Hyperion DeFi, Inc. (HYPD) Earnings

Management highlights

### Strategic Positioning & Ecosystem Progress - Hyperion DeFi positions itself as the premier institutional gateway to the Hyperliquid blockchain, which is executing on its vision to become a universal on-chain finance platform - HIP3 markets now make up nearly 50% of Hyperliquid's daily average trading volume, just 7 months after launch; the new HIP4 outcome market upgrade went live on mainnet in early May 2026, with launch-day volume for Bitcoin's first outcome market hitting three times the combined volume of competing platforms PolyMarket and Kalshi - Hyperion follows a "triple-dip" strategy: stake HYPE tokens, deploy staked HYPE to additional operating activities (validation, yield enhancement, DeFi monetization), and capture upside via ecosystem rewards (airdrops, points, partner equity/tokens) ### Partnership & Product Development - Established a strategic partnership with Silhouette (a privacy layer for Hyperliquid), gaining 1% of Silhouette equity plus revenue share and fee savings; Silhouette's private trading system is expected to grow from hundreds of thousands to millions in monthly volume as it launches production, appealing to institutional funds and market makers - Formalized a revenue share partnership with RISC for the institutional-grade Risk Premium yield vault product, which will launch publicly in the coming months; Risk Premium uses on-chain smart contracts to eliminate counterparty risk for option strategies, and supports all major crypto assets with plans to expand to real-world assets - Partnered with HyperLend to launch Avia, an institutional private credit pool; Hyperion holds 10 million HPL tokens (1% of total supply) and accesses maximum-tier borrow rebates that create structural arbitrage opportunities between DeFi and TradFi, with a percentage of Avia revenue returned to Hyperion - Partner Kinetic saw strong growth, surpassing $3.3 billion in total HIP3 market volume and launching a mobile app that generated over $100 million in volume in less than one month; Hyperion holds ~2 million KNTQ tokens and earns additional rewards from staking, with more rewards expected from the ongoing Cape Horn program ### Financial Highlights - Q1 2026 net income was a record $8.8 million, compared to a $39.8 million net loss in Q4 2025; Q1 adjusted EBITDA was $19.5 million, compared to negative $38.9 million in Q4 2025 - The cash share of adjusted gross profit increased from 18% in Q3 2025 to 48% in Q1 2026; core operating expenses have declined sequentially for three straight quarters, with full wind-down of legacy biotech operations expected by Q2 2026 end - Closed a $10 million public equity offering led by high-quality institutional investors including Arrington Capital and Blockchain.com; as of May 11 2026, Hyperion holds over 2 million HYPE tokens with $16 million in cash, and a net asset value of ~$90 million - Achieved 119% total adjusted gross profit growth since Q3 2025 even as the average price of HYPE declined 33% over the same period, demonstrating that growth is not solely dependent on crypto asset prices

Guidance

- Management raised 2026 full-year adjusted gross profit guidance from the prior $4-6 million to $5-7 million, a 20% upward revision, driven by better-than-expected early-year momentum, new partnership opportunities, and the recent $10 million capital raise - The company maintained its prior forecast of achieving cash flow break-even (net operating cash flow positive) by the end of 2026, and reports consistent progress toward this goal via three consecutive quarters of growing adjusted gross profit and falling core operating expenses - Full wind-down of legacy biotech operations is expected by the end of Q2 2026, which will eliminate remaining biotech R&D expenses and reduce ongoing SG&A costs

Segment performance

All adjusted gross profit figures below are non-GAAP: 1) Staking Yields: Generated $313,000 in Q1 2026, up from $305,000 in Q4 2025. The company earned 10.1 thousand HYPE tokens from staking, a 16% quarter-over-quarter increase. This segment contributed 32.6% of total Q1 adjusted gross profit. 2) Validator Commissions: Generated $40,000 in Q1 2026, roughly flat quarter-over-quarter from Q4 2025. Over 10 million HYPE tokens are delegated to Hyperion's validator, ranking it as the top 6 validator on Hyperliquid after the HYPER Foundation. This segment contributed 4.2% of total Q1 adjusted gross profit. 3) Yield Enhancement: Generated $211,000 in Q1 2026, a 165% quarter-over-quarter increase from $79,000 in Q4 2025. Growth was driven by high HYPE volatility and optimization of institutional-grade vault strategies. This segment contributed 22.0% of total Q1 adjusted gross profit. 4) DeFi Monetization (HyperCore): Generated $245,000 in Q1 2026, a 140% quarter-over-quarter increase from $102,000 in Q4 2025. Growth came from expanded partnerships and rising trading volume on partner platforms. This segment contributed 25.5% of total Q1 adjusted gross profit. 5) Ecosystem Rewards: Generated $150,000 in Q1 2026, down from $285,000 in Q4 2025 (volatility is expected due to unpredictable timing of airdrops and token rewards). The Q1 figure includes value from the 10 million HPL tokens (1% of total supply) received via the HyperLend partnership. This segment contributed 15.6% of total Q1 adjusted gross profit. Total Q1 2026 adjusted gross profit was $960,000, representing 119% growth since Q3 2025 and 17% sequential growth over Q4 2025.

Risks & headwinds

- All forward-looking statements related to DeFi growth, regulatory clarity, and revenue projections are subject to inherent risks and uncertainties, and actual results may differ materially from forecasts; a full discussion of risks is available in the company's SEC filings - Ecosystem rewards revenue is highly volatile due to the unpredictable timing of airdrops, token generation events, and other reward activities, which can lead to material quarter-over-quarter swings in reported results - Uncertainty remains around future regulatory requirements for on-chain digital asset products including vaults and prediction/outcome markets; the company is being selective about HIP4 partnership and deployment decisions to account for current regulatory constraints around prediction products - Monetization of the legacy OptiJet biotech asset is uncertain and could result in zero value, and the company is shifting all focus to its DeFi business after Q2 2026

Analyst Q&A

• Q: Can you share details on the activity concentration across Hyperion's partnerships and how you diversify hype deployments based on protocol popularity? /

  A: Hyperion's hype asset use service has three core models: fees tied to trading activity on HIP3 non-crypto markets, trading fee reduction services, and variable-rate hype access for clients. Demand exists across all three models, with new opportunities emerging for permissionless HIP4 outcome markets. The company continuously optimizes deployments to target the highest possible return on its HYPE.

• Q: Will the recent capital raise allow Hyperion to expand into HIP4 without disrupting existing HIP3 traction, and can the multiple over base staking yield grow higher from the current 3.1x? What is an aspirational target? /

  A: Full details on HIP4 deployment requirements are not yet available, but regardless of whether HIP4 requires new HYPE stakes or can integrate existing HIP3 deployments, Hyperion is prepared to participate appropriately. The company will remain focused on growing HIP3 activity while strategically evaluating new HIP4 opportunities. The existing blockchain infrastructure Hyperion has built is scalable with low incremental capital costs, so there is long-term upside to increasing the yield multiple as the ecosystem grows, with the company focused on onboarding new partnerships to advance the business flywheel.

• Q: What is Hyperion's expected timeframe and capital allocation for HIP4 participation over the next 12 months, and how has HIP3 experience changed your approach to HIP4? /

  A: HIP4 is currently live as a canonical product operated by Hyperliquid Labs, and permissionless deployment access for third parties has not yet been opened. Once that access is available, Hyperion will formalize its rollout plan. Almost all of Hyperion's existing ecosystem equity and token stakes were received in exchange for development and deployment work, not direct cash purchases, so HIP4 participation will likely only require deployment of existing balance sheet HYPE via strategic partnerships to generate immediate revenue, similar to the HIP3 rollout. Experience from HIP3 has created significant optimism around HIP4's opportunity, but the company is remaining selective on partners to account for the current regulatory environment for outcome/prediction markets.

• Q: Is the full-year adjusted gross profit guidance a GAAP or non-GAAP metric, and how is validator income treated for this metric? /

  A: Adjusted gross profit is a non-GAAP metric that combines core DeFi operating activity that is split across revenue, operating income, and other income under GAAP rules, giving investors a unified view of core business performance. Adjusted gross profit has always presented validator income on a net basis, and recent GAAP presentation changes for Q1 have no impact on adjusted gross profit calculations for any quarter or the forward guidance.