Q3 FY2026
Filed Nov 12, 2026Hyperion DeFi Q3 2026: GAAP net income of $39.6M, first quarter of positive core operating earnings, legacy debt retired
Operating business inflected (Adjusted Gross Profit $2,795,341, +143% QoQ; Core Operating Earnings $555,177 vs $(1,194,699)) and the Avenue Capital loan was repaid. Net income is driven mainly by digital asset gains, Adjusted EBITDA fell 9% QoQ, and GAAP operating cash flow was negative at $(1,598,167).
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue (GAAP), Q3 2026GAAP | $810,415 | 127% | – |
| Gross Profit (GAAP), Q3 2026GAAP | $810,415 | 127% | 168% |
| Research and development, Q3 2026GAAP | $2.25M | – | – |
| Selling, general and administrative, Q3 2026GAAP | $3,791,580 | (3)% | 46% |
| Income (Loss) From Operations, Q3 2026GAAP | $40,097,926 | – | – |
| Total Operating (Income) Expenses, Net, Q3 2026GAAP | $(39,287,511) | 28% | 852% |
| Total Other Income (Expense), Net, Q3 2026GAAP | $(512,539) | 803% | (123)% |
| Net Income (Loss), Q3 2026GAAP | $39,585,387 | 28% | 497% |
| Net basic earnings per share, Q3 2026GAAP | $1.24 | – | – |
| Net diluted earnings per share, Q3 2026GAAP | $1.23 | – | – |
| Adjusted Gross Profit, Q3 2026non-GAAP | $2.80B | 143% | 536% |
| Operating Expenses Excluding Stock-Based Compensation, Q3 2026non-GAAP | $2.24B | (4)% | (48)% |
| Core Operating Earnings, Q3 2026non-GAAP | $555.2M | (146)% | (114)% |
| Treasury Gains (Losses), Q3 2026non-GAAP | $48.05B | (12)% | 305% |
| Adjusted Other Income (Expense), Q3 2026non-GAAP | $46.68M | 46% | (211)% |
| Adjusted EBITDA, Q3 2026non-GAAP | $48.66B | (9)% | 512% |
| Gross HYPE Holdings, Q3 2026non-GAAP | $167,853,840 | 27% | 116% |
| Net Asset Value, Q3 2026non-GAAP | $182,375,957 | 36% | 145% |
| Cash, Cash Equivalents, and Stablecoins, Q3 2026non-GAAP | $14.54B | 24% | 77% |
| HYPE Digital Assets, Q3 2026GAAP | $108,784,402 | 47% | 187% |
| Cash and Cash Equivalents, Q3 2026GAAP | $6,624,503 | (31)% | (19)% |
| Net Cash Provided By (Used In) Operating Activities, Q3 2026GAAP | $(1,598,167) | (48)% | (43)% |
| Adjusted Net Operating Cash Flow, Q3 2026non-GAAP | $62.70M | (103)% | (102)% |
| Net Cash Provided By (Used In) Investing Activities, Q3 2026GAAP | $8,679,877 | (254)% | (143)% |
| Adjusted Net Investing Cash Flow, Q3 2026non-GAAP | $12.82B | (308)% | (164)% |
| Net Cash Provided By (Used In) Financing Activities, Q3 2026GAAP | $(10,094,423) | (192)% | (143)% |
| Gross HYPE Tokens, Q3 2026other | 1,848,000 tokens | – | – |
| HYPE Token Price (end of period), Q3 2026other | $90.83 | – | – |
| HYPE Earned in Staking and Validating, Q3 2026other | 10,885 HYPE | – | – |
| Effective Average HYPE Price In-Period, Q3 2026other | 75.86 | – | – |
| Multiple vs. Staking Yield, Q3 2026other | 3.6 x | – | – |
| Revenue (GAAP), nine months ended September 30, 2026GAAP | $1,412,379 | – | – |
| Gross Profit (GAAP), nine months ended September 30, 2026GAAP | $1,412,379 | – | – |
| Research and development, nine months ended September 30, 2026GAAP | $347,510 | – | – |
| Selling, general and administrative, nine months ended September 30, 2026GAAP | $12,203,776 | – | – |
| Income (Loss) From Operations, nine months ended September 30, 2026GAAP | $79,837,787 | – | – |
| Net Income (Loss), nine months ended September 30, 2026GAAP | $79,376,900 | – | – |
| Net basic earnings (loss) per share, nine months ended September 30, 2026GAAP | $2.64 | – | – |
| Net diluted earnings (loss) per share, nine months ended September 30, 2026GAAP | $2.50 | – | – |
| Net Cash Used In Operating Activities, nine months ended September 30, 2026GAAP | $(8,760,649) | – | – |
| Net Cash Provided By (Used In) Investing Activities, nine months ended September 30, 2026GAAP | $1,564,655 | – | – |
| Net Cash Provided By Financing Activities, nine months ended September 30, 2026GAAP | $7,509,619 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Ecosystem Rewards (Adjusted Gross Profit, Q3 2026)Company states the Q3 2026 figure reflects $505 thousand for 10 million 2Z tokens received from DoubleZero in September 2026 and $750 thousand for Skew equity contractually owed. Company states it expects the quarter-over-quarter change to be volatile. | $1.25M | 1,302% | – |
| DeFi Monetization (Adjusted Gross Profit, Q3 2026)Company describes this as a record for the company, reflecting HAUS redeployments with Skew (HIP-4), Entropy (HIP-3), Silhouette, the Data Services business launched September 24, 2026 and the Aviya on-chain credit facility. | $334K | 112% | – |
| Yield Enhancement (Adjusted Gross Profit, Q3 2026)Company states activity primarily monetized HYPE volatility through OTC and on-chain strategies, including the Institutional Volatility Income Vault with the Rysk protocol. | $381K | 14% | – |
| Validator Commissions (Adjusted Gross Profit, Q3 2026)Company describes the figure as roughly flat quarter-over-quarter, earned on 572 HYPE tokens of commissions. | $41K | (3)% | – |
| Staking Yield (Adjusted Gross Profit, Q3 2026)Company states the increase was largely driven by the Effective Average HYPE Price In-Period rising to 75.9 in Q3 2026 from 51.2 in Q2 2026, on 10,313 staked HYPE tokens. | $785K | 49% | – |
FY2026 outlook
- NoteAdjusted Gross Profit (non-GAAP): $7 million to $8 million for 2026, reiterated by the company
Capital returns
- Share repurchase program of up to $20 million over the following 12 months, announced September 8, 2026.
- Company states it repurchased 240,124 shares in September 2026 at approximately a 30% discount to its net assets. Repurchase of common stock in the statement of changes in equity: $(787,607).
- Dividend to preferred stockholders: $(765,750) in Q3 2026 and $(2,299,525) for the nine months ended September 30, 2026. Preferred dividends were partly settled in common stock: $939,337 (Q1 2026), $779,850 (Q2 2026) and $768,115 (Q3 2026) of common stock issued for payment in kind of preferred dividends.
- Shares outstanding as of November 9, 2026: approximately 15.5 million, per the company.
What drove it
- Company states Adjusted Gross Profit rose to $2.80 million in Q3 2026 from $1.15 million in Q2 2026, above the $2.0 million to $2.5 million range it guided to on September 8, 2026.
- Company states the primary reconciliation of Net Income to Adjusted EBITDA is driven by Liquid Staking Tokens. The in-period adjustment was $5.7 million in Q3 2026 vs $21.8 million in Q2 2026, which the company states is the main reason Adjusted EBITDA declined while Net Income grew.
- Company states that if all HYPE LSTs were converted back to HYPE at the end of Q3 2026, GAAP Net Income would have increased by approximately $38.3 million.
- Company states Operating Expenses Excluding Stock-Based Compensation were $2.2 million, within its guided range of $2.0 million to $2.25 million, and that Core Operating Earnings were above its guided range of $0 to $0.5 million.
- Company states Adjusted Net Investing Cash Flow of $12.8 million was primarily reflecting approximately $13 million of HYPE sales and no HYPE purchases in the quarter.
- Company states Net Cash Used in Financing Activities of $(10.1 million) was primarily the repayment of the Avenue Capital loan and share repurchases.
Concerns
- GAAP Net Income of $39,585,387 includes a GAAP unrealized gain on digital assets of $29,826,591 and a realized gain on digital assets of $14,424,565 in Total Operating (Income) Expenses, per the Statement of Operations.
- Adjusted EBITDA declined 9% QoQ to $48,655,106 from $53,652,846, and Treasury Gains (Losses) declined 12% QoQ to $48,053,253.
- GAAP Net Cash Used In Operating Activities was $(1,598,167) in Q3 2026. Only Adjusted Net Operating Cash Flow ($62,695) was positive, and that figure is non-GAAP.
- Company states Ecosystem Rewards, which made up $1,255 thousand of Adjusted Gross Profit in Q3 2026, can vary materially quarter to quarter given the timing of airdrops and token events.
- Company states Ecosystem Rewards in Q3 2026 include $505 thousand for 2Z tokens and $750 thousand for Skew equity that the company is owed, valued based on Skew's most recent raise. These are not cash receipts in the period.
- Gross HYPE Holdings and Net Asset Value depend on the HYPE token price, which the filing shows at $90.83 at September 30, 2026 vs $64.95 at June 30, 2026. The company states the aggregate basis of its HYPE tokens is $74.0 million ($40.0 per token).
- Basic weighted average shares were 15,701,943 in Q3 2026 vs 6,027,713 in Q3 2025, and diluted weighted average shares were 15,747,615 vs 28,951,915. Preferred dividends and preferred income allocation are deducted before EPS to common stockholders.
What to watch
- Whether Adjusted Gross Profit can reach the reiterated FY2026 range of $7 million to $8 million. The filing does not print a Q4 2026 figure.
- Ecosystem Rewards volatility, given that the company states airdrop and token timing is unpredictable.
- Whether GAAP operating cash flow turns positive, since Q3 2026 showed $(1,598,167) on a GAAP basis.
- Progress of the $20 million share repurchase program and the amount of buybacks completed after September 2026.
- Adjusted Gross Profit contribution from HAUS partnerships (Skew, Entropy, Silhouette) and the Aviya on-chain credit facility, which the company says it expects to scale.
- The HYPE token price and the size of unrealized accretion on LST reconversion, which drive Treasury Gains and Adjusted EBITDA.
Balance sheet and cash flow
- Total Assets: $146,289,712 as of September 30, 2026 vs $51,764,256 as of December 31, 2025.
- Total Liabilities: $4,199,130 as of September 30, 2026 vs $10,703,749 as of December 31, 2025.
- Total Stockholders' Equity: $142,090,582 as of September 30, 2026 vs $41,060,507 as of December 31, 2025.
- Note payable, current portion, net: $182,637 as of September 30, 2026. Note payable, non-current portion, net: nil as of September 30, 2026 vs $7,796,136 as of December 31, 2025.
- Company states it repaid all outstanding principal and interest on the Avenue Capital loan in Q3 2026, approximately $8.6 million, and has no long-term debt outstanding. Repayments of notes payable for the nine months: $(9,043,329).
- Company states it sold approximately $13 million of HYPE in Q3 2026. Sales and dispositions of digital assets for the nine months: $5,770,000.
- Cash and cash equivalents: $6,624,503. Stablecoins: $7,920,468 as of September 30, 2026.
- Net Cash Used In Operating Activities for the nine months: $(8,760,649), vs $(10,712,617) in the prior-year nine months.
Analysis
Hyperion DeFi reported GAAP Net Income of $39,585,387 for Q3 2026, up 28% from $30,950,963 in Q2 2026 and up 497% from $6,625,582 in Q3 2025. The result is driven mainly by digital asset gains. The GAAP Statement of Operations shows a realized gain on digital assets of $14,424,565 and an unrealized gain on digital assets of $29,826,591 within operating income. Non-GAAP Treasury Gains (Losses) were $48,053,253, down 12% from $54,815,626. Adjusted EBITDA was $48,655,106, down 9% from $53,652,846. The company explains the divergence between Net Income and Adjusted EBITDA through its Liquid Staking Token accounting: the in-period adjustment was $5.7 million in Q3 2026 vs $21.8 million in Q2 2026.
The operating business improved. Adjusted Gross Profit rose 143% QoQ to $2,795,341, and GAAP Gross Profit was $810,415, up 127% QoQ. The company states that Ecosystem Rewards contributed $1,255 thousand of Adjusted Gross Profit, including $505 thousand for 2Z tokens and $750 thousand for Skew equity, and that these amounts are volatile by nature. Excluding Ecosystem Rewards, the company states Adjusted Gross Profit grew 45% QoQ. Staking Yield was $785 thousand (+49% QoQ), Yield Enhancement $381 thousand (+14%), DeFi Monetization $334 thousand (+112%, described as a company record) and Validator Commissions $41 thousand (-3%).
Costs fell. Operating Expenses Excluding Stock-Based Compensation were $2,240,164, down 4% QoQ and 48% YoY. GAAP Selling, general and administrative expense was $3,791,580 and stock-based compensation was $1,553,671 within the reconciliation. Core Operating Earnings were $555,177, compared with $(1,194,699) in Q2 2026 and $(3,875,630) in Q3 2025. This is the first positive quarter of Core Operating Earnings the company has reported under its DeFi strategy, and the company states it was above its guided range of $0 to $0.5 million.
Cash flow and the balance sheet changed in both directions. GAAP Net Cash Used In Operating Activities was $(1,598,167), and Adjusted Net Operating Cash Flow was $62,695. Financing used $(10,094,423), mainly for the Avenue Capital loan repayment of approximately $8.6 million and share repurchases. The company states it sold approximately $13 million of HYPE in Q3 2026 to help fund the repayment. Cash, cash equivalents and stablecoins were $14,544,971 at quarter end, up 24% QoQ. Total liabilities fell to $4,199,130 and total stockholders' equity was $142,090,582 at September 30, 2026. The company states it has no long-term debt outstanding.
The filing reiterates Adjusted Gross Profit guidance of $7 million to $8 million for 2026. No Q4 2026 figure is printed. The filing also prints the September 8, 2026 guidance for Q3 2026 in its results table, and the company states that Operating Expenses Excluding Stock-Based Compensation and Core Operating Earnings landed within or above that range. Because the previous release was not supplied separately, that comparison is not included in the vs_prior_guidance field. Investors should focus on whether Q4 2026 Adjusted Gross Profit can carry the full-year range, on whether GAAP operating cash flow turns positive, and on how much of Net Income depends on the HYPE price rather than operating activity.
Management, verbatim
We are pleased to report a third consecutive quarter of record Net Income and, importantly, our first quarter of breakeven-or-better core operating profit and cash flows, achieved one quarter ahead of our initial 2026 year-end target
Hyunsu Jung, Chief Executive Officer
Not in the filing
stated, not guessed- Revenue for Q2 2026 is not printed in the filing, so prior_quarter and QoQ change for the Q3 2026 revenue line are null. The 127% QoQ figure is taken from the headline.
- Year-over-year change for Revenue, Research and development, Income From Operations and nine-month lines is not printed and is left null.
- Q4 2026 guidance is not printed (the column shows a dash). Only the FY2026 Adjusted Gross Profit range is reported.
- Income tax expense and effective tax rate are not printed. Income Taxes appear as a dash in the Adjusted EBITDA reconciliation.
- Previous outlook was not provided separately, so vs_prior_guidance is empty. The September 8, 2026 guidance printed in the results table is not treated as a prior outlook.
- Prior-quarter and prior-year changes for net income per share are not printed and are left null.
- Prior-year and prior-quarter comparisons for balance sheet lines are not printed on a consistent basis (the comparison is December 31, 2025), so they are described in balance_sheet_cash_flow rather than key_metrics.
- Share repurchase quantity and dollar amount beyond September 2026 are not printed. The $20 million program is described as up to $20 million over 12 months.
- Revenue split by business is not reported in the filing beyond the Adjusted Gross Profit components.
- Share price reaction and analyst consensus are not in the documents.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.