🔥 What This Document Is

This is DeFi Technologies' audited annual financial report for 2025. Think of it as the company's official, verified report card for the year. It's not a press release with just highlights—it's the comprehensive, auditor-approved numbers that show exactly how the business performed.

👉 Why it matters: Audited results are the gold standard for financial truth. For investors, this document confirms the company's claims about record profitability and provides a detailed, trustworthy snapshot of its health.

🏢 What The Company Does

In simple terms, DeFi Technologies builds bridges between the traditional stock market world and the newer world of cryptocurrency and decentralized finance (DeFi).

👉 The company operates through several key businesses:

• Valour: Its biggest arm. This subsidiary creates and manages Exchange-Traded Products (ETPs)—think ETFs, but for cryptocurrencies—that trade on normal stock exchanges.
• Stillman Digital: An institutional trading platform, like a specialized crypto trading desk for big players.
• Reflexivity Research: Provides research and analysis on the crypto market.
• DeFi Advisory & DeFi Alpha: Newer businesses that advise companies on crypto strategies and run internal trading strategies.

It's essentially a one-stop shop for institutional and retail investors looking for regulated, traditional ways to invest in digital assets.

💰 Financial Highlights: A Record-Breaking Year

The headline numbers are massive improvements, showing the company scaled dramatically in 2025.

Annual Performance (Full Year 2025)

• Revenue: Hit a record $99.1 million, a 215% increase from $31.4 million in 2024.
• Net Income: Reached a record $62.7 million, swinging from a net loss of $27.6 million the year before. This is a $90.3 million improvement.

Quarterly Performance (Q4 2025)

• Revenue: $20.0 million (vs. a loss of $(19.3) million in Q4 2024).
• Net Income: $28.9 million (vs. a loss of $(22.3) million in Q4 2024).

👉 What this signals: This isn't just growth; it's a transformation from a loss-making company to a highly profitable one. The company is now generating substantial earnings from its operations.

📊 Segment Breakdown: Where The Money Came From

The revenue surge was powered by all parts of the business, especially the full-year impact of the Stillman acquisition.

• Valour (ETPs): This is the core engine.
  • Average Assets Under Management (AUM): A huge $809.9 million throughout 2025.
  • Net Inflows: Investors put a net $110.1 million into Valour's ETPs during the year.
  • Revenue Streams: Generated $13.1 million from staking/lending and $9.7 million in management fees (up 51%).
• Stillman Digital (Trading): Had its first full year contributing to results.
  • Trading Commissions: Skyrocketed 355% to $9.6 million, from just $2.1 million in 2024. It beat its initial guidance.
• Other Segments: Reflexivity Research contributed $0.5 million, and the new DeFi Advisory business brought in $0.3 million.

👉 Why it matters: The company isn't reliant on one thing. Revenue is diversified across managing assets (Valour), trading them (Stillman), and research/advisory, making the business model more resilient.

📦 Financial Position: A Fortress Balance Sheet

The company's financial health is now very strong, giving it flexibility for the future.

• Cash & Stablecoins: Held $113.8 million in cash and stablecoins (like USDT/USDC) as of Dec 31, 2025.
• Total Liquidity & Assets:
  • Digital Asset Treasury: ~$35.5 million
  • Venture/Private Portfolio: ~$29.4 million
  • Total: Combined cash, treasury, and venture assets worth ~$178.7 million.

👉 What this means: The company has a "war chest" of liquid assets. This strong cash position allows it to invest in growth, weather market downturns, and pursue acquisitions without needing to raise money immediately.

🚀 What's Next: Strategy for 2026

Management is focused on scaling its proven model and deepening its role as an institutional gateway.

1. Scale Valour: Launch more structured products and expand into regulated fund structures like UCITS.
2. Grow Stillman: Enhance its institutional trading and infrastructure.
3. Broaden Reach: Enter new markets and distribution channels.
4. Build the Bridge: Continue working on the infrastructure that connects traditional finance and DeFi in a regulated way.

CEO Johan Wattenström emphasized they are entering 2026 from a "position of strength" with the capital to invest in the next phase of growth.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Proven Profitability: A rare feat in the digital asset sector; demonstrates real earnings power.
• Diversified Business Model: Revenue from multiple, interconnected streams.
• Strong Balance Sheet: Over $178M in total liquid assets provides major strategic flexibility.
• Institutional Focus: Built for the convergence of TradFi and DeFi.

⚠️ Risks (Implied & Stated):

• Market Dependence: Performance is heavily tied to the health and popularity of the digital asset market.
• Competition: Operates in a fast-moving, highly competitive sector.
• Regulatory Uncertainty: The DeFi and crypto landscape faces evolving regulations globally.
• Integration Risk: Continues to integrate recent acquisitions like Stillman Digital.

🧠 The Analogy

DeFi Technologies is like a specially equipped bridge builder in a rapidly expanding financial landscape. On one side is the familiar "Main Street" of traditional stock markets and banks. On the other is the new "Crypto Valley" of digital assets. Instead of just letting people cross, DeFi builds and tolls multiple bridges: one for easy ETP access (Valour), one for heavy institutional freight (Stillman), and offers construction consulting (Advisory). Their record 2025 results show that traffic across all their bridges exploded, and their strong treasury means they can now build even more lanes and routes.

📇 Key Contacts & People

• Johan Wattenström: Chief Executive Officer
• Contact for Inquiries: [email protected]
• Phone: (323) 537-7681

🧩 Final Takeaway

DeFi Technologies delivered a standout 2025, transforming into a highly profitable and diversified financial bridge between traditional markets and digital assets. Its record earnings and fortress balance sheet position it to aggressively scale its integrated platform in 2026 and beyond.