Revenue trajectory remains highly erratic, with net margins fluctuating wildly from 82.1% in 2024Q1 to -34.9% in 2024Q3, suggesting that profitability is tethered to non-operating fair value adjustments.
| Sales/Revenue | 64.94M | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 30.19M | 53.39M | 90.82M | 18.55M | 1.25M | 10.34M | 0 |
| Gross Margin % | 46.48% | 70.4% | 93.03% | 94.74% | 100% | 100% | - |
| Gross Profit Growth % | - | -41.21% | 389.65% | 1383.76% | -87.91% | - | - |
| Operating Expenses | 26.83M | 25.03M | 121.6M | 24.17M | 48.48M | 55.89M | -1.63M |
| OpEx % of Revenue | - | 33% | 124.57% | 123.45% | 3878.32% | 540.46% | - |
| Selling, General & Admin | 26.22M | 30.03M | 68.12M | 11.96M | 28.26M | 54.25M | 576.6K |
| SG&A % of Revenue | - | 39.6% | 69.79% | 61.09% | 2261.04% | 524.64% | - |
| Research & Development | 0 | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - |
| Operating Income | 3.36M | 28.36M | -30.79M | -5.62M | -47.23M | -45.55M | 1.63M |
| Operating Margin % | 5.17% | 37.4% | -31.54% | -28.71% | -3778.32% | -440.46% | - |
| Operating Income Growth % | - | 192.13% | -447.76% | 88.1% | -3.69% | -2901.06% | - |
| EBITDA | 5.14M | 29.9M | -28.66M | -3.57M | -44.86M | -41.91M | 1.63M |
| EBITDA Margin % | 7.91% | 39.43% | -29.36% | -18.23% | -3589.12% | -405.26% | - |
| EBITDA Growth % | -83.64% | 204.33% | -703.1% | 92.05% | -7.05% | -2677.22% | - |
| D&A (Non-Cash Add-back) | 1.78M | 1.54M | 2.12M | 2.05M | 2.37M | 3.64M | 0 |
| EBIT | 56.56M | 68.22M | -35.17M | -16.13M | -61.88M | -70.31M | 1.63M |
| Net Interest Income | -2.55M | -4.68M | -3.87M | 0 | -4.01M | -1.19M | 0 |
| Interest Income | 2.34M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 4.89M | 4.68M | 3.87M | 0 | 4.01M | 1.19M | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - |
| Pretax Income | 49.98M | 63.54M | -39.04M | -20.29M | -65.9M | -71.5M | 1.63M |
| Pretax Margin % | 76.96% | 83.78% | -40% | -103.66% | -5271.84% | -691.37% | - |
| Income Tax | 545.37K | 1.14M | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 1.09% | 1.79% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 49.43M | 62.41M | -39.04M | -20.07M | -65.9M | -71.5M | 1.63M |
| Net Margin % | 76.12% | 82.28% | -40% | -102.51% | -5271.84% | -691.37% | - |
| Net Income Growth % | 123.69% | 259.84% | -94.55% | 69.55% | 7.83% | -4496.73% | - |
| Net Income (Continuing) | 49.43M | 62.41M | -39.04M | -20.29M | -65.9M | -71.5M | 1.63M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | -3.67K | 0 | 0 | 0 |
| EPS (Diluted) | 0.17 | 0.17 | -0.11 | -0.09 | -0.32 | -0.37 | 0.03 |
| EPS Growth % | 25.5% | 254.55% | -22.22% | 71.88% | 13.51% | -1278.34% | - |
| EPS (Basic) | - | 0.18 | -0.13 | -0.09 | -0.32 | -0.37 | 0.03 |
| Diluted Shares Outstanding | 292.04M | 377.53M | 361.14M | 223.08M | 209.06M | 192.63M | 50.31M |
| Basic Shares Outstanding | 277.96M | 344.92M | 310.99M | 223.08M | 209.06M | 192.63M | 48.52M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Extreme Revenue Volatility
As evidenced by the erratic quarterly revenue figures, including a negative $71.3M print in 2024Q3, the company's top-line trajectory appears highly unstable and tethered to volatile digital asset market conditions rather than consistent, recurring fee-based growth from its ETP product suite.
The extreme fluctuations in reported revenue suggest that the firm's business model is heavily reliant on mark-to-market gains and trading desk performance. Investors should monitor whether the company can transition toward a more predictable revenue mix, as current figures indicate a lack of durable, organic growth.
Based on the provided financial data, the company exhibits an anomalous divergence between operating and net margins, with net margins reaching as high as 82.28% in certain periods, which likely reflects non-operating fair value adjustments rather than core operational efficiency.
The lack of consistent gross margin data across all periods suggests that the firm's cost structure is not yet optimized for a traditional asset management model. This volatility in profitability metrics warrants further investigation into the accounting treatment of staking rewards and venture portfolio revaluations.
As reported in financial statements, the company's net income frequently decouples from operating performance, suggesting that significant portions of bottom-line results are driven by volatile, non-cash valuation gains on digital asset holdings rather than sustainable, recurring operational profitability.
The reliance on fair value adjustments to bolster net income creates a misleading picture of the firm's true earnings power. Analysts should normalize these figures to assess the underlying health of the business, as the current earnings quality appears highly susceptible to crypto market sentiment.
According to recent SEC filings and financial disclosures, the company's 'zero-fee' ETP strategy relies heavily on staking yield spreads, which may prove unsustainable if protocol rewards compress or if regulatory scrutiny increases in the European markets where the firm operates.
Short-sellers would likely focus on the potential for margin compression if the firm is forced to pivot away from its current subsidized fee structure. The high sensitivity to market turbulence suggests that the firm's competitive moat may be thinner than management's branding implies.
Quick answers to the most common questions about buying DEFT stock.
DeFi Technologies Inc. (DEFT) is profitable, generating $62.4M in net income for the fiscal year ending 2025 with a net profit margin of 82.3%.
DeFi Technologies Inc. (DEFT) reported an operating income of $28.4M, resulting in an operating profit margin of 37.4%. This margin reflects the operational efficiency of the business before interest and taxes.
DeFi Technologies Inc. (DEFT) generated $53.4M in gross profit for the year, representing a gross profit margin of 70.4%. This demonstrates the company's core pricing power and production efficiency.