Antalpha Platform Holding (ANTA) Q2 2026 earnings call transcript

Thank you, Operator, and welcome everyone to today's call. Joining me today is Paul Gang, Antalpha's Chief Financial Officer. Please note the following. First, all year-over-year comparisons in today's call are for Q2-2026 versus Q2-2025, unless otherwise stated.

Second, consolidated financial statements, including Aurelian, began from Q4-2025. As such, Q2 2025 comparative figures reflect Antalpha standalone results. Third, our remarks today will include forward-looking statements based on current expectations. These statements involve risks and uncertainties that could cause actual results to differ materially. For discussion of these risks, these refer to Antalpha's filings with the SEC. We do not undertake any obligation to update forward-looking statements except as required by law. This call also contains references to unaudited non-GAAP financial measures. Reconciliation to the most comparable GAAP measures can be found in our press release and SEC filings.

Now, I'll turn the call over to Paul Yang, who will provide the Q2 operating strategic overview, as well as the financial highlights and outlook. Paul, please go ahead.

Thank you, Chris, and good day everyone. Thank you for joining us today. The second quarter reflected a more measured financing environment across the digital asset ecosystem versus earlier periods, as many of our customers focus on liquidity management, operational efficiency, and prudent capital allocation. Against this bad job, we remain selective in deploying capital, optimize our funding structure, and maintain our high underwriting standards. Since inception, our objective has been to build a financing platform that delivers sustainable long-term value for our clients and shareholders, rather than maximizing loan growth in any particular quarter. We believe the strongest evidence of that approach is our record of zero principal loss since inception, achieved across a broad spectrum of market environments while building long-term trend relationship.

During the quarter, we strengthened the underlying economics of our financing platform while advancing our broader strategy of building a leader that provides financing, technology, and risk management solutions to the Web3 industry. Further to this point, we made progress across NINA, our V3 AI business, and Aurelien expanded our capabilities in digital gold despite the short-term accounting volatilities reflected in this quarter's financials.

With that context, let me first provide an update on the operating performance of our key business during the quarter before turning into our financials. Let me begin with Antalpha Prime, which is our flagship financing platform and primary revenue and earnings contributor. During this quarter, we focused on preserving portfolio quality by maintaining prudent underwriting standards and executing with long-term perspective. While financing activity moderated, we were highly selective in deployed capital, prioritizing long-term risk-adjusted return over short-term loan growth. Most importantly, we maintain our record of zero principal loss since its inception. We believe this track record reflects the effectiveness of our underwriting standards, active collateral management, and comprehensive risk management capabilities across multiple market environments. As institutional participation in digital asset financing continues to evolve, we believe these capabilities, combined with the trust we have earned from our clients and funding partners, will remain important competitive differentiators for Antalpha Prime.

As well, we deepen relationships with longstanding clients while selectively originating new loans, reflecting the trust we have built through consistent execution across market cycles. Although the total value of loans facilitated decline during the quarter, we view that as a reflection of both customer financing behavior and our selected capital deployment rather than a change of our long-term opportunity. Net fee margin improved year over year while funding costs remain broadly stable. Turning now to Nina, Antalpha's proprietary agentic initiative. As we discussed last quarter, we firmly believe AI is becoming an increasingly important layer of threat-free infrastructure through this ability to help users more efficiently discover information. Analyze opportunities and interact with decentralized applications. During the quarter, we made encouraging progress in further developing our Web3.

ai business. We advanced several key product enhancements and expanded product availability through properly available iOS and Android applications. Making the platform more accessible to a much broader universe of adopters.

Nina has now reached several thousand registered users across its website and mobile applications, with the majority of registered users completing at least one core product interaction, While NINA remains in the early stage of commercialization it is very encouraging to see these initial engagement indicators Our near focus remains on product development user engagement and evaluating NINA commercial potential We look forward to keeping you updated on our progress With that overview of our operating performance, now let me turn to our financial results for the quarter. Total revenue for the quarter was $12.2 million, ahead of the midpoint of our guidance. The revenue of this quarter down 28% year-over-year compared with $17 million in the second quarter of last year.

As a reminder, our prior year comparison included contributions from the Cango facility, which was almost fully repaid during the first quarter of 2026. Excluding that facility, revenue declined just 15% year-over-year, primarily reflecting lower average loan balance across the remaining portfolio as financing activity moderated during the quarter. Looking at the composition of the revenue, technology financing fees were $7.7 million, down 40% year-over-year, reflecting lower financing activity and average loan balances. Offsetting this decline, technology platform fees increase 10% year-over-year to $4.5 million, primarily reflecting improved pricing in our margin loan business.

We believe the combination of financing and platform revenue provides a solid foundation for the long-term development of our business. Turning to our loan portfolio, total value of loans facilitated was $1.35 billion as of June 30, compared with $1.61 billion at the end of the first quarter. As discussed earlier, this reflected both more measured financing activity across the market and our discipline approach to capital deployment.

Hashtray financing reached approximately 30.9 extra hash, representing approximately 3.1% of the global Bitcoin network hashtray at the quarter end.

From a lending economics perspective, we continue improving the efficiency of our business. Funding costs remain broadly stable at 69% of technology financing fee compared with 67% in the second quarter of last year. While net fee margin improved by approximately 10 basis points year over year, primarily driven by improved pricing within our margin long.

Turning to operating expenses, in Q2, operating expenses that excluded fair value loss on crypto assets were $15 million, down 14% year over year, reflecting time, cost, discipline, and missed ongoing investments in our strategic initiatives. These expenses include funding Operating costs of $5.3 million and non-cash equity-based compensation of approximately $1.3 million. Gap operating loss was $25.1 million compared with operating loss of $0.5 million in the prior year period. Excluding non-cash items, non-gap operating loss was $23.8 million.

Turning to the bottom line, net loss attributed to Antalpha was $12.5 million compared with net income of $0.7 million in the second quarter of 2025. As a reminder, Q2 2025 reflects Antalpha's standalone results as consolidation of Aurelien began in Q4 2025. Adjusted EBITDA loss was $27.4 million, including approximately $26.2 million in unrealized loss related to XAUT and XAUE holdings. Excluding the XAUT and XAUE related value movements, adjusted EBITDA loss was just $1.2 million. To put this consolidated result in context, an alpha remained profitable on a standalone basis. Let me now discuss the performance of Prime and Aurelien separately. An alpha Prime generated standalone revenue of 12.2 million during the quarter and operated profitably on a standalone gap basis.

The business improved its operating economics through funding optimization while maintaining prudent underwriting standards throughout the quarter. Prime's standalone adjusted EBITDA loss of 3.3 million includes a 3.9 million fair value loss related to Prime XAOE holdings. Adjusted for the fair value loss, Prime generated 0.6 million of adjusted EBITDA compared to a 4 million in the prior year period, representing a 5% and 24% adjusted EBITDA margin, respectively. I will now turn to Aurelien's performance and our perspective on its role with Antalpha's capital strategy and long-term value creation.

As I mentioned earlier, Aurelien's reported results this quarter was primarily affected by unrealized fair value adjustment on its XAVT holdings. While this fair value movement significantly affected our reported consolidated earnings this quarter, they do not change our long-term strategic rationale for the business. During the quarter, Aurelien contributed approximately $24.4 million of operating loss, primarily reflecting approximately $22.3 million of February loss, as XAOT price declined from approximately $4,667 per unit at the beginning of the quarter to approximately $3,996 at the quarter end. Since June 30, XAOT prices have been recovered to about 4,300 as of August 18, reinforcing our long-term confidence in the value of tokenized gold and its potential as an on-chain digital asset.

Turning to Aurelien balance sheet as of June 13 2026 Aurelien net asset value was approximately million reflecting million of digital assets and cash including units of XAOT and XAOE value at the end The report is at approximately 3,996 per unit, net of 42.8 million of that. During the quarter, Aurelien completed the subscription of XLE with 8,000 units of XLET, which were staked into the protocol. Based on our 42% economic interest, Aurelien represents approximately $29 million of attributable net asset value. We continue to believe tokenized gold will play an increasingly important role in the evolving digital asset ecosystem. As institutional adoption continues to broaden, we believe investors will increasingly see assets that combine the stability of traditional safe haven assets with the liquidity, transparency, and programmability of on-chain infrastructure.

In that context, tokenized gold can serve simultaneously as a long-term store of value, high-quality collateral, and yield-generating asset through protocols such as XLEE. To sum up, we have full confidence in our long-term strategy and are pleased that Antalpha Prime remains a resilient foundation for our current business while we actively explore growth-enhancing opportunities.

With that, let me conclude with a few thoughts on our outlook and priorities going forward. We expect first quarter 2026 revenue between $10 million to $12 million. While the overall financing environment remains muted, our priorities have not been changed. We will allocate capital selectively, maintain our wooden right underpinning standards, and strengthen the long-term economics of our financing platform.

We believe risk management remains the foundation of sustainable shareholder value creation, and we will execute with long-term perspective rather than optimizing any single quarter financials. More broadly, our objective is to build on Antalpha Platform's strong foundation while selectively deploying opportunities where our capabilities in financing, technology, and digital assets can create long-term shareholder value. Thank you again for your support and interest in Antalpha. Operator, we are now open for questions.

Thanks for the question. So as for your questions, the earnings is not recorded as revenue. As you can see from the financial statements from Antalpha is $12.2 million for this quarter. They are purely from the lending business. And so it was recorded in the non-operating part. So as for the yield, well, it's yield generating this quarter, although it's not significant, but we see this is the first step for us to utilize rather than just sitting there holding a And it's meaningful for us at least to have some revenue coming in.

Thanks. I think at this moment, it's a very good question, but I don't think I have the answer. We have to monitor the market on a regular basis. But definitely at this point, so we are quite conservative and our customers are also conservative to have some more financing activities. But we believe if the trading volume is going up, the price is going up, it's definitely, it will be more active from our point of view.

I'm sorry. Do you have any idea of what the average cost to mine is for your customer base? I know you guys talked about that in the past. It's very, it's case by case. I think there's a lot of factors, you know, and the mining machine, different types of mining machine, and also about the electricity price. And it's a very difficult question to say it broadly, but we do see some of our customers still generating profits at this point of price.

But it all depends on the location of the mining side, the electricity, and what kind of models, mining machines they are using.

Thank you very much for the question. So I think for Nina, it's still in the very early stage. We are still validating the product. And the current focus, I think, is first to build a product that our users find useful, improving the engagement and retention, And then expand functionally. So currently, yeah, I think for those users, they, well, in general, the interaction is quite boring. They ask about the trend of the Bitcoin price and also what kind of applications are acquired right now. So we have kind of daily trends. Actually I'm looking at my screen right now. For example, they also ask a lot of like economic related questions. So there's a question here in my screen.

Bitcoin volatility collapse, why are the traders saying nothing brings money? And yes, so there are different, well, they are quite different. So I would recommend it if you have time, you can just download from the iOS or Android to take a look at So, I think we're going to look at what's going on there. It's quite interesting, I can say. So, currently, I think our goal is to make the app easier for the web-free users, so that they can use to bring more information, and they can also find some interesting trends on transaction-related stuff, And so that, so I think at this stage, it's still quite early. So, and we will continue to improve the product user experience.

So is that, I'm sorry, is that, can I, did I answer most of your questions?

Thanks. Thanks, Noah. It's a very good question. I think we take a conservative approach to manage the credit risk, which we also mentioned during the call. And our framework combines careful underwriting, over-collateralization, active collateral management, and continued engagement with the clients. And also from mining-related loans, collateral can also be built over time. The Bitcoin mine is also deposited within the control wallet. This provides an additional layer of protection. And I mean there's no credit model is perfect. It cannot eliminate all the risks. But our experience through multiple market environments reflects the rigour built into our management process. And I think on the loan book, we expect to remain selective. I think the current constraint is not the access of capital, but finding opportunities that meet our risk-adjusted return threshold.

The management safety has remained relatively conservative, and we are not assuming a sharp increase in the near term. And we will continue to see demand, actually we continue to see demand from the existing and prospective customers. But the conversion into our new loan will depend on the market stability, collateral quality, and also definitely the pricing. We have capital available to deploy when those conditions are met, but we are not to rebuild TBL simply for the sake of balance sheet or revenue growth for the next quarter. So this to us is a long-term business and risk management is the first priority for us. I think we need to stay in the market, especially in the bear market.

It's a long-term business for us. I think over time, when a more stable digital asset environment and improved forward confidence, it should support a higher origination activity. But the pace of recovery will depend on the opportunities we actually see. Yeah, I think that's probably what we can see at this moment, at this market environment.

Thanks, Noah.