EPS of ($0.01) missed estimates of $0.04 and sales were $18.27M. Management did increase its 2025 view to sales of $218.6M, and its adjusted sales and net income grew nicely year-over-year. Its asset management business saw a substantial growth in AUM, with a notable 23% month-over-month increase from June to July. It bought back 675,900 shares for U$1.9M in the quarter, and it has a strong cash balance of U$26.4M. It added 78 institutional shareholders since early July, with now 84 institutions total. Its businesses are growing nicely (asset management is showing growth, its trading desk is doing well, its research side is adding incremental revenues). The fundamentals look decent, but we think that investors have difficulty with the volatility and quarterly fluctuations in its sales and profits, and while its priced well for a company growing quickly, it is tough to predict sales and earnings from quarter-to-quarter. We would be OK adding or initiating a position here with a core thesis that the crypto space has room to grow and DEFI can continue to benefit from this broader adoption and growth curve.
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