DEFT · DeFi Technologies Inc.

DeFi Technologies Inc. reported significantly lower profitability in Q1 2026 compared to the prior year, with net income after taxes dropping to $4.9 million from $30.0 million, primarily driven by reduced realized and unrealized gains on ETP payables ($174.1 million vs $280.2 million) and substantial losses on digital assets (-$130.1 million vs -$159.8 million) and equity investments at FVTPL (-$39.1 million vs -$84.9 million). Revenues excluding these fair value changes declined to $6.3 million from $8.3 million, reflecting lower staking/lending income ($1.9 million vs $3.5 million) and management fees ($1.4 million vs $2.5 million), partially offset by higher trading commissions ($2.9 million vs $2.1 million). Operating expenses increased to $11.4 million from $12.5 million, with higher operating, general, and administration costs ($8.5 million vs $6.3 million) and new amortization charges, leading to an operating loss of $0.2 million versus income of $31.3 million. Other income of $5.1 million, including a $5.8 million gain on warrant liability fair value change, supported the net profit. Balance sheet shows deleveraging with total liabilities down 29% to $478.0 million, driven by reduced ETP holders payable ($444.3 million vs $622.3 million) and warrant liability ($7.8 million vs $13.6 million), while digital assets decreased sharply to $192.9 million current from $356.5 million. Shareholders' equity rose 4% to $156.1 million, bolstered by $3.1 million share capital increase from exercises. Cash position remains strong at $87.6 million with positive operating cash flow of $1.1 million versus prior outflow, and working capital turned positive at $47.3 million. The filing notes going concern basis with crypto price dependency and geopolitical risks.