DeFi Technologies Inc. (Nasdaq: DEFT; CBOE CA: DEFI; GR: R9B), the Nasdaq‑listed digital asset manager bridging traditional finance and decentralized finance (DeFi), reported third‑quarter 2025 results on Friday that combined solid profitability with a sharp revenue miss, a steep guidance cut — and a major change in leadership at the top. [1]
The company also announced that co‑founder Johan Wattenström will become Chief Executive Officer and Executive Chairman, replacing Olivier Roussy Newton, who is stepping down from those roles but staying on as a cornerstone shareholder, partner and advisor. [2]
Key takeaways for DeFi Technologies (DEFT) today
- Q3 2025 revenue of $22.5 million, down from $28.1 million in Q3 2024, as trading and mark‑to‑market gains on digital assets normalized. Operating income came in at $9 million, versus $14.4 million a year earlier. [3]
- For the first nine months of 2025, revenue rose to $80 million (from $51.3 million), while operating income jumped to $39.4 million from a loss of $1.6 million in the prior‑year period. [4]
- Asset‑management arm Valour finished the quarter with US$989.1 million in assets under management (AUM), up from US$772.9 million at June 30, driven by US$38.8 million in Q3 net inflows and US$116.2 million year‑to‑date inflows. [5]
- Management slashed 2025 revenue guidance to about $116.6 million, down from a previous forecast of $218.6 million, citing delays and compressed returns in its DeFi Alpha arbitrage strategy. [6]
- The CEO transition sees Wattenström move into the CEO and Executive Chairman role, while Newton focuses on post‑quantum security at BTQ Technologies but remains deeply involved with DeFi Technologies as advisor and key shareholder. [7]
- On the balance sheet, DeFi reported $119.5 million in cash and $46.2 million in digital assets, for $165.7 million of combined cash and digital treasury, and disclosed 935,900 shares repurchased for about $2.44 million during the quarter. [8]
- According to pre‑market and early trading data, DEFT shares were recently around $1.45, versus a prior close of $1.60, while Canadian‑listed shares (NEO: DEFI) were down roughly 15% after the release. [9]
Q3 2025 earnings: revenue slips, profits remain positive
DeFi Technologies’ headline Q3 numbers show a business that remains comfortably profitable but with less help from volatile trading and mark‑to‑market gains than in earlier quarters.
For the three months ended September 30, 2025, the company reported:
- Revenue: $22.5 million (vs. $28.1 million in Q3 2024)
- Operating income: $9.0 million (vs. $14.4 million a year earlier) [10]
Management attributed the revenue decline primarily to lower realized and unrealized gains on digital assets and exchange‑traded products (ETPs), even as fee‑based revenues from staking, lending and management continued to grow alongside rising AUM. [11]
Over the first nine months of 2025, the picture is markedly stronger:
- Revenue: $80.0 million (up from $51.3 million in the same period of 2024)
- Operating income: $39.4 million (vs. a $1.6 million operating loss a year ago) [12]
That swing underlines how DeFi Technologies has leveraged its ETP platform, proprietary trading and acquisitions such as Stillman Digital to turn 2024’s growth story into sustained profitability in 2025 — despite the softer Q3 top line.
External coverage quickly framed the quarter as a revenue miss and guidance reset. GuruFocus, for example, highlighted a roughly 19.9% year‑on‑year revenue decline in the quarter and emphasized that the new guidance represents a major step down from prior expectations. [13]
Guidance cut: DeFi Alpha slows, outlook nearly halved
The most dramatic element of today’s release is the lowered 2025 revenue outlook. DeFi Technologies now forecasts annualized 2025 revenue of about $116.6 million, down from earlier guidance of $218.6 million. [14]
Management pointed to:
- A delay in executing DeFi Alpha arbitrage trades, as more digital‑asset treasury players entered the space
- Compressed arbitrage spreads amid a period of consolidation in digital‑asset prices in the second half of 2025 [15]
Earlier in the year, DeFi Alpha executed two notable “locked token” trades — one in May involving Sui (SUI) and another in November involving Solana (SOL) — structured to realize multi‑million‑dollar discounts over three years if token prices reach specified thresholds at maturity. [16] While these deals support long‑term earnings potential, they are lumpy and depend on future market conditions, which helps explain management’s more cautious near‑term revenue stance.
Consensus expectations had been higher ahead of today’s report. Benzinga’s earnings calendar, for example, showed the market looking for Q3 revenue of roughly $42.9 million and EPS of $0.08, implying that the actual $22.5 million revenue landed well below those projections. [17]
The company reiterated that it will provide 2026 revenue guidance only with its 2025 annual results, once it has better visibility into DeFi Alpha’s pipeline and broader digital asset market conditions. [18]
Business segments: Valour, Stillman Digital, Reflexivity and DeFi Advisory
Valour ETP platform pushes AUM toward $1 billion
DeFi’s asset‑management arm Valour remains the core economic engine:
- AUM: US$989.1 million as of September 30, 2025 (up from US$772.9 million at June 30)
- Net inflows: US$38.8 million in Q3; US$116.2 million year‑to‑date
- Revenue mix (Q3 2025):
- Staking and lending income: $7.4 million (vs. $6.5 million in Q3 2024)
- Management fees: $2.8 million (vs. $1.5 million a year ago) [19]
Valour has now reached 100 ETP listings across European and UK exchanges, and the company says it is building a pipeline of additional single‑asset, leveraged and thematic products, with expansion plans into regions such as Africa, Asia and the Middle East. [20]
Stillman Digital: trading engine with global ambitions
Subsidiary Stillman Digital, acquired in late 2024, generated $2.2 million in Q3 trading commissions and $6.1 million in revenue for the first nine months of 2025. Management expects Stillman to finish 2025 at around $8.6 million in revenue, supported by robust trading volumes and margins in the 25–50% range. [21]
Stillman is expanding its institutional footprint through initiatives such as:
- Participation in institutional dark‑pool project GoDark
- Deeper relationships with banking and infrastructure partners like Bank Frick, Talos and Fireblocks
- An emphasis on foreign‑exchange and stablecoin services to smooth crypto‑cycle volatility [22]
Reflexivity Research and DeFi Advisory: repositioning for growth
Research arm Reflexivity Research produced $109,500 in Q3 revenue, down from $468,000 a year earlier, as the company repositioned its product offering and pricing. Management says new distribution partnerships, sponsorship products and a refreshed outbound sales process are intended to return this unit to growth while continuing to support Valour’s ETP franchise. [23]
Meanwhile, the newly launched DeFi Advisory division — marketed as a “full‑stack” partner for corporate digital‑asset treasury programs — contributed $192,407 in revenue from two mandates in its first quarter of operation and is building a pipeline of prospective clients. [24]
CEO transition: Wattenström steps in as DeFi reshapes its next chapter
Alongside the numbers, DeFi Technologies unveiled a significant leadership change.
- Olivier Roussy Newton has resigned as CEO and Executive Chairman.
- The Board has appointed Johan Wattenström, co‑founder of both Valour and DeFi Technologies, as CEO and Executive Chairman, effective upon Newton’s departure. [25]
Newton emphasized that Q3 marked “another milestone quarter” for the company and claimed DeFi Technologies “has never been stronger — financially, operationally, and strategically,” pointing to record AUM and multiple profitable segments. [26]
Wattenström, for his part, signaled continuity and expansion rather than a strategic reset, saying he aims to continue scaling the ETP platform globally and to grow both internal trading operations and Stillman Digital’s institutional franchise. [27]
Newton will now focus on his work at BTQ Technologies, a company developing post‑quantum solutions for the digital asset ecosystem, while remaining a key shareholder, partner and advisor to DeFi Technologies — a structure designed to preserve the original founders’ vision even as execution responsibilities shift. [28]
Balance sheet, treasury and capital allocation
Despite trimming guidance, DeFi Technologies continues to emphasize balance‑sheet strength:
- Cash balance: $119.5 million
- Digital‑asset treasury: about $46.2 million
- Total cash + digital assets: $165.7 million, as of September 30, 2025 [29]
Management reiterated that a portion of its digital‑asset holdings is explicitly allocated to hedge the market risk of its ETPs, positioning the treasury as both a risk‑management tool and a potential return driver. [30]
Capital‑allocation moves in Q3 included:
- Completion of a $100 million equity financing earlier in 2025
- Share buybacks totaling 935,900 shares for roughly $2.44 million (about $2.61 per share), with management indicating it intends to continue opportunistic repurchases in the open market [31]
How DEFT stock is reacting — and what investors are watching next
Initial market reaction has been negative:
- On the Nasdaq, DEFT was recently quoted around $1.45, versus a previous close near $1.60 — a drop of roughly 9% based on early‑session data from platforms such as StreetInsider and StockTwits. [32]
- On the NEO Exchange in Canada (ticker: DEFI), the stock was recently shown down about 14–15% following the filing of today’s SEC 6‑K and related coverage. [33]
The move reflects:
- The large gap between prior guidance and the new outlook
- Concern over the pace and profitability of DeFi Alpha’s arbitrage pipeline
- Ongoing volatility across the broader digital‑asset complex
At the same time, coverage from outlets such as GuruFocus has noted that DeFi Technologies still shows strong multi‑year revenue growth, high reported margins and remains meaningfully profitable — albeit with financial‑health metrics (like certain solvency ratios and volatility measures) that underline the risk profile typical of high‑beta crypto‑exposed names. [34]
For now, investors are likely to focus on:
- Clarity on DeFi Alpha — how quickly arbitrage activity can ramp back up, and on what terms.
- Execution under Wattenström — whether the new CEO can maintain AUM growth and expand Stillman Digital while managing risk.
- Regulatory and market backdrop — given that fees and trading revenues remain heavily correlated with digital‑asset prices and volumes. [35]
Shareholder call and next catalysts
DeFi Technologies is hosting a shareholder webcast today, Friday, November 14, 2025, at 12:00 p.m. Eastern Time to discuss the Q3 results and outlook in more detail. The company has posted accompanying materials and supplemental information in the Investor Relations section of its website. [36]
Upcoming events highlighted in today’s filings include participation in investor conferences in December and additional planned ETP launches into 2026, which could provide further insight into management’s growth strategy under its new leadership team. [37]
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security.
References
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