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DeFi Technologies
(NEO-L:DEFI)
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Rating:56Neutral
Price Target:
C$0.86
▲(3.01% Upside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by weak cash-flow quality (persistently negative OCF/FCF) and declining revenue/AUM trends discussed on the call. Low leverage and improved reported profitability provide support, but technicals are neutral-to-weak and the earnings-call tone remains mixed due to mark-to-market volatility, yield compression, and regulatory timing uncertainty.
Positive Factors
Low leverage and substantial liquidity
Minimal debt limits financing risk, while sizeable liquidity gives the company capacity to fund product development, absorb digital-asset volatility, and pursue institutional growth without immediate dependence on external capital.
Negative Factors
Persistently negative cash generation
Sustained operating and free-cash-flow deficits show that reported earnings are not yet converting into cash. Continued cash burn could constrain investment flexibility and increase reliance on liquidity or future financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and substantial liquidity
Minimal debt limits financing risk, while sizeable liquidity gives the company capacity to fund product development, absorb digital-asset volatility, and pursue institutional growth without immediate dependence on external capital.
Read all positive factors
DeFi Technologies (DEFI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$86.46M
Dividend YieldN/A
Average Volume (3M)455.24K
Price to Earnings (P/E)18.1
Beta (1Y)N/A
Revenue Growth2798.89%
EPS GrowthN/A
CountryCA
Employees26
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.03
Shares Outstanding388,093,230
10 Day Avg. Volume455,238
30 Day Avg. Volume455,238
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)2.42
Price to Sales (P/S)4.78
P/FCF Ratio-2.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.12Price Target Upside35.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.03
Revenue Forecast (FY)C$50.03M
DeFi Technologies Business Overview & Revenue Model
Company Description
DeFi Technologies Inc., a technology company, develops exchange traded products that synthetically track the value of a single DeFi protocol or a basket of protocols in Canada. The company offers asset management services, such as indirect exposur...
How the Company Makes Money
DeFi Technologies’ revenue is primarily driven by its exchange-traded product platform (largely via Valour). The main recurring revenue stream is management and/or issuer fees charged on assets under management (AUM) of its ETPs; as AUM rises or f...
DeFi Technologies Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Neutral
The call presented a mixed view: operational and strategic progress (meaningful net inflows, strong liquidity, institutional distribution gains, imminent product launches and continued cost discipline) counterbalanced by near-term financial pressure (revenues down ~30%, AUM decline to ~$397M quarter-end, $16.3M negative mark-to-market adjustments, and yield/monetization compression). Management emphasized a long-term growth orientation, product pipeline, and balance sheet strength but acknowledged regulatory timing risks and short-term markdown-driven earnings weakness.Positive Updates
Strong Net Inflows and Customer Demand
Valor generated $22.8 million of net inflows in Q2, the best quarter in some time. Approximately 40% of these inflows were attributed to institutional events and outreach. A notable lump sum of roughly $11 million into HBAR was a material contributor to the quarter's inflows.
Negative Updates
Material Revenue Decline
Total revenues for the quarter were $7.8 million versus $11.2 million in the prior period, a decline of approximately 30% driven by lower average AUM and unfavorable mark-to-market adjustments recognized through revenue under broker-dealer accounting.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Net Inflows and Customer Demand
Valor generated $22.8 million of net inflows in Q2, the best quarter in some time. Approximately 40% of these inflows were attributed to institutional events and outreach. A notable lump sum of roughly $11 million into HBAR was a material contributor to the quarter's inflows.
Read all positive updates
Company Guidance
Management’s guidance emphasized execution of institutional products and cost discipline while highlighting key Q2 metrics: average AUM ~$471.5M (quarter‑end ~$397.2M), Valor net inflows $22.8M (including an ~$11M HBAR allocation), 102 ETPs listed ( >100 total, targeting ~8 more in Q3), total revenue $7.8M (vs $11.2M prior), effective management fee yield ~1% and staking yield ~2.4%, cash & cash equivalents $60.3M and total liquidity ~$119.8M (including ~ $20M MicroStrategy preferreds at ~12% yield, ~$10.4M RWA USDT/USDC and ~$30M digital treasury), Q2 G&A + fees ≈ $8M (down from $9.6M in Q1) with a targeted annualized cash operating cost of $36–39M, a $16.3M negative mark‑to‑market item, and a stated breakeven illustrative target of ~ $550M AUM at ~4.25% monetization; timing guidance included hedge fund launch imminently (days–weeks), Valour beta and smart‑fund launches in H2, expanded arbitrage in H2, and an appeal to the Swedish FSA plus pursuit of a Luxembourg issuer (Nasdaq 180‑day extension application filed Sept 1).DeFi Technologies Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -25.15M | 75.84M | 97.61M | 14.76M | -14.23M | 15.08M |
| Gross Profit | 5.69M | 53.39M | 90.82M | 13.98M | 179.59M | 1.46M |
| EBITDA | 38.36M | 69.76M | -33.05M | -10.61M | -59.52M | -66.67M |
| Net Income | 25.03M | 62.41M | -39.04M | -15.13M | -65.90M | -71.50M |
Balance Sheet | ||||||
| Total Assets | 572.14M | 824.56M | 1.32B | 591.96M | 142.94M | 360.54M |
| Cash, Cash Equivalents and Short-Term Investments | 86.46M | 130.49M | 551.18M | 6.73M | 3.63M | 73.00M |
| Total Debt | 0.00 | 5.71M | 13.95M | 56.21M | 40.18M | 4.43K |
| Total Liabilities | 429.81M | 675.01M | 1.30B | 573.52M | 122.38M | 288.55M |
| Stockholders Equity | 142.33M | 149.55M | 23.15M | 18.45M | 20.56M | 71.98M |
Cash Flow | ||||||
| Free Cash Flow | -47.46M | -133.36M | -129.96M | -69.74M | -67.41M | -326.95M |
| Operating Cash Flow | -30.80M | -133.36M | -129.96M | -69.74M | -66.37M | -326.92M |
| Investing Cash Flow | -73.60M | -560.28K | 14.55M | -73.69M | -1.97M | 3.78M |
| Financing Cash Flow | 190.58M | 207.73M | 131.08M | 71.32M | 64.88M | 332.01M |
DeFi Technologies Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | C$86.46M | 18.06 | 17.74% | ― | 2798.89% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | C$114.22M | -8.66 | -13.93% | ― | -13.15% | 24.49% | |
48 Neutral | C$69.10M | -0.37 | -215.03% | 2833.33% | -167.11% | -1784.69% | |
46 Neutral | C$84.67M | -476.92 | 0.28% | ― | -37.84% | ― |
* General Sector Average
TSE:DEFI
DeFi Technologies
0.83
0.00
0.00%
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1.67
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TSE:NDA
Neptune Digital Assets
0.62
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-44.14%
TSE:DMGI
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0.55
0.24
77.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.