DeFi Technologies Inc. (NASDAQ: DEFT) is undergoing significant executive changes following disappointing quarterly results and a substantial reduction in annual guidance. Chief Executive Officer Olivier Roussy Newton has stepped down from his position, with company co-founder Johan Wattenström assuming leadership effective December.
Financial Performance and Revised Outlook
The Canadian fintech firm reported third-quarter 2025 revenue of $22.5 million with operating earnings of $9 million. These figures represent a notable decline from the previous year’s performance, when the company generated $28.1 million during the same period.
Investors received a substantial shock with management’s dramatic revision to full-year projections. Instead of the originally anticipated $218.6 million in revenue for 2025, company leadership now expects approximately $116.6 million—representing nearly a 50% reduction from initial forecasts.
Management attributed this significant downward revision primarily to delays in arbitrage trading activities conducted through their proprietary trading desk, DeFi Alpha. The company cited “the proliferation of digital asset treasury companies and the consolidation of digital asset prices” as factors that have temporarily reduced arbitrage opportunities and compressed trading spreads.
Despite these challenges, the organization maintains an optimistic view of its overall trajectory. With year-to-date revenue reaching $80 million compared to $51.3 million during the same period last year, DeFi Technologies remains positioned to achieve its first fiscal year exceeding $100 million in total revenue.
Executive Transition and Corporate History
Johan Wattenström, who co-founded both Valour and DeFi Technologies, will take on the dual roles of CEO and Executive Chairman. Outgoing CEO Roussy Newton will transition to an advisory position within the company.
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During Roussy Newton’s tenure, the company achieved several significant milestones. The exchange-traded product platform expanded to include 100 listed products with over $1 billion in assets under management. The company also successfully listed on the Nasdaq exchange under ticker symbol DEFT and dramatically scaled revenue from $4.5 million in 2021 to exceed $50 million by 2024.
Financial Position and Subsidiary Performance
Despite operational headwinds, DeFi Technologies maintains a robust balance sheet. The company holds $119.5 million in cash and digital assets valued at $46.2 million, providing total liquidity of $165.7 million.
Subsidiary Valour demonstrated resilience with assets under management reaching $989.1 million as of September 30, representing an increase from $772.9 million at the end of June. The subsidiary generated $7.4 million from staking and lending operations alongside $2.8 million in management fees during the third quarter.
Strategic Direction Under New Leadership
The incoming CEO has outlined plans to accelerate the rollout of SovFi and additional hybrid DeFi-TradFi products. The company also intends to pursue strategic investments and potential acquisitions aimed at enhancing long-term shareholder value.
With upcoming investor conferences scheduled in New York and potential recovery in arbitrage market conditions, DeFi Technologies may be positioned for a operational turnaround. The critical question remains whether new leadership can successfully restore investor confidence following the substantial guidance reduction and management changes.
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