TLDR
- DEFT stock dips 13.8% as Q3 revenue drops despite record AUM growth
- DeFi Technologies sees revenue decline, but AUM hits new highs
- Q3 results push DEFT lower, even as platform scales and inflows rise
- Strong AUM fails to lift DEFT as digital asset gains weaken in Q3
- DEFT falls sharply as earnings show mixed signals on Q3 performance
DeFi Technologies Inc.(DEFT) stock dropped sharply today, falling around 13.8% to trade near $1.25.
DeFi Technologies Inc., DEFT
The decline followed an early selloff ahead of the company’s Q3 2025 earnings call. Despite operational progress, the report revealed revenue softness that impacted sentiment toward DeFi Technologies.
Revenue Declines Amid Market-Based Volatility in Gains
DeFi Technologies reported revenue of $22.5 million for Q3 2025, down from $28.1 million a year earlier. The decline stemmed from reduced realized and unrealized gains on digital assets and exchange-traded products. Other revenue sources such as staking, lending, and trading fees showed consistent growth, supporting the platform’s core performance.
Staking and lending income rose to $7.4 million while management fees improved to $2.8 million due to higher assets under management. Trading commissions reached $2.2 million as Stillman Digital, acquired in late 2024, contributed for the full quarter. Reflexivity Research posted lower revenue at $109,500, down from $468,000, as leadership shifts focus on rebuilding this unit.
Advisory revenue from a new business line reached $192,407 from two clients, reflecting early-stage traction. The company also repurchased nearly 936,000 shares, paying $2.61 per share, reflecting strategic capital deployment. Despite lower quarterly revenue, DeFi Technologies emphasized solid year-to-date growth and balance sheet strength.
Operating Income and AUM Growth Underscore Financial Position
DeFi Technologies posted Q3 operating income of $9 million, down from $14.4 million a year ago. This was primarily due to a $5.6 million revenue decrease, though year-to-date performance improved significantly. For the nine months ending September 30, 2025, the firm recorded $39.4 million in operating income versus a $1.6 million loss in 2024.
The platform reported an average AUM of over $900 million per month during Q3, its highest in company history. Monthly net inflows persisted throughout 2025, highlighting continued client interest and platform scalability. This consistent AUM increase enabled stable fee revenue growth even in volatile digital markets.
With $119.5 million in cash and $46.2 million in digital assets, DeFi Technologies held $165.7 million in liquid reserves. These assets support its ETP products and protect against downside risk, ensuring flexibility across strategic initiatives. Management stressed its capital position as a key strength amid uncertain digital asset conditions.
Leadership Shift and Strategic Expansion Support Long-Term Plans
DeFi Technologies announced Johan Wattenström’s appointment as CEO and Executive Chairman as it enters a new phase of growth. The former CEO will now focus on post-quantum projects at BTQ Technologies while staying engaged with DeFi Technologies. This leadership shift aims to maintain continuity while aligning with future-focused initiatives.
The company outlined its strategy to expand hybrid DeFi TradFi offerings and pursue new structured products. M&A opportunities remain on the table as management looks to reinforce platform reach and product diversity. Valour’s ETP growth and Stillman’s institutional trading continue to anchor the broader DeFi Technologies ecosystem.
Though Q3 results reflected short-term pressure on revenue, DeFi Technologies demonstrated stability through improved operations and strong balance sheet metrics. The stock’s sharp intraday drop reflects market reaction to top-line softness but does not negate operational progress. As DeFi Technologies strengthens its foothold, its strategic positioning remains central to future performance.
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