On Tuesday, Antalpha Platform Holding (NASDAQ:ANTA) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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Summary
Antalpha Platform Holding Co reported a 52% year-over-year revenue growth for Q1 2026, highlighting strong business execution amid challenging market conditions.
The company emphasized its risk management approach, maintaining zero principal loss and managing substantial loan repayments, notably from Cango Inc.
Antalpha launched strategic growth initiatives including a Web3AI agent (Nina) and transitioning tokenized gold holdings into yield-generating deployments.
Total loan value decreased slightly due to repayments, but the company expects demand for crypto-collateralized financing to support loan book growth.
Financial performance included a 32% GAAP operating margin; however, operating expenses rose by 102% year-over-year due to restructuring and compensation costs.
The company provided a revenue guidance of $11 million to $13 million for Q2 2026, reflecting a reduction in the loan base from one-time repayments.
Management remains optimistic about strategic opportunities in the Web3 and AI sectors, particularly targeting the Asia-Pacific region.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to Antalpha Platform Holding Co's first quarter 2026 earnings conference call. Today's call is being recorded. All participants are now in a listen-only mode. After management's prepared remarks, there will be a question and answer session. I would now like to turn the call over to Chris Mamoni, Managing Director of the Blue Shirt Group and Representative for Antalpha Platform Holding Co's Investor Relations team. Mr. Mamoni, please go ahead.
Chris Mamoni (Managing Director of the Blue Shirt Group and Representative for Antalfa's Investor Relations team)
Thank you Operator. Welcome to everyone participating in this call. Joining me today is Paul Yang, Antalpha Platform Holding Co's Chief Financial Officer. Please note the following first, all year over year comparisons in today's call are for Q1 2026 versus Q1 2025 unless otherwise stated. Second, consolidated financial statements including Aurelian began from Q4 2025. As such, Q1 2025 comparative figures reflect Antalpha Platform Holding Co's 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 Antalpha Platform Holding Co'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 Q1 operating and strategic overview as well as the financial highlights and outlook. Paul, please go ahead.
Paul Yang (Chief Financial Officer)
Thanks Chris Good day everyone. Thank you again for joining us. I'm Paul Yang, CFO of Antalpha. Let me start with a brief framing of the quarter. Q1 2026 was a period of solid execution and business development for N Alpha amid a dynamic and challenging market backdrop for the crypto ecosystem. We delivered 52% year over year revenue growth and maintained our record of zero principle loss. At the same time, our loan book saw a one time reduction driven by substantial repayments from certain large borrowers which notably Cango Inc. I will address this in detail, but the key point is all borrowers repay with no loss of principle and we view it as a strong reflection of our borrowers overall financial health and the soundness of our credit model. Finally, we also want two important strategic growth initiatives, the beta launch of our Web3AI agent and the transition of our tokenization gold holdings into yield generating deployment. I want to provide some extra context on the Kengo repayment before moving to the loan book. On the large borrower can go repayment. I want to provide some extra context here before the financial results section. During the first quarter and into early quarter two, Cango Inc. A NASDAQ listed Bitcoin miner, has repaid approximately 530 million US dollar of its outstanding loan balance. This represents over 95% of Cango's outstanding balance as of December 31st of 2025. Cango funded the repayment through a combination of publicly disclosed Bitcoin, asset sales and equity transactions. This is the type of positive outcome that our credit model is designed to produce, so we were pleased with how it all played out in practice. I will now cover our loan book update and risk management activities followed by our strategic initiatives, then walk through the rest of the financials and close with our Q2 outlook. Antalpha's operating philosophy is a risk management first philosophy. We have been consistent in this approach since our inception and it's central to how we manage the platform in Q1. Bitcoin prices were under considerable pressure in Q1, declining approximately 40% from their October 2025 peak. In this familiar environment, our approach was deliberate. We maintain active dialogue with every client to review market conditions, stress test positions and discuss their options as we do in our daily operation, especially every period of price volatility. We did not simply wait for the market to move, we engaged proactively. Our over collateralization model continue to underpin the long ball we require over collapse. Collateralization at origination and Bitcoin mined by client is deposited directly into our wallet, allowing the collateral pool to build continuously. The result of this approach is a proven track record. We are proud to stand behind. As of March 31, 2026, N Alpha has recorded no loss of principle since the inception of the company and it is the direct outcome of the prioritization of risk management above all else amidst every market bad job. Before reviewing our loan book matrix, let me provide some broader market context. We just discussed the devaluation of Bitcoin versus the October 2025 which created a more cautious environment for new loan deployment and broader activity. While the near term sentiment for digital assets has been softer and the long term demand backdrop remains constructive. Spot Bitcoin ETF assets under management stood at approximately 102 billion US dollar as of mid May 2026, reflecting continued institutional participation in the asset class. Historically, periods of price softness have been also coincide with increased interest in machine upgrade financing as miners began positioning for the next cycle. We expect this dynamic to once again support the long demand as market conditions stabilize. With that context, let me walk through the loan book metrics and in detail starting with TVL per-client, which I think it gives a clear picture of the underlying business TVL per-client increased 36% year-over-year reflecting growth in average loan size across the client base and the continual deepening of our client relationships. This growth stems from our proactive strategy to prioritize lower risk consumers ensuring a higher quality portfolio. Total value of loans were 1.6 billion as of March 36, 2026 and was down 3% year-over-year. This change reflects three factors. First, more measured new loan deployment in a weaker bitcoin price environment. Second, substantial one time loan repayment from two large borrowers, mostly from Cango, which we mentioned earlier, which repay approximately 526 million during the first quarter of 2026 for a modest reduction of approximately 3% in the remaining portion on a sequential basis. It is worth re emphasizing that we have never had a credit loss, we have never had a loss on principal across the entire loan book and we enter the recovery phase of the cycle with a well protected portfolio. As market conditions stabilize, we are positioned to redeploy capital and grow the loan book. Hash rate loans finance approximately 34.2 exahash of hashrate capacity as of March 31, 2026 representing approximately 3.3% of global hash rate. This compares to 81.3 EH as of December 31, 2025. The decrease was mainly attributable to Cango's repayment as Cancoast facilities were predominantly hash rate backed loans. In summary, the overall health of our loan book remains quite sound. Shifting gears now to our strategic initiatives, let me cover our web3AI agent first followed by our tokenization goal update in May 2026 n Alpha launched a web3AI agent in public Beta. I want to take some time discussing this initiative because we think it is important for the market to understand what we are building, why we are building it now, and how it interconnects into the core of NLPHA. Nina is an early stage of Web3AI agent and and part of Nava's broader innovation into AI driven infrastructure. It is built on our proprietary in house MCP or Model context protocol framework which is designed to support intelligent routing and coordination across data and execution environments as it is called. Nina reflects our view that the next generation of digital infrastructure should make AI and web3 more intuitive for users to engage with. As AI becomes more deeply embedded in financial and digital system, users will need an intelligent interface that can help them navigate increasingly complex code blockchain based environment with greater confidence and convenience. Why now? Three factors come together to make this the right time to introduce a new solution like this. First, the capability of AI models to interpret natural language and reliable translate it into on chain execution has only recently reached a level where user facing product is viable. The technical barrier that previous require developer knowledge to interact with blockchain networks can now be adjusted through AI. That barrier has been broken. Second, there's no established market leader in Web3AI today and particularly in Asia Pacific region, so we see a clear opportunity to build a scalable solution that is available now. Third, and I want to be specific about this, Antalpha is further leveraging the domain it knows best. We have built a deep operational knowledge of web free infrastructure on chain data and blockchain system through years of running our financing platform, our interconnection within the Bitcoin mining ecosystem give us a unique foundation in the space that other new entrants to Web3AI does not process. We are applying existing capabilities and red relationships to an adjacent market and next I will talk about the tokenization goal. As of March 31, 2026, Anava held 39,371 units of XAUT in Q1. We recognized 12.9 million US dollar in unrecognized fair value gains on these holdings in April. Subsequent to the quarter end, we took the next step in our tokenization goal Strategy by committing 6052 units of XAUT to the XAU protocol. Already in our subsidiary separately committed another additional 10,000 units to the same protocol. This is the first deployment of our XAUT holdings into a yield generating arrangement which represents a meaningful transition from holding activity as treasury and balance sheet asset to actively deploy to generate yield. And now let's move to discuss our financial performance in the first quarter. Total revenue was 20.7 million in Q1 2026 up 52% year-over-year, reflecting a continual growth in both our key revenue components. Technology financing fees on supply chain loans were 15 million up 49% year-over-year driven by continued strengthen in our hash rate loan portfolio. Technology platform fees on margin loan were 5.7 million up 62% year-over-year reflecting healthy take rates and continued utilization of our margin loan facilities. The net fee margin increased 21 basis points year-over-year reflecting price discipline across the platforms. The expansion was led by our margin loan business where net fee margin improved year-over-year and remained healthy on a sequential basis. Our supply chain loan net fee margin saw a modest year-over-year decrease driven by a higher proportion of hash rate loans within the portfolio. Hash rate loans carry a lower branded rate than machine loan and as the mix shifted towards hash rate loan through the period it created some downward pressures on the branded supply chain loan margins. Now let's turn to operating expense and profitability. Total operating expense excluding unrealized gain of Crypto assets were 25 million in Q1 up 102% year-over-year. This includes funding costs of 10.4 million, one time restructuring charges of approximately 3.3 million and non cash equity based compensation of approximately 1.3 million. Excluding these two items, non GAAP operating expense were 20.4 million on funding costs at 79% of technology financing fee on supply chain loans. Funding costs increased modestly from 65 in Q1 2025. For additional context, funding costs were 70% of technology financing fee in Q4 2025. The sequential improvement reflects a reduction in the loan base following a substantial repayment received in the period. Turning to profitability, GAAP operating income was 6.6 million representing an operating margin of 32%. This was mainly reflects 10.9 million unrealized fair value gain from XAUT holdings flowing through our operating results. Non GAAP operating income which excludes one time restructuring costs and non cash ESOP expense totaling 4.6 million was 11.2 million representing a non GAAP operating margin of 54%. Net income attributable to NRF hours 2.7 million in Q1 2026 compared to 1.5 million in Q1 2025. As a reminder, Q1 2025 reflects another standalone result as consolidation of orelian began in Q4 2025. Adjusted EBITDA was 13.3 million representing an adjusted EBITDA margin of 64% compared to 18% in the prior year period. This includes approximately 12.9 million in unrealized gain on the fair value of XAUT holdings excluding XAUT related gains. Adjusted EBITDA was approximately 0.4 million with a margin of approximately 2%. The consolidated result I just walked through include contribution from both N Alpha prime, the lending Business and Orillian. To give investors a clear picture of each component, let me briefly separate them before turning to the valuation framework. N Alpha prime, our core lending platform, generated standalone revenue of 20.7 million up 52% year-over-year and standalone adjusted EBITDA of 4.4 million, a 77% improvement from 2.5 million in Q1 last year. Standalone GAAP operating loss was 2.3 million including the 3.3 million one time restructuring cost and 900,000 non cash ESOP compensation in the period if we exclude that charge. Standalone operating income was approximately 1.9 million compared with 1.5 million in the first quarter of last year. The EBITDA is 12% for standalone NRV prime lending business. Aurelian contributed to the remaining 9.3 million of operating income at the consolidated level driven by entirely buying XAUT fair value gains. With that separation established, let me now turn to Aurelian's result and our sum of parts valuation framework. Turning to N Alpha's Orleans balance sheet, as of 31 March 2026 Aurelian's NAB was 116.4 million or 3.16 per share reflecting 33,318 units of XAUT value at 4,667 per unit net of 41.2 million in debt. Consistent with prior quarters, NRFR's 32% economic interest in Orleans represents approximately 37 million of attributable navigation deducting this from NFS market cap of 206 million based on last Friday's closing price, this implied value of NRFS core lending platform is approximately 169 million or approximately 1.9 times of trailing twelve months Revenue of 86.8 million and 11.7 times trailing 12 month net income attributable to an office 14.5 million. Orient's value is time to go appreciation and its XAUT treasury strategy. An office core platform value reflects the lending business fundamentals. We present this framework so investors can better assess each on its own terms and now turning to outlook, we expect second quarter 2026 revenue between 11 million and 30 million excluding the impact of the single customer can go the year-over-year decline will be between 7% to 22%. The main driver of this sequential change from Q1 is the reduction in our interest varying loan base following the one time repayment received in early 2026. Importantly, net fee, margin and operating margin are expected to remain broadly stable quarter over quarter. New loan deployment activity was limited in February through April period reflecting market conditions. We remain engaged with existing and prospective clients on new loan deployment of opportunities and will provide updates as the loan book develops. Our guidance reflect the strong visibility we have in the business and assumes continued demand for crypto collateralized financing in the market environment, further consistent with what we see today. As always, actual results may differ from our expectations and we will provide updates on our next quarterly call as appropriately and now let me close with our three priorities for 2026 first, risk management. We will continue to apply disciplined collateral management and maintain active client dialogue through what remains a volatile market environment. Our zero loss of principal record reflects the way we have run this business since inception. Second, core lending growth TVL per-client growth of 36% year-over-year reflects the quality and engagement of our client base. We are actively redeploying capital and remain focused on growing the loan book. With the right clients, the demand for crypto collateralized financing is intact and we are well positioned to continue to grow. Third, additional strategic growth curves. Our tokenization growth strategy is advancing. XAUT is now deployed into yield generating protocols which is a meaningful step forward. And our Web3AI agent launched this month, applying our Web3 domain expertise to an adjacent market where we see a clear scaling opportunity. Both initiatives are at a very early stage and we look forward to updating investors as they develop. With that, let me open the call to Q and A operators. Please go ahead.
OPERATOR
Thank you. To ask a question you will need to press Star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press Star one and one again. Our first question comes from the line of Devin Ryan from Citizens Bank. Please go ahead. Your line is open.
Noah Katz
Hey team, this is Noah Katz on for Devin. Thanks for the questions. Lots of developments here to dive into. First, just want to touch on your announced further expansion into AI infrastructure with the Web3AI agent. Nina, can you help us unpack this a bit more and tell us why Nina is the right product for your AI strategy And should we think of Nina as a user acquisition tool and a way to deepen engagement with your clients or as more of a foundational piece for future AI revenue streams? Thank you.
Paul Yang (Chief Financial Officer)
Yeah, thanks Noah, thanks for the question. So I think firstly we believe large language models has become the next generation of entry point and now. So I think now we are turning to, I mean all the users interact with light digital world basically through AI to some extent. So this shift kind of create a meaningful value especially in the AI industry as today the web users experience remain highly fragmented. Users often need to move across like multiple wallets, protocols, data source, analytical tools. So it's a little bit complicated sometimes if they do this on their own especially for those like the new users. So we do think that is a very highly attractive vertical opportunities for us here in the battery area. It's. Yeah, I think it's very difficult for most of the users to navigate around. So this create a very strong user case for AI-native products and we understand the pain point of the users. And Lina is basically designed to bridge this gap and it provides a neutral like natural language interface to help the users to access Web3 information and services. So our goal is to lower the barrier to Web3 participants to support a broader adoption. And we do think that an Alpha is kind of unique, have some like unique competitiveness advantages. So we firstly we develop our own Model Context Protocol (MCP) framework which give us a greater control over the underlying connection between users, data and webpage environments. And over time this could become an important platform level capability. And the second Nina, just a real pain point. As mentioned just now in the web 3 instead of requiring users to set up and manage a lot of different tools separately, Nina basically provide a simpler and more integrated experience. And the third N Alpha has accumulated deep knowledge through the years operating in this area and in this ecosystem. We understand data, the workflow on the user needs and operational complexity of the market which gives us a very strong foundation to build a differentiated AI product for Web3. And looking ahead, I think the first priority for us is to continue to strengthen the function of Nina across kind of like the data infrastructure structure, model adoption. And I think we are kind of also we have been knowing this industry quite quite well. Right. So we have also a lot of connection with diamond miners. I think it's easily for us to get some to have the resources of the computing power to support our growth. I believe that give us kind of unique competitiveness. Also in terms of revenue, I think this is not our priority at this moment. I think we will spend more some time to understand the needs of the user. Firstly I think we need to accumulate some meaningful users before we talk about monetization. Yeah, I hope this helps.
Noah Katz
Yeah, that was very helpful. I was going to dive into maybe what differentiates nina from other Web3AI agents, but I think you answered it. Unless you have anything else you want to add there.
Paul Yang (Chief Financial Officer)
Yeah, that's. Yeah. Okay. Not really, I mean compared with the other AI agent I think, I mean nowadays you can find a lot of like generic one. Right. But in terms of Web three and there's not a specific product at this moment, but we do think some startups are doing exploring but we think that we are a listed company, we understand the industry well. I think we are in a very good position to. Promote the Nina, the AI Agent product. But definitely there's a lot of general products outside people use it a lot, but it's not specifically for users.
Noah Katz
Okay, that's helpful, thank you. For answering my questions there. If I could sneak one more in, I want to touch on updates on the clarity act as it stands today. How are you thinking about the opportunity for anthalpha if digital asset rules become clearer, clearer and more defined and could clear rules change the pace at which you continue to scale?
Paul Yang (Chief Financial Officer)
Thanks. Thanks. I think it's not that. I mean, at this stage, I think so. Definitely we need to take a second look, I mean, a deeper look on how it impacts. But based on my understanding right now, it doesn't affect that much from our side. We are basically connecting. We are in the kind of like infrastructure level. We provide financing to the miners and it will not create a lot of impact on us at this moment. But definitely with more clarity on the regulation level, it helps basically the whole ecosystem or the whole stakeholders to develop. Definitely it's gonna help us also to some, I mean, to some extent in a broader level. All right, thank you. Thanks, Noah.
OPERATOR
Thank you. We'll now move on to our next question. Our next question comes from the line of Ed Engel from Compass Point. Please go ahead. Your line is open.
Ed Engel
Hi, thanks for taking my question. I just wanted to drill down quickly on the impact of the Cango loan payment. Did the entire 530 million get paid off in the first quarter or was some of the impact also in the early second quarter?
Paul Yang (Chief Financial Officer)
Yeah, I think mostly was paid in the first quarter. I think we mentioned roughly like just a small portion was repaid in April, the second quarter. Great, thanks for that.
Ed Engel
And then on the XAUT (Tether Gold) yield generation deployment, just kind of curious. Can you just get more color on, I guess how those tokens are generating yield and I guess the expected yield or target yield that you're hoping for the allocation.
Paul Yang (Chief Financial Officer)
Thanks. Okay. For the yield generation, basically. So the foundation issuing the XAUT, they have some kind of like very conservative investment opportunities using the existing XAUT, which we based on our estimation at this moment is roughly between 1 to 2%. It's not that much, but anyway is a kind of a step forward comparing with the pure holding of XAUT in the past. Great.
Ed Engel
Thank you for the color.
OPERATOR
Thank you. We'll now move on to our next question. Our next question comes from the line of Dylan Hines from B. Riley Securities. Please go ahead. Your line is open.
Dylan Hines
Hey, thanks for taking the question. I'm just wondering on top of Kangle, do you expect any other repayments coming up? And then I just have a follow on question after that.
Paul Yang (Chief Financial Officer)
I think the loan balance at the current moment is roughly 40 million and we don't anticipate any repayment at this moment, but we never know. But anyway, the impact will not be significant since the balance has been reduced significantly compared with the. Yeah. Previous quarter.
Dylan Hines
Gotcha. Thank you. And then I was wondering, you mentioned initiative in the Asian Pacific.
Paul Yang (Chief Financial Officer)
I was wondering if you could go over again what you were talking about there. Can I. Can you kind of ask the question again? The eight.
Dylan Hines
Yeah. There's an initiative you're talking about in Asia Pacific regarding blockchain operators.
Paul Yang (Chief Financial Officer)
I was wondering if you could go over that again. Miss that. You mean the AI agent or any other initiative we talk about?
Dylan Hines
I'm not sure. You said something about Asia Pacific? I'll have to go over it again, but.
OPERATOR
Okay. So nothing else for me then. Thank you. That concludes the questions and answers period. Thank you again for joining our call today. You may now disconnect.
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