Hyperion DeFi, Inc.

Greetings, and welcome to the Hyperion DeFi fourth quarter and full year 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Jason Assad, Director of Investor Relations. Thank you. You may begin.

Good morning and welcome to Hyperion DeFi's 2025 Fourth Quarter and Full Year Earnings Call. Joining me today are CEO Hun-Soo Jung and CFO David Knox. Before we get started, please note that our remarks today may include forward-looking statements. These statements are subject to risk and uncertainties and actual results may differ materially. During this call, we may use words like anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project, and similar expressions, which indicate forward-looking statements. For a more comprehensive discussion of these and other risks, please refer to our filings with the SEC, available on SEC.gov and in the IR section of our website at HyperionDeFi.com. We also reference certain non-GAAP financial measures today. Please refer to our earnings release and earnings supplement on our website for a full reconciliation of these non-GAAP measures to the most comparable GAAP measures. We'll start this morning's call with prepared remarks from Hun Su and David, followed by Q&A. I'll now turn the call over to our CEO, Hun Su Jung.

Thank you, Jason, and good morning, everyone. Welcome to Hyperion DeFi's fourth quarter and full year 2025 earnings call. Our second full quarterly earnings call since completing our strategic transformation as the first U.S. publicly listed decentralized finance company building on the hyperliquid blockchain. In our first earnings call as Hyperion DeFi, we stated that we would set ourselves apart from other digital asset treasury companies with our comprehensive ecosystem engagement strategy. At the time, it may have been difficult for investors to understand the concept of DeFi, let alone the idea of a public company using these strategies to generate revenue. The fact of the matter is, a public company can successfully participate in DeFi, especially in the right blockchain ecosystem, using appropriate, meticulously designed on-chain architecture. We have worked with key protocols to develop first-of-its-kind infrastructure native to Hyperliquid that have the potential to create long-term recurring value to Hyperion, our partners, and for our shareholders. We have executed on every strategy detailed in our previous report and are immensely proud to showcase the long-term possibilities of our unique strategies in today's call. It starts with what we view to be the most important digital asset, Hype, the native token of the Hyperliquid blockchain. In these market conditions, proper asset selection is paramount. We've seen the impact it can have when looking at the relative performance of numerous companies in the DAT sector. However, our vision always went far beyond just buying the right asset. It is essential to be able to effectively deploy the assets to directly contribute to the growth of the underlying blockchain ecosystem. This is our DeFi flywheel in demonstrating how effectively we can compound returns on hype beyond just staking. DeFi monetization is one of our four strategies, which works by compounding returns on our stake hype by effectively restaking hype to unique proprietary strategies. In Q3, our hype asset use service, or house, was a concept just starting to gain traction. In Q4, this business line grew substantially, especially with the mainnet launch of HIP3 in October 2025, which allowed for the creation of non-crypto asset exchanges on hyperliquids. I want to take a moment to acknowledge the incredible growth and global adoption that Hyperliquid, and specifically HIP3, have achieved over the past few months. HIP3 enabled equities, FX, metals like gold and silver, key commodities such as oil, all to trade permissionlessly 24-7 on Hyperliquid, opening up a universe of new tradable assets to users globally. The impact has been tremendous, to say the least. In late January of this year, hyperliquid captured almost 2% of total global primary silver trading volume, which comes out to around $2 to $3 billion of volume on its HIP3 markets. Keep in mind that these markets have only been in operation for about six months, and silver markets specifically had only been in operation for about one month before seeing such rapid utilization. More recently, with the rising conflict in Iran over the weekend of March 6th, we saw price discovery on oil happen for the first time on a decentralized exchange, while traditional venues such as ICE and CME were closed. Just last week, S&P Dow Jones Indices licensed its flagship index to enable the first official S&P 500 perpetual contract to be available exclusively on hyperliquid. This is an incredible institutional cosign and the first of many products from traditional finance to move over to decentralized rails, specifically hyperliquid. Since the beginning, we have continued to emphasize Hyperliquid's critical role in the future of on-chain financial services, and we are seeing this happen now in real time. Market moving events are accelerating, and markets themselves must now catch up to become available 24-7. Currently, this is only possible on Hyperliquid. Within this trend, Hyperion DeFi was the first and only public company to deploy one of these HIP3 markets on Hyperliquid in November 2025 in partnership with Felix Protocol. Our priority has always been on positioning and agility, having a view of how the digital asset space is evolving and preparing to capture value from that evolution. The Felix Exchange demonstrates the value of this focus in having the required infrastructure available. Gold and silver markets were listed in mid-December, just before the massive market attention to metals began a few weeks later. Oil markets were listed in January 9th, months before the conflict in Iran. To date, the Felix exchange has crossed over $2.8 billion in trading volume, with over 14,000 unique traders on a product launched less than six months ago. More importantly, real dollar-denominated fee revenues were earned from trading volumes on this exchange, a share of which returned to Hyperion as revenue. This is a revenue stream agnostic to the price of hype and agnostic to the performance of crypto markets. And of course, all those revenues went to the purchase of additional hype a core component of our DeFi flywheel. As our efforts on-chain became further socialized, we saw demand for House accelerate. We are proud to announce that we have launched House with Silhouette Exchange, a privacy-focused front-end built on top of Hyperliquid. Due to the nature of on-chain transactions being public, traders often seek ways to place trades that are shielded from public view. Silhouette provides the solution, and we believe their products will see significant demand from traders. Through this deal, we will have the opportunity to earn additional revenues based on trading activity conducted via Silhouette, in addition to future ecosystem rewards. In this quarter, we also saw the benefit of our first ecosystem rewards, receiving around 0.2% of KNTQ, the native token of the Kinetic protocol. Kinetic offers the leading liquid staking protocol on Hyper-EVM and enables us to access hype liquid staking tokens. providing us with the flexibility to pursue volatility strategies on hype to generate additional income. Through the utilization of their protocol, Hyperion received Kinetic points, which converted into KNTQ tokens during Kinetic's token genesis event. KNTQ grants governance rights to the Kinetic protocol and benefits from continued buybacks of KNTQ with revenues generated by Kinetic's various products, similar to Hyperliquid's assistance fund model. Kinetic's products include their flagship liquid staking platform, which currently has almost $1 billion in hype deposits, as well as markets by Kinetic, another HIP3 market which also crossed over $2 billion in trading volume just four months after launch. Kinetic currently has a second ongoing points program in which we are participating. We have strong conviction in the long-term value of additional alpha generated from supporting the growth and adoption of key applications built on the Hyper-EVM. These opportunities are not forever. In the same way that there was a limited window to participate in the airdrops of early protocols like Uniswap, Optimism, Arbitrum, and Jupyter, once the opportunity has passed, it may become more challenging to find. Iperion D5's edge is the ability to find, coordinate, and compound these opportunities, and we've continued to demonstrate this ability. Following the success of our ecosystem rewards efforts in the fourth quarter, We've received substantial interest from other builders in Hyperliquid to partner and build institutional DeFi infrastructure. In February 2026, we announced the institutional volatility income vault, developing partnership with Risk Protocol. Risk has recently surpassed over $60 million in total value locked and are working quickly to integrate additional liquidity providers and depositors onto the platform. These upgrades should ultimately enable risk to offer users the most competitive options premium on-chain in a user-friendly format. As part of supporting this build-out, Hyperion DeFi will earn a share of vault revenues in addition to earning risk points. Soon after, in March, we announced private lending pools built by HyperLend Protocol. HyperLend aims to be the credit layer on the Hyper EVM and to date has surpassed over $17 billion in total deposits. By matching KYC lenders and borrowers using smart contract infrastructure, we have the opportunity to bring new capital to the Hyper-EVM. These products can provide safer, more efficient, non-consolidial infrastructure for accessing credit, which can be used for various strategies both on and off-chain. We will provide more detail on these pools once they are fully live. In similar fashion, Iperion DeFi will earn a share of the revenue on total capital allocated to these pools in addition to earning HPL tokens. Together, our partnerships with Risk and HyperLend unlock institutional primitives for yield and borrow lending on the Hyper EVM, in addition to new revenue streams for Hyperion. These also build upon the partnerships with Kinetic, Native Markets, and Felix, given that we use Hype LSTs and USDH in the Hyper EVM, and can coordinate market listings for perpetuals via HIP3. The value of early partnerships and directly participating in the growth of the DeFi application ecosystem being built on HyperLiquid cannot be understated. Our recent results are a tangible affirmation of what we have accomplished to date. We recognize that we are early in our journey, but it should be clear to those that have been following our story that Hyperion DeFi is about first principles and positioning. to be able to see what will come before it does and being agile enough to move first and aligning with the right teams to build the best long-term scalable products. This is ecosystem building at its finest. I've done it before, but the opportunity in Hyperliquid is fundamentally different. Hypercore's continued success should serve as a powerful tailwind for the growth of Hyper-EVM. We introduced our DeFi flywheel strategy last quarter, highlighting its ability to accelerate as we create synergies around diversified strategies. We ended the year with growth across all of our core strategies, as well as establishing the infrastructure required to scale them. The past several weeks has demonstrated just the beginning of Hyperliquid truly breaking into the mainstream consciousness. It should be clear now why we have chosen to build our businesses on Hyperliquid. I will again recognize that our innovations are possible because of the Brecknick pace of innovation in the Hyperliquid Labs team. In the beginning of March, the next hyperliquid improvement proposal, HIT4, which allows for outcome markets on hyperliquid, went live on testnet. Outcome markets, or more colloquially known as prediction markets, create a new form of hedging instrument directly available on the hyperliquid platform. This unlocks one-time cost hedging opportunities for assets, starting with digital assets like BTC and HEIST. We believe that this product will quickly expand beyond digital assets and enable options like hedging for real-world assets, the same way we saw the dramatic adoption in HIP3. We are monitoring the situation closely and are keenly aware that this could be another avenue for Hyperion DeFi to expand our business lines. And what does this mean for our shareholders? It highlights something that we are calling the Hyperion Triple Dip, our unique ability to generate a multiple above the baseline return on hype. This is only possible because of our management team's respective backgrounds that positioned us to be at the forefront of DeFi innovation. David Knox joined Hyperion from PayPal, managing multi-billion dollar loan books, and was a pioneer in building some of the most unique and sophisticated structures in asset-backed finance, like Cantor Fitzgerald and SoFi. Robert Rubenstein has a multi-decade background in the gaming and exchange-traded derivative markets. Altogether, we believe this positions HypeD as the de facto best solution for compounding hype on hype returns, more so than any other DAT or ETF. We are much more than just hype. Long term, we are positioned to generate more real revenue on hype, accelerating our ability to redeploy hype to new strategies. So far, we have executed on every objective we set for ourselves, and we don't plan to stop anytime soon. With that, I'll hand it off to David to dive into the numbers and demonstrate how these strategies are starting to show their long-term potential.