Hyperion DeFi, Inc.

Greetings. Welcome to the Hyperion DeFi 2026 First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to Jason Assad, Director of Investor Relations. Thank you. You may begin.

Good morning and welcome to Hyperion DeFi's 2026 First Quarter Earnings Call. Joining me today are CEO Hansu 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 will 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 will start this morning's call with prepared remarks from Hunsu and David. followed by Q&A. I'll now turn the call over to our CEO, Hunter Jung. Thank you, Jason, and good morning, everyone.

Welcome to Hyperion DeFi's first quarter 2026 earnings call. In our first earnings call with Hyperion DeFi, we made a promise, stating 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. We are off to a strong start of the year, continuing to distance ourselves from the crowd, fulfilling past promises resulting in measurable growth across our core proficiencies, positioning ourselves in parallel with the rapid innovation from the Hyperliquid core team. We have seen over the past few months that Hyperliquid continues to execute on its vision to become the blockchain to house all finance. HIP3 markets now account for almost 50% of Hyperliquid's daily average trading activity, an incredible testament to the product's market fit of a unique on-chain primitive launched only seven months ago. And just 12 days ago, HIP4, the network upgrade that unlocks outcome markets for Hyperliquid, went live on mainnet. On its launch day, Hyperliquid's first outcome market for the price of Bitcoin hit over three times the combined volume of PolyMarket and Kalshi. This comes alongside the continued development of unified market accounts on Hyperliquid, which will ultimately enable users to access a seamless, unified platform for positioning and hedging across all markets and products. As Hyperliquid's vision continues to become reality, Hyperion continues to position ourselves as the premier institutional gateway to DeFi innovation. We are very proud to share with you the results of the continued scaling of our DeFi operating businesses, in addition to the growing network value of our ecosystem engagement. In our previous full-year 2025 earnings call, we provided guidance of $4-6 million adjusted gross profit for 2026, which captures our core DeFi operating businesses. We have increased guidance to $5-7 million for 2026, and anticipate cash flow break-even by year-end, driven primarily by the continued opportunities to build income-generating businesses on hyperliquid. As we walk through the results of this quarter, it should become clear why we raised capital and how our strategies continue to demonstrate the ability to triple dip on hype. In this quarter, we saw substantial growth in our DeFi monetization strategy, as well as expansion of our yield enhancement strategies, both of which we expect to continue to grow through the remainder of 2026, driven by the continued adoption and growth of the HyperLiquid blockchain. Specific to HyperCore, our DeFi monetization vertical grew by 140% this quarter, driven by our partnership with Native Markets, a stronger quarter of volume on the Felix Exchange, our partner to HIP3Market, and the initial spot testing volumes on Silhouette. These are three different variants of our Hype Asset Use Service for House. Fees that are variable but correlated to the price of Hype. Fees that scale based on volume and fees generated on our markets listed on HIP3. And fees that scale based on aggregate volume and associated fee reductions for trading on Hyperliquid. This diversified approach creates multiple avenues to generate DeFi income that are scalable over time and agnostic to the performance of just hype and crypto markets. We saw early on that the long-term appeal of these products would grow as Hyperliquid evolves to become more than just a platform to trade crypto. It will ultimately serve various real-world assets, outcome markets, and structured products. And as a result, we have continued to see demand from clients and partners globally for our hype asset use service. We have also had the privilege of consistently being the first to be approached by these various suppliers to support their objectives and further integrate them into the hyperliquid ecosystem. With that responsibility, we continue to take a methodical approach to partner selection and ensure deal structures that create and return the most long-term value to our shareholders. A prime example is our recent partnership with Silhouette, the privacy layer built on top of HyperLiquid. As they fully migrate into production, we expect volumes to increase from several hundred thousand dollars to several millions of dollars in volume, driven both by the launch of the RFQ system, which will enable large positions to be filled by onboard counterparties, as well as the ability to maintain those positions privately on HyperLiquid. This helps prevent the front-running of trades, as well as competitors potentially copying client strategies. Silhouette's offering is further enhanced with up to a 30% reduction in trading fees, compounding the benefits by providing them to users through an aggregated trading layer. As part of this deal, Hyperion DeFi has received rights to 1% of Silhouette equity, in addition to a revenue share fee savings. Long term, we believe that the value of private permission trade settlement on hyperliquid will be an attractive product to various funds, prop firms, and market makers as the platform grows to service increasing financial flows. As such, we position for that feature by establishing shared revenue streams and upside exposure to our partners. Yield enhancement saw over 150% growth this quarter, driven by the hype tokens' continued high volatility and our ability to enhance yield on our staked positions. We've optimized this strategy to work in parallel with our efforts to battle test and expand our yield infrastructure built on risk, our partner in offering institutional-grade vault strategies, which is known as Risk Premium. We formalized our strategic agreement with Risk Discorder, establishing a revenue share model for Risk Premium, which will become publicly available in the coming months. Currently, RISC offers the ability to write covered calls and cash-secured puts across a wide variety of crypto assets, including BTC, ETH, SOL, XRP, HYPE, and USDH, with the potential to expand to real-world assets and other tokenized permanents brought to the HYPER EVM. We've had very positive conversations with institutions and foundations about bringing their yield enhancement strategies to RISC Premium. we see several tailwinds for the Total Value Lock, or TVL, increasing on this product. Actively managed on-chain yield strategies use smart contracts, which eliminates the unavoidable counterparty risk found in executing derivative strategies using off-chain execution desks. Instead, strategies are operated using conditional smart contracts, and thus resolved based on a specific coded outcome, whether or not the trade was in or out of the money. Depending on the outcome, the trade is either filled and settled, or the collateral is returned to the user without the need to rely on the counterparty to fulfill their obligation. In addition, because multiple liquidity providers are quoting prices for each trade, there is always competition to win user flows, resulting in the best premiums for the user. More recently, SEC Chair Paul Atkins signaled new rulemaking for on-chain markets, crypto vaults, and blockchain settlement infrastructure. We expect additional clarity for on-chain vaults to be critical towards driving more institutional adoption of strategies such as risk premium, especially when considering the safety and yield benefits noted above. Thus, as we are positioning for the future expansion of HyperCore, we believe that the Hyper EVM still has immense opportunities for growth and value capture. One form of such value capture is our current accumulation of risk points, which entitles the company to receive a future incentive from RISC, most likely governance tokens of the protocol. If RISC continues to succeed, we believe that value and or utility will accrue to their token. Broadly, we expect to see continued volatility across markets, in tandem with more regulatory clarity for crypto, which would bode well for products like RISC Premium. And the recent expansion of our balance sheet will allow the company to further scale such strategies and return that value to our shareholders. Ecosystem rewards remain variable, but we maintain a positive outlook for the ecosystem tokens we will receive through the remainder of the year. As mentioned earlier, our ecosystem engagement efforts have expanded beyond token representation of the protocols we believe have long-term potential. Hyperion DeFi has now acquired equity positions to various protocols for the benefit of our shareholders. We continue to stand by and deliver on another core objective. to create long-term value for the hyperliquid ecosystem, while simultaneously providing streamlined, comprehensive access to all of the valuable components built there. For example, last quarter, we announced that we would receive 1 million HPL, the native token of the HyperLens protocol. By the end of March, our current allocation of HPL has increased to 10 million tokens, which represents 1% of the total token supply. Hyperion's engagement with each of our partners is laid on the foundation of building things together that increase the long-term value of the hyperliquid ecosystem. Today, we are proud to announce Avia by HyperLend, which offers institutional-grade private credit pools built to create liquidity for various assets unique to institutions. We are launching with natively staked hype, which we will be able to borrow or lend against. Additionally, by staking our 10 million HPL tokens to HyperLend, Hyperion can access a borrow rebate for the maximum staking tier, a utility unique to the platform. Our HPL token stake is factored into the effective rate, allowing us to borrow at rates below those available to any other participant. The structural advantage, which compounds as our borrowing scales, could later enable us and our partners to arbitrage rates between DeFi platforms or between DeFi and TradFi. As these strategies scale, we expect both the TVL and revenue of Avia to grow, a percentage of which returns to Hyperion as DeFi monetization revenues. Another partner, Kinetic, also had a busy quarter, surpassing over $3.3 billion in total volume on their HIP3 markets and the launch of their mobile trading application, which alone has generated over $100 million of volume despite being launched less than a month ago. They also successfully completed the implementation of Kinetic Infrared Proposals 2 and 3, bringing substantial upgrades to the protocol. KIT2 brought 50% of validated commission revenues generated by the Kinetic platform to the buyback and redistribution of additional KNTQ to ex-KNTQ or staked KNTQ holders. Akiren received nearly 2 million KNTQ tokens in Kinetic's token generation event in November 2025, directly tied to our work and partnership with Kinetic. And now, we anticipate earning additional income and price appreciation on our staked KNTQ as another recurring ecosystem rewards channel within our flywheel. We will also highlight that there is a second kinetic Cape Horn season ongoing, in which Hyperion has positioned itself to receive additional K&PQ. Investors should begin to see that these are the early signs of a flywheel in development, enabled by the full suite of on-chain infrastructure built with our partners. We have covered liquid staking, lending, borrowing, and yield generation, and that's just the start. With the traction we've seen in the above ecosystem reward strategies, we continue to engage in conversations with new builders seeking to come to hyperliquid with the goal of making it the premier destination for new capital and users. I will now hand it over to our CFO, David Knox, to give highlights on our financial performance.