Company Reports Record $8.8M Net Income and $19.5M Adjusted EBITDA((8) ()
Treasury Exceeds 2.00M HYPE, 1.92M KNTQ, & 10.00M HPL Tokens as of May 11(14)
HYPD's Unique "Triple-Dip" HYPE Deployment Generated >3x Base Staking Income in Q1
Company Raises Adjusted Gross Profit(1) 2026 FY Guidance by 20%
DALLAS, May 14, 2026 (GLOBE NEWSWIRE) -- Hyperion DeFi, Inc. (NASDAQ: HYPD) ("Hyperion DeFi" or the "Company"), the first U.S. publicly listed DeFi company building on Hyperliquid, today reported results for the first quarter ending March 31, 2026.
"We are pleased to report continued scaling of our DeFi operating businesses, accretive balance sheet growth, and prudent cost management, " said Hyunsu Jung, CEO of Hyperion DeFi. Mr. Jung continued, "The opportunities to build on Hyperliquid are immense and expanding every day. More products and institutions are moving on-chain, and we continue to position ourselves as the premier institutional gateway to DeFi innovation. In light of our continued momentum, today we are increasing our guidance for our DeFi operating segments for full-year 2026, and we continue to anticipate achieving break-even cash flows by the end of the year."
Q3'25, Q4'25, and Q1'26 Summary GAAP and Non-GAAP Financial Measures
(Figures in $) Q3 2025 Q4 2025 Q1 2026
-------------------------------- ----------- ------------ -------------
GAAP Gross Profit 302,506 192,987 244,271
Adjusted Gross
Non-GAAP Profit(1) 439,386 820,997 959,568
--------- --------------------- ---------- ----------- ----------
GAAP HYPE Digital Assets 37,954,590 16,233,941 25,286,164
Gross HYPE
Non-GAAP Holdings(4) 77,751,604 47,837,901 71,037,227
Non-GAAP Net Asset Value(9) 74,545,583 44,154,737 69,873,504
--------- --------------------- ---------- ----------- ----------
Selling, General and
Administrative
GAAP Expense 2,594,130 4,530,542 4,493,604
Operating Expenses
Excluding
Stock-Based
Non-GAAP Compensation(5) 4,315,016 3,007,135 2,975,883
--------- --------------------- ---------- ----------- ----------
Net Operating
GAAP (Income) Expenses (4,125,685) 39,958,264 (8,487,848)
Treasury Gains
Non-GAAP (Losses)(6) 11,868,872 (36,783,228) 21,451,862
--------- --------------------- ---------- ----------- ----------
Total Other Income
GAAP (Expense), Net 2,197,391 (288) 108,431
Adjusted Other Income
Non-GAAP (Expense)(7) (42,240) 48,717 52,585
--------- --------------------- ---------- ----------- ----------
GAAP Net Income (Loss) 6,625,582 (39,765,565) 8,840,550
Non-GAAP Adjusted EBITDA(8) 7,951,003 (38,920,649) 19,488,132
All figures in this press release are not audited. Throughout this document, totals may not sum due to rounding. Calculations are based on unrounded results.
This press release includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted Gross Profit, Gross HYPE Holdings, Net Asset Value, Operating Expenses Excluding Stock-Based Compensation, Treasury Gains (Losses), Adjusted Other Income (Expense), and Adjusted EBITDA. Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" for reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures and important additional information.
Adjusted 2026
Gross Guidance
Profit(1) FY'26 vs. 2025
Guidance Q3'25 Q4'25 FY'25 Q1'26 Q2'26 Q3'26 Q4'26 Guidance Actual
Initial
Guidance
(Q4'25
A) $0.44M $0.82M $1.28M - - - - $4M - $6M 4x
---------- ------ ------ ------ ------ ----- ----- ----- --------- --------
Current
Guidance
(Q1'26
A) $0.44M $0.82M $1.28M $0.96M - - - $5M - $7M 5x
Adjusted Gross Profit(1)
(in $ thousands) Q3'25 Q4'25 Q1'26 QoQ Growth
Ecosystem Rewards - 285 150 -47%
DeFi Monetization <1 102 245 140%
Yield Enhancement 78 79 211 165%
----------
Validator Commissions 21 49 40 -17%
Staking Yield 340 305 313 2%
Adjusted Gross Profit(1) 439 821 960 17%
========================= ===== ====== ====== ==========
Multiple vs. Staking
Yield 1.3x 2.7x 3.1x
% Earned in Cash* 18% 22% 48%
HYPE Earned in Staking &
Validating(2) 7,895 10,076 11,458 14%
Effective Average HYPE
Price In-Period(3) 45.76 35.12 30.82
*The portion of Adjusted Gross Profit(1) earned in cash, cash equivalents, and USDH(16)
Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
HYPE Treasury Over Time 09/30/25 12/31/25 3/31/26 5/11/26(14) Gross HYPE Tokens(2) 1.72 M 1.88 M 1.94 M 2.00 M HYPE Token Price $45.2 $25.4 $36.6 $42.2 Gross HYPE Holdings(4) $77.8 M $47.8 M $71.0 M $84.5 M ---------------------------- -------- -------- ------- ----------- Cash, Cash Equivalents, and USDH(16) $8.2 M $6.5 M $9.1 M $16.0 M
Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
HYPD Investment Thesis
Hyperion DeFi has executed three full quarters under our new DeFi strategy, with two sequential increases in our operating business and two sequential declines in our core costs. Our continued track record of outperformance versus peers through Q1'26 demonstrate that we have transcended the strategy and capabilities of a simple buy-and-hold "DAT" (digital asset treasury company), and instead, we are differentiated as the first U.S. publicly listed DeFi company building on the Hyperliquid blockchain.
-- We are unique among digital asset treasuries with five diversified
operating business lines.
-- Our "Triple-Dip" HYPE deployment strategy, by which we earned
approximately 3.1x base staking income in Q1'26 versus 2.7x in Q4'25,
is possible because of our management's unique ability to build on the
Hyperliquid Blockchain.
-- Even as the Effective Average HYPE Price In-Period(3) declined, we
achieved +17% quarter-over-quarter growth in Adjusted Gross Profit(1),
driven by ramping DeFi Monetization and Yield Enhancement strategies
(each at >100% Q-o-Q growth).
-- The portion of our Adjusted Gross Profit(1) earned in cash, cash
equivalents, and USDH(16) increased from 22% in Q4'25 to 48% in Q1'26.
-- Beyond our growing HYPE treasury, our Hyperliquid ecosystem token
holdings (such as KNTQ and HPL) uniquely position HYPD for upside in
early-stage builders.
-- We operate with strong earnings leverage and a low cost base built for
scale. We anticipate Operating Expenses Excluding Stock-Based
Compensation(5) to further decline below a quarterly run-rate of $3.0
million beginning in Q2'26 driven by the exit of legacy biotech
operations.
-- We anticipate $5M-$7M Adjusted Gross Profit(1) in 2026, 5x our 2025 FY
results, which represents a +$1M increase in range from our Q4'25
earnings release.
Our businesses are designed to simultaneously promote and monetize adoption of the Hyperliquid blockchain. In Q1, our unique ability to "triple-dip" our HYPE tokens across multiple deployment strategies generated 3.1x the income would have otherwise generated from staking in isolation. Our "HYPD Triple-Dip" strategy is:
1) Stake our HYPE
2) Deploy the staked HYPE into another business activity -- our Validator, Yield Enhancement, or DeFi Monetization, and
3) Position ourselves to receive Ecosystem Rewards
Adjusted Gross Profit(1) in Q4'25 and Q1'26
Adjusted Gross Profit(1() , a Non-GAAP Metric, aims to capture all of Hyperion DeFi's value-add operating business activities beyond simply buying and holding HYPE tokens. In total, Adjusted Gross Profit(1() increased +17% quarter-over-quarter from $821 thousand in Q4'25 to $960 thousand in Q1'26.
Below is a summary of all five of our operating business activities included within Adjusted Gross Profit(1() in these periods:
1. Staking Yield: We stake our HYPE to our Validator and earn rewards.
-- In Q1'26, the Company earned 10,143 HYPE tokens from staking, up
16% quarter-over-quarter versus 8,437 in Q4'25.
-- On a dollar basis, our HYPE earned from staking generated $313
thousand Adjusted Gross Profit(1) in Q1'26 versus $305 thousand in
Q4'25 (+2% quarter-over-quarter), while the Effective Average HYPE
Price In-Period(3) declined -12% from 35.12 in Q4'25 to 30.82 in
Q1'26.
2. Validator Commissions: The Company operates its Validator under a Joint
Validator Operators Agreement (together with Kinetiq and Pier Two) and
earns commissions on rewards delivered to third-party tokens delegated to
the Validator.
-- In Q1'26, the Company earned 1,315 HYPE tokens as validator
commissions, a modest decline of -3% quarter-over-quarter versus
1,362 in Q4'25.
-- On a dollar basis, our HYPE earned from validator commissions
generated $40 thousand Adjusted Gross Profit(1) in Q1'26 versus
$49 thousand in Q4'25 (-17% quarter-over-quarter), given the
Effective Average HYPE Price In-Period(3) declined -12% from 35.12
in Q4'25 to 30.82 in Q1'26.
-- 10.2 million HYPE tokens were delegated to our Validator as of
April 30, 2026, and we are the Top 6 Hyperliquid Validator after
the Hyper Foundation.
3. Yield Enhancement: The Company pursues accretive strategies to enhance
yield earned on its tokens.
-- Yield Enhancement activities generated $211 thousand Adjusted
Gross Profit(1) in Q1'26 versus $79 thousand in Q4'25 (+165%
quarter-over-quarter).
-- Q1'26 and Q4'25 Yield Enhancement activities included multiple
HYPE volatility strategies OTC and on-chain.
-- In Q1'26, we began executing within our Institutional Volatility
Income Vault, in partnership with the Rysk protocol, further
optimizing our Yield Enhancement capabilities while building the
infrastructure to accommodate third-party execution within Rysk
Premium in the future.
4. DeFi Monetization: The Company supports and monetizes Hyperliquid DeFi
activity with sustainable, scalable practices.
-- DeFi Monetization activity generated $245 thousand Adjusted Gross
Profit(1) in Q1'26 versus $102 thousand in Q4'25 (+140%
quarter-over-quarter).
-- DeFi Monetization includes our Temporary HYPE Asset Use Agreements
("HAUS") and protocol partnerships generating third-party fees.
-- In Q1'26, we entered into a HAUS agreement with Silhouette. We
provided the use of HYPE tokens to the Silhouette aggregated
trading account, allowing Silhouette to pass along reduced trading
fees to its customers on the Silhouette platform, and entitling us
to earn a portion of those fee savings as income, plus 100% of
staking rewards.
5. Ecosystem Rewards: Through our active participation in the Hyperliquid
DeFi ecosystem, the Company positions itself for the receipt of future
potential token airdrops, protocol incentives, and other rewards that may
become available periodically.
-- Ecosystem Rewards generated $150 thousand Adjusted Gross Profit(1)
in Q1'26, versus $285 thousand in Q4'25.
-- We expect the quarter-over-quarter change in Ecosystem
Rewards to be volatile given the unexpected timing of
airdrops, token generation events, and other rewards
activity.
-- In November 2025, we received 1,918,478 KNTQ tokens in Kinetiq's
airdrop token generation event.
-- In March 2026, we cumulatively received 10,000,000 HPL tokens from
HyperLend in connection with multiple partnership and
revenue-sharing agreements in connection with on-chain credit
pools.
-- Silhouette is contractually obligated to award HYPD at least 1% of
future token supply or equity, including affiliates and related
parties.
-- Given our partnerships with other Hyperliquid ecosystem
participants such as Rysk, and given that we are continuing to
accrue additional Kinetiq points, we anticipate additional
ecosystem rewards in 2026.
Non-GAAP Income Summary
(Figures in $) Q3 2025 Q4 2025 Q1 2026
--------------------------------- ----------- ------------ ------------
Adjusted Gross Profit(1) 439,386 820,997 959,568
Operating Expenses Excluding
Stock-Based Compensation(5) 4,315,016 3,007,135 2,975,883
Treasury Gains (Losses)(6) 11,868,872 (36,783,228) 21,451,862
Adjusted Other Income
(Expense)(7) (42,240) 48,717 52,585
Adjusted EBITDA(8) 7,951,003 (38,920,649) 19,488,132
================================= ========== =========== ==========
Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
Q4'25 and Q1'26 Expense Summary Results
-- Operating Expenses Excluding Stock-Based Compensation(5) declined (1%)
quarter-over-quarter from $3.00 million in Q4'25 to $2.98 million in
Q1'26.
-- Research and development expenses were $287 thousand in Q1'26 versus $189
thousand in Q4'25.
-- Selling, general, and administrative expenses excluding stock-based
compensation decreased (5%) quarter-over-quarter, from $2.8 million in
Q4'25 to $2.7 million in Q1'26.
-- We expect to wind down legacy biotech operations by the end of Q2'26.
Q4'25 and Q1'26 Treasury Summary
-- Gross HYPE Tokens(2) increased from 1.88 million in Q4'25 to 1.94 million
in Q1'26.
-- Our HYPE treasury has grown to over 2.00 million tokens as of May
11, 2026(14).
-- Gross HYPE Holdings(4) increased from $47.8 million as of Q4'25 to $71.0
million as of Q1'26 as the price of HYPE increased from $25.4 to $36.6 in
Q1'26.
-- Net Asset Value(9) increased from $44.2 million as of Q4'25 to $69.9
million as of Q1'26.
-- Treasury Gains (Losses)(6) was $21.5 million in Q1'26 versus ($36.8
million) in Q4'25.
Q4'25 and Q1'26 Net Income (Loss) and Adjusted EBITDA(8)
-- Q1'26 Net Income of $8.8 million compares to Q4'25 Net Loss of ($39.8
million).
-- Q1'26 Adjusted EBITDA(8) of $19.5 million compares to Q4'25 Adjusted
EBITDA(8) of ($38.9 million)
-- The primary reconciliation of Net Income to Adjusted EBITDA(8) is
our HYPE Liquid Staking Tokens (LSTs), for which the GAAP carrying
value is the low-water-mark price of HYPE, as detailed further in
our GAAP to Non-GAAP reconciliations section at the end of this
release.
-- Q1'26 Net Income Attributable to Common Shareholders of $3.3 million
compares to Q4'25 Net Loss Attributable to Common Shareholders of ($40.6
million).
-- Q1'26 Net Income per Common Share of $0.30 on a basic basis (10,610,679
weighted average shares) and $0.26 on a diluted basis (12,686,142
weighted average shares), compares to Q4'25 Net Loss per Share of ($6.29)
on 6,452,733 on weighted average shares outstanding.
-- As of May 11, 2026, there are 15,025,498 outstanding shares of common
stock.
Q4'25 and Q1'26 Cash Flows Summary
-- Operating Activities used $4.2 million net cash in Q1'26 versus $4.1
million in Q4'25.
-- Q1'26 Operating Cash Flow included $1.5 million net increase in
the levels of operating assets (including acquiring additional
USDH stablecoin(16)), without which, Net Cash Used in Operating
Activities would have been $2.7 million.
-- Our cash, cash equivalents, and USDH(16) totaled $9.1 million as
of Q1'26 versus $6.5 million as of Q4'25.
-- As of May 11, 2026, our cash, cash equivalents, and USDH(16)
totaled approximately $16.0 million(14).
-- Net Cash Used in Investing Activities to purchase HYPE was $1.5 million
in Q1'26 versus $6.3 million in Q4'25.
-- QTD Q2'26 as of May 11, 2026, we have purchased $2.5 million in
HYPE.
-- Net Cash Provided by Financing Activities was $6.6 million in Q1'26
(primarily from our "at-the-market" offering) versus $9.4 million in
Q4'25.
-- Through May 11, 2026, QTD Q2'26 we have raised approximately $1.9
million net proceeds from the sale of 492,783 shares via our
"at-the-market" offering(14).
-- On May 7, 2026, we closed a public offering of 2,777,778 common
shares and received approximately $8.7 million in net
proceeds(14).
Conference Call & Webcast
Hyperion DeFi, Inc. will hold its earnings conference call and webcast for the first quarter ended March 31, 2026 on Thursday, May 14, 2026 at 8:00 a.m. Eastern Time. A slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures can be accessed through the Company's Investor Relations website at https://ir.hyperiondefi.com/events-and-presentations along with information for the conference call. A webcast of the call will be archived and available through May 28, 2026 at 11:59 p.m. Eastern Time on the Company's website.
Presentation
All growth rates represent quarter-over-quarter comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest dollar, except as otherwise noted. As a result, certain amounts and rates may not sum or recalculate using the rounded dollar amounts provided. All numbers in this press release are not audited.
About the Hyperliquid Platform and the HYPE Token
Hyperliquid is a next-generation layer one blockchain optimized for high frequency, transparent trading. The blockchain includes fully on-chain perpetual futures and spot order books, with every order, cancel, trade, and liquidation occurring within 70 millisecond block times. It also hosts the HyperEVM, a general-purpose smart contract platform that supports permissionless decentralized financial applications akin to Ethereum.
HYPE is the native token of Hyperliquid. Staked HYPE provides utility for users via reduced trading fees and increased referral bonuses. As of May 2026, more than 44 million HYPE have been autonomously purchased and sequestered by the blockchain with the trading fees generated on the network's central limit order books.
About Hyperion DeFi, Inc.
Hyperion DeFi, Inc. is the first U.S. publicly listed DeFi company building on Hyperliquid. The Company provides investors with streamlined access to the Hyperliquid ecosystem, one of the fastest growing, highest revenue-generating blockchains in the world. Shareholders benefit from compounding exposure to HYPE, both from its native staking yield and additional revenues generated from its unique on-chain utility.
For more information, please visit Hyperiondefi.com or follow @hyperiondefi on X.
Forward Looking Statements; Disclaimer
Except for historical information, all the statements, expectations and assumptions contained in this press release are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements, our future activities or other future events or conditions, including the viability of, and risks associated with, our cryptocurrency treasury strategy, the growth and revenue potential of the Hyperliquid ecosystem and the growth prospects of the Company. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and in some cases are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in documents which we file with the U.S. Securities and Exchange Commission.
Any forward-looking statements speak only as of the date on which they are made, and except as may be required under applicable securities laws, Hyperion DeFi does not undertake any obligation to update any forward-looking statements.
Certain information contained in this press release relates to or is based on studies, publications, surveys and other data obtained from third-party sources and Hyperion DeFi's own internal estimates and research. While Hyperion DeFi believes these third-party studies, publications, surveys and other data to be reliable as of the date of this press release, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, no independent source has evaluated the reasonableness or accuracy of Hyperion DeFi's internal estimates or research and no reliance should be made on any information or statements made in this press release relating to or based on such internal estimates and research. You should conduct your own investigation and analysis of Hyperion DeFi, its business, prospects, results of operations and financial condition. In furnishing this information, Hyperion DeFi does not undertake any obligation to provide you with access to any additional information (including forward-looking information and any projections contained herein) or to update or correct the information.
Hyperion DeFi, Inc. Investor Contact:
Jason Assad
Hyperion DeFi, Inc.
IR@hyperiondefi.com
(678) 570-6791
Hyperion DeFi, Inc.
Condensed Balance Sheets
(unaudited)
March 31, December 31,
2026 2025
-------------- ----------------
(unaudited)
Assets
Current Assets
Cash and cash equivalents $ 7,380,922 $ 6,443,467
Prepaid expenses and other
current assets 1,423,025 802,342
------------ ------------
Total Current Assets 8,803,947 7,245,809
Digital assets 25,422,127 16,345,347
Digital assets receivable, net 10,376,105 6,935,131
Digital intangible assets 16,033,758 20,591,555
Digital intangible assets
receivable, net 8,907,419 --
Operating lease right-of-use asset 340,407 415,998
Other assets 182,200 230,416
------------ ------------
Total Assets $ 70,065,963 $ 51,764,256
============ ============
Liabilities and Stockholders'
Equity
Current Liabilities:
Accounts payable $ 428,266 $ 317,900
Accrued expenses and other
current liabilities 2,070,181 1,871,106
Operating lease liabilities -
current portion 465,245 512,007
Notes payable - current portion 1,509,326 --
------------ ------------
Total Current Liabilities 4,473,018 2,701,013
Notes payable - non-current
portion 6,965,557 7,796,136
Operating lease liabilities,
non-current portion 132,424 206,600
------------ ------------
Total Liabilities 11,570,999 10,703,749
------------ ------------
Commitments and contingencies
(Note 9)
Stockholders' Equity
Preferred stock, $0.0001 par
value, 60,000,000 shares
authorized; Series A Non-Voting
Convertible Preferred Stock,
5,435,898 shares designated;
5,235,897 and 5,435,897 shares
issued and outstanding as of
March 31, 2026 and December 31,
2025, respectively with a
liquidation preference of
$50,768,000 as of March 31,
2026 524 544
Common stock, $0.0001 par value,
600,000,000 shares authorized;
11,428,482 shares issued and
outstanding as of March 31,
2026;8,762,329 shares issued
and 8,680,005 shares
outstanding as of December 31,
2025, respectively 1,143 876
Additional paid-in-capital 290,277,174 281,937,072
Treasury stock, at cost, 0 and
82,324 shares as of March 31,
2026 and December 31, 2025,
respectively -- (253,558)
Accumulated deficit (231,783,877) (240,624,427)
------------ ------------
Total Stockholders' Equity 58,494,964 41,060,507
------------ ------------
Total Liabilities and
Stockholders' Equity $ 70,065,963 $ 51,764,256
============ ============
Hyperion DeFi, Inc.
Condensed Statements of Operations
(unaudited)
For the Three Months Ended
March 31,
--------------------------------
2026 2025
---------------- --------------
Revenue $ 244,271 $ 14,720
Cost of revenue -- (48)
----------- ----------
Gross Profit 244,271 14,672
Operating (Income) Expenses:
Research and development 286,764 673,043
Selling, general and
administrative 4,493,604 2,372,322
Realized gain - digital assets and
digital assets receivable (3,623,764) --
Unrealized gain - digital assets (10,973,979) --
Unrealized gain -- digital
intangible assets receivable (367,251) --
Impairment loss - digital
intangible assets 1,231,668 --
Net gains (losses) on derivative
instruments (39,401) --
Provision for credit losses 504,511 --
----------- ----------
Net Operating (Income) Expenses (8,487,848) 3,045,365
----------- ----------
Income (Loss) From Operations 8,732,119 (3,030,693)
Other Income (Expense):
Other income, net 90,133 3,687
Gain on extinguishment of
liabilities -- 89,623
Interest expense (225,869) (581,499)
Interest income 244,167 35,349
----------- ----------
Total Other Income (Expense),
Net 108,431 (452,840)
----------- ----------
Net Income (Loss) 8,840,550 (3,483,533)
Dividend to preferred stockholders (815,297) --
----------- ----------
Net Income (Loss) Attributable to
Participating Securities 8,025,253 (3,483,533)
Less: income allocated to
preferred stockholders (4,789,742) --
----------- ----------
Net Income (Loss) Available to
Common Stockholders $ 3,235,511 $(3,483,533)
=========== ==========
Net Loss per Share - Basic $ 0.30 $ (1.59)
=========== ==========
Net Loss per Share - Diluted $ 0.26 $ (1.59)
=========== ==========
Shares Outstanding - Basic 10,610,679 2,188,938
=========== ==========
Shares Outstanding - Diluted 12,686,142 2,188,938
=========== ==========
Hyperion DeFi, Inc.
Condensed Statements of Stockholders' Equity (Deficit)
(unaudited)
For the Three Months Ended March 31, 2026
------------------------------------------------------------------------------------------------------------------
Additional Total
Preferred Stock Common Stock Paid-In Treasury Stock Accumulated Stockholders'
-------------------- -------------------- --------------------
Shares Amount Shares Amount Capital Shares Amount Deficit Equity
---------- -------- ----------- ------- ------------- -------- ---------- -------------- -----------------
Balance - January 1,
2026 5,435,897 $ 544 8,762,329 $ 876 $281,937,072 82,324 $(253,558) $(240,624,427) $ 41,060,507
Issuance of common
stock in At the
Market offering [1] -- -- 1,859,993 186 6,665,196 -- -- -- 6,665,382
Issuance of common
stock for payment in
kind of preferred
stock dividend -- -- 244,518 25 939,312 -- -- -- 939,337
Issuance of common
stock from the
delivery of vested
restricted stock
units -- -- 33,516 3 (3) -- -- -- --
Issuance of common
stock from conversion
of preferred stock (200,000) (20) 600,000 60 (40) -- -- -- --
Retirement of treasury
shares -- -- (82,324) (8) (253,550) (82,324) 253,558 -- --
Stock-based
compensation:
Amortization of stock
option awards -- -- -- -- 80,880 -- -- -- 80,880
Amortization of
restricted stock
units -- -- -- -- 1,690,852 -- -- -- 1,690,852
Issuance of common
stock to vendors as
consideration for
service provided -- -- 10,450 1 32,752 -- -- -- 32,753
Preferred stock
dividend ($0.16 per
preferred share
outstanding) -- -- -- -- (815,297) -- -- -- (815,297)
Net income -- -- -- -- -- -- -- 8,840,550 8,840,550
--------- --- ---------- ----- ----------- ------- -------- ------------ ----------
Balance - March 31, 2026 5,235,897 $ 524 11,428,482 $1,143 $290,277,174 -- $ -- $(231,783,877) $ 58,494,964
========= === ========== ===== =========== ======= ======== ============ ==========
For the Three Months Ended March 31, 2025
-------------------------------------------------------------------------------------------------------------
Additional Total
Preferred Stock Common Stock Paid-In Treasury Stock Accumulated Stockholders'
-------------------- -------------------- ----------------
Shares Amount Shares Amount Capital Shares Amount Deficit Deficit
------- ---------- ---------- -------- ------------- ------ -------- -------------- ---------------
Balance - January 1,
2025 -- $ -- 1,506,369 $ 151 $182,213,889 -- $ -- $(195,309,992) $(13,095,952)
Issuance of common
stock in At the
Market offering [2] -- -- 1,127,100 113 5,663,153 -- -- -- 5,663,266
Induced exercise of
stock warrants [3] -- -- 197,118 19 922,731 -- -- -- 922,750
Reverse stock split
settlement of
fractional shares -- -- (41) -- (160) -- -- -- (160)
Warrant modification
and additional
warrants-incremental
value [4] -- -- -- -- 1,194,102 -- -- -- 1,194,102
Warrant modification
and additional
warrants-in issuance
costs for inducement
[5] -- -- -- -- (1,194,102) -- -- -- (1,194,102)
Stock-based
compensation -- -- -- -- 279,628 -- -- -- 279,628
Net loss -- -- -- -- -- -- -- (3,483,533) (3,483,533)
------------- --- --------- ---- ----------- ------ ---- ------------ -----------
Balance - March 31, 2025 -- $ -- 2,830,546 $ 283 $189,079,241 -- $ -- $(198,793,525) $ (9,714,001)
======== === ==== ========= ==== =========== ====== ==== ============ ===========
________________________________
[1] Includes gross proceeds of $6,981,098 less total issuance costs of $315,716.
[2] Includes gross proceeds of $5,851,007 less total issuance costs of $187,741.
[3] Includes gross proceeds of $1,039,206 less total issuance costs of $116,456.
[4] Incremental value from the warrant inducement entered into on January 16, 2025.
[5] Non-cash warrant modification and additional warrants issuance costs related to the warrant inducement are shown as a separate line item for clarity.
Hyperion DeFi, Inc.
Condensed Statements of Cash Flows
(unaudited)
For the Three Months Ended
March 31,
--------------------------------
2026 2025
---------------- --------------
Cash Flows From Operating
Activities
Net income (loss) $ 8,840,550 $(3,483,533)
Adjustments to reconcile net
income (loss) to net cash and
cash equivalents used in
operating activities:
Stock-based compensation 1,804,485 279,628
Change in fair value of shares
issued for accrued dividend 146,719 --
Amortization of debt discount 55,461 277,972
Non-cash lease expense 75,591 75,591
Provision for credit losses 504,511 --
Gain on extinguishment of
liabilities -- (89,623)
Realized gain - digital assets (3,623,764) --
Unrealized gain - digital
assets (10,973,979) --
Unrealized gain -- digital
intangible assets receivable (367,251)
Net gains on derivative
instruments (39,401) --
Impairment loss - digital
intangible assets 1,231,668 --
Non-cash revenue, net (244,271) --
Non-cash portion of other
income (6,041) --
Non-cash interest income from
digital assets receivable (198,957) --
Paid-in-kind interest expense 83,672 198,829
Changes in operating assets and
liabilities:
Prepaid expenses and other
current assets (1,542,190) (577,321)
License fee and expense
reimbursements receivables -- (960)
Accounts payable 110,366 (999,807)
Accrued expenses and other
current liabilities 67,117 28,814
Lease liabilities (120,938) (152,436)
----------- ----------
Net Cash and Cash Equivalents
Used In Operating Activities (4,196,652) (4,442,846)
----------- ----------
Cash Flows From Investing
Activities
Purchase of digital assets (1,472,835) --
----------- ----------
Net Cash and Cash Equivalents
Used In Investing Activities (1,472,835) --
----------- ----------
Cash Flows From Financing
Activities
Proceeds from sale of common stock
in At the Market offering 6,981,098 5,851,007
Proceeds from induced exercise of
stock warrants -- 1,039,206
Payment of issuance costs for At
the Market offering (315,716) (187,741)
Repayments of notes payable (58,440) (152,279)
Payment of issuance costs for debt
modification -- (177,228)
Payment of cash issuance costs for
induced exercise of stock
warrants -- (116,456)
Reverse stock split settlement of
fractional shares -- (160)
----------- ----------
Net Cash and Cash Equivalents
Provided By Financing
Activities 6,606,942 6,256,349
----------- ----------
Net Increase in Cash and Cash
Equivalents 937,455 1,813,503
Cash and Cash Equivalents -
Beginning of Period 6,443,467 2,121,463
----------- ----------
Cash and Cash Equivalents - End
of Period $ 7,380,922 $ 3,934,966
=========== ==========
Hyperion DeFi, Inc.
Condensed Statements of Cash Flows, continued
(unaudited)
For the Three Months
Ended March 31,
-----------------------
2026 2025
---------- -----------
Supplemental Disclosure of Cash Flow
Information:
Cash paid during the period for:
Interest $ 86,737 $ --
========= ==========
Taxes $ -- $ --
========= ==========
Supplemental Disclosure of Non-Cash
Investing and Financing Activities
Modification date carrying value of
extinguished Avenue Loan $ -- $10,262,280
========= ==========
Modification date fair value of modified
Avenue Loan $ -- $10,172,657
========= ==========
Transfer of digital assets into digital
intangible assets receivable $8,863,235 $ --
========= ==========
Deposits of USDH into Hyperion Rysk Vault $1,765,075 $ --
========= ==========
Redemption of digital assets from Hyperion
Rysk Vault $ 151,377 $ --
========= ==========
Warrant modification and additional
warrants - incremental value $ -- $ 1,194,102
========= ==========
Prepaid insurance financed by note payable $ 598,055 $ --
========= ==========
Common stock issued for accrued dividends
payable $ 939,337 $ --
========= ==========
Accrued dividend payable to preferred
stockholders $ 815,297 $ --
========= ==========
Treasury shares retired $ 253,558 $ --
========= ==========
Deposits of digital assets into liquid
staking activities $ 224,011 $ --
========= ==========
Liability for digital assets received from
lender, prior to loan origination $ 150,163 $ --
========= ==========
Common stock issued upon conversion of
preferred stock $ 60 $ --
========= ==========
Receipt of digital assets from liquid
staking activities $ 4 $ --
========= ==========
Issuance of common stock upon vesting of
restricted stock units $ 3 $ --
========= ==========
Hyperion DeFi Non-GAAP Measures of Financial Performance and Supplemental Disclosures
Reconciliation of GAAP Revenue to Non-GAAP Adjusted
Gross Profit(1) (unaudited)
For the Three Months Ended
September 30, December 31, March 31,
(Figures in $) 2025 2025 2026
Gross Profit 302,506 192,987 244,271
Add: Accumulated but unrealized
staking yield on LSTs(10) 58,771 172,463 154,806
Add: Net gains on derivative
instruments 78,109 79,461 39,401
Add: Accumulated but unrealized yield
enhancement activity(15) - - 171,970
Add: Operating Income from airdrops - 285,450 -
Add: Receipt of HPL tokens pursuant to
partnership agreements - - 150,163
Add: Interest Income from DeFi
Monetization activity - 90,636 198,957
Adjusted Gross Profit(1) 439,386 820,997 959,568
====================================== ============= ============ =========
Note: See "Footnotes" section for detailed explanations and definitions.
Q1'26 Reconciliation of GAAP HYPE Digital Assets to
Non-GAAP Gross HYPE Holdings(4) (unaudited)
As of March 31, 2026
--------------------------------------
Value $ Token Count Token Price $
HYPE digital assets 25,286,164 690,505 36.62
Add:
HYPE digital assets receivable* 11,071,200 302,327 36.62
HYPE digital intangible assets
receivable** 9,230,486 250,000 20.66
HiHYPE at Carrying Value 7,785,852 378,277 20.58
kHYPE at Carrying Value 5,693,449 275,434 20.67
kmHYPE at Carrying Value 597,068 28,888 20.67
Unrealized accretion (dilution)
expected upon LST to HYPE
reconversion(11) 11,373,007 14,421 N.M.***
Gross HYPE Holdings(4) 71,037,344
================================== ========== =========== =============
Gross HYPE Tokens(2) 1,939,851 36.62
================================== ========== =========== =============
Note: See "Footnotes" section for detailed explanations
and definitions.
Memo: Unrealized accretion
(dilution) expected upon LST to
HYPE reconversion as of December
31, 2025 3,499,665
Memo: In-Period Change in
unrealized accretion (dilution)
expected upon LST to HYPE
reconversion 7,873,342
*Presented gross of $586,774 allowance for credit losses and $108,321 unamortized nonrefundable upfront fee.
**Presented gross of $323,067 allowance for credit losses.
***Throughout this release, N.M. is the abbreviation for "Not Meaningful".
Q4'25 Reconciliation of GAAP HYPE Digital Assets to
Non-GAAP Gross HYPE Holdings(4) (unaudited)
As of December 31, 2025
--------------------------------- -------------------------------------
Value $ Token Count Token Price
--------------------------------- ----------- ----------- -----------
HYPE - Digital Assets 16,233,941 638,352 25.43
Add:
---------------------------------
HYPE digital asset receivable* 7,647,740 300,725 25.43
HiHYPE at carrying value 8,437,277 398,277 21.18
kHYPE at carrying value 11,369,458 505,434 22.49
kmHYPE at carrying value 649,820 28,888 22.49
Add: Unrealized accretion
(dilution) expected upon future
LST to HYPE Token
reconversion(11) 3,499,665 9,410 N.M.
Gross HYPE Holdings(4) 47,837,901
================================= ========== =========== ===========
Gross HYPE Tokens(2) 1,881,086 25.43 ================================= =========== =========== =========== Note: See "Footnotes" section for detailed explanations and definitions. Unrealized accretion (dilution) expected upon LST to HYPE reconversion as of Q3'25 4,912,082 In-Period Change in unrealized accretion (dilution) expected upon LST to HYPE vs. Q3'25 (1,412,417)
*Presented gross of $405,331 allowance for credit losses and $307,278 unamortized nonrefundable upfront fee.
Q3'25 Reconciliation of GAAP HYPE Digital Assets to
Non-GAAP Gross HYPE Holdings(4) (unaudited)
As of September 30, 2025
------------------------------------ ------------------------------------
Value $ Token Count Token Price
------------------------------------ ---------- ----------- -----------
HYPE digital assets 37,954,590 839,889 45.19
Add: HiHYPE at Carrying Value 34,884,932 877,871 39.74
Add: Unrealized accretion (dilution)
expected upon future LST to HYPE
Token reconversion(11) 4,912,082 2,788 N.M.
Gross HYPE Holdings(4) 77,751,604
==================================== ========== =========== ===========
Gross HYPE Tokens(2) 1,720,549 45.19
==================================== ========== =========== ===========
Note: See "Footnotes" section for detailed explanations
and definitions.
Unrealized accretion (dilution)
expected upon LST to HYPE
reconversion as of June 30, 2025* 4,912,082
*The Company did not hold any LSTs on or prior to June 30, 2025. Therefore, as of September 30, 2025, the in-period change in unrealized accretion (dilution) expected upon LST to HYPE Token Reconversion is the same as the absolute figure.
Reconciliation of GAAP Selling, General and Administrative
expense to Non-GAAP Operating Expense Excluding Stock-Based
Compensation(5) (unaudited)
For the Three Months Ended
September 30, December 31, March 31,
(Figures in $) 2025 2025 2026
-------------------------------- ------------- ------------ -------------
Selling, general and
administrative expense 2,594,130 4,530,542 4,493,604
Subtract: stock-based
compensation expense 1,347,031 (1,712,361) (1,804,485)
Add: research and development
expense 373,855 188,954 286,764
Operating Expense Excluding
Stock-Based Compensation(5) 4,315,016 3,007,135 2,975,883
================================ ============= =========== ==========
Note: See "Footnotes" section for detailed explanations and definitions.
Supplemental Disclosure of Disaggregated Stock-Based
Compensation (unaudited)
For the Three Months Ended
September 30, December 31, March 31,
(Figures in $) 2025 2025 2026
------------------------------------ ------------- ------------ ---------
Mark-to-Market Adjustment of Vested
but Undelivered Awards (2,140,000) - -
Amortization of Unearned Executive
Milestone Awards 209,648 997,563 997,563
All Remaining Stock-Based
Compensation 583,321 714,798 806,922
Total Stock-Based Compensation (1,347,031) 1,712,361 1,804,485
==================================== ============ ============ =========
Reconciliation of GAAP Net Operating (Expenses) Income
to Non-GAAP Treasury Gains (Losses)(6) (unaudited)
For the Three Months Ended
September 30, December 31, March 31,
(Figures in $) 2025 2025 2026
------------------------------ ------------- ------------ -------------
Net Operating Income
(Expenses) 4,125,685 (39,958,264) 8,487,848
Add Back:
------------------------------
Research and development
expense 373,855 188,954 286,764
Selling, general and
administrative expense 2,594,130 4,530,542 4,493,604
Provision for credit losses - 405,331 504,511
In-Period Change in
unrealized accretion
(dilution) expected upon
LST to HYPE reconversion 4,912,082 (1,412,417) 7,873,342
Subtract:
------------------------------
Accumulated but unrealized
staking yield on LSTs(10) (58,771) (172,463) (154,806)
Operating Income from
airdrops - (285,450) -
Net gains on derivative
instruments (78,109) (79,461) (39,401)
Treasury Gains (Losses)(6) 11,868,872 (36,783,228) 21,451,862
============================== ============ =========== ==========
Note: See "Footnotes" section for detailed explanations and definitions.
Reconciliation of GAAP Total Other Income (Expense),
Net to Non-GAAP Adjusted Other Income (Expense)(7)
(unaudited)
For the Three Months Ended
September 30, December 31, March 31,
(Figures in $) 2025 2025 2026
-------------------------------- ------------- ------------ -----------
Total Other Income (Expense),
Net 2,197,391 (288) 108,431
Add back:
--------------------------------
Interest expense 223,080 224,799 225,869
Reduction in life sciences
liabilities(12) (2,407,154) - (225,173)
Other non-recurring items(13) (55,557) (85,158) 142,415
Subtract: Interest Income from
DeFi Monetization activities - (90,636) (198,957)
--------------------------------
Adjusted Other Income
(Expense)(7) (42,240) 48,717 52,585
================================ ============ =========== ========
Note: See "Footnotes" section for detailed explanations and definitions.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted
EBITDA(8) (unaudited)
For the Three Months Ended
September 30, December 31, March 31,
(Figures in $) 2025 2025 2026
----------------------------- ------------- ------------ -------------
Net Income (Loss) 6,625,582 (39,765,565) 8,840,550
Add back:
-----------------------------
Stock-based compensation (1,347,031) 1,712,361 1,804,485
Interest expense 223,080 224,799 225,869
Provision for credit
losses - 405,331 504,511
Income Taxes - -
Depreciation and
amortization expense - -
Reduction in life sciences
liabilities(12) (2,407,154) - (225,173)
Other non-recurring
items(13) (55,557) (85,158) 142,415
Add:
-----------------------------
In-Period Change in
unrealized accretion
(dilution) expected upon
LST to HYPE reconversion 4,912,082 (1,412,417) 7,873,342
Accumulated but unrealized
yield enhancement
activity(15) - - 171,970
Receipt of HPL tokens
pursuant to partnership
agreements - - 150,163
Adjusted EBITDA(8) 7,951,003 (38,920,649) 19,488,132
============================= ============= =========== ==========
Note: See "Footnotes" section for detailed explanations and definitions.
*Does not include Amortization of Operating Lease.
Reconciliation of GAAP HYPE digital assets, as adjusted
to Gross HYPE Holdings(4) , to Non-GAAP Net Asset
Value(9) (unaudited)
September 30, December 31, March 31,
(Figures in $) 2025 2025 2026
------------------------------ ------------- ------------ -------------
Gross HYPE Holdings(4) 77,751,604 47,837,901 71,037,227
Add: KNTQ & sKNTQ at Carrying
Value - 111,406 193,780
Add: HPL & sHPL at Carrying
Value - - 149,820
Add: Hyperion Rysk Vault
Shares at Cost Basis* - - 1,615,075
Add: Current Assets 9,085,767 7,245,809 8,803,947
Subtract: Current
Liabilities** (4,037,092) (2,701,013) (4,509,992)
Subtract: Notes Payable*** (8,254,696) (8,339,366) (7,416,353)
Net Asset Value((9) () 74,545,583 44,154,737 69,873,504
============================== ============ =========== ==========
Note: See "Footnotes" section for detailed explanations and definitions.
*Digital intangible assets representing claims on USDH held in the Hyperion Rysk Institutional Volatility Income Vault, bearing the technical name "WHYPE-USDH-USDH-P-H-HL".
**Includes Notes payable - current portion as of March 31, 2026; does not subtract debt discount of $36,974 as of March 31, 2026.
***Non-current portion; does not subtract debt discount of $598,691 as of September 30, 2025, $543,230 as of December 31, 2025, or $450,796 as of March 31, 2026.
Footnotes
1. "Adjusted Gross Profit" is a non-GAAP measure. Adjusted Gross Profit is
defined as all in-period gross profit generated by the Company's
operations excluding buying digital assets and associated mark-to-market
price movements. Such activities include staking yield, validator
operations, yield enhancement activity, DeFi monetization partnerships,
ecosystem rewards, and (prior to 2026) life sciences operations. It is
reconciled to the GAAP measure "Gross Profit" by (i) adding accumulated
but unrealized staking yield on LSTs, (ii) adding Net gains on derivative
instruments, (iii) adding accumulated but unrealized yield enhancement
activity as further described in Footnote 15, (iv) adding Operating
Income from airdrops, (v) adding the Company's receipt of HPL tokens
pursuant to its partnership agreements with HyperLend, and (vi) adding
the portion of GAAP "Interest Income" generated from digital assets
receivables. We believe "Adjusted Gross Profit" is a helpful financial
measure to our management and investors as it aims to capture all
in-period gross profit generated by our active operational strategies
without the impact of (i) the temporary GAAP earnings volatility of HYPE
to LST conversion and LST to HYPE reconversion, (ii) the temporary GAAP
earnings volatility of depositing and redeeming USDH versus Hyperion Rysk
Vault Shares and delays in recognition of upfront received premium on
expired sold HYPE put and call options, (iii) the over-time GAAP
recognition of the Company's receipt of HPL tokens, and (iv) dispersed
GAAP presentment of our operational strategies across various Statements
of Operations sections, or (iv) the impacts of realized or unrealized
gains or losses on our digital assets. We believe Adjusted Gross Profit
is a critical metric to quantify and compare our core operational
activities between periods. In the Company's earnings release and
earnings supplement for three months ended September 30, 2025 and
December 31, 2025, we previously reconciled Non-GAAP "Adjusted Gross
Profit" to GAAP "Revenue". Given changes in GAAP presentment related to
staking and validating activities, we believe for the three months ended
March 31, 2026, the closest comparable GAAP metric to Adjusted Gross
Profit is Gross Profit.
2. The following are unaudited supplemental operating disclosures: Gross
HYPE Tokens, the number of HYPE tokens staked at the Kinetiq x Hyperion
Validator, Validator Commissions in HYPE, Staking Yield in HYPE, and HYPE
Earned in Staking & Validating.
3. Calculated as the sum of the in-period Non-GAAP Adjusted Gross Profit
components of (a) Validator Commissions plus (b) Staking Yield (such
figures being expressed in-period in US Dollars), divided by the sum of
(c) Validator Commissions in HYPE plus (d) Staking Yield in HYPE.
4. "Gross HYPE Holdings" is a non-GAAP measure. Gross HYPE Holdings is
defined as the gross market value of the Company's HYPE assuming (a) all
temporary HYPE token use agreements are exited, (b) all collateralized
OTC HYPE derivatives are exited (and such LST collateral returned to the
Company), and (c) all LSTs were converted back to HYPE tokens as of the
end of each respective reporting quarter. It is reconciled to the GAAP
measure "HYPE digital assets" by adding (i) HYPE digital assets
receivable (without subtracting allowance for credit loss or unamortized
nonrefundable upfront fees), (ii) HYPE digital intangible assets
receivable (without subtracting allowance for credit loss), (iii) HYPE
LSTs at carrying value (including without limitation HiHYPE, kHYPE, and
kmHYPE) and (iv) the unrealized accretion (dilution) expected upon LST to
HYPE reconversion as of the end of each respective reporting quarter. We
believe Gross HYPE Holdings is a helpful non-GAAP financial measure to
our management and investors because it eliminates the temporary HYPE
value impacts caused by our DeFi Monetization and Yield Enhancement token
movements as well as the conversion and reconversion between HYPE tokens
and LSTs, which (a) causes staking yield on our LSTs not to be recognized
in-period in accordance with GAAP and (b) does not recognize upward
mark-to-market movements in underlying HYPE tokens given LSTs are carried
at the lower of cost basis or impaired value. As such, it provides useful
information about our balance sheet, allows for greater transparency with
respect to important metrics used by our management for financial, risk
management and operational decision-making, and provides an additional
tool for investors to understand and compare our operating results across
reporting periods.
5. "Operating Expenses Excluding Stock-Based Compensation" is a non-GAAP
measure. Operating Expenses Excluding Stock-Based Compensation is defined
as the Company's operational expenses in-period excluding treasury value
movements and stock-based compensation. It is reconciled to the GAAP
measure "Selling, general and administrative expense" by (i) subtracting
stock-based compensation expense and (ii) adding Research and development
expense. Operating Expenses Excluding Stock-Based Compensation provides a
metric of total operating expenditures in-period without the impact of
treasury value movement or stock-based compensation, thereby creating a
helpful metric for operational expense comparisons between different
periods for our management and investors.
6. "Treasury Gains (Losses)" is a non-GAAP measure. Treasury Gains (Losses)
is defined as the gross mark-to-market change in the company's digital
asset treasury portfolio each period, without accounting for temporary
GAAP impacts due to HYPE to LST conversion (or LST to HYPE reconversion)
or operating income driven by airdrops or yield enhancement activity. It
is reconciled to the GAAP measure "Net Operating Income (Expenses)" by
(a) adding (i) Research and development expense, (ii) Selling, general,
and administrative expense, (iii) Provision for credit losses, and (iv)
the in-period change in unrealized accretion (dilution) expected upon LST
to HYPE reconversion, and (b) subtracting (i) accumulated but unrealized
staking yield on LSTs, (ii) Operating Income from airdrops, and (iii) Net
gains on derivative instruments. Following these adjustments, Treasury
Gains (Losses) is a singular metric that can present mark-to-market
treasury changes in isolation, which we believe is a helpful metric for
management and investors given our large digital asset treasury position
and the volatile nature of digital assets.
7. "Adjusted Other Income (Expense)" is a non-GAAP measure. Adjusted Other
Income (Expense) reflects management's view of recurring activities
outside of core operating income and operating expenses. It is reconciled
to the GAAP measure "Total Other Income (Expense), Net" by (a) adding
back (i) interest expense, (ii) non-recurring gains from reductions in
life sciences liabilities, and (iii) other non-recurring items which we
do not consider material in nature, and (b) subtracting the portion of
GAAP "Interest Income" generated from digital assets receivables. The
items added back to Adjusted Other Income (Expense) are excluded because
they are non-cash in nature, or because the amount and timing of these
items are unpredictable, are not driven by core results of operations,
and render comparisons with prior periods and competitors less
meaningful. The item subtracted from Adjusted Other Income (Expense) is
already captured in the Non-GAAP metric "Adjusted Gross Profit", as
further described in Footnote 1. We believe Adjusted Other Income
(Expense) provides a helpful view to management and investors regarding
recurring and ongoing income and expense items outside of operating
income and operating expenses, presented in a way to compare these
elements over time.
8. "Adjusted EBITDA" is a non-GAAP measure. Adjusted EBITDA is meant to
reflect management's view of recurring business activities and a more
comparable view of the mark-to-market impacts on our digital asset
treasury holdings in-period. It is reconciled to the GAAP measure "Net
Income (Loss)" by removing (i) stock-based compensation, (ii) interest
expense, (iii) provision for credit losses, (iv) income taxes, (v)
depreciation and amortization expense (excluding amortization of
operating lease), (vi) non-recurring gains from reductions in life
sciences liabilities, and (vii) other non-recurring items which we do not
consider material in nature; and, it adds in (i) the in-period change in
unrealized accretion (dilution) expected upon LST to HYPE reconversion,
(ii) accumulated but unrealized yield enhancement activity as further
described in Footnote 15, and (iii) the Company's receipt of HPL tokens
pursuant to its partnership agreements with HyperLend. The items excluded
from our Adjusted EBITDA are excluded because they are non-cash in nature,
or because the amount and timing of these items are unpredictable, are
not driven by core results of operations, and render comparisons with
prior periods and competitors less meaningful. The items added to
Adjusted EBITDA are included to give a more complete picture of our
in-period operations and mark-to-market impacts on our digital assets,
disregarding (i) the temporary GAAP earnings volatility of HYPE to LST
conversion and LST to HYPE reconversion, (ii) the temporary GAAP earnings
volatility of depositing and redeeming USDH versus Hyperion Rysk Vault
Shares and delays in recognition of upfront received premium on expired
sold HYPE put and call options, and (iii) the over-time GAAP recognition
of the Company's receipt of HPL tokens. Adjusted EBITDA is used by
management, in addition to GAAP financial measures, to understand and
compare our operating results across accounting periods, for risk
management and operational decision-making purposes. This non-GAAP
measure provides investors with additional information in evaluating the
Company's operating performance.
9. "Net Asset Value" is a non-GAAP measure. Net Asset Value is defined as
the market value of our marketable digital assets less net outstanding
debt. It is reconciled to the GAAP measure "HYPE digital assets" as
adjusted to "Gross HYPE Holdings" (described more fully in Footnote 4) by
(i) adding KNTQ digital assets and sKNTQ digital intangible assets at
carrying value, (ii) adding HPL digital assets and sHPL digital
intangible assets at carrying value, (iii) adding Hyperion Rysk Vault
Shares at cost basis, (iv) adding Current Assets, (v) subtracting Current
Liabilities (including current portion of Notes Payable, without
subtracting corresponding debt discounts or any unamortized issuance
expenses), and (vi) subtracting Notes Payable (Non-current portion,
without subtracting corresponding debt discounts or any unamortized
issuance expenses). We believe Net Asset Value is a helpful non-GAAP
financial measure to our management and investors because it provides a
more complete picture of our net liquid and marketable assets. It does
not include Other digital intangible assets which may not be immediately
marketable. It does not include other non-current assets or non-current
liabilities beyond the aforementioned items. The Company believes Net
Asset Value provides useful information about our balance sheet and
financial performance, enhances the overall understanding of our past
performance and future prospects, allows for greater transparency with
respect to important metrics used by our management for financial, risk
management and operational decision-making, and provides an additional
tool for investors to use to understand and compare our operating results
across accounting periods.
10. Represents in-period accrued staking yield on HYPE LSTs. Staking yield on
LSTs is not recognized in-period in accordance with GAAP; instead, LST
staking yield may be recognized with an associated realized gain upon
future reconversion from LSTs back into HYPE.
11. Represents the estimated future financial implications if all
company-owned LSTs were reconverted to HYPE at the end of each respective
period. Encapsulates both the temporary GAAP valuation methodology
differences between LSTs and HYPE plus the realization of previously
accrued but unrecognized staking yield on LSTs.
12. In the three months ended September 30, 2025, Gain on extinguishment of
liability and a reduction in accrued liability within other income was
approximately $2.2 million and $0.2 million respectively, combined
totaling $2.4 million. In the three months ended March 31, 2026, gain on
extinguishment of liabilities within Other income (expense), net totaled
$0.2 million.
13. In the reconciliation of "Total Other Income (Expense), Net" to "Adjusted
Other Income (Expense)", as well as in the reconciliation of "Net Income
(Loss)" to "Adjusted EBITDA", in the three months ended September 30,
2025, other non-recurring items include gains on sales of equipment,
release of reserves held against potential returns of company-sold items,
and a one-time realized payment in connection with a terminated LOI. In
the three months ended December 31, 2025 and March 31, 2026, other
non-recurring items include gains and losses due to valuation differences
in the time between contractual and actual delivery dates on certain
company-paid expenses denominated in HYPE and in Company equity.
14. Estimated and unaudited figures as of May 11, 2026.
15. Includes all net cash, cash equivalents, and USDH premiums received but
unrealized on expired sold HYPE puts and calls, including within the
Hyperion Rysk Vault, as well as third-party fees on yield enhancement
activities (such third-party fees being included in DeFi Monetization
within Non-GAAP Adjusted Gross Profit).
16. Includes Hyperion Rysk Vault Shares, which are redeemable into USDH.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ddd4c6f1-b02c-49f1-90c3-46e511620d60
(END) Dow Jones Newswires
May 14, 2026 07:00 ET (11:00 GMT)
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