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DEFT 3Q25 Earnings Review: Revenue/EPS Miss on DeFi Alpha Delay
By Michael Kim NASDAQ:DEFT READ THE FULL DEFT RESEARCH REPORT Pre-market open on 11/14/25, DeFi Technologies (NASDAQ:DEFT) reported 3Q25 earnings results. On an IFRS basis, DEFT reported net income per share of $0.01, or below our $0.18 estimate. While mark-to-market noise make actual vs. estimate analysis a bit more challenging, we note core revenue (staking and lending income, management fees,
About this update from Bitcoin
[{"type":"text","content":"By Michael Kim","length":14,"tagName":"p"},{"type":"text","content":"NASDAQ:DEFT","length":11,"tagName":"p"},{"type":"text","content":"READ THE FULL DEFT RESEARCH REPORT","length":34,"tagName":"p"},{"type":"text","content":"Pre-market open on 11/14/25, DeFi Technologies (NASDAQ:DEFT) reported 3Q25 earnings results. On an IFRS basis, DEFT reported net income per share of $0.01, or below our $0.18 estimate. While mark-to-market noise make actual vs. estimate analysis a bit more challenging, we note core revenue (staking and lending income, management fees, trading commissions, research, and advisory revenue) came in at $12.8 million, or a bit below our $14.9 million estimate, with most of the shortall related to lower staking/lending income. To the point, 58% of the company’s digital assets were staked as of the end of 3Q25, down from 75% a year ago due to temporary rebalancing. As such, we look for a step up in related yields assuming the staking percentage rises to a level consistent with prior periods. Furthermore, DeFi Alpha contributions were limited, as management navigated a more competitive backdrop given the step up in the number of Digital Asset Treasury (DAT) companies in the market resulting in fewer arbitrage trading opportunities and tighter spreads. Finally, AUM as of September 30, 2025, totaled $989 million, shy of our $1.1 billion forecast (mostly a function of crypto market depreciation since we last marked-to-market our model). Total operating expenses of $13.5 million came in slightly ahead of our $13.1 million forecast, with higher operating, general and administrative costs partially offset by lower share-based payments.","length":1444,"tagName":"p"},{"type":"text","content":"After updating our model for 3Q25 results, we are taking down our 2025 and 2026 forecasts from $0.44/$0.52 to $0.14/$0.25. Our revisions primarily reflect a flatter revenue growth trajectory, with our model now calling for total revenues of $116.6 million for 2025 – consistent with management’s updated guidance, but down from $219 million last quarter reflecting fewer arbitrage trading opportunities for DeFi Alpha given stepped up competition/liquidity and narrowing spreads. Furthermore, broader crypto market declines thus far in 4Q25 have likely pressured AUM levels, thereby impacting management, staking, and lending fees, all else equa...