DeFi Technologies (DEFI) investor relations material

Executive summary

• Q2 2026 revenue was $7.8 million, with an operating loss of $2.3 million, reflecting challenging digital asset market conditions and lower crypto prices impacting AUM and financial results.

• Maintained a strong balance sheet with approximately $135 million in cash, digital assets, and venture portfolio value as of June 30, 2026.

• Continued platform monetization with Valour and Stillman Digital contributing significant fee and commission income.

• Positive net inflows and ongoing product innovation signal resilience and scalability in the core business.

• Actively deploying capital into growth initiatives, infrastructure, and new institutional product structures.

Financial highlights

• Average AUM for the quarter was $471.5 million, with quarter-end AUM at CAD 397.2 million, reflecting lower digital asset prices.

• Net inflows totaled $22.8 million, demonstrating continued demand for products.

• Total revenues were $7.8 million, down from $13.1 million in Q2 2025, due to lower AUM and unfavorable mark-to-market adjustments.

• Operating expenses decreased to $10.1 million from $14 million in Q2 2025, reflecting cost discipline.

• Ended the quarter with $70.7 million in cash and USDT/USDC, and total liquidity of $135 million including digital assets and venture portfolio.

Outlook and guidance

• Focus remains on expanding institutional capabilities, broadening product offerings, and building a diversified business aligned with digital asset growth.

• The smart crypto fund is expected to launch within Q3, with all onboarding obstacles cleared.

• UCITS fund approval is pending, with efforts ongoing in both Sweden and Luxembourg; launch expected within the year if successful.

• Management expects continued organic growth, expansion of the institutional revenue base, and further product development.

• Targeted annualized cash operating cost structure is CAD 36–39 million; breakeven requires CAD 550 million AUM at a 4.25% monetization rate.