DeFi Technologies Inc. reported Q3 2025 revenue of $22.5 million, a 20% decline from $28.1 million in the same quarter last year, and operating income of $9 million, down 15% from $10.5 million. The company’s earnings per share fell to $0.01 versus the consensus estimate of $0.066, a miss of $0.056. The revenue drop is largely attributable to a 25% contraction in the trading‑arbitrage segment, driven by compressed spreads and intensified competition from other digital‑asset treasury firms. Operating income erosion reflects higher cost of capital and lower gross margins in the trading business, offset only partially by cost‑control measures in back‑office operations.
The company’s average assets under management (AUM) reached $989.1 million as of September 30, up 12% year‑over‑year and the highest quarterly average in its history. Cash and digital‑asset treasury stood at $165.7 million, comprising $119.5 million in cash and $46.2 million in digital assets, underscoring a strong liquidity position that supports ongoing product development and risk management.
On the leadership front, long‑time CEO Olivier Roussy Newton will step down, and co‑founder Johan Wattenström will assume the roles of CEO and Executive Chairman. Wattenström, who helped launch the Valour asset‑management platform, is expected to steer the company toward a growth strategy that prioritizes Valour’s expanding AUM while navigating the headwinds in the arbitrage business. “Q3 was another milestone quarter for DeFi Technologies,” said Newton. “We delivered revenues of $22.5 M and operating income of $9 M, marking another profitable quarter. With average AUM exceeding $900 M per month, the highest quarterly average in history, we continue to demonstrate the power of our integrated asset‑management and trading ecosystem.”
Management revised its 2025 revenue guidance from $218.6 million to $116.6 million, a 46% cut that reflects the weaker arbitrage environment and tighter market conditions. Operating‑income guidance was lowered accordingly, signaling caution about near‑term profitability. The guidance revision also highlights management’s confidence that the company can sustain earnings through disciplined cost management and the continued growth of Valour’s AUM, which is expected to drive a higher margin mix in the coming quarters.
Segment analysis shows that Valour’s AUM growth is the primary driver of the company’s overall financial health, while the trading‑arbitrage segment experienced a 25% revenue decline. The company’s focus on scaling Valour, combined with the new CEO’s background in that division, suggests a strategic pivot toward higher‑margin asset‑management services. The EPS miss and margin compression in the trading business underscore the need for continued cost discipline and a shift in revenue mix. Management’s emphasis on “scaling Valour while navigating market volatility” indicates a long‑term view that balances short‑term headwinds with growth opportunities in the asset‑management space.
The company’s financial results and leadership transition signal a strategic realignment. Revenue decline and EPS miss point to challenges in the arbitrage market, but the robust AUM growth and strong cash position provide a foundation for future expansion. The CEO change to a Valour co‑founder reflects a deliberate move to leverage the company’s asset‑management strengths and to navigate the evolving digital‑asset landscape. Investors and analysts will likely focus on how the company balances the lower‑margin trading business with the higher‑margin asset‑management segment as it moves forward.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.