DeFi Technologies Q2 Earnings Call Highlights

Second-quarter results weakened as lower cryptocurrency prices reduced average AUM to CAD 471.5 million and revenue to CAD 7.8 million from CAD 11.2 million, including CAD 16.3 million in negative mark-to-market adjustments.

Despite market pressure, Valour recorded CAD 22.8 million in net inflows , with more than 40% attributed to institutional outreach.

The company ended the quarter with 102 ETPs and structured products and plans to add about eight more in the third quarter.

Management is targeting lower annualized cash operating costs of CAD 36 million–CAD 39 million while advancing new initiatives, including the Smart Crypto Fund, a European UCITS structure, custody services and expanded arbitrage strategies.

DeFi Technologies NASDAQ: DEFT reported lower second-quarter revenue and assets under management as digital-asset prices declined, while the company pointed to positive fund inflows, cost reductions and progress on institutional product initiatives.

Chief Executive Officer Johan Watn said volatile cryptocurrency markets reduced assets under management and contributed to mark-to-market adjustments that weighed on reported results.

Still, he said the company’s underlying businesses continued to advance, with a focus on expanding products, institutional capabilities and market share during the downturn.

“Our main focus during this market downturn is to aggressively take market share in our core markets,” Watn said.

Paul, who presented the company’s financial results, said average assets under management during the quarter totaled approximately CAD 471.5 million, while quarter-end AUM was CAD 397.2 million.

Lower digital-asset prices pressured AUM, consistent with broader conditions in crypto markets.

The company’s Valour exchange-traded product business generated CAD 22.8 million in net inflows during the quarter despite the weaker market environment.

DeFi Technologies ended the period with 102 ETPs and structured products, and management said it aims to add roughly eight more products during the third quarter.

Revenue was CAD 7.8 million, down from CAD 11.2 million in the prior period.

The decline reflected lower average AUM as well as unfavorable mark-to-market adjustments on digital-asset holdings that are recognized in revenue under the company’s broker-dealer accounting structure.

Valour’s effective management-fee yield was about 1%, unchanged from the prior period.

Paul said the result reflected a larger weighting of Bitcoin-related products, which carry lower or no management fees, along with continued weakness in altcoin markets.

Its effective staking yield declined to 2.4%, affected by lower asset prices, compressed Bitcoin and Ethereum lending rates, and changes in the mix of staking assets.

Management said approximately CAD 11 million of inflows into Hedera-related products represented a meaningful portion of the quarter’s overall inflows.

Executives also said inflows were otherwise broad-based across products and supported by marketing, sales and institutional outreach.

More than 40% of quarterly inflows were directly attributable to institutional events and outreach.

He cited discussions that began at the company’s Abu Dhabi event in December 2025 and closed during the second quarter.

Management said it has developed systems to track product flows and competitive activity, while expanding relationships with broker-dealer platforms and institutional investors.

The company has also built proprietary data-driven tools designed to assess the relationship between Valour’s individual and index products.