Amber International achieves 8% operating margin with $1.4 million income, announces $50 million share buyback amid strong institutional demand.

Good morning. Welcome to Amber international fiscal year 2025 third quarter financial results. At this time, all participants are in listen only mode. Question and answer session will follow the formal presentation. If you'd like to ask a question at that time, you may press Star one from your telephone keypad and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Mia, Amber Premium's Official HNFI Ambassador. Mia, you may begin.

Good morning and welcome to Amber International Holding Ltd's third quarter 2025 earnings call. I am Mia, Amber Premium's official HNFI Ambassador and your moderator today. Before we begin, please note that today's discussion may contain forward looking statements within the meaning of US Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially. For a more detailed description of these and other risks and uncertainties, please refer to our filings with the securities and Exchange Commission. Joining us on today's call are Michael Wu, Chairman of the Board and CEO who will share our strategic vision and AI transformation initiatives Vicky Wang, President, who will focus on our core business updates, current positioning, offerings and goals Yibao, Chief Product Officer, who will update us on our product development and innovation pipeline Josephine Ngai, cfo, who will review our financial results and provide guidance and Steve Zhang, our Head of Capital Markets. Following their remarks, we will open the line for Q and A. With that, let me now turn the call over to Michael Wu, our Chairman of the board and CEO.

Thank you Mia and thank you all for joining us today. Q3 was a defining quarter for Amber International. We delivered operating income of US$1.4 million within an 8% operating margin, a strong profitability and a clear validation of the operating leverage we have been building quarter after quarter. This improvement reflects not only disciplined cost management, but also a stronger, more durable revenue mix anchored in the premium client engagement and high quality business activity. Underneath the financials, client behavior tells an even more compelling story. Assets on platform grew 20% quarter on quarter to 1.84 billion US dollar, supported by robust inflows and deepening client relationships. Trading activity accelerated across segments, reaffirming that our platform remains a trusted high touch partner for sophisticated investors, particularly in volatile markets where our differentiated capabilities matter most. These results demonstrate the strength of our core we are Asia's leading digital wealth management platform serving the region's most sophisticated clients. With a private banking experience built on technology and unmatched access to digital asset opportunities, this business is profitable, resilient and scalable and it continues to set the foundation for our long term strategy. As part of our ongoing commitment to maximizing shareholder value and demonstrating our confidence in the long term prospects of our business, I'm pleased to announce that our Board of Directors has authorized a share repurchase program of up to US$50 million of our outstanding ads over the next 12 months starting from December 1, 2025. This decision follows directly from the strong Q3 results we just shared with you. The authorization reflects our Board's confidence on multiple fronts. First, in the durability and scalability of our core digital wealth management business, second, in our ability to generate sustainable cash flows and third, in our belief that the current valuation does not fully reflect Amber International's intrinsic value and the long term potential. We intend to execute this program opportunistically over the next 12 months, balancing repurchases with our ongoing investments in technology, AI capabilities and platform expansion. Importantly, this buyback does not signal a shift away from growth. Rather it demonstrates that we can deliver both returning value to shareholders today while building the AI powered Crypto finance platform of tomorrow. As many of you know, Amber is more than a crypto finance platform. At our core we are and have always been a technology driven company remain at the forefront of technology. We must be relentlessly forward looking, technology driven and bold in building what comes next. That brings me to the broader strategic arc. From our founding as Amber AI in 2017, we have held a steadfast belief two technologies, crypto and AI, would fundamentally reshape finance and the broader economy. That conviction has only grown and today we are uniquely positioned to capitalize on their convergence. This quarter we continued to make significant strides in embedding AI at every layer of our operations. Most notably, we have successfully launched the work with MIA Portal and advancing AI integration across both our internal and external processes. Mia, our AI agent and your host today, now plays a hands on role in nearly every ASP of our content generation and social media management, ensuring a new level of operational efficiency and consistency inside the organization. MIA is now live within our internal Slack workspace acting as a proactive, always available teammate, accelerating knowledge sharing and empowering our staff to operate with greater agility. Additionally, we have developed a proprietary knowledge base engine inspired by Ember's unique needs and modeled after Perplexity which is currently undergoing a comprehensive security review prior to full deployment. Together, these initiatives are not simply efficiency upgrades. They are reinforcing Amber as a true technology driven leader at the intersection of AI and crypto finance. We remain committed to harnessing AI to improve the client experience, drive scalable and sustainable growth and further sharpen our competitive edge. Q3 showed that the foundation of our business is strong, the transformation is accelerating and the long term vision remains deeply compelling. AI for crypto in the near term, employing the most advanced agent technologies to scale and personalize premium services, empowering us to better serve sophisticated clients and improve our unit economics. And looking further out, crypto for AI building the rails for the coming agent economy where crypto and AI convergence to redefine how value is created and transferred With Amber positioned at the very heart of this future. Thank you.

Thank you, Michael. As Michael mentioned in Q3, we are carrying forward the same strategic focus from Q2, really doubling down on our high net worth, ultra high net worth individuals and institutional segments. And we're doing that by advancing our infrastructure, new product initiatives and operational discipline. We are already seeing clear evidence that the strategy is taking hold. Our revenue is more diversified, client engagement is deeper and our business fundamentals are stronger. That's why we are increasingly confident in both the growth momentum of our business and its sustainability. As we execute against the strategy, our core business performance is now showing clear and encouraging progress. Assets on platform increased to $1.84 billion, up 20% from $1.53 billion in Q2, driven largely by strong net new asset inflows and stronger client allocation. Together with the significant increase in trading volumes, this clearly shows that clients are not only staying with us, but are growing their engagement across multiple product lines despite market volatility. We have also brought on board experienced professionals with backgrounds in leading professional financial institutions including JP Morgan and Morgan Stanley, which enable stronger client coverage and a level of professional standard that is still unmatched in our part of the industry. Now let me turn to our financial results for the quarter. Total revenue for Q3 was 16.3 million. The major step down is expected as we begin to shift our revenue mix towards higher margin, higher quality revenue streams and more scalable business. As a result, operating profitability were meaningfully improved quarter over quarter with operating margin rising to 8% in Q3 from minus core 4% in Q2. Meanwhile, our core activity continued to gain momentum with transaction volumes up 40% and payment volumes up 26% quarter over quarter. Under this improving revenue mix execution solution revenue saw Strong progress increasing 57.6% quarter over quarter to 3.17 million from 2.01 million in Q2. This growth was driven by greater institutional COTTC market share and more sophisticated trading needs from clients. It underscores our focus on execution quality and disciplined optimization. Payment solution revenue also delivered Robust growth rising 39.9% quarter over quarter to $1.2 million supported by stronger institutional adoption and higher client engagement across the platform. To support this shift towards higher quality revenue, we have been steadily expanding our product offering and upgrading our underlying infrastructure so we can better meet a wider range of client objectives and risk profiles. So looking ahead, we plan to build on this foundation by further enhancing our execution capabilities and product line. In particular, we are looking to grow our Structured Product suite including FINS and daily due currency offerings to help clients generate yields across different market environments while maintaining robust downside protection through stronger risk monitoring. On the trading side, we are focused on further optimizing our pricing models and refining our OTC workflows so clients can benefit from more competitive execution and timely access to more market opportunities. We will also keep pushing forward on our RWA initiatives which are designed to unlock more diversified yields and improve capital efficiency across both traditional and digital exposures and YI will elaborate further on this shortly. In addition, we are developing digital asset inheritance solutions to support long term wealth planning for family offices and ultra high net worth clients. This is a natural extension of our ambition to deliver private banking grade service in digital assets with a clear institutional framework for succession and estate planning. By making digital assets a seamless part of their broader wealth plans, we make it more confident for this client to put more meaningful capital to work with this over time. On the client acquisition side, with our front office team growing, we are taking a more proactive approach to reaching premium clients. We are rolling out curated offline and online engagement programs in key wealth communities across Asia. This initiative will definitely help us to increase our visibility in elite networks, accelerate trust based client acquisition and strengthen long term relationships with elite clients. Taken together, we are very confident that we are moving in the right direction, investing in high quality revenue, enhancing our product and execution capabilities and continue to deepen engagement with our core client segments. We believe that these steps will position us well for long term growth and value creation in the quarters ahead.

Okay, thanks Vicky. I would like to update you on the two areas where we continue to invest for future growth. The first part will be the evolution of our platform and product suites and the second part is the build out of our real world assets or RWA tokenization capabilities. These are the same pillars I highlighted last quarter and in Q3 we moved meaningfully from vision to execution for platform evolution and product innovation. Our starting point remains the same. Crypto is structural, cyclical and our product roadmap is built to support clients through both down and up cycles from capital preservation and yield to access, leverage and Alpha. In Q3 we made concrete programs on three fronts. First, we are integrating OTC into the platform. We are streamlining the OTC decks, execution operations and product illustration within our application and website. Whether a client trades via flow traders, relationship managers or self direct on the platform, they are increasingly getting a single holistic view of their total assets and exposure with us. This reduces internal friction and gives institutional and family offices clients clearer real-time visibility. Second, we are building our AI copilot. We advanced development and AI copilot designed to make the platform more proactive and advisory, not just transactional. It will support the daily account recaps and the key P and L risk drivers and the portfolio and account reviews highlighting what requires attention and the target markets and product insights within each client's risk parameters. We have started internal pilots and we see this as a core enabler of scalable and high touch coverage. Third, about the new structured products on the product side we softly launched more advanced structures such as deleveraged accumulator, accumulator and the FCN type payoffs. This solution helps sophisticated clients express views and enhance yield with defined ranges anchored in robust risk management and suitability. Combined with our existing suite, this strengthen our ability to serve clients across different stages of the market cycle. Overall platform evolution is about making our efforts to institutions, family, office and accredited investors more seamless, more intelligent and easier to scale. These initiatives directly support our goal of improving unique economics while delivering superior client experiences, enabling us to serve more sophisticated clients profitably without proportional increases in headcounts. Then let's Turning to rwa tokenization in Q3 we saw growing inbounds interest from listed companies, family offices and corporates exploring how to bring assets on chain for capital efficiency, distribution and more programmable instruments. The demand drivers are clear. The challenge for most organizations is execution. In response we focus on productizing our capabilities into an internal RWA platform solution rather than treating each opportunity as a one off project. The goal is a standard seamless SOP we can offer as a technology service provider covering onboarding and structuring, insurance technology capability and the servicing of tokenized instruments and costly and connectivity to distribution values. We are on track to set up the core RWA platform in Q4 and expect it to start generating revenues thereafter, mainly via technology and service fee initially. Over time we see this platform sitting naturally alongside our trading and structured product business and enabling clients to hold tokenized products directly within their broader digital wealth portfolio. With us to close both pillars, Platform Evolution and RWA tokenization are fully aligned with our institutional strategy. They deepen our value proposition to sophisticated clients, leverage our existing regulatory and product strengths and expand our addressable markets while improving scalability and unique economics. I'm encouraged by the programs in Q3 and looking forward to the milestones ahead in Q4 and beyond. I will hand over the MIC to our cfo Josephine Ngo.

Thank you. Yi Good morning everyone. I will now review our financial results for the third quarter and September 30, 2025 and explain how they align with our business strategy. Crispy noted that all financial results discussed during this call reflects continuing operations only since we optimize our business to drive return to the shareholders through proactive monitoring on our operations and market trends and certain operations under iCliq were classified as held for sale as of the end of third quarter of 2025. This quarter we delivered solid record results across key financial metrics, demonstrating the strength of our business model and the growing institutional demand for our solutions. We generated total revenue of US$16.3 million, which increased significantly from US$0.6 million a year ago. It is primarily attributable to robust growth in Wealth Management Solutions and Execution Solutions as well as as integrations of revenue from marketing and Enterprise solutions following the merger with icliq. In addition, the continuous expansions of Ember DWM business also contribute to the revenue growth. Revenue from our wealth management solutions was US$7.5 million, which significantly increased from US$0.5 million in the same period last year. The Execution solutions generated US$3.2 million revenue this quarter compared with US$0.1 million in the third quarter of 2024. Regarding the payment solutions, it was increased to US$1.2 million this quarter compared with US$0.1 million in the third quarter quarter 2024. Revenue for marketing and enterprise solutions was US$4.4 million after the reclassification of income statements from disposing units in Q4, which was consolidated in the list company after the merger this year. What particularly encouraging about this result is the ongoing improvement in our profit profile year over year. Gross Profit for the third quarter of 2025 reached US$11.8 million compared to US$0.4 million in the same period of 2024 Gross profit margin demonstrate an upward trend to 72.3% in the third quarter of 2025 from 44.7% in the third quarter last year. The operating income was US$1.4 million in the third quarter of 2025 and achieved it turned around some US$1.8 million operating loss in the third quarter of 2024. As a result of our growth in gross profit and strengthened operating leverage, the net income from continuing operations was 2. US$2.2 million compared to net loss from continuing operations of US$0.8 million in the back quarter of 2024. As a result of the foregoing as of September 30, 2025, the Company has cash and cash equivalents time deprocessed and restricted cash of US$39.9 million compared to US$9.3 million as of December 31, 2024. This strong cash position, supported by both our July 2025 private placements provide us with strategic possibilities to invest in high return growth initiatives including RWA tokenizations and our AI powered platform capabilities. On an on GAAP basis, the adjusted EBITDA from continuing operations reached US$2.9 million and adjusted net income from continuing operations was US$2.7 million. I will now provide an update on our forward looking outlook based on current market conditions and our time period preliminary estimates. We expect 2025 full year revenue from our Amber premium segments to be in the range of 50 million to 52.5 million. This guidance reflects our expectations on sustainable institutional demand and the diversifications of our revenue stream across wealth management, executions and payment solutions. This outlook is also based on current market conditions and our assessments of continued institutional adoptions of digital assets and reflects the Company's preliminary estimates of market and operating conditions, expected foreign exchange fluctuation and customer demand which are all subject to change. Please also refer to the factors set out under the sections Title Title Safe Harbor Statements in the Earnings Looking ahead In addition to the external business strategy that we mentioned before, internally we implementing disciplined cost management to drive continued improvement in operating leverage as we scale. We are also enhancing our financial reporting system to provide transparent insight into into our performance as we integrate the operations following our merger. We maintain strong liquidity and balance sheet flexibility in order to support our global expansions and strategic partnerships to improve the profitability demonstrates that our institutional approach is resonating with clients and creating values for shareholders. With that, I will turn the call back to mia. Thank You. Thank you, Josephine. That concludes our prepared remarks for today. We will now open the line for Q and A operator. Please begin.

Thank you. If you'd like to ask a question at this time, you may press star one from your telephone keypad and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please for our first question. Thank you. And the first question comes from the line of Brian Dodson with Clear Street. Please review with your questions. Hi, good morning. So first question on the share repurchase authorization. As you're thinking about utilizing that, would you take a more opportunistic or programmatic approach to retiring common shares?

Hi Brian. Thanks for the question regarding the execution of this share repurchase program. You know, I mean, we are taking an open minded approach, right? We may repurchase ADS through open market transactions, prevailing market prices. We might conduct privately negotiated transactions, we might do block trades or any combination of these. Again, you know, we will conduct all purchases in compliance, but you know, regarding the specific timing, the type of transactions, the amount will all depend on, you know, a lot of factors, right, including the share price itself, the volume market conditions, you know, working capital requirements, requirements and other general business conditions. And again, you know, given the decision is from our board of directors, our board will also review the program periodically and may authorize adjustments to the terms size based on evolving business needs and the market conditions.

Yeah, great, thanks. And then do you think you could just touch on some of the key drivers of better than expected volumes in 3Q? And you know, I know it's, you know, it's early in 4Q but what are you seeing so far? Do you expect that strength to continue? Yeah, hi, Brian. Yeah, this is Ian. For the volume side, I think you may see the number in Q3, both execution payment. Payment volumes pick up dramatically. And in Q3 the main driver is about, I mean the raising the risk of ETH price. You can see in the Q3 it prompts the ETH miners, some of the previous ETH miners to take profits and engaging in the promotional trading which sparks our, I mean the execution volume a lot and also the, you know, the ETH price rally really well, sparking imagination of the small cap tokens. And so some like headphones, et cetera, they're just doing the rebalancing with their portfolios and then they engage us with Execution service and also yeah there was some high profile IEO etc projects. They just maybe engage us to do some I mean the buy and selling activity as well. So this will be the key drivers of the execution model in terms of the Q4. I could anticipate that if the market volatiles continues we can imagine there was the active trading behaviors and which will engage us to or using our execution of the trading desk capabilities going forward. I hope I answer your question. Yeah, that was very helpful, particularly the commentary regarding volatility. Thanks very much.

Thank you Brian.

Our next question is from the line of Ed Enckel with Compass Point. Please proceed with your questions. Hi everyone, thanks for taking my question. I know over in Hong Kong we're coming off of a pretty big the fintech festival over there. Then obviously we had token 249 the past couple weeks. Just wondering as you start to see more of these mainstream financial institutions kind of attend these conferences, how are your. Conversations with this kind of group and.

How close do you think we are to potentially one day kind of forming a partnership with a company like one of these more traditional institutions? Thanks. Hi, thanks for the question. Yeah, I think I'm attending several panels in the Hong Kong fintech Festival and the Singapore Fintech Festival. I think their interests are mainly focused on the stablecoins and the real world assets (RWA) perspective and they just want maybe finding some solutions for them to tokenize money market funds, real estates, stocks, public stock, private shares and they want like a one stop service even for them to distribute. Right. So this is what the inbound, lots of the inbound interest coming to us. So we as I mentioned during maybe the past session we are actively engaged with them talking about how could we help them to do the real world assets (RWA) initiatives. And in terms of the stablecoins. Yes, I assume Hong Kong is drilling out the stablecoin regulation and license regime and I hope we anticipate there will be some of the stablecoins partners in the future to maybe discuss with about how to list within our licensed regulatory platform, et cetera. But it's still some preliminary discussion. But to answer your questions we do find out lots of the traditional institutions, they are quite interested in the stablecoin real world assets (RWA) kind of initiatives and we are definitely one of the maybe the potential service providers among their options.

Thank you.

Great, appreciate the color. And then I guess since the flash. Crash or liquidations for the industry back. In early October, curious on a medium. Term perspective, does this create any opportunity for kind of amber, I guess to increase market share in any of the areas. Thanks.

Hi, this is Steve. I'll take that one. So as with cycles before, typically in these kind of events there are players that would be whose risk management might not be completely up to par that would be hurt by such a liquidation event. However, that presents opportunities for market share to shift to players with I guess more stringent risk control and platforms where folks perceive to have more stability or financial or financial backing. So I think we did benefit from that shift in the past month or so and we continue to. Hope to. Capitalize on these opportunities as some of the other smaller desks and smaller players retrench from such an event. So right now we're still looking at this as additional incremental opportunities for us.

Great.

Thanks everyone and congrats on all the progress.

Thank you.

Thank you. There are no additional questions at this time. Mia, do you have any comments? Thank you. I'll turn the call back to Mia for closing remarks.

We're going to answer one more question.

Sure.

Yeah. We have some questions from the system. There's a question from Kelvin. The question reads, since the merger Amber's stock price has softened. How do you position your valuation versus peers and what key metrics should investors focus on? So you know, I think again fundamentally we are as we mentioned, you know, we are building what we believe a company at the frontier of technologies. We really position Amber to be at the forefront of of crypto and AI and we do believe the two technologies will not only converge but they will reshape finance and the broader economy. Therefore, we are really taking a long term technology driven growth approach towards our business and towards how we build the company. Rome is not built in one day. We have a lot of patience, a lot of commitment to realize that really, really greater and ambitious vision. Now in the meantime that does not mean we only focus on the long term. We do care about how to maximizing shareholder values. Market sometimes does its own thing. But that's why both we have focused day to day to improve our business, to generate revenue, to generate profits. As you can see, the business is profitable, the business strong, the business highly resilient across market cycles. At the same time we are taking different approaches, we are trying different ideas and the board in this case bless us with this share buyback program. And again we are trying to both with a very long term approach built towards our vision. And we do think Amber has an opportunity to become really a cornerstone of that future we envision. At the same time, in the immediate term we care a lot about how to return values to shareholders and taking all kinds of measures in that as well. In terms of valuation versus peers, again, I do think we have quite uniquely positioned most listed crypto companies. A lot of them either fall into the category of retail focused crypto exchanges or into the category of crypto miner or miner related companies. Amber is neither. We are positioned as Asia's leading digital wealth management platform and we do service a very unique and extremely strong client base of institutions and family offices and high net worth alike. So we do think we are in a unique position and it's a bit harder to compare us directly with other companies. But if you really want to look at metrics, you do see we are a profitable company. We're growing our revenue. Of course the industry can be cyclical, but at the same time, I think over time, if you look at the company's history going backwards and if you see the companies going forward, I do think we'll continue to see growth in revenue and profitability. Another question reads, congrats on Q3. I'm curious about your outlook on the crypto market and how you expect it to influence revenue and the profitability going forward. I think my colleagues Yi and Steve both touched upon this question a little bit. I think it's very hard to predict the market in the short term. Long term we're extremely confident about the growth of the crypto industry, the crypto market and the blue chip assets such as bitcoin stock. But in the near term there will be volatilities. We do see since October there has been a sharp price decline and overall shrinking liquidity in the crypto market. In the near term that will impose challenges to some investors, to some investor confidence. But at the same time, there are also factors potentially benefiting us, such as what Steve mentioned. There are other potential smaller players or players who are less robust in terms of their risk management that will leave market share and leave potential client activities towards us or players like us. So yeah, I mean, you know, it's hard to predict the market itself, but you know, again, if we bring the horizon a bit further and look at the long term, we are both extremely confident about the industry, about the market long term, and also confident about our own growth. I think that's all the questions we have answered today.

Thank you. There are no additional phone questions.

Thank you all for joining us today. This quarter represents a pivotal step as we accelerate our AI driven transformation and reinforce our commitment to institutional excellence, reaffirming Amber International's position as a global leading digital wealth management platform. We sincerely appreciate your continued trust and support, and we look forward to sharing further updates with you in the upcoming quarter. This concludes today's call. Thank you and have a great day.