Hyperion DeFi (NasdaqCM:EYEN) Q4 2025 Earnings call March 26, 2026 08:00 AM ET Company ParticipantsBrett Knoblauch - Managing Director of Crypto and Digital Assets ResearchDavid Knox - CFOGareth Gacetta - Equity Research Associate of Crypto and Digital AssetsHyunsu Jung - CEOJason Assad - Director of Investor RelationsConference Call ParticipantsBrian Vieten - Senior Research Analyst of Digital Assets and BlockchainJim McIlree - Senior Equity Research Analyst of Disruptive TechnologiesOperatorGreetings, and ...

Hyperion DeFi (NasdaqCM:EYEN) Q4 2025 Earnings call March 26, 2026 08:00 AM ET Company ParticipantsBrett Knoblauch - Managing Director of Crypto and Digital Assets ResearchDavid Knox - CFOGareth Gacetta - Equity Research Associate of Crypto and Digital AssetsHyunsu Jung - CEOJason Assad - Director of Investor RelationsConference Call ParticipantsBrian Vieten - Senior Research Analyst of Digital Assets and BlockchainJim McIlree - Senior Equity Research Analyst of Disruptive TechnologiesOperatorGreetings, and ...

Hyperion DeFi (NasdaqCM:EYEN) Q4 2025 Earnings call March 26, 2026 08:00 AM ET Speaker7Greetings, and welcome to the Hyperion DeFi fourth quarter and full year 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference ...

HYPD Q4 2025 and FY 2025 Earnings Supplement More than just HYPE. NASDAQ: HYPD Hyperion DeFi © 2026 1 Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted Gross Profit, Gross HYPE Holdings, Net Asset Value, Operating Expenses Excluding Stock-Based Compensation, Treasury Gains (Losses), Adjusted Other Income (Expense), and Adjusted EBITDA. These non-GAAP measures are in addition to, and not a substitute for o ...

Financial Performance - Hyperion DeFi generated annual revenue of approximately $1.3 billion, with a daily run-rate of $3-$3.5 million as of October 2025[146]. - For the three months ended September 30, 2025, the company reported revenue of $302,506, which was net staking revenue, with no cost of revenue recorded for this period[184]. - For the nine months ended September 30, 2025, revenue totaled $317,226, compared to $29,243 for the same period in 2024, representing a significant increase[193][194]. - The company had a net loss of $5.5 million for the nine months ended September 30, 2025, compared to a net loss of $29.9 million for the same period in 2024[170]. - The company reported a net loss of $5.5 million for the nine months ended September 30, 2025, compared to a net loss of $29.9 million for the same period in 2024[205]. - Cash and cash equivalents increased to $8.2 million as of September 30, 2025, up from $2.1 million at the end of 2024[203]. - Net cash used in operating activities was approximately $10.7 million for the nine months ended September 30, 2025, compared to $24.0 million in 2024[206]. - Net cash provided by financing activities totaled approximately $82.4 million for the nine months ended September 30, 2025, compared to $16.5 million in 2024[208]. - The company had an accumulated deficit of approximately $200.9 million as of September 30, 2025[205]. - The company has commitments to pay $3.5 million for accounts payable and $0.5 million for non-cancelable operating lease commitments in the next twelve months[209]. Research and Development - Research and development expenses for the three months ended September 30, 2025 totaled $373,854, a decrease of $3.1 million, or 89%, compared to $3.5 million for the same period in 2024[186]. - The company anticipates a decline in research and development expenses after the registration of the Optejet UFD device with the FDA in the coming months[178]. - Research and development expenses decreased by $10.8 million, or 86%, to $1.7 million for the nine months ended September 30, 2025, down from $12.5 million in 2024[195]. Operational Metrics - Daily trading volume on Hyperliquid exceeds $12 billion, with cumulative fees exceeding $700 million since inception[146]. - Cumulative cryptocurrency perpetuals trading volume on Hyperliquid has exceeded $3 trillion since inception[146]. - The Hyperliquid blockchain supports up to 200,000 transactions per second, enabling near-instant trade settlement[142]. - Approximately 99% of Hyperliquid revenues are allocated to the Hyperliquid Assistance Fund, which has cumulatively purchased 34.25 million HYPE tokens valued at $1.45 billion[146]. - The total supply of HYPE is 1 billion, with 31% issued in November 2024 and 38.88% reserved for future community emissions[144]. - As of September 30, 2025, approximately 834,050.16 HYPE were staked directly to the Kinetiq x Hyperion validator[145]. - The Kinetiq x Hyperion validator has over 13 million HYPE delegated as of October 31, 2025, enhancing network stability and security[148]. - The Hyperliquid network implemented HIP-3, allowing users with 500,000 HYPE staked to launch custom on-chain perpetual futures markets[150]. Expenses - General and administrative expenses for the three months ended September 30, 2025 totaled $2.6 million, a decrease of $1.1 million, or 30%, compared to $3.7 million for the same period in 2024[188]. - Selling, general and administrative expenses increased by $1.5 million, or 14%, totaling $12.6 million for the nine months ended September 30, 2025, compared to $11.1 million in 2024[196]. - The company has ceased sales efforts for its ophthalmological products, resulting in limited revenue from such products during the three and nine months ended September 30, 2025[176]. Financing Activities - The company received approximately $50 million in gross proceeds from a private placement, issuing 5,128,205 shares of Series A Convertible Non-Voting Preferred Stock and warrants for up to 30,769,230 shares of common stock at an exercise price of $3.25 per share[160]. - The company entered into an amendment to increase the aggregate offering amount under its at-the-market offering program from $50 million to $100 million[163]. - The company issued warrants to purchase an aggregate of 350,000 shares of common stock at an exercise price of $4.00 per share in connection with the Fourth Amendment to the Loan and Security Agreement[167]. Product Performance - The Optejet UFD demonstrated a 98% success rate in accurate drug delivery upon the first attempt, compared to 50% for traditional eye drops[156]. - Realized gains on HYPE digital tokens were $6.9 million for the nine months ended September 30, 2025, with unrealized gains of $6.4 million[198].

Financial Data and Key Metrics Changes - The company achieved record highs with income from operations of $4.4 million and GAAP net income of $6.6 million, resulting in net income per common share of $0.26 and $0.05 on a basic and diluted basis respectively [18][30][31] - The company started the quarter with $45.5 million invested in HYPE tokens and purchased an additional $20.0 million worth of HYPE, recognizing GAAP accretion of $7.1 million [18][30] - Adjusted EBITDA for the quarter was $8.0 million, reflecting the removal of non-recurring items and stock-based compensation [31][32] Business Line Data and Key Metrics Changes - Revenue from digital assets businesses exceeded $300,000, significantly higher than less than $2,000 in Q3 2024, driven by staking rewards, validator commissions, and the first HOUSE agreement with Credo [19][25] - The company launched its proprietary HYPE Asset Use (HOUSE) platform, generating fee income while allowing clients to unlock unique utility on Hyperliquid [13][14] - The company’s validator received over $3 million tokens delegated from the Hyperliquid Foundation, with a total of 13.2 million HYPE tokens delegated as of October 31, representing 60% month-over-month growth [15][24] Market Data and Key Metrics Changes - Hyperliquid is the leading decentralized perpetuals exchange with over 60% market share as of October 31, 2025, and daily average revenues exceeding $3 million [16][38] - Daily trading volume on Hyperliquid exceeds $12 billion, with cumulative cryptocurrency perpetuals trading volume exceeding $3 trillion since inception [7][16] - Hyperliquid generates annualized revenue of approximately $1.3 billion based on an observed run rate of $3.5 million per day [6][16] Company Strategy and Development Direction - The company is focused on building a strategic HYPE token treasury and expanding its portfolio of DeFi services while developing institutional infrastructure to bridge traditional finance and decentralized finance [4][11][59] - The company aims to create long-term shareholder value through multiple pathways, including direct exposure to HYPE token appreciation and recurring revenue from DeFi services [11][12] - The company is committed to maintaining transparency and accountability while operating at the forefront of financial innovation [28][29] Management's Comments on Operating Environment and Future Outlook - Management believes the macro environment for institutional DeFi adoption is improving, with increasing regulatory clarity and maturing institutional infrastructure [58][59] - The company anticipates continued growth in DeFi-related revenues and expects operating cash flow to turn positive in 2026 [38][40] - Management expressed confidence in the resilience of Hyperliquid's platform during market downturns, highlighting zero downtime during the October 10th liquidation event [42][43] Other Important Information - The company continues to develop its proprietary OptiJet user-filled device and is on track for FDA registration [29][55] - The company has implemented comprehensive risk management frameworks to support its expanded activities in DeFi [28] - The company raised $21.8 million net of expenses via its At the Market Equity Offering Program, demonstrating ongoing fundraising capability [37] Q&A Session Summary Question: How did the crypto liquidation event on October 10th impact your business? - The company reported no operational impact from the event, as it had not taken on leverage positions with HYPE assets, and trading volumes quickly returned to Hyperliquid [42][43] Question: What do you think of recent regulatory developments and their impact on DeFi and your business? - Management views the current regulatory environment as favorable and anticipates continued clarity around crypto and DeFi interactions with existing financial infrastructure [43][44] Question: Are you considering an additional capital raise? - The company is focused on building and scaling its business rather than immediate capital raises, but it remains open to future fundraising opportunities based on market conditions [45][46] Question: Do you see Aster and Lighter as credible threats to Hyperliquid? - Management acknowledges competition but believes Hyperliquid's unique features and innovations position it favorably against new entrants [46][47] Question: Is MNAV a useful metric to you? - The company believes MNAV was relevant in earlier stages of digital asset treasuries but now focuses on a combination of asset value and future cash flows [48][49] Question: What measures do you take to secure your tokens? - The company employs self-custody infrastructure and multi-signature solutions to protect its HYPE assets [50] Question: Why have you not sold the OptiJet? - The company is taking a rational approach to commercialization, focusing on achieving FDA registration before making decisions [55] Question: Are you going to hire more people? - The company aims to remain lean while building a robust revenue-generating business line within DeFi, with future hiring contingent on growth needs [56][57]

Financial Performance (Q3 2025) - Hyperion DeFi's HYPE digital assets totaled $37,954,590[8] - Gross HYPE Holdings reached $77,751,604[8] - Net Asset Value amounted to $74,545,583[8] - The company reported revenue of $302,506 and adjusted revenue of $361,277[8] - Net income was $6,625,582, with $5,830,582 attributable to participating securities[8] - Adjusted EBITDA stood at $7,951,003[8] Hyperliquid (HYPE) Ecosystem - Hyperliquid is ranked as a Top 1 revenue cryptocurrency[10] - Hyperliquid's market cap is approximately $1434 billion, placing it among the top 12 cryptocurrencies[12, 17] - The platform generates an annualized revenue of over $13 billion, with 99% allocated to daily HYPE buybacks[14] - Daily trading volume on Hyperliquid is $12 billion, with daily fees of ~$3 million to Hyperliquid and ~$2 million to applications[17]

Financial Performance - Hyperion DeFi reported a record net income of $6.6 million for Q3 2025, a significant increase from a net loss of $(7.9) million in Q3 2024[4][7]. - Adjusted revenue for Q3 2025 was $361,277, up from $1,625 in Q3 2024, representing a substantial year-over-year growth[4][7]. - Income from operations rose to $4.4 million in Q3 2025, compared to a loss of $(7.3) million in Q3 2024[7]. - Total revenue for the three months ended September 30, 2025, was $302,506, a significant increase from $1,625 in the same period of 2024[28]. - Net income for the three months ended September 30, 2025, was $6,625,582, compared to a net loss of $7,887,853 in the same period of 2024[28]. - The net loss for the nine months ended September 30, 2025, was $5,548,870, a significant improvement compared to a net loss of $29,863,653 for the same period in 2024[39]. - Adjusted EBITDA for the three months ended September 30, 2025, is $7,951,003, derived from Net Income ($6,625,582) adjusted for various non-cash items and unrealized accretion[61]. Revenue Projections - The company anticipates Q4 2025 adjusted revenues between $475,000 and $515,000, indicating a quarter-on-quarter growth of 31% to 43% compared to Q3 2025[11]. Cash Flow and Expenses - The company’s net cash used in operating activities decreased from $(24.0) million for the nine months ended September 30, 2024, to $(10.7) million for the same period in 2025[7]. - Research and development expenses decreased by 89% from $3.5 million in Q3 2024 to $0.4 million in Q3 2025[7]. - Cash flows from operating activities resulted in a net cash used of $10,712,616 for the nine months ended September 30, 2025, compared to $24,010,082 in 2024, indicating improved cash management[39]. Assets and Liabilities - Total assets as of September 30, 2025, were $82,789,907, a substantial increase from $3,667,759 as of December 31, 2024[26]. - Total current liabilities decreased to $4,037,092 as of September 30, 2025, from $16,046,207 as of December 31, 2024[26]. - Stockholders' equity increased to $70,755,032 as of September 30, 2025, compared to a deficit of $13,095,952 as of December 31, 2024[26]. Stock and Financing Activities - The company issued 1,127,100 shares of common stock in a market offering, raising approximately $5.66 million[30]. - The company raised $50,000,000 from the sale of preferred stock and warrants in a private placement during the nine months ended September 30, 2025[39]. - Proceeds from the sale of common stock and warrants in direct offerings amounted to $30,998,213 for the nine months ended September 30, 2025[39]. Token and Digital Assets - The number of HYPE tokens staked at the Kinetiq x Hyperion Validator increased by 60% month-over-month, from 8.2 million as of September 30, 2025, to 13.2 million as of October 31, 2025[4][7]. - The company reported realized gains of $6,942,713 from digital assets for the three months ended September 30, 2025[28]. - The total token count for Gross HYPE Tokens is 1,720,549, with a token price of $45.19 as of September 30, 2025[54]. Non-GAAP Financial Measures - Adjusted Revenue and other non-GAAP financial measures are used by the company to provide a more comprehensive view of its financial performance[43]. - The company emphasizes that Adjusted EBITDA provides additional insights into operating performance, excluding non-cash and unpredictable items[48]. - The company acknowledges material limitations associated with the use of non-GAAP financial measures, which should be considered by investors[49]. - The unrealized staking rewards on HiHYPE are not recognized from a GAAP Revenue perspective, impacting the overall revenue reporting[52].

Core Insights - Hyperliquid is pursuing a SPAC merger with Rorschach I LLC to raise $1 billion, aiming to create a Nasdaq-listed entity that connects decentralized finance (DeFi) with traditional finance (TradFi) [2][3][15] - The funds raised will be allocated for HYPE token buybacks, ecosystem expansion, and strengthening infrastructure [3][7][11] Company Overview - Hyperliquid is recognized as one of the fastest-growing decentralized exchanges (DEXes) and has filed with the U.S. SEC for the SPAC merger [2][4] - The merger will result in Hyperliquid being one of the first decentralized exchanges to have a publicly listed U.S. entity [4][6] Financial Structure - The merger plans to issue up to 160 million shares through a committed equity facility with Chardan Capital Markets [4] - The combined entity will hold approximately 12.6 million HYPE tokens valued at around $470 million and $305 million in cash reserves [5] Strategic Goals - The proceeds from the merger will support token buybacks and ecosystem development, reinforcing Hyperliquid's position as a bridge between institutional finance and decentralized trading [3][5][15] - Hyperliquid Strategies will be established as a digital-asset treasury focused on HYPE, aligning with other public firms integrating crypto assets [7][13] Market Positioning - The SPAC merger is viewed as a significant milestone, indicating institutional markets' readiness to engage with DeFi under a regulated structure [6][12] - If approved, Hyperliquid plans to trade on Nasdaq under the ticker symbol PURR, pending regulatory clearance [6] Expansion Plans - Hyperliquid Labs is expanding its team by hiring engineers for its Singapore base, focusing on high-performance trading infrastructure [8] - The platform aims to enhance its offerings by expanding HyperEVM for DeFi dApp deployment and NFT integrations [10] Token Dynamics - Following the funding announcement, HYPE token experienced an over 8% rally, trading near $38.26 [11] - The project has already invested over $644 million in HYPE buybacks, removing 21.36 million tokens from circulation to stabilize price volatility [11] Future Outlook - The merger could provide Hyperliquid with a regulated market presence, attracting institutional investors seeking compliant exposure to DeFi [12][13] - Analysts suggest that the listing may initiate a new wave of integration between DeFi and TradFi, with tokenized treasuries becoming part of corporate financial strategies [13][14]

Financial Data and Key Metrics Changes - For Q2 2025, the net loss attributable to common stockholders was $8.8 million or $2.5 per share, compared to a net loss of $11.1 million or $16.65 per share for Q2 2024, indicating an improvement in financial performance [23] - Research and development expenses decreased by $3.9 million or 85% to $700,000 in Q2 2025 from $4.6 million in Q2 2024, primarily due to the termination of the CHAPERONE study [24] - General and administrative expenses increased by $3.9 million or 104% to $7.7 million in Q2 2025 from $3.8 million in Q2 2024, driven by higher noncash stock-based compensation and professional fees [24] - Interest expense decreased to $500,000 in Q2 2025 from $700,000 in Q2 2024, reflecting a reduction in outstanding debt [25] - As of June 30, 2025, unrestricted cash and cash equivalents were $7.5 million, up from $2.1 million as of December 31, 2024, indicating improved liquidity [25] Business Line Data and Key Metrics Changes - The company has established a cryptocurrency-based treasury reserve strategy, acquiring over 1.5 million HYPE tokens, which is expected to enhance returns compared to traditional cash reserves [7][8] - The treasury strategy has provided necessary resources for advancing the Gen two Optejet user fill device, which is on track for FDA registration [9] Market Data and Key Metrics Changes - The company is positioned to benefit from the growing adoption of digital currencies and the acceleration of related innovations, as indicated by strong signals from institutional players like BlackRock and JPMorgan [12] - The establishment of a strategic treasury reserve based on the HYPE token differentiates the company from others adopting digital asset treasury strategies [8] Company Strategy and Development Direction - The company is focused on executing a pioneering cryptocurrency treasury reserve strategy that aims to create long-term value for shareholders [26] - There is an emphasis on enhancing operational focus and strategic direction by filling key leadership roles with individuals experienced in digital assets [10] - The company is exploring partnerships within the Hyperliquid ecosystem and other platforms to maximize treasury deployment [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy's potential to generate significant and enduring revenue for shareholders, citing favorable market conditions and regulatory clarity for stablecoins [12] - The company remains committed to completing the FDA registration for the Optejet device and finding a suitable commercialization partner [27] Other Important Information - The company hosted a successful webinar discussing its strategy and the unique aspects of the HYPE token and Hyperliquid platform [9] - The company is actively engaged in initiatives to enhance shareholder value through innovative treasury strategies and ecosystem engagement [26] Q&A Session Summary Question: Why purchase HYPE D shares instead of investing in HYPE directly? - The company provides regulated exposure to the HYPE ecosystem without the need for investors to manage keys or wallets, making it more accessible for public market investors [19] Question: What are the key future catalysts for the company? - Future catalysts include growth in Hyperliquid trading volumes, ecosystem partnerships, and new on-chain primitives that drive demand for hyperliquidity [21]