Antalpha Platform Holding Q2 2026 Earnings Call Transcript

On Wednesday, Antalpha Platform Holding (NASDAQ:ANTA) discussed second-quarter financial results during its earnings call. The full transcript is provided below.

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Summary

Antalpha Platform Holding reported Q2 2026 revenue of $12.2 million, a 28% decrease year-over-year, primarily due to the repayment of the Kengo facility and lower average loan balances.

The company maintained a record of zero principal loss by focusing on prudent underwriting standards and selective capital deployment, despite a decline in the total value of loans facilitated to $1.35 billion.

Strategically, Antalpha advanced its Web3AI business, Neenah, with several thousand registered users now engaging with the platform, and continued to expand its capabilities in digital gold through Aurelian.

Operating expenses were reduced by 14% year-over-year to $15 million, reflecting cost discipline, while the GAAP operating loss was $25.1 million, influenced by unrealized losses on crypto assets.

The company expects Q3 2026 revenue between $10 million and $12 million, remaining focused on maintaining underwriting standards and strengthening long-term financing platform economics.

Full Transcript

Sa. Sam. Foreign. Thank you for standing by. Welcome to Antelpher's second quarter 2026 earnings conference call. Today's call is being recorded. All participants are now in the listen only mode. After management's prepared remarks there will be question and answer session. I would now like to turn the call over to Chris Mamone, Managing Director of the Blue Shirt Group and representative for IntelFA's investor relations team. Mr. Mamoni, please go ahead.

Thank you Operator and welcome everyone to Today's Call. Joining me today is Paul Gang, Entalfa'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, please refer to Antopho'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.

Reconciliations 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 and 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 backdrop, 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 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 client 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 Neenah, our Web3AI business and Aurelian expanded our capabilities in digital gold despite the short term accounting volatilities reflected in the supporters 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 an Alpha prime, which is our flagship financing platform and primary revenue and earnings contributor. During this quarter, we focus on preserving portfolio quality by maintaining prudent underwriting standards and executing with long term perspective. While financing activity moderated, we were highly selective in deploying capital, prioritizing long term risk adjusted return over short term loan growth. Most importantly, we maintained 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 an Alpha Prime. As well, we deepen relationship with long standing clients while selectively originating new loans, reflecting the trust we have built through consistent execution across from 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 selective 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 NRPassentech initiative as we discussed last quarter, we firmly believe AI is becoming an increasing important layer of Web3 infrastructure through this ability to help users more efficient, efficiently discover information, analyze opportunities and interact with decentralized applications. During the quarter we made encouraging progress in further developing our Web3AI business. We advanced several key product enhancements and expanded product availability through publicly 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 Neenah remains in the early stage of commercialization, it is very encouraging to see these initial engagement indicators. Our near term focuses remain on product development, user engagement and evaluating Neenah's 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 70 million in the second quarter of last year. As a reminder, our prior year comparison included contributions from the Kengo 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 increased 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 disciplined approach to capital deployment. Hash rate financing reached approximately 30.9 exahash, representing approximately 3.1% of the global Bitcoin network hash rate 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 loan bookings.

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 amidst ongoing investments in our strategic initiatives. These expenses include funding costs of 5.3 million and non cash equity based compensation of approximately 1.3 million. GAAP operating loss was 25.1 million compared with operating loss of 0.5 billion in the prior year period. Excluding non cash items, non GAAP operating loss was 23.8 million. Turning to the bottom line, net loss attributed to AnnAlpha was 12.5 million compared with net income of 0.7 million in the second quarter of 2025.

As a reminder, Q2 2025 reflects NLP standalone results as consolidation of Orillian 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 fair 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 Aurelian separately. N Alpha prime generated standalone revenue of 12.2 million during the quarter and operated profitably on on a standalone GAAP basis. The business improved its operating economics through funding optimization while maintaining prudent underwriting standards throughout the quarter.

Prime 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 4 million in the prior year period representing a 5% and 24% adjusted EBITDA margin respectively. I will now turn to Orwellian's performance and our perspective on its role in with Annalba's capital strategy and long term value creation.

As I mentioned earlier, Aurelian's reported results this quarter was primarily affected by unrealized fair value adjustment on its XAVT holdings. While these fair value movements significantly affected our reported consolidated earnings this quarter, they do not change our long term strategy rationale for the business. During the quarter, Orelian contributed approximately 24.4 million of operating loss, primarily reflecting approximately 22.3 million of fair value loss as XAVT 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.

XIoT prices have been recovered to above 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 Orelian's balance sheet, as of 3rd of June 13th, 2026, Aurelian's net asset value was approximately 91.9 million reflecting 134.7 million of digital assets and cash including 33,318 units of Xlet and XLE AUE value at approximately 3,996 per unit net of 42.8 million of them. During the quarter, Aurelian completed the subscription of XLE with 8000 units of XLT which were staked into the protocol.

Based on our 32% economic interest, Orlean represents approximately 29 million of attributable net asset value. We continue to believe tokenized goal 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 programmatic of on chain infrastructure.

In that context, tokenized goal is can serve simultaneously as a long term store of value, high quality collateral and yield generating assets through protocols such as XLEE to sum up, we have full confidence in our long term strategy and are pleased that N Alpha 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 third quarter 2026 revenue between 10 million to 12 million. While the overall financing environment remains muted, our priority have not been changed. We will allocate capital, selectively maintain our prudent underlying 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 NLP'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 N Alpha Operator. We are now open for questions.

Thank you. To ask a question now, please press Star 11 on your telephone and wait for your name to be announced. To withdraw your question please press star 11 again. We will now proceed to take our first question and our first question comes from the line of angle from Compass Point. Please ask your question at. Your line is open

Hi, thanks for taking my question. Do you mind providing a little bit more detail on the yield that you're earning on the XAUE holdings And then I guess any yield that you generate is that reported as income in the P and L or is that just marked as gains in financial assets or crypto assets?

Thanks. Thanks Zach. 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 Nava 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 the rather than just sitting there holding an Excel key and it's meaningful for us at least to have some revenue coming in.

Great, thanks for the color. And then I guess just more broadly as you think about a recovery in Bitcoin and then your lending book, is there a level that you think bitcoin needs to reach for maybe your customers to get back to break even and start reinvesting in their fleets? Or is there not really a specific bitcoin number that you think needs to be hit or exceeded in order to grow your loan book? Again, thanks.

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 regular basis, but definitely at this point. So we are quite conservative and our customers are also conservative to, to have some more financing activities. But we believe if the trading volume is going up, the price is going up, will be more active from our point of view.

Great. I'm sorry, do you have an 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 it's case by cases. 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. It's a very difficult question to, I mean to say it broadly, but we do see some of our customers still generating profits at this point of price. But yeah, but it depends, it all depends on the location of the mining side, the electricity and what kind of models mining machines they are using.

Thank you for the color.

Thank you. As a reminder before we move to our next question, if you wish to ask a question now, please press Star 11 on your telephone keypad. We will now take our next question from the line of Devon Ryan from Citizens Bank. Sorry Devon, please go ahead. Your line is open.

Hey, this is Noah Katzon for Devin. Thanks for taking my questions. First I want to focus on your expansion into AI infrastructure with your AI agent Nina per comments. Nina has now moved beyond the initial launch and is generating early user engagement with several thousand registered users and more than half completing at least one core product interaction. Can you outline for us your commercialization strategy for Nina and also as you look at the early activity, what are users engaging with most and what have you learned so far from the product and how are these learnings shaping the product Roadmap map from here. Thanks.

Thanks Noah. Thank you very much for the question. So I think for Nina is 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 in general the interaction is quite bodily. They see just they asked about the trend of the trend of the bitcoin price and also. And what kind of applications are quite hot right now. So we have kind of daily trends actually I'm looking at my screen light right now and for example they also answer a lot of like economic related questions. So there's a question here in my screen. Is Bitcoin volatility collapse? Why are the traders saying nothing prints 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 engine to take a 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 easier or for the web three users and 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 so and we will continue to improve the product user experience. So is that. I'm sorry, is that. Did I answer most of your questions?

Yeah, that was very clear. That's helpful. I can definitely recognize that it's early in this industry so definitely understand if I can switch gears a little bit talk more about the crypto lending market. We've seen periods of Bitcoin volatility that have impacted borrower demand and then the way lenders manage collateral and risk against that backdrop. Can you walk us through the specific risk mitigation strategies you have in place and then looking forward what does your outlook for the loan book look like and what's giving you confidence in the direction of demand you're seeing? Thank you.

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

Financial 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 be 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 build to review a 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. It's better in the, in the bear market and it's a long term business for us.

I think over time, when a more stable digital asset environment and improve borrower confidence, it should support a higher origination activity. But the pace of recovery will depend on, on the opportunities we actually see. Yeah, I think that's probably what we can see at this moment, at this market environment. That's helpful.

Thank you for answering my questions.

Thanks, Noah.

Thank you. That concludes the questions and answers period. Thank you again for joining our call today. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.