Hyperion DeFi — Q3 2026 Earnings Summary

Financial Performance:

• Reported Net Income of $39.6 million for Q3 2026, a 28% increase quarter-over-quarter (QoQ) and a 497% increase year-over-year (YoY) compared to $6.6 million in Q3 2025.
• Adjusted EBITDA was $48.7 million, down 9% QoQ from $53.7 million in Q2 2026, but up 512% YoY from $8.0 million in Q3 2025.
• GAAP Gross Profit reached $810,415, representing a 127% QoQ increase and a 168% YoY increase.
• Non-GAAP Adjusted Gross Profit grew 143% QoQ to $2.80 million and 536% YoY to $2.80 million from $439,386 in Q3 2025.
• Operating Expenses Excluding Stock-Based Compensation declined 4% QoQ to $2.24 million and 48% YoY to $2.24 million from $4.32 million in Q3 2025.
• Core Operating Earnings turned positive at $555,177 in Q3 2026, a swing of $1.7 million from a $1.19 million loss in Q2 2026 and a $3.88 million loss in Q3 2025.
• Treasury Gains (Losses) were $48.1 million in Q3 2026, down 12% QoQ from $54.8 million in Q2 2026, but up 305% YoY from $11.9 million in Q3 2025.
• Net Asset Value (NAV) increased 36% QoQ to $182.4 million and 145% YoY to $182.4 million from $74.5 million in Q3 2025.
• Cash, Cash Equivalents, and Stablecoins totaled $14.5 million as of Q3 2026, up 24% QoQ and 77% YoY.
• Adjusted Net Operating Cash Flow was positive $62,695 in Q3 2026, improving from a $2.1 million loss in Q2 2026 and a $2.8 million loss in Q3 2025.

Guidance and Future Outlook:

• Reiterated full-year 2026 Adjusted Gross Profit guidance of $7 million to $8 million, which is approximately 6x the 2025 fiscal year results.
• Achieved breakeven core operating profit and cash flows one quarter ahead of the initial 2026 year-end target.
• Management expects the quarter-over-quarter change in Ecosystem Rewards to remain volatile due to the timing of airdrops and token generation events.
• Anticipates continued growth in DeFi Monetization and validator operations as more assets become tokenized and move on-chain.

Business Segments and Product Lines:

• Staking Yield: Generated $785,000 in Adjusted Gross Profit, up 49% QoQ, driven by an increase in the effective average HYPE price to $75.86.
• Validator Commissions: Generated $41,000 in Adjusted Gross Profit, roughly flat QoQ, with approximately 6.3 million HYPE tokens delegated as of October 31, 2026.
• Yield Enhancement: Generated $381,000 in Adjusted Gross Profit, up 14% QoQ, primarily through monetizing HYPE volatility via the Institutional Volatility Income (IVI) Vault with Rysk protocol.
• DeFi Monetization: Generated a record $334,000 in Adjusted Gross Profit, up 112% QoQ, driven by HAUS redeployment partnerships with Entropy (HIP-3) and Skew (HIP-4), and new Data Services revenue from DoubleZero.
• Ecosystem Rewards: Generated $1.3 million in Adjusted Gross Profit, up from $90,000 in Q2 2026, including $505,000 from DoubleZero 2Z tokens and $750,000 from Skew equity.
• HYPE Treasury: Gross HYPE Holdings increased 27% QoQ to $167.9 million (1.85 million tokens) and 116% YoY to $167.9 million from $77.8 million in Q3 2025.
• New Partnerships: Announced an institutional credit facility on Aviya with Anchorage Digital and HyperLend; launched data feeds with DoubleZero; and secured allocations of DOMA tokens from D3.

Market and Competitive Landscape:

• The company operates as the first U.S. publicly listed DeFi company building on the Hyperliquid ecosystem, positioning itself as an institutional gateway to DeFi innovation.
• Blockdaemon and Gemini have selected the company's validator for delegated HYPE staking.
• Silhouette completed its migration to production, driving monthly volumes to over $110 million cumulative, supported by RWA spot trading such as xStocks.
• The company holds contractual rights to equity or tokens in ecosystem partners including Kinetiq, HyperLend, Silhouette, Skew, and DoubleZero.

Risks and Challenges:

• Ecosystem Rewards are subject to volatility and unexpected timing of airdrops, token generation events, and other rewards activity.
• Forward-looking statements involve risks associated with the cryptocurrency treasury strategy, the growth of the Hyperliquid ecosystem, and the company's growth prospects.
• Actual outcomes may differ materially from forecasts due to numerous factors, including market conditions and regulatory environments.

Management Commentary and Tone:

• CEO Hyunsu Jung stated the company achieved its first quarter of breakeven core operating profit and cash flows one quarter ahead of schedule.
• Management highlighted the "Triple-Dip" strategy (Asset Value, Operating Value, Option Value) as a reality rather than a concept, citing a 338% growth in Net Asset Value from June 2025 to September 2026.
• The tone is confident, emphasizing the retirement of legacy debt, the commencement of share repurchases, and the inflection point in core operations.

Analyst Questions and Answers:

• No analyst questions or answers were included in the provided press release text.

Other Key Points:

• Retired all legacy debt by repaying approximately $8.6 million in principal and interest on the Avenue Capital loan.
• Commenced share repurchases under a $20 million program announced on September 8, 2026, having repurchased 240,124 shares in September at approximately a 30% discount to net assets.
• Sold approximately $13 million of HYPE in Q3 2026 to fund debt retirement while still increasing total cash and stablecoins.
• Wound down the legacy biotech segment and sold all remaining Optejet IP to Arctic Vision in July.
• Net Income per Common Share was $1.24 on a basic basis and $1.23 on a diluted basis for Q3 2026.
• As of November 9, 2026, there were approximately 15.5 million outstanding shares of HYPD common stock.