Corrects basic EPS to -$0.3 from $0.3 in Key Details table; corrects formatting in first bullet of Outlook section

Overview

• U.S. DeFi operator reported Q1 net income of $8.8 mln, rebounding from prior quarter loss

• Adjusted gross profit for Q1 rose 17% quarter-over-quarter, driven by DeFi monetization and yield enhancement

• Company raised 2026 adjusted gross profit guidance by about 20%

Outlook

• Company raises 2026 adjusted gross profit to $5 mln-$7 mln, up from $4 mln-$6 mln

• Company expects to achieve break-even cash flows by end-2026

• Operating expenses excluding stock-based compensation expected to fall below $3 mln quarterly run-rate in Q2 2026

Result Drivers

• DEFI MONETIZATION & YIELD ENHANCEMENT - Co said 17% Q1 adjusted gross profit growth was driven by DeFi Monetization (+140% Q-o-Q) and Yield Enhancement (+165% Q-o-Q) strategies

• TRIPLE-DIP STRATEGY - Unique 'Triple-Dip' HYPE deployment generated ~3.1x base staking income in Q1, leveraging multiple yield activities

• HIGHER CASH INCOME - Portion of adjusted gross profit earned in cash, cash equivalents, and USDH rose to 48% in Q1 from 22% in Q4

Company press release: ID:nGNX58223z

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Hyperion DeFi Inc is $6.28, about 79.3% above its May 13 closing price of $3.50

• The stock recently traded at 1 times the next 12-month earnings vs. a P/E of 1 three months ago

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