Earnings call transcript: Hyperion DeFi reports Q2 2025 results and strategic shifts

Hyperion DeFi Inc. reported a narrower net loss for Q2 2025 compared to the previous year, alongside significant strategic shifts, including a rebranding and a focus on decentralized finance (DeFi) initiatives. The company, formerly known as Eyenovia, saw its stock price fluctuate, closing down 2.63% at $7.23, but rising 4.01% in aftermarket trading. According to InvestingPro data, the stock has shown significant volatility with a beta of 2.43, while delivering an impressive 278.53% return over the past six months. Hyperion DeFi is positioning itself uniquely in the market with its HYPE token-based treasury and strategic partnerships.

Key Takeaways

• Hyperion DeFi’s net loss for Q2 2025 was $8.8 million, a reduction from $11.1 million in Q2 2024.
• The company rebranded and shifted focus to cryptocurrency and DeFi markets.
• Stock price fell 2.63% during regular trading hours, but rose 4.01% in aftermarket trading.
• Hyperion DeFi implemented a $50 million private placement for its cryptocurrency treasury.

Company Performance

Hyperion DeFi demonstrated a significant reduction in its net loss for Q2 2025, reporting $8.8 million, compared to $11.1 million in the same quarter the previous year. This improvement was partly due to a substantial decrease in research and development expenses, which fell by 85%. However, the company saw a 104% increase in general and administrative expenses, indicating a shift in operational focus. InvestingPro analysis reveals concerning liquidity metrics, with current ratio at 0.34, suggesting potential challenges in meeting short-term obligations. For deeper insights into Hyperion’s financial health and 15+ additional ProTips, consider exploring the comprehensive Pro Research Report.

Financial Highlights

• Revenue: Not specified for Q2 2025.
• Net loss: $8.8 million, improved from $11.1 million in Q2 2024.
• Research and Development expenses: Decreased by 85% to $700,000.
• General and Administrative expenses: Increased by 104% to $7.7 million.
• Unrestricted cash and cash equivalents: $7.5 million, up from $2.1 million in December 2024.

Market Reaction

Hyperion DeFi’s stock closed at $7.23, down 2.63% during regular trading hours. However, in aftermarket trading, the stock price rose by 4.01% to $7.52. This volatility reflects investor reactions to the company’s strategic shifts and financial performance, as well as broader market trends in the cryptocurrency and DeFi sectors. InvestingPro analysis suggests the stock is currently undervalued, despite experiencing a challenging year with an 88.68% decline from its 52-week high of $75.18. The stock’s recent performance shows a strong 32.66% return over the past week, indicating potential momentum shift.

Outlook & Guidance

Looking forward, Hyperion DeFi is focusing on registering its Gen Two Optejet device with the FDA and exploring commercialization options, including potential partnerships or spin-offs. The company is also committed to expanding its DeFi investment strategies and seeking to fill key roles, such as CFO and Board Chair, to strengthen its leadership.

Executive Commentary

Yeon Soo Young, Chief Investment Officer, emphasized the company’s strategic positioning: "We are in the right place at the right time." CEO Michael Ro highlighted the innovative strategy: "This innovative strategy... provides us with exposure to the growing adoption of digital currencies." Young further added, "Hyperion offers public market investors regulated exposure [to] ecosystem without having to manage keys, wallets or validate our operations."

Risks and Challenges

• Market Volatility: The cryptocurrency and DeFi markets are highly volatile, which could impact Hyperion DeFi’s financial performance. InvestingPro data highlights this volatility risk, with the company showing negative EBITDA of -$29.13 million in the last twelve months and rapidly depleting cash reserves. Get access to detailed risk metrics and professional analysis with an InvestingPro subscription.
• Regulatory Risks: Increasing regulatory scrutiny on digital assets could pose challenges.
• Operational Costs: Rising general and administrative expenses could affect profitability.
• Leadership Gaps: The need to fill key roles such as CFO and Board Chair may impact strategic execution.
• Competitive Pressure: The fast-evolving DeFi market requires constant innovation and adaptation.

Q&A

During the earnings call, analysts inquired about the company’s rationale for investing in HYPE shares versus direct token purchases, the unique aspects of the Hyperliquid platform, and strategies for staking and yield generation. These questions underscore investor interest in understanding the company’s strategic direction and competitive advantages.

Full transcript - Hyperion DeFi Inc (HYPD) Q2 2025:

Conference Operator: Ladies and gentlemen, greetings, and welcome to Hyperion D5 Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. If anyone requires operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Eric Ribna from LifeSci Advisors.

Please go ahead.

Eric Ribna, LifeSci Advisors Representative, LifeSci Advisors: Thank you, and good afternoon, and welcome to Hyperion V5’s Second Quarter twenty twenty five Earnings Conference Call and Audio Webcast. With me today are Hyperion DeFi’s Chief Executive and Principal Financial Officer, Michael Ro and Chief Investment Officer, Seonsu Jung. This afternoon, we issue a press release announcing financial results for the three months ended 06/30/2025. We encourage everyone to read today’s press release as well as Hyperion DeFi’s quarterly report on Form 10 Q for the quarter ended 06/30/2025, which was just filed with the SEC. The company’s press release and quarterly report are also available on our website at www.hyperiondphi.com.

In addition, this conference call is being webcast on the company’s website and will be archived and available for replay there for future reference. Please note that certain information discussed on the call today is covered under the Safe Harbor provision of the Private Securities Litigation Reform Act. We caution listeners that during the call, Hyperion D5’s management will make forward looking statements. Actual results could differ materially from those implied or stated by these forward looking statements due to risks and uncertainties associated with the company’s business. These forward looking statements are subject to a number of risks, which are described in more detail in our annual report on Form 10 ks and subsequent quarterly reports on Form 10 Q.

This conference call contains time sensitive information that is accurate only as of the date of this live broadcast, 08/13/2025. Aperion DFI undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances after the date of this conference call, except as may be required by applicable securities law. With that said, I’d like to turn the call over to Michael Rowe, Chief Executive. Michael?

Michael Ro, Chief Executive and Principal Financial Officer, Hyperion DeFi: Thank you, Eric, and welcome, everyone, to our second quarter twenty twenty five results conference call. And our first is Hyperion DeFi Inc. As reflected in our corporate rebranding and name change that we implemented last month, we have some truly exciting updates to share. I’d like to start today by reminding all of our shareholders that we have an annual meeting coming up on Monday, August 18. As we move forward with our new strategy, which has already received an overwhelmingly positive response from many of you, We have several important proposals up for vote that are essential to executing on our new vision.

With such a large and engaged retail shareholder base, every vote truly matters to ensure we can keep our momentum going. If you haven’t yet cast your ballot, I encourage you to do so as soon as possible. Your participation will help us advance these initiatives efficiently and cost effectively, allowing us to remain fully focused on delivering the growth and value that we all believe in. If you’re not sure how to make yourself heard and cast your vote, please send an email to ericlifesciadvisors dot com. Eric will make sure that you get those instructions.

And thank you. The transformation that we have undergone over the past two months has been nothing short of remarkable. Recall that earlier this year, we embarked as Eyenovia on a process to evaluate a broad range of strategic alternatives to drive shareholder value. In June, we announced that we have entered into a $50,000,000 private placement with accredited institutional investors

Yeon Soo Young, Chief Investment Officer and Board Member, Hyperion DeFi: for

Michael Ro, Chief Executive and Principal Financial Officer, Hyperion DeFi: the purpose of launching a cryptocurrency based treasury reserve. I, along with my fellow board members, concluded that the establishment of a crypto based treasury reserve was by far and away the most attractive alternative for the company. This innovative strategy, which is gaining traction and has been adopted by dozens of companies across many industry verticals, provides us with the exposure to the growing adoption of digital currencies and the accelerating pace of related innovation. We gained diversification and liquidity and the potential for significantly enhanced returns as compared to traditional cash reserves. The PIPE financing enabled us to acquire more than 1,500,000.0 HYPE tokens to date, HYPE being a native token to the decentralized digital asset exchange and layer one blockchain, HyperLiquid.

I will let our new chief investment officer and board member, Hyun Soo Young, provide more detail in a moment, including why we believe HYBE and the HyperLeaf liquid platform will play an important role in next generation decentralized financial infrastructure. But suffice it to say, this has been a very exciting development for our team and our shareholders. And we are pleased to be the first U. S. Publicly listed company to establish a strategic treasury reserve based on the Hive token, which as you will hear from Hyung Tzu momentarily, highly differentiates us from other companies adopting a range of digital asset treasury reserve strategies.

On July 29, we hosted a very successful webinar, where we went into quite a bit of depth on our strategy and engaged in a fairly technical discussion of all of the aspects of hype and the hyper liquid platform that are unique and innovative. If you missed that, I would encourage all of you to listen to the replay, which is currently available on our website. Our pioneering cryptocurrency treasury strategy has also provided necessary resources for the advancement towards completion of our Gen two Optejet user filled device. This advanced digital drug delivery platform is designed to be agnostic as to which products it sprays, immediately opening up opportunities in the multibillion dollar ophthalmic eye drop market. We are excited to report that we are still on track to register the UFD with the FDA as soon as next month.

Further, we continue to consider strategic alternatives for the device that could potentially result in the commercialization of the Optejet with a medical device or ophthalmology partner and or as a newly established private company spin off. Lastly, as part of our continued commitment to enhance execution and unlock long term treasury growth, value and influence in the hyper liquid ecosystem, we are actively engaged in an effort to fill our Open Chief Financial Officer and Board Chair roles. We believe that bringing in seasoned leaders with deep digital asset expertise will significantly improve our operational focus and strategic direction. Additionally, we are evaluating opportunities to further strengthen the organization by aligning both board composition and executive management with individuals who have a proven track record in this space. We view these efforts as critical to positioning the company for sustainable growth and improved shareholder outcomes.

At this point, I’d like to turn the call over to Yeon Soo Young, our Chief Investment Officer and Board member. Kyung Soo?

Yeon Soo Young, Chief Investment Officer and Board Member, Hyperion DeFi: Thank you, Michael. And thank you again to everyone who has taken the time to listen to our call this afternoon. Hyperion D5 represents innovation in the democratization of finance by providing almost anyone with the opportunity to participate in the next generation decentralized financial infrastructure. And while we have made significant amount of progress in just two short months, we are really just beginning to execute our strategy, which is very different from passive buy and hold strategies. Most of that we’ve seen with Bitcoin that we have seen in the recent past.

We believe that we are in the right place at the right time. There have been strong signals from major institutional players like BlackRock and JPMorgan with the deployment of real world assets, such as U. S. Treasuries on chain or with companies like Circle and Tether receiving regulatory clarity and validation for stable coins in the recently approved Genius Act. All of this serves as a tailwind for Hyperion DeFi adding to our conviction that our strategy will generate significant and enduring revenue for our shareholders.

Taking a step back, I would like to start with a moment on my background. Prior to joining Hyperion DeFi as CIO, I spent four years at Dharma Capital, a $1,000,000,000 plus asset manager registered with the CFTC and the NSA. During my time there, I designed and deployed the first asset use product built on Filecoin, which enabled over 50 data center teams globally to access the pledge required to store data on their hardware with verification provided by the blockchain. We were able to deploy over $300,000,000 in assets through this product, all of which was managed via smart contract with physical contracts signed with each counterparty. I saw numerous parallels between my previous work to what could be done on Hyperliquid, more so because it is already a powerful revenue generating product that could grow even faster with Hyperion’s involvement.

To that end, we quickly deployed more than $50,000,000 of capital invested in Hyperion D5 by long term supporters of the Hyperliquid platform and acquired more than 1,500,000.0 HYPE tokens to date at an average price of $36 More importantly, a high position of this size gives us not only a meaningful treasury asset, but also the capacity to stake to and run our own validator. This was foundational because it enabled us to participate directly in the economics of hyper liquid aligning our success with the networks growth. In addition to establishing our vast hype treasury, we also recently launched a co branded validator of Kinetic, the leading institutional liquid staking solution for Hyperliquid. These first two steps enabled us to immediately begin generating a staking revenue on our high position by contributing to the liveness and security of the hyper liquid blockchain. And this is a key differentiator between what we were doing with hyper liquid versus previous buy and hold digital asset treasury strategies.

As we have a blockchain native mechanism to compound our high position. Our efforts now are focused on implementing additional strategies to generate further returns on our hype. These include deployment of hype into the hyper, is generally understood as DFI as well as using technology unique to hyper liquid provide seamless financial services within the ecosystem environment to the benefit of shareholders as well as institutional partners. Hyperliquid as a layer one blockchain is optimized for high frequency transparent finance and is built on top of the perpetual DEX platform. It is unique in the sense that no other layer one blockchain has been built on top of an existing revenue generating product, Hyperliquids Perpetual Exchange.

And there are several aspects of Hyperliquid that stand out as unique and hardened our conviction for backing this ecosystem. The platform often earns more daily fees than any other blockchain. There’s an automatic mechanism that moves 90%, 97% of platform fees to purchasing hype off the open market. It has lower fees than other centralized exchanges, such as Coinbase. And there’s a very nascent application ecosystem that is just starting to version.

For example, we recently announced the Hyperion will be piloting the or institutional hype liquid staking token offered by kinetic, which enables us to earn a passive staking yield in our hype, while also having a liquid derivative that can be used as collateral on the hyper EDM or with off chain partners. It provides a path to earn an additional return on our assets, which ultimately produces value for our shareholders. As of last week, Hyperion DeFi was the first institution to stay hype through Kinetics compliant liquid staking infrastructure, receiving the liquid staking token, Hyperion institutional hype, which can be used for various yield generation strategies on top of the base staking yield. One question that has been asked frequently is why purchase Hype D shares? Why not invest in Hype directly?

It’s an excellent question. Currently, Hype is not broadly listed on U. S. Regulated centralized exchanges and direct participation in the ecosystem or validator layer often requires technical sophistication and substantial capital. Hyperion offers public market investors regulated exposure ecosystem without having to manage keys, wallets or validate our operations.

We currently custody our hype with Anchorage, the only federally chartered digital bank, because we prioritize the protection and security of the assets we hold on behalf of our shareholders. It is also more advantageous to access HEIP through HEIPD instead. For those here today that have managed their own personal crypto portfolios, they are likely familiar with the headache of monitoring their cost basis, accounting for their own staking income and tracking any activities done on chain such as swaps or lending. Hyperion abstracts all of that away for our shareholders. We focus on identifying the best opportunities and taking them, all of which accretively returns to investors in their total hype per share.

For example, participating in decentralized finance involves going on chain, identifying and vetting various strategies that may only be periodically available, implementing them and accounting for the returns. I carry in DeFi’s advantage of having both the required asset type and a close knowledge of opportunities that are available on the HyperEVM tied to the team’s previous work with DeFi and other ecosystems like Ethereum, as well as deep relationships with several teams building on Hyperliquid today. Before turning the call back over to Michael, I would like to quickly summarize key future catalysts. These include the growth in Hyperliquid trading volumes and total open interest, the expansion of ecosystem partnerships such as the Phantom Wallet integration and more recently, the availability of Circle’s native USDC, as well as new on chain primitives that further demand further drive demand for hyperliquidity. From my perspective, the most interesting component about being a public vehicle for hyperliquid is that we can play an active role in supporting hyper liquids growth and adoption.

And because most of our balance sheet is allocated to hype, there’s a very powerful flywheel effect, not just for Hyperion, but also for other involving other builders and participants on hyper liquid. On the corporate side, we’re exploring various partnerships, not just within hyper liquid, but other platforms and applications that may benefit from porting over to the hyper liquid ecosystem. We want to continue broader investor outreach and find innovative ways to deploy our treasury for both on and off chain strategies. And with that, I will turn the call back over to Michael to go through the financial results. Michael?

Michael Ro, Chief Executive and Principal Financial Officer, Hyperion DeFi: Yeah. Thank you, Hansu. Let’s turn now to our second quarter results highlights. For the 2025, net loss attributable to common stockholders was $8,800,000 or $2.5 per share. This compares to a net loss of $11,100,000 or $16.65 per share for the 2024.

Research and development expenses for the three months ending 06/30/2025, totaled $700,000 a decrease of $3,900,000 or 85%, compared to $4,600,000 recorded for the three months ending 06/30/2024. The decrease was driven primarily by the termination of the company’s CHAPERONE study in November 2024. We expect that these costs will decrease further later this year after we register our Gen two Optejet user fill device with the FDA. General and administrative expenses for the three months ending 06/30/2025 totaled $7,700,000 an increase of $3,900,000 or 104% compared to $3,800,000 recorded for the three months ending 06/30/2024. Now this increase was due to higher noncash stock based compensation due to a onetime inducement grant as well as higher professional fees as a result of our assessment of strategic options earlier this year, concluding with our $50,000,000 financing and establishment of the treasury strategy in June.

These costs were offset by decreases resulting from cost savings initiatives that we implemented beginning late last year with the termination of the CHAPERONE study and commercial operations in November 2024. We anticipate that our general and administrative costs will decrease considerably as we further realize the cost savings implemented earlier this year and focus on our cost efficient treasury strategy and maximizing related available investments. Interest expense for the 2025 was $500,000 compared to $700,000 in the same period of 2024. The decrease reflects a reduction in our outstanding debt and the successful restructuring of debt terms earlier this year, which has strengthened our liquidity position going forward for our treasury strategy. As of 06/30/2025, the company’s unrestricted cash and cash equivalents were $7,500,000 as compared to $2,100,000 in unrestricted and restricted cash as of 12/31/2024.

Before we wrap things up, I want to again encourage all shareholders to take a moment to cast their vote on the proposals now underway. Your participation ensures that we can move forward quickly on the exciting initiatives that we have discussed today that are central to our strategy and long term success. With that, I’d like to thank everyone on the call today for taking the time. This is an exciting time for Hyperion DeFi. Notwithstanding our significant progress over the past two months, we are still in the very early stages of executing this pioneering cryptocurrency treasury reserve strategy that provides multiple opportunities for long term value creation.

Through the underlying performance of the HYPE token, as well as the various ecosystem engagement initiatives that we are executing by accumulating the native token of the hyper liquid platform. We also remain committed to bringing the Optogen across the finish line. And once registered with the FDA, we will be working to find it a good home. Thank you again. Let me turn this back to the operator for some concluding remarks.

Conference Operator: Thank you. Ladies and gentlemen, the conference of Hyperion T5 has now concluded. Thank you for your participation. You may now disconnect your lines.

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