Streamex Corp. (STEX) Q4 2025 Earnings Report, Transcript and Summary

Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I would like to welcome you to the Streamex Corp 2025 Earnings and Corporate Update Presentation. [Operator Instructions]. Thank you. I'll now turn the call over to Morgan Lekstrom. You may begin.

Thank you, Colby. Hi, everybody. My name is Morgan Lekstrom. I'm the Co-Founder and Executive Chairman of Streamex. Today, I want to focus on 3 main points. We'll discuss the key milestones the company achieved over the past year as we transition into a public company and built the foundation of what is now the Streamex platform. Second, we will do an update on our first product, GLDY, including our early traction, institutional demand and our strategy for scaling the adoption. And third, but not least -- last but not least, our long-term road map into 2026 and beyond as we expand the platform into additional tokenized and commodity assets and products and the expandability and scalability of the platform and product itself. The past year has been transformational for Streamex. We believe that the groundwork we have laid positions the company well for the next phase of growth as we scale our platform and product ecosystem. I do want to remind everybody that there is a disclaimer. We will begin and we'll be having some forward-looking statements. Actual results may differ materially from those expressed or implied. We encourage investors to review the risk disclosures in our SEC filings for additional information. First, I want to talk about some of our key business highlights. Over the past year, we've made meaningful progress in building the Streamex platform and bringing our first tokenized commodity product to market. Some of the key highlights from this last year include launching GLDY, the first institutional grade yield-bearing tokenized gold asset, receiving over $100 million in early institutional indications of interest prior to launch, strengthening our leadership team with Board and executives from firms, including Coinbase, Morgan Stanley and other leading institutions, including Bank of Montreal and ending the year with a strong balance sheet and no outstanding debt, allowing us to focus squarely on growth and execution. These milestones are important because they establish the foundation for what we believe is a highly scalable capital-light platform business model centered around tokenized commodities. A big part of this for us is started out in May of 2025, where we completed the transaction and transitioned Streamex into the publicly traded company it is today. Over the following months, we expanded the leadership team and Board, adding deep experience across the commodities, the capital markets and the digital asset infrastructure. We also strengthened the balance sheet through 2 equity financings, one in August of 2025 and another in early 2026, raising approximately $55 million over the past 12 months. In early 2026, through those raises, we were able to eliminate all outstanding debt and successfully launch our GLDY token, our first tokenized commodity product. With those foundational steps completed, our focus now shifts towards scaling the platform and expanding the product ecosystem. At this point, I'll turn over the call to our Chief Financial Officer, Christine Plummer, to review our financial position. Christine, take it away.

Great. Thank you, Morgan. One of the most important outcomes of the past year is the strength of our balance sheet. As of year-end, we held approximately $20 million in cash and cash equivalents, $9.7 million in marketable securities and $23 million in other assets held for sale, primarily gold holdings. We also ended the year with no outstanding debt, which provides flexibility as we invest in platform development and product growth. Over the past 12 months, we raised approximately $55 million in equity capital, which provides sufficient runway to execute our strategy. Turning briefly to the income statement. For fiscal year 2025, we reported a net loss of approximately $461 million. Importantly, the vast majority of this loss relates to noncash accounting items, including fair value remeasurement of derivative liabilities, stock-based compensation, acquisition-related accounting items and amortization of acquired intangible assets. These items do not reflect the underlying operating economics of the business. Revenue remained minimal during 2025 as the company transitions away from legacy operations and toward our tokenization platform. We expect revenues from the platform and related services to begin ramping in 2026. With that overview, I'll now turn the call to our Chief Investment Officer, Mitch Williams, who will walk through our first product, GLDY.

Thanks, Christine. GLDY is the first of many products to come. It is our launch token and it is gold with yield. Token gives you one-for-one gold backing and that gold is put to work with industrial users like jewelers. The token reflects our philosophy of having a value-added activity underlying our tokens. In the case of gold, we match up investors who want to be long gold price movements with industrial users who want to avoid the impact of price variation. We believe it's truly a revolutionary product, and we are very excited about it, and we've had very good market reception, and we'll talk about that on the upcoming slides. The net lease yield is currently 3.5%. So rather than gold sitting in a vault being unproductive, the gold works for you and compounds. The net effect of that is the token NAV is priced in line with gold pricing and you get the yield as additional return on top of the gold price changes. So let's talk about market opportunity, as I know that's been a topic of great interest for people. We see a huge market opportunity for GLDY. On the lessee side, we believe leasing is a better way for industrial users to finance their working capital requirements for gold. On the investor side, even 1% market share of the gold ETF market would be a 10-figure opportunity for GLDY. As the token seasons, we continue -- and we continue to plan AVEs and yield payments, we believe the real-world data around the token will continue to amplify its clear value proposition. So let's talk about the purchase process for the token. We're extremely proud of our development team and the customer-facing platform they've created. We have multiple channels for token purchase, including our credit investor portal and an institutional process as well. If you haven't already, I encourage you to visit the sign-up page. The KYC process is the same as it would be for any other unregistered offering and our team in [indiscernible] integration have made this largely an automated process. We're set up to accept funding from a variety of sources, including fiat cash or crypto as well as physical contributions of gold. Moving to Slide 12, we'll talk about converting the interest we've received from institutions into AUM. So demand for GLDY, after a month after standing up the platform and working through some of our platform vendor integration growing pains, the fund that issues the tokens has about 3,000 ounces of gold, which is sufficient to provide data on mechanics and execution of the token as a financial instrument. Before launching GLDY, we received over $100 million of nonbinding indications of interest from potential customers. These came from ETF issuers, wealth platforms, funds and other financial intermediaries. So the process of converting these indications of interest, I know, has been of great interest. And I know it can feel slow at times to people. And I'll just say that institutions love data. And in addition to the data they get from our PPM, they've been very interested to see the NAVs struck over time. They're reporting from Chainlink and our soon-to-be published monthly attestation reports and more data to come on top of that. And so I think the punchline there is that institutions continue their due diligence, the token continues to season in the marketplace. And I think all those things will enable institutions to show up with meaningful orders over time. And it certainly makes it easier for institutions to complete their due diligence to have real-world data on the token, which is important -- which is why it was so important for us to get it launched. We're encouraged that the parties we've been speaking with over the last several months remain in constructive dialogue with us and are in various stages of due diligence on the token. We remain confident that the initial indications received are moving towards formal orders and contributing to the AUM growth for GLDY. I think it's important to understand context in the marketplace. And so Slide 14 shows the market comparison for RWA tokens. So we do get questions about comparable products in the marketplace, and I think it's especially salient as we think about marketing the token. So I think this table provides some helpful context. So no comp is perfect, but we've included funds that have a similar legal structure like OUSG and BUIDL as well as 2 of the largest commodity gold tokens out there, PAXG and Tether. So for security tokens like OUSG and BUIDL, we can see that the other -- that the holder counts are relatively modest at 56 and 101. And I think that's indicative of the nascent market you face for security tokens. And it's also a function of bigger ticket institutional nature for security tokens. For commodity tokens like PAXG and Tether, you can see much larger user counts, which implies lower dollars per user. Do you have this intersection of sort of mass market and institutional products. We believe that GLDY can touch both of those marketplaces, at least for qualified investors. So with respect to users, the user counts make it clear that institutions have both the interest and the ability to hold security tokens. The advantage that GLDY has versus other security tokens is that there's no comparable TRI DeFi security available with one-for-one backing token yield. So a lot of other security tokens out there have comparable TRI DeFi products. GLDY does not as far as we know. The encouraging data point from the Gold buoyant tokens PAX and Tether is that they show broad user interest in gold on the blockchain with users in the tens of thousands. So based on this data, one of the key changes we've implemented is to lower our investor minimum dramatically from 200,000 down to 25,000, which we believe will open up the token to a broader audience, which is a step clearly called for by the data. In addition, while GLDY has a redeem capability for liquidity, we're also working to bring online secondary markets, which will further enhance liquidity and broaden investor appeal. At this point, I'll turn the call over to our Co-Founder and CEO, Henry McPhie, to discuss how we plan to scale GLDY.

Thank you, Mitch, and thank you to the team for the great overview so far. Now let's get into growth, scaling and early traction for GLDY and other assets. It has now been just over 1 month since standing up the platform and launching GLDY. In that time, we've seen solid early-stage growth. And as Mitch mentioned, we are now sitting in over 3,000 assets -- 3,000 ounces in the asset. Since launch, we've seen an increase in platform sign-ups, growing investor onboarding and continued institutional engagement. During this early adoption phase, there's a number of processes that we have streamlined since launch. We received some great feedback around onboarding and KYC flows and implemented a number of changes to the platform to make the onboarding process easier for users. We also continue to work with our fund administrator, Zedra, and other vendors to ensure that the back-end process for the asset continues to be more streamlined. Now that we have launched, our focus is on scaling, scaling GLDY and expanding liquidity for the asset. There's 5 primary pillars to that strategy. First, converting the existing institutional pipeline into GLDY AUM, both through converting the existing indications and continuing to bring in new institutional orders. Second, expanding the distribution channels through partners and intermediaries such as IRA channels, wealth managers, retail brokers and ETFs. Third is building out the robust secondary market liquidity, which I'll touch on in the next slide, but this is one of the biggest focuses for us right now to ensure that investors coming into the asset have robust liquidity to buy, sell and trade the asset. Fourth is integrating additional blockchain infrastructure and using DeFi in a fully regulated and compliant manner to expand distribution and give additional yield opportunities through vaults, staking protocols and lending markets. And fifth, building on point 3, enhancing liquidity infrastructure through market maker and liquidity provider integration, which we are in the final stages in and will aid in accelerating adoption. Building upon liquidity and scalability aspect for GLDY, we are building several layers of liquidity around the GLDY ecosystem. The first is our launch period mint/redeem facility. This is currently operational and provides T+2 liquidity for both minting and redeeming the asset, a similar structure to that both Ondo and BlackRock use for their tokenized funds. To further enhance primary market liquidity, we will be implementing an instant mint and redeem functionality, and this will be done through partner market makers and liquidity providers and will allow for investors to purchase and redeem GLDY using USDC instantly up to a certain threshold. The most exciting aspect around scalability of the asset and building out liquidity will be a fully functional secondary markets with sufficient liquidity and market makers. This is something that has been top of mind since launch, and we are actively working towards with our partners. Due to the nature of the asset being a security, there are certain features that need to be implemented into the secondary markets. But as these come online, it will open up significant liquidity and the growth opportunity for GLDY. Over time, through secondary market infrastructure, we expect this to evolve towards a 24/7 liquid trading environment for GLDY, our gold with yield product, something that traditionally investment -- commodity investment products simply cannot offer. As we look ahead, our next product will be a tokenized silver asset. This is currently targeted for launch in Q2 of this year. This will expand the Streamex platform beyond gold and introduce additional market participants. The tokenized silver asset will be available for retail investors and will not be a security. This opens us up to a wide market opportunity. We will be looking to implement a number of more DeFi-focused strategies for distribution and yield through vaults, staking protocols, lending, decentralized and centralized exchange listings. We anticipate the tokenized silver asset to complement GLDY, allowing Streamex to have both an institutional-focused product in GLDY and a consumer-focused product in silver out there in the market growing in tandem. Beyond silver, we're also exploring tokenized structures tied to royalties, streams, copper and oil and gas assets, with our long-term vision being to build the infrastructure layer for tokenized commodity markets. To launch GLDY, we have built a strong ecosystem of institutional Tier 1 partners and vendors, including the ones you see on screen. These relationships are critical to ensuring that the platform meets the standards required for institutional adoption. And as we look forward into 2026 and beyond, the key milestones investors should look for include the conversion of the institutional pipeline into GLDY and AUM growth from that, the continued growth in GLDY adoption and user sign-ups, the launch of our tokenized silver product, the expansion of the liquidity infrastructure for all assets that we create and the additional commodity products that we bring online. Each of these steps moves us closer to building a fully integrated tokenized commodities ecosystem. So all in all, in summary, over the past year, we've transitioned into a public company. We have significantly strengthened our balance sheet. We've launched our first product, GLDY, and continue to build out the foundation of the Streamex platform. Our focus now is on execution, growth, scaling GLDY, expanding the product suite and continuing to build out the infrastructure for tokenized commodity markets. We believe we are still in the very early stages of this market, and we are excited about the opportunity and scalability of the company and business model ahead. Thank you very much for joining us today. I will now be answering a couple of questions.

So for the questions, we have received a number of pre-submitted questions that we will be going over on the call today. The first question is, we cited $100 million in indications of interest. Why hasn't that converted to AUM yet? I'll hand this over to Mitch to provide an answer.

Thanks, Henry. And we -- look, we acknowledge the interest in this topic. And I'll say that the token is very new and the institutions move at their own space. So the idea that you would launch a token and on day 1, the institutions would all pile in is not really how the institutional marketplace often works. Institutions collect data. They want to see seasoning of the token over time. They want to see a strike in AVs for a period. They want to see attestation reports come in. And so what I would say is that the institutions we've been engaged with, we remain engaged with. The interest remains as strong as it's ever been. We're very confident that these conversations will result in orders. And so I think really, it's a question of timing. It's not a question of product acceptance or product design or product qualification. And I think, Henry, that probably is the best explanation. And hopefully, people understand that and are as excited about GLDY as we are.

Thank you, Mitch. The next question is regarding secondary liquidity for GLDY. How does it work? And what are its limits? So following up -- I'll answer this one. And so following up on the slides presented and talking about secondary liquidity for the asset. There's a couple of things that we look at there. One is how can we reduce the time line to be instant or primary market activity into GLDY. So that includes minting and redeeming for the asset. That is what we are putting in place with the instant liquidity facility. Right now, it operates on a T+2 where when an investor purchases the asset, they submit their funds and then we go purchase the gold and credit them the amount of gold that they have bought. If they want to redeem the same process, but we then sell the gold and then credit them the amount of cash or USDC that, that gold is worth. For us to be able to put together an instant liquidity facility, that will dramatically increase our ability for users to have a liquidity market on the primary issuance side. And so that is currently being worked on. As we continue to expand beyond that into secondary market liquidity, which is one of the most important things for us as a firm, that will allow for a fully functional secondary market to be available and you can trade the asset similar to how you would trade any other asset, whether it's tokenized or a stock or a bond. That will most likely be via some decentralized avenues that we have. And so that is something that I think the way that we look at it is it is top of mind. It is very important, and all of these facilities are currently coming online. The next question is talking about the specific marketing strategy to drive GLDY adoption. So what is the specific marketing strategy to drive GLDY adoption? I'll hand this question over to Morgan Lekstrom, our Executive Chairman.

Thanks, Henry. So when you're thinking about market adoption of a product like this, it's a multipronged approach. Not only do you have your standard conferences from the Streamex side of things, you have your institutional sales representatives and institutional engagement that Mitch has been talking about this entire time as well as Henry. A part of that is Streamex building out their entire sales force and institutional grade sales force behind that. So not only will we be talking and going out to these conferences and doing that type of marketing, we actually are building our own internal product sales force, much like you would see in any of the large ETFs or any of the large asset managers out there. So going forward, you'll see a lot more engagement, not only on social media, but also out there in the public with these institutions, but on our side as well, you'll see us around. So please drop us a link, give us a call, we're happy to talk. Back to you, Henry.

Thank you, Morgan. The next question is regarding the CLARITY Act. So how does the Draft CLARITY Act impact GLDY and Streamex? So this is a very interesting question, and I'll answer this one. So the CLARITY Act itself, the way that it is currently worded, does not affect GLDY as an asset. So GLDY is structured in a fully compliant way. It is a restricted Reg D security for credit investors. And so that does not apply within the CLARITY Act structure. The CLARITY Act is more focused on stablecoins, how they provide rewards, et cetera, which is actually very good news for us because we have a fully compliant essentially gold-backed stablecoin that provides a yield. And so that is not something that impacts us. The way that we see it in terms of how it could benefit us the CLARITY Act specifically is clarity, no pun intended for essentially secondary markets and the centralized exchanges. And so we've been having a number of conversations with the large centralized exchanges out there about when will securities be able to be issued on the platform? When will you be able to trade securities the same way on, say, Coinbase or Binance as you would within your Schwab or Ameritrade account? They are waiting to see what CLARITY says in terms of that. And so we are eagerly waiting as well to see what the CLARITY Act says about both stablecoin rewards as well as some more information on centralized exchanges and crypto centralized exchanges being able to issue securities, but it does not affect our asset. But I think it's going to be a very, very good thing for the industry when it does come. The next question is regarding the balance sheet and liquidity position. And so Christine, I'll hand this one to you. So you mentioned the strength of the balance sheet. Is the company comfortable with its liquidity position currently? Christine?

Thank you, Henry. So our financing activities in the end of 2025 and 2026 have significantly strengthened the balance sheet to support our launch and early growth activities. When we think about spend, we prioritize it based on revenue-generating infrastructure and strong controls. So we are very comfortable with our balance sheet position and how it is setting us up as we think about our launch of our GLDY product as well as our future launches.

Thank you, Christine. The next question that I'm going to answer is in regards to the 5 pillars, what is management's timing on seeing more of these efforts hit GLDY volume growth? And it seems that we should expect a step function growth at some point. Is that fair? So touching on the 5 pillars in terms of growth of GLDY and how we're implementing those pillars into scaling and liquidity. The way that we see it is these are all things that are currently being advanced very rapidly. And so I think the way that we want to position the asset and the way that we want to be able to grow it is by continuing to increase the amount of both operational and usability of the asset while also continuing to increase liquidity. As we continue to talk with people within the market and continue to talk with investors who want to participate in the asset, the big things that we hear from them is, hey, will there be secondary market liquidity? Will there be liquidity for us to be able to include it within ETFs because they have requirements -- and the answer for those is yes. Those are all things that are actively being worked towards. And I anticipate those contributing to GLDY growth exponentially in the coming months. When you talk about the step function growth, I think this is something that if you look at other sort of tokenized products and tokenized securities like Ondo's OUSG, BlackRock's BUIDL, they do follow that step function growth. And so we do anticipate seeing something similar where essentially large orders coming in, AUM increasing rapidly through those large orders and then continuing to increase on that staircase and in that step function. And so as the market develops, as we continue to build out the infrastructure for liquidity in secondary markets, we do anticipate that impacting the -- positively impacting the growth of GLDY. The last one and last question that we'll talk about, and I think this is an important one is can you in detail, talk a bit more about your specific capabilities and platform in tokenized real-world asset markets? I'll touch on this one. And I think this is something that, one, we're very proud of the technologies that we've been able to build and especially considering the onboarding flow and the back-end infrastructure that allowed us to create GLDY. The platform itself, if you think about it from a UI or user experience standpoint, has been essentially been improved and very much thought about and feedback taken as we've continued to hear that feedback from users since launch. And so the onboarding process, the KYC process, the accreditation process, the things that people need to go through to be able to buy the asset are very important for us. And those are things that when we first launched, we got feedback from people saying, "Hey, maybe you should change this, okay, maybe this could be a lot easier. And we took that feedback and implemented it. And so we were able to reduce the time for onboarding exponentially. We will be able to make it a lot easier for people to onboard. And so now as we continue to grow, we'll continue to take this feedback and continue to apply it into what we create. When you think of the more in-depth technical infrastructure for the asset, so how does it work when we buy -- when we mint the GLDY, the smart contract infrastructure for the asset, those are things that all took one a number of years to create as well as a number of months to really hone in on now that we've been launched. And so those are things like the smart contract for GLDY, implementing the token gating features and implementing the white listing within that, the ability for us to streamline the process between verification of gold purchase and Mint and then also the process of paying out the dividends and paying out the yield itself. Those were all things that we had to build from scratch essentially for stream ads. And so there's no real playbook or there's no way to know what these are. And so we have put a lot of time and a lot of effort in building our platform and creating a platform that isn't just for GLDY and isn't just for a single asset, but it is scalable and repeatable across many assets. You will see that with the silver asset that comes online. You will see that with the copper asset, the royalty streams, oil and gas. These are all things that now we have the plumbing in place and we have all the infrastructure in place, we can continue to scale and continue to bring more assets on market while also integrating more DeFi compatibility and DeFi features into the asset, which I think are very important for us as a company. You've seen the growth of hyperliiquid. You've seen the growth of the DeFi market, especially with real assets right now. And so for us, the ability for us to really be at the leading edge of that and use our technology stack to integrate within these existing protocols that are getting a lot of traction will be quite beneficial, I think, for Streamex, and our team has the expertise and the knowledge and know-how to be able to do that. With that, that will be the last question that we'll be taking. I want to say thank you to everybody for joining the call today. We are excited to be able to move forward and excited to be able to continue growing GLDY, both with the assets that we have on the road map and expanding as we continue on. Thank you very much for joining. And if you have any questions for the company, feel free to reach out to our IR team at Alliance Advisors. You can reach out to Adele and excited to be able to move this forward. Thank you.

This concludes today's conference call. You may now disconnect.