Eyenovia(US:EYEN)2025-11-13 23:00Financial 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]