Hilbert Group AB (publ)

Good morning and thank you for joining us. I am Bernali Biswal, Group CEO of Hilbert Group, and I'm pleased to walk you through our Q4 and full year 2025 results. Let me start with the core message up front. 2025 was the year we transformed our business model. 2026 is the year that platform begins to scale. Over the past year, we reshaped Hilbert into a more institutional, more integrated and more scalable business. We're now seeing clear evidence that the model is working in performance, in capital flows, in investor quality and increasingly in earnings trajectory of the business. The best way to understand 2025 is through what we call Hilbert 2.0. The most important change we made was strengthening the core asset management engine through Liberty Road acquisition, and that is now showing up in performance, AUM momentum, and institutional validation. At the same time, Nordark and Enigma extend the platform into strategically complementary areas that can broaden both our capabilities and our future revenue base. These were not standalone acquisitions. 2025 was the year we built a more institutional, more integrated, and more scalable business. Together with Synthetica, we have now created the foundation for a more complete platform, one built around institutional asset management, trading infrastructure, lending, and over time, on-chain distribution. What this slide is really showing is why the changes we made in 2025 are now starting to matter economically. First, on performance. 2025 demonstrated that we can generate repeatable alpha in difficult market conditions. In easy markets, many models look good. In tougher markets, the difference between a well-built and well-managed platform and a less robust one becomes very clear. And that is the clearest test of whether an institutional platform is genuinely working or not. Second, on capital flows. Stronger performance is now translating into stronger allocator quality, growing interest, and visible AUM momentum. That is an important shift because it means the market is starting to validate the platform externally. And third, on operating leverage, as AUM grows on top of a platform we have already built, the earnings impact becomes more meaningful. So the connection here is straightforward. Performance drives credibility, credibility drives capital, and capital begins to drive financial operating leverage. That is why 2025 was so important. It was not simply a period of transformation. It was the point at which the building blocks started to connect. Let me turn to asset management, which remains the core engine of the group today. This is where the strongest validation has already emerged. AUM increased 45% in January of this year and a further 28.5% in February, taking year-to-date growth to roughly 86% by the end of February. But just as important as the pace of growth is, the quality of that growth matters. What is especially important here is that we are now attracting top tier institutional allocators, the kind of investors with demanding due diligence standards, long underwriting processes and a very high bar for manager selection. When capital of that quality starts to move, it is a strong external validation of both the strategies and the platform behind them. The fact that we are winning capital from this segment tells us two things. First, that our platform processes and performances are standing up to the real institutional scrutiny. And second, that we are building the organizational muscle, credibility and reference base needed to attract more of this same high quality capital over time. Our forward pipeline now exceeds $300 million, spanning more than 25 potential allocators, and one existing institutional investor also doubled their allocation after reviewing our full year track record. That is exactly the kind of flywheel we want to see. Strong performance leading to institutional validation, Institutional validation strengthening our ability to win quality allocators and that in turn driving repeat and new capital. This slide is really about the breadth and quality of the demand we are now seeing. What is encouraging is that our pipeline is no longer concentrated in one channel or one geography. We are now engaged with institutional capital across Europe, Asia, the Middle East, Canada, and offshore market and across multiple allocator types, including sovereign capital, fund of funds, treasury relationships and direct institutional investors. That matters because it shows the business is developing in a more diversified and resilient way. We're not relying on a single source of inflows. We are building a broader global funnel of high quality capital. It also reinforces a point I made on the previous slide. This is not just more activity, it is better activity. The conversations we are having today are increasingly with sophisticated allocators who are looking for proven performance, institutional processes and a platform they can grow with over time. So the takeaway from this slide is straightforward. Our reach is widening, the quality of engagement is improving, and the funnel of potential institutional capital is becoming both broader and deeper, which gives us a stronger and more resilient foundation for growth from here on out. Turning to performance, this remains the foundation of everything. Our view is straightforward. In institutional asset management, what matters most is not performance in easy markets, but performance when conditions are volatile, dislocated and less forgiving. Against that backdrop, our strategies delivered strong results in 2025. BasisPlus returned 29.3% net in dollar terms and 20.1% net in Bitcoin terms for the full year. We have carried that momentum into 2026. delivering one and a half percent in bitcoin basis plus in the first two months of the year when bitcoin itself has fallen by over 25 percent our multi-strategy platform returned 17.8 percent net in january and 10.4 percent net february taking year-to-date performance to 30 percent as of February. At the same time, the Byzantine Credit Fund continues to perform well with no credit events to date. What matters here is not simply that returns were positive. It is that the platform is behaving exactly as designed. systematic, disciplined, and capable of generating differentiated alpha, even in an environment where directional beta has been inconsistent and basis or arbitrage opportunities have become much less dependable. That consistency is critical. It underpins client confidence, strengthens retention, and gives new allocators tangible evidence that our strategies can perform through a range of market conditions. Let me now turn to financials. In absolute terms, revenue is still at an early stage. Q4 revenue came in at 61.4 million sec and full year revenue reached 204.1 million sec at the same time. But the more important point here is the direction of travel. The business is now showing clear momentum, and we expect that to carry into a much stronger Q1. What matters here is not that absolute revenue base is already where we ultimately want to be. It absolutely is not. What matters is that the quarter on quarter and year on year progression is now starting to reflect the platform we spent 2025 building. In other words, the operating model is beginning to translate into visible financial results. On liquidity and costs, the message is straightforward. We exited 2025 with approximately $3.1 million worth of net available liquidity. We are mindful of cost space and we remain focused on capital discipline as we continue to scale. Additionally, we anticipate previous cash burn to come down this year as 2025 included a number of one-off expenses relating to acquired business integration. This slide is really about the earning sensitivity in the model as AUM continues to scale. As you would expect in asset management business, once the platform is built, incremental AUM can translate into revenue growth quite efficiently, particularly when performance remains strong. That is the phase we are now moving into. So the relevance of this slide is straightforward. It illustrates how the combination of stronger flows, sustained performance, and an already established platform can drive a much more visible earnings response from here. That operating leverage is an important part of the equity story. As scale builds, the financial impact should become increasingly apparent. Let me now turn to Synthetica, which we view as Hilbert's on-chain distribution layer. Strategically, Synthetica is important because it allows us to take Hilbert's core strategies including Dollar and Bitcoin Basis Plus and deliver them in a format that can access global on-chain liquidity more directly, without relying solely on traditional distribution gatekeepers. That has several advantages. It broadens our access to our products, creates the potential for a more efficient and scalable distribution model, and ultimately allows us to deliver a better product experience to Hilbert clients. Over time, We also see Synthetica evolving beyond Hilbert-only distribution into an open marketplace for selected third-party fund managers, which can further expand the platform's relevance and revenue potential. What is encouraging is that institutional interest is already strong. We are seeing engagement from a range of counterparties and potential participants, including market makers, miners, Bitcoin staking protocols, and DeFi funds. And importantly, this is no longer purely conceptual. As of this month, we have started live capital testing on the infrastructure, which is a meaningful step in validating the infrastructure and preparing for the broader commercial rollout. So while Synthetica is still early, we believe it has the potential to become an important strategic layer within the broader Hilbert platform, expanding distribution, improving product delivery, and opening up new channel for scalable growth. Nodark plays a different role. Nodark matters because it expands Hilbert beyond asset management into a broader digital asset financial platform. Strategically, it gives us exposure to three highly complementary areas lending, trading infrastructure and banking capabilities, all of which sit naturally alongside our existing asset management platform and deepen our relevance with institutional clients. The key unlock here is regulatory. With both MICA and payment institution license applications in progress with the Malta Financial Services Authority, NordArk has a path to becoming a regulated EU-wide digital asset platform. That is important because it gives us the potential to control more of the economics. onboarding and infrastructure layer while reducing reliance on third party banking rails. Over time, that is what can support a higher margin, more vertically integrated financial services model. Lending is particularly compelling part of that opportunity. We are focused on over collateralized crypto lending, where demand is global, structurally supported and capable of scaling quickly once the right legal and operational framework is in place. And we see a credible path for lending to become a meaningful part of the broader platform, broadening our future revenue base beyond traditional asset management alone. As such, we are integrating the business more fully into Hilbert and increasingly positioning this vertical to work alongside our asset management and trading capabilities. That gives us meaningful cross-sell potential and reinforces our broader goal of building a more integrated, institutional-grade digital asset financial platform. 2026 is about execution. Priority number one is asset management. That is the part of the business that is already working, already validated, and already scaling. We have strong performance. improving allocator quality, visible AUM momentum, and a growing pipeline. So the first job is straightforward. Keep compounding what is clearly gaining traction. At the same time, the broader opportunity for Hilbert is to scale asset management alongside the three strategically complementary verticals we have built around it that deepen our client experience and expand our revenue base over time. With Enigma, the priority is disciplined integration and scale, taking a proven systematic trading capability and embedding it more fully into group's product, portfolio, and technology architecture. With NODARC, the priority is regulatory and operational execution, progressing the licensing path and building the infrastructure that can support lending, trading and banking capabilities over time. And with Synthetica, the goal is to move from build phase to commercial activation, establishing our on-chain distribution layer in a way that complements and extends the reach of the core asset management business. So if I were to summarize 2026 goals in one sentence, it would be this. Scale what's already working while bringing the next layers of strategic value online alongside it. Let me close with four takeaways. First, Hilbert 2.0 is now operational. Second, 2025 proved the strength of our asset management engine. Third, Q1 2026 is already showing acceleration in AUM and allocators. And fourth, the business is moving from build phase to scaling phase. What this slide shows is the Hilbert flywheel. You have strong performance that builds credibility. Credibility attracts higher quality allocators who drive AUM growth. That growth strengthens revenue visibility and earnings leverage. And that in turn gives us more scale, more relevance, and more momentum across the broader platform. That is why we are excited about what comes next. We are no longer talking about a platform we hope will work. We're now seeing the early stages of a model that is beginning to reinforce itself. The core engine is performing. Institutional validation is building. Capital is starting to move. And the complementary verticals around it give us additional revenues for growth over time. That is the real opportunity in front of us, a business where success in one part of the platform strengthens the others, where the flywheel can become increasingly powerful as scale builds, and we are squarely focused on executing on it. And with that, I want to thank you for your continued support, and I look forward to updating you all again very soon.