revenue was 15 million. In 2022, it was a negative 14 million. In 2023, it was 10 million. In 2024, it increased to 31 million. And in 2025, it reached a record 99 million US dollars. That progression is important because it shows how far the business has evolved. We have built DeFi technologies into a much broader, more durable, and more scalable platform. We are not reliant on any single product, revenue stream, or market environment. We have built a business with multiple pathways for growth, and we believe we have never been better positioned to scale the platform and capitalize on the opportunities ahead. At the center of the group is Valor, our digital assets management business. Valor gives investors regulated access to digital assets through traditional financial infrastructure. And today, the platform includes more than 100 listed ETPs across multiple exchanges globally. That geographical reach, combined with the breadth of product we offer, continues to set us apart in the markets. What makes our model especially compelling is its vertical integration. We do not simply earn management fees on AUM. We monetize those assets across multiple activities, including staking, lending, and market making. That gives us multiple revenue streams from the same base of assets and allows us to monetize more efficiently than a traditional asset manager. The capital we raised has strengthened the model even further. It has enhanced our ability to increase monetization across the platform and across the balance sheet, particularly by expanding the trading, hedging, and market-making infrastructure that supports Valor's issuance stack and allows us to earn additional income on AUM more efficiently. During the quarter, we continued executing against several important priorities. First, we expanded the Valor product platform and ended the year having achieved our goal of reaching 100 listed ETPs. That milestone reinforces our position as one of the most diversified digital asset ETP issuers globally. The product expansion continues into high-value added products, including more institutional investment exposures. Second, we remain focused on broadening the investor base that can access the platform. Today, the majority of our AUM is still driven by retail investors, but a major priority going forward is increasing institutional participation for structures such as uses, AMCs, hedge fund structures, funder funds, on-chain distribution, and other investment vehicles that can access larger pools of capital. Third, geographic expansion remains an important opportunity. Europe remains our core market and main focus. We continue to see significant growth potential in jurisdictions across Europe. Outside Europe, we continue to expand into select regions where access to regulated digital assets and investment products remains limited. Brazil is an example of that. And we also continue to advance our discussions in the other locations in Latin America, Asia, Africa, and the Middle East. And finally, Our financial position remains a major strategic advantage. We have never been better positioned from a balance sheet perspective. We ended the year with approximately $178.7 million in total cash, treasury and venture portfolio value, and effectively no debts. That quarter's balance sheet gives us the flexibility not only to support the business through volatility, but also lean into opportunities and aggressively pursue our business goals in any macro environment. Even in a prolonged crypto winter, that financial strength allows us to continue increasing monetization across our AUM and balance sheets, invest through the cycle, diversify revenue streams, accelerate strategic growth initiatives and pursue attractive acquisitions or investments in assets that may become available at compelling valuations. In other words, we believe our balance sheet allows us to be proactive rather than reactionary and position us to emerge even stronger as the digital asset market recovers. We are building for the convergence of decentralized finance and traditional capital markets. We see a significant long-term opportunity to create the product, infrastructure, and institutional range that we believe will transform capital markets over the next five to 10 years. We are entering 2026 from a positional strength with a proven business model, optimized monetization, and the financial flexibility to invest in the next phase of growth. We believe we are still in the early stages of building the institutional gateway to the future of finance. With that, I'll turn it over to Paul to walk through the international results.

Thank you, Johan, and good morning, everyone. I'll begin with an overview of assets under management. DeFi closed December 31st with AUM of $622.3 million. Average AUM throughout fiscal 2025 was approximately $809.9 million During the year, Velour also achieved net inflows of $110.1 million into its ETP products, reflecting continued investor demand despite market volatility. Turning to revenue, DeFi generated record full-year revenue of $99.1 million for fiscal 2025. For the three months ended December 31, 2025, revenue was $20 million. On the profitability side, net income and comprehensive income for the fourth quarter alone net income was $28.9 million. These results reflect the earnings power of our platform and the resilience of our diversified model across market cycles. Within Velour, our Q4 effective staking and lending income was 4.7% on the $728.3 million average Q4 AUM, an increase from the 3.4% realized during Q3. While we staked approximately 44.4% of our AUM the higher earned staking yield. Staking was reduced to December 31st, 2025 to allow for coin transfers for audit purposes to verify for ownership. We adapt our staking percentage in sync with market conditions and internal risk management policies to ensure we can meet ETP commitments on a timely basis, and we generally stake between 60 and 70% of our AUM. Our Q4 effective management field was remind investors that we do not charge management fees on our main Bitcoin and Ethereum products, which reduces our effective management fee income from the typical 1.9% we charge on most altcoin ETPs. We closed 2004 with 102 products and reached our 100 product goal during October 2025. Stillman Digital is also an important part of the platform. That business Stillman's full year 2025 revenue is still at $9.6 million, and we expect the grid business to grow by 15% to 20% in 2026, irrespective of whether crypto prices increase. This growth is expected to be driven by a combination of more effective monetization of existing flows, enhanced customer acquisition workflows leveraging AI for outreach and customer onboarding, and expansion into new geographies. Stillman is positioned well both domestically in the United States where the majority of business is and in international markets through its regulated Bermuda entity. As previously discussed, the timing of DeFi alpha transactions remains opportunistic and is dependent on market conditions, and some of these opportunities have been deferred. Turning to operating income, Q4 operating income was $7 million, an operating income for the by $2 million from Q3 2025 due to lower crypto prices and lower average AUM in the fourth quarter. Q4 IFRS net income after tax came in at $28.9 million, with full year IFRS net income after tax came in at $62.7 million. In terms of our crypto investments, the company's venture portfolio now consists of 12 private investments, with the largest being our 5% stake in Amino Bank, which makes up 83% of the portfolio's fair value. Amina Bank continues to perform exceptionally well, although its AUM did decline to 2.7 billion Swiss francs at the end of Q4, from Swiss francs 3.5 billion at the end of Q3, in line with the fall in crypto prices during the fourth quarter. To reflect the compression in EB to AUM multiples and lower crypto prices, the company reported an approximate 11 million non-cash mark-to-market negative adjustment for its investment in Amina Bank. stablecoin. Following a multi-year regulatory approval process, we were pleased to hear that in Q4, StableCorp received a final receipt for its prospectus, qualifying the distribution of QCAD tokens under Canada's current regulatory framework for QCAD stablecoins. This milestone establishes QCAD as Canada's first compliant CAD-denominated stablecoin and represents an important step in expanding regulated digital asset infrastructure in the country. backers of this project alongside the likes of Coinbase and Circle Ventures. The company did not make any new investments during the fourth quarter. We continue to believe Amina will be a successful long-term investment, and the addition of StableCorp further strengthens the strategic positioning of our venture portfolio. Turning to the balance sheet, as of December 31, 2025, the company held $113.8 million in cash and USDT-USDC of cash. Digital asset treasury holdings totaled approximately $35.5 million, and the venture and private portfolio was valued at approximately $29.4 million. Together, total cash, treasury, and venture portfolio values stood at $178.7 million a year end. That financial position gives us a high degree of flexibility. It supports continued investment in while also reinforcing the strength and durability of the business. As we look ahead, our focus remains on scaling the core drivers of the platform, expanding monetization across AUM, supporting institutional product development, and maintaining disciplined capital allocation. At this point in time, the company is declining on providing guidance for 2026, given the general market volatility caused in part by the war in Iran million of cash in USDT, USDC on hand at December 31st in the event of a prolonged market volatility to focus on executing its objectives outlined by our CEO, Johan, earlier to build long-term shareholder value. With that, I'll turn it over to Andrew.