Financial Performance - Net investment income (NII) per share for Q2 2025 was $0.46, compared to $0.45 in the previous quarter[19] - Net realized and unrealized losses on investments per share for Q2 2025 were ($0.05), compared to ($0.34) for the prior quarter[19] - Net income per share for Q2 2025 was $0.41, compared to $0.11 for the prior quarter[19] - NAV per share as of June 30, 2025, was $19.55[19] - A regular dividend of $0.42 per share was declared for Q3 2025[19] - Total net assets were $725 million as of Q2 2025[11, 21] Portfolio Composition - Total portfolio investments were valued at $1,601 million as of June 30, 2025, consisting of 187 portfolio companies across 20 industries[11, 19, 35] - 91% of the portfolio comprised of senior secured first lien and unitranche first lien investments by fair value[19, 35] - 97% of debt investments are floating rate[22, 35, 44] Capital Structure and Liquidity - The company has a strong liquidity profile with $26.1 million in cash and cash equivalents and restricted cash[19, 24] - Undrawn debt capacity was $227.2 million as of June 30, 2025[19, 63, 65] - The debt-to-equity ratio was 1.23x[11, 21, 24]

Company Overview - Bullish is a cryptocurrency exchange targeting institutional investors, combining decentralized finance protocols with a focus on regulatory compliance and governance standards [1] - The stock surged over 80% post-IPO, closing at approximately $68 per share after being priced at $37 [1] Market Context - Institutional demand for cryptocurrency is increasing due to regulatory clarity, the launch of Bitcoin and Ethereum ETFs, and improved custody solutions [3] - The Trump administration's favorable stance towards the crypto industry and strong pricing momentum in digital assets are contributing to this trend [3] Financial Performance - Bullish reported revenues of approximately $97 million in 2024, a significant increase from $39 million in 2023, reflecting over 140% year-over-year growth [4] - Trading volume reached $250 billion in 2024, up from $72.7 billion in 2022, with a 78% increase in Q1 2025 [4] - The company expects to swing to profitability in Q2 2025, projecting net income between $106 million and $109 million [4] Competitive Position - Bullish owns CoinDesk, a leading crypto news and data provider, allowing it to integrate market intelligence with trading services [3] - The company holds crypto reserves worth about $2 billion, primarily in Bitcoin, which provides direct exposure to potential gains from rising crypto prices [3] Risks and Challenges - Established exchanges like Coinbase and Gemini present competitive challenges [5] - The unpredictable nature of crypto markets and price swings in Bitcoin and Ethereum can directly impact results [5] - The stock's initial rise was driven by high demand and limited supply, but the end of the insider lock-up period in February 2026 may increase supply and pressure prices [6]

Market Trends & Dynamics - The crypto market is experiencing a shift from retail investors ("Old Guard") selling to institutional investors buying [1] - This shift is expected to change the culture of crypto, with less emphasis on memes and risk-taking, and more on professionalism [1] - The market may see less short-term volatility and more predictable price action due to flows tied to macroeconomics and fund inflows/outflows [1] - Crypto is evolving into infrastructure for Real World Assets (RWAs), stablecoins, and payments [1] - The "get rich quick" mentality is giving way to crypto as a portfolio diversification asset [2] Investment Strategies & Portfolio Allocation - Some investors are adopting a strategy of not putting any more fiat currency into crypto at current prices [2] - Some investors are slowly Dollar-Cost Averaging (DCA) out of crypto, aiming to sell the majority (80%) within the next few months [2] - Investors are advised to keep a "moonbag" (a small amount of crypto with high potential) [2] Potential Risks & Centralization - Bitcoin may be treated like gold, and Ethereum like a tech stock by Traditional Finance (TradFi) [2] - The migration of tokens from many small wallets to fewer large custodians increases centralization risk, which may be a non-issue for Bitcoin but not great for Decentralized Autonomous Organizations (DAOs) [2]

Summary of Key Points from the Conference Call Industry Overview - The report provides insights into various asset classes including equities, fixed income, currencies, and commodities, with a focus on expected returns and volatility for Q2 2026. Core Insights and Arguments - **Equities Performance Forecast**: - S&P 500 is forecasted to return between 4,900 and 7,200, with a bear case of -22.1% and a bull case of 13.9% [3][3][3]. - MSCI Europe is expected to return between 1,610 and 2,620, with a bear case of -23.1% and a bull case of 23.1% [3][3][3]. - Topix is projected to return between 2,100 and 3,250, with a bear case of -28.3% and a bull case of 9.7% [3][3][3]. - MSCI Emerging Markets (EM) is forecasted to return between 870 and 1,360, with a bear case of -28.1% and a bull case of 11.0% [3][3][3]. - **Fixed Income Insights**: - UST 10-year yield is projected to range from 4.00% to 2.85%, with a bear case return of 7.0% [3][3][3]. - US Investment Grade (IG) credit is expected to yield excess returns of -2.8% in the bear case [3][3][3]. - **Currency Forecasts**: - JPY is expected to strengthen against USD, with a forecast range of 143 to 122 [3][3][3]. - EUR is projected to fluctuate between 1.14 and 1.30 against USD, with a bear case of -4.1% [3][3][3]. - **Commodity Projections**: - Brent crude oil is forecasted to return between $50 and $120, with a bear case of -23.0% [3][3][3]. - Gold is expected to return between $2,975 and $4,200, with a bear case of -16.4% [3][3][3]. Additional Important Insights - **Market Sentiment**: - The Market Sentiment Indicator (MSI) aggregates survey positioning, volatility, and momentum data to quantify market stress and sentiment [51][51][51]. - Current sentiment shows a mix of negative and positive indicators, suggesting cautious market behavior [46][46][46]. - **ETF Flows**: - US fixed income ETFs experienced their largest weekly inflow of approximately $12 billion since November 2023, indicating a shift in investor sentiment towards safer assets [7][8][7]. - **Cross-Asset Correlations**: - The report highlights the current correlations among various asset classes, with equities showing a high correlation of 71% and credit at 80% [68][68][68]. - **Positioning Summary**: - The net positioning summary indicates that asset managers are heavily positioned in US equities (28%) while showing a negative positioning in EM equities (-53%) [59][59][59]. This summary encapsulates the key points from the conference call, providing a comprehensive overview of the expected performance across various asset classes, market sentiment, and positioning trends.

Core Viewpoint - The Schwab U.S. Dividend Equity ETF (SCHD) is highlighted as an attractive investment option for income and dividend growth, but it lacks exposure to the Real Estate, Materials, and Utilities sectors [1]. Investment Strategy - The focus is on constructing investment portfolios that generate additional income through dividends by identifying companies with competitive advantages and strong financials [1]. - A combination of high Dividend Yield and Dividend Growth companies is recommended to reduce dependence on broader stock market fluctuations [1]. - The strategy emphasizes diversification across various sectors and industries to minimize portfolio volatility and mitigate risk [1]. - Incorporating companies with a low Beta Factor is suggested to further reduce overall investment risk [1]. Portfolio Composition - Suggested investment portfolios typically consist of a blend of ETFs and individual companies, focusing on broad diversification and risk reduction [1]. - The selection process for high dividend yield and growth companies is meticulously curated, prioritizing total return, which includes both capital gains and dividends [1]. - This approach aims to maximize returns while considering a full spectrum of potential income sources [1].

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting a trend towards diversification in investment portfolios [1] - The popularity of insurance companies in the Philippines since 2014 indicates a growing interest in financial products beyond traditional savings [1] - The entry into the US market has provided opportunities for investors to expand their holdings in various sectors, including banks, hotels, and logistics [1] Investment Trends - There is a shift from solely investing in blue-chip companies to a more diversified approach across different industries and market capitalizations [1] - The practice of using trading accounts of relatives or acquaintances has facilitated greater awareness and understanding of foreign markets before making independent investment decisions [1] - The use of analytical platforms like Seeking Alpha has become a valuable resource for comparing market analyses across different regions, enhancing investment strategies [1]

Core Insights - The article emphasizes the importance of sustainability in high-yield dividend-paying companies to avoid sudden dividend reductions [1] - It highlights the strategy of constructing investment portfolios that focus on both Dividend Yield and Dividend Growth to enhance annual dividend income [1] - The approach includes diversification across various sectors and industries to minimize portfolio volatility and risk [1] Group 1: Investment Strategy - The investment strategy prioritizes companies with significant competitive advantages and strong financials to ensure attractive returns [1] - A blend of ETFs and individual companies is suggested to achieve broad diversification and risk reduction [1] - The selection process for high dividend yield and growth companies is meticulously curated, focusing on total return rather than dividends alone [1] Group 2: Risk Management - Incorporating companies with a low Beta Factor is recommended to further reduce the overall risk level of the investment portfolio [1] - The diversification strategy aims to mitigate risk and enhance the stability of income sources [1]

Group 1 - Macroeconomic volatility, changing consumer trends, new tariffs, and culture wars have significantly impacted the downfall of many companies, including large and established ones [1] - The logistics sector has been a focus for nearly two decades, with an emphasis on stock investing and macroeconomic analysis for almost a decade [1] - The investment strategy has evolved from focusing solely on blue-chip companies to a diversified portfolio across various industries and market cap sizes [1] Group 2 - The analyst has entered the US market in 2020, gaining awareness through a relative's trading account before opening their own [1] - Holdings in US banks, hotels, shipping, and logistics companies have been established, with analyses being compared to those in the ASEAN market [1]

Financial Data and Key Metrics Changes - The company reported record earnings of $132 million or $2.1 per share for Q2 2025, with adjusted earnings of $119 million or $1.81 per share after accounting for discrete tax items [5][20] - Revenue reached a record $210 million, up 20% year-over-year, driven by a 40% increase in gold prices [11][17] - Adjusted EBITDA margin increased to 84% due to strong gold prices and stable cash G&A [6][20] - Operating cash flow also set a record at $153 million, significantly up from $114 million in the prior year [21] Business Line Data and Key Metrics Changes - Royalty revenue increased by about 50% year-over-year to $77 million, with strong contributions from Penasquito and Mancho [11] - Stream segment revenue was $133 million, up 8% from the previous year, driven by increased sales from Mount Milligan and Pueblo Viejo [11][12] - The company achieved full offset of the Pueblo Viejo advanced stream deposit during the quarter [6][14] Market Data and Key Metrics Changes - Gold accounted for approximately 78% of total revenue, followed by silver at 11% and copper at 7% [17] - Metal prices were a primary driver for revenue increase, with gold up 40% and silver up 17% year-over-year [17] Company Strategy and Development Direction - The company is positioning itself as a premier growth company through acquisitions of Sandstorm Gold and Horizon Copper, which will enhance scale, growth, and diversification [7][27] - The strategic focus remains on growth in precious metals, maintaining a strong balance sheet, and increasing dividends [8][27] - Recent acquisitions include a gold stream on the Kansanshi mine in Zambia, which is expected to deliver approximately 12,500 ounces of gold this year [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing the Sandstorm and Horizon transactions by the fourth quarter, having received necessary approvals under Canadian competition laws [27][28] - The company remains comfortable with its 2025 guidance range despite underperformance in some key assets, attributing this to a rigorous risk-adjusted budgeting process [41] Other Important Information - The company remains debt-free and has total liquidity of over $1.25 billion, including a $1 billion revolving credit facility [22] - Recent business development successes have led to an increase in the revolving credit facility's accordion feature from $250 million to $400 million [22][23] Q&A Session Summary Question: Can you discuss the deleveraging goal post-transactions? - Management indicated that they plan to use excess cash flow to pay down the revolver over time, with a goal to potentially return it to zero [30][32] Question: What assets are offsetting the underperformance in key assets? - Management explained that they do not disclose guidance based on individual operations but conduct a rigorous budgeting process to maintain their guidance range [36][41] Question: Are you maxed out on African exposure with the Kansanshi acquisition? - Management stated they are comfortable with their current African investments and would consider additional opportunities if the country conditions are favorable [44][45] Question: Is there any consideration for a share buyback due to underperformance? - Management emphasized that the focus will be on debt repayment before considering any buyback options [46][47] Question: What is the timing for the Sandstorm transaction circular filing? - Management could not provide a detailed timetable but confirmed that they expect to file the preliminary proxy with the SEC shortly [49][50]

Financial Data and Key Metrics Changes - Revenue for the first fiscal quarter was $37.2 million, representing a 5% year-over-year improvement on an organic basis and an 8% increase when including acquisitions [12][13] - OIBDA was $12.8 million, an increase of 12% year-over-year, and adjusted EBITDA was up 10% to $13.9 million compared to Q1 in fiscal 2025 [13] - Net loss for the first quarter was approximately $600,000 compared to a net loss of $500,000 in the previous year [13] Business Line Data and Key Metrics Changes - Music Publishing revenue increased by 4% to $24.9 million, driven by synchronization revenue and other publishing revenue [14] - Recorded Music segment revenue increased by 8% to $10.4 million, primarily due to growth in digital revenue from music streaming services [16] Market Data and Key Metrics Changes - The global immersive entertainment industry was valued at $133 billion in 2024 and is expected to reach $473 billion by 2030, indicating significant growth potential in this sector [7] Company Strategy and Development Direction - The company is advancing a robust pipeline of acquisition opportunities and diversifying its portfolio to enhance long-term value [6] - Recent investments include a partnership with Lightroom, an immersive entertainment company, and the acquisition of independent label Fools Gold Records [6][9] - The company aims to build and strengthen its recorded music platform with commercially relevant assets, focusing on independent music [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2026, indicating that the financial performance in the first quarter is a strong indicator that the company's strategy is working [19] - The company maintains its full-year guidance for revenue and adjusted EBITDA, signaling confidence in achieving its targets [18] Other Important Information - The company amended its senior credit facility to increase its revolving credit commitment from $450 million to $550 million, providing greater flexibility for future transactions [17] Q&A Session Summary Question: Details on the Lightroom investment and IP monetization - Management indicated that the investment in Lightroom represents a single-digit equity stake and is seen as synergistic to the company's asset base [22][23] Question: Confirmation on digital revenue timing - Management clarified that the digital revenue fluctuations were due to timing of receipts and not indicative of weakness in certain digital service providers [24][26] Question: Future administrative expenses and inflationary pressures - Management noted that while inflationary pressures exist, the bulk of the increase in administrative expenses is driven by increased management revenue, with efforts to control costs [27] Question: Trends in gross margins and sustainability - Management explained that lower physical revenue contributed to margin benefits, and the mix of assets is driving revenue improvements [31][34] Question: M&A pipeline and geographic focus - Management stated that the M&A pipeline remains strong with an even split between publishing and recording opportunities, focusing on transactions that provide the highest returns [37][38] Question: Sourcing of deals - Management indicated that most substantial deals are sourced off-market, with a smaller portion coming from auction processes [39][40]