Defi Technologies Inc (TSE:DEFI)
NEO-L:DEFI
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DeFi Technologies
(NEO-L:DEFI)
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Rating:55Neutral
Price Target:
C$0.85
▲(2.53% Upside)
Action:Reiterated
Date:05/19/26
The score is held back primarily by weak cash generation and shrinking TTM revenue despite strong reported profitability, plus technically extended conditions (RSI 100) with a flat trend profile. Partially offsetting these are a cleaner balance sheet and constructive earnings-call commentary around profitability, liquidity, and AUM recovery, with a moderate P/E providing some valuation support.
Positive Factors
Strong liquidity and improved balance sheet
A large cash/USDT reserve and positive working capital provide a durable liquidity cushion that reduces refinancing risk, funds product seeding and institutional initiatives, and buys time for execution on monetization and AUM recovery without forcing dilutive financing.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flow creates a structural earnings-quality gap: reported profits aren't converting to cash, limiting reinvestment capacity, increasing reliance on reserves, and heightening execution risk for growth initiatives or margin sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and improved balance sheet
A large cash/USDT reserve and positive working capital provide a durable liquidity cushion that reduces refinancing risk, funds product seeding and institutional initiatives, and buys time for execution on monetization and AUM recovery without forcing dilutive financing.
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)5.5
Beta (1Y)N/A
Revenue Growth-27.75%
EPS Growth52.58%
CountryCA
Employees9
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.07
Shares Outstanding387,777,250
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$2.13Price Target Upside156.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.03
Revenue Forecast (FY)C$82.08M
DeFi Technologies Business Overview & Revenue Model
Company Description
DeFi Technologies Inc. is a technology enterprise primarily involved in developing and bringing to market Exchange Traded Products (ETPs). These ETPs serve as investment vehicles, offering investors indirect access to underlying cryptocurrencies, ...
How the Company Makes Money
DeFi Technologies’ revenue model is primarily tied to digital-asset investment products and related capital markets activities. Key ways it makes money include: (1) Management and product fees earned through its asset-management/ETP platform (incl...
DeFi Technologies Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call communicated resilience and operational strength: the company reported profitable Q1 results, improved working capital, solid cash reserves, tangible product and distribution expansion, and clear institutional initiatives (UCITS, hedge funds, custody, index engine). These positives were balanced against market-driven headwinds — a meaningful AUM decline from prior peaks, reduced monetization (lower management and staking yields), small Q1 outflows, and ongoing legal/regulatory uncertainty. Management emphasized cost discipline, operating leverage, and early recovery signals (AUM > $530M, April inflows of $14.6M), and outlined product and technology drivers that could materially lift monetization as markets improve. Overall, operational and balance-sheet strengths and visible growth initiatives outweigh the market-driven lowlights, though execution and market recovery remain key.Positive Updates
Profitability and Revenue
Q1 2026 revenue of $11.2M and positive net income of $4.9M; operating general & admin expenses plus fees and commissions were $9.7M for the quarter, demonstrating profitability despite weak market conditions.
Negative Updates
AUM Decline Amid Crypto Downturn
AUM fell materially from prior highs (management referenced prior peaks >$1B and a Sept 2025 peak ~1.2B) to Q1 low of $427M, reflecting broader digital-asset market weakness and price declines (Bitcoin hit lows near ~$60k during the quarter).
Read all updates
Q1-2026 Updates
Positive
Negative
Profitability and Revenue
Q1 2026 revenue of $11.2M and positive net income of $4.9M; operating general & admin expenses plus fees and commissions were $9.7M for the quarter, demonstrating profitability despite weak market conditions.
Read all positive updates
Company Guidance
Management's guidance emphasized continued profitability and conservative near‑term assumptions: Stillman is guided to grow revenue 15–20% y/y (from ~$10M in 2025 to ~$11–12M in 2026), the company models a conservative full‑year Valor monetization rate of ~4.5% (Q1 monetization ~3.5%; 2025 full‑year 5.2%), an effective management fee yield of ~1% (vs ~1.2% prior) and an effective staking yield down to ~2.5%, with ~59% of AUM currently staked (theoretical upside to ~80%, realistic low‑70s). Q1 revenue was $11.2M with operating G&A, fees and commissions of $9.7M (annualized ~$38.7M vs a $36M target) and positive Q1 net income of $4.9M; average AUM was reported in the ~$503–533M range with a quarter low of ~$427M and AUM now above ~$530M, April net inflows of $14.6M (Sept‑2025 inflows $22.6M). Liquidity and balance‑sheet metrics included roughly $101–103M in cash/USDT/USDC, ~$23.5M treasury holdings, ~$29.1M venture/private portfolio, and positive working capital of ~$47.3M; management stressed high operating leverage (assumed ~4.5% monetization and ~90% flow‑through) meaning incremental AUM (e.g., a $150M bump) should largely flow to the bottom line and help deliver FY‑2026 profitability.DeFi Technologies Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
74
Positive
Cash Flow
22
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 75.84M | 97.61M | 14.76M | -14.23M | 15.08M |
| Gross Profit | 53.39M | 90.82M | 13.98M | 179.59M | 1.46M |
| EBITDA | 69.76M | -33.05M | -10.61M | -59.52M | -66.67M |
| Net Income | 62.41M | -39.04M | -15.13M | -65.90M | -71.50M |
Balance Sheet | |||||
| Total Assets | 824.56M | 1.32B | 591.96M | 142.94M | 360.54M |
| Cash, Cash Equivalents and Short-Term Investments | 130.49M | 551.18M | 6.73M | 3.63M | 73.00M |
| Total Debt | 5.71M | 13.95M | 56.21M | 40.18M | 4.43K |
| Total Liabilities | 675.01M | 1.30B | 573.52M | 122.38M | 288.55M |
| Stockholders Equity | 149.55M | 23.15M | 18.45M | 20.56M | 71.98M |
Cash Flow | |||||
| Free Cash Flow | -133.36M | -129.96M | -69.74M | -67.41M | -326.95M |
| Operating Cash Flow | -133.36M | -129.96M | -69.74M | -66.37M | -326.92M |
| Investing Cash Flow | -560.28K | 14.55M | 0.00 | -1.97M | 3.78M |
| Financing Cash Flow | 207.73M | 131.08M | 71.32M | 64.88M | 332.01M |
DeFi Technologies Technical Analysis
Positive
0.83
Price Trends
0.83
Positive
0.83
Positive
0.83
Negative
Market Momentum
<0.01
Neutral
100.00
Negative
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DEFI, the sentiment is Positive. The current price of 0.83 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.83, and below the 200-day MA of 0.83, indicating a neutral trend. The MACD of <0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DEFI.
DeFi Technologies Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | C$86.46M | 5.46 | 31.69% | ― | -27.75% | 52.58% | |
52 Neutral | C$51.91M | -0.50 | -160.22% | ― | -170.04% | -3241.29% | |
52 Neutral | C$88.73M | -9.31 | -9.23% | ― | 7.99% | 55.86% | |
47 Neutral | C$23.13M | -19.42 | -63.28% | ― | -15.87% | 96.43% | |
44 Neutral | C$114.17M | -33.18 | -5.30% | ― | -34.67% | -203.85% |
* General Sector Average
TSE:DEFI
DeFi Technologies
0.83
0.00
0.00%
TSE:HODL
Sol Strategies
1.85
-19.59
-91.37%
TSE:NDA
Neptune Digital Assets
0.89
-0.63
-41.45%
TSE:BIGG
BIGG Digital Assets
0.07
-0.08
-53.57%
TSE:DMGI
DMG Blockchain Solutions
0.43
0.16
59.26%
DeFi Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
DeFi Technologies Posts Record 2025 Profit on Diversified DeFi Platform
Positive
Apr 6, 2026
DeFi Technologies reported record 2025 results, with revenue surging 215% year over year to $99.1 million and net income swinging from a loss to $62.7 million, underscoring a sharp turnaround in profitability. Management attributed the performance...
Business Operations and Strategy
DeFi Technologies to Spotlight Digital-Asset Platform at Canaccord Virtual Symposium
Positive
Mar 9, 2026
DeFi Technologies Inc., a Toronto-based fintech bridging traditional capital markets and decentralized finance, is the first Nasdaq-listed digital asset manager designed to give equity investors broad exposure to the decentralized economy. Through...
Business Operations and StrategyExecutive/Board Changes
DeFi Technologies Names Philippe Lucet General Counsel to Bolster Legal and Governance Arm
Positive
Feb 27, 2026
DeFi Technologies has appointed Philippe Lucet as General Counsel and Corporate Secretary, expanding his remit beyond his current role as General Counsel of subsidiary Valour, a leading issuer of exchange traded products. He will now oversee the c...
Business Operations and StrategyProduct-Related Announcements
DeFi Technologies to Showcase New DVIO Index in Investor Webinar
Positive
Feb 20, 2026
DeFi Technologies Inc., a fintech group straddling traditional markets and decentralized finance, operates an integrated platform spanning regulated digital asset exchange-traded products, institutional prime brokerage, research, and quantitative ...
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.