Leadership Shakeup and Revenue Downgrade Rock DeFi Technologies

DeFi Technologies Inc. (DEFT) finds itself navigating turbulent waters following a dual announcement that sent its stock tumbling. The company disclosed both a significant leadership transition and a substantial downward revision to its full-year financial outlook, triggering an immediate sell-off among investors.

In a major corporate realignment, DeFi Technologies revealed that co-founder Johan Wattenström will assume the roles of Chief Executive Officer and Executive Chairman. This move sees former CEO Olivier Roussy Newton transitioning to a strategic advisory position within the organization. The leadership change comes at a critical juncture for the digital asset-focused company.

The management transition was announced alongside disappointing third-quarter 2025 results that fell substantially below market expectations. For the quarter ending September 2025, the company reported revenue of $22.5 million with operating income reaching $9 million. However, the IFRS earnings per share came in at just $0.01, dramatically missing the $0.18 per share consensus estimate among analysts.

Drastic Forecast Reduction

More concerning to market participants was the company's decision to slash its full-year 2025 revenue guidance. The previous projection of $218.6 million was cut nearly in half to $116.6 million, representing one of the most significant forecast reductions in the digital asset sector this year.

Company leadership attributed the revised outlook to operational delays within its "DeFi Alpha" arbitrage trading operations. According to management statements, increasing competitive pressures and consolidating digital asset prices have temporarily compressed trading margins, necessitating the guidance adjustment.

Should investors sell immediately? Or is it worth buying DeFi Technologies?

Bright Spots in Asset Management Division

Despite the challenging quarterly performance and reduced outlook, DeFi Technologies' asset management subsidiary Valour demonstrated notable strength:

• Assets under management expanded to $989.1 million
• The division recorded net inflows of $38.8 million during the quarter
• The parent company maintains solid liquidity with $165.7 million in cash reserves

These metrics suggest the company retains fundamental financial stability despite current headwinds.

Market Reaction and Analyst Response

Investors responded harshly to the combined news of leadership changes and financial underperformance. DEFT shares plummeted more than 15% in Friday's trading session following the announcements.

While the appointment of co-founder Wattenström aims to project stability and continuity, the simultaneous departure of the sitting CEO during a major forecast revision has raised questions among market observers. Financial experts are already adjusting their models to account for the company's flatter growth trajectory through 2025 and 2026.

The company's strengthened balance sheet provides some flexibility for strategic initiatives and potential acquisitions. However, the immediate path forward appears challenging as DeFi Technologies works to regain its footing in an increasingly competitive digital asset landscape.