Amber's Q3 2025 Earnings Call: Contradictions Emerge on Market Share, Global Expansion, and M&A Strategy

Date of Call: September 30, 2025

Financials Results

• Revenue: $16.3M, up from $0.6M in Q3 2024 (significant year-over-year increase)
• Gross Margin: 72.3%, compared to 44.7% in Q3 2024
• Operating Margin: 8%, up from -0.4% in Q2 (sequential improvement); operating income $1.4M

Guidance:

• Full-year 2025 revenue from Amber Premium segments expected to be $50.0M–$52.5M.
• Core RWA platform to be set up in Q4 with revenue expected thereafter, initially via technology and service fees.
• Company implementing disciplined cost management to improve operating leverage as it scales.
• Board authorized a share repurchase program of up to $15M of ADSs starting December 1, 2025.
• Expectation of sustained institutional demand and diversified revenue streams.

Business Commentary:

* Operating Profitability and Revenue Mix: - Amber International Holding Limited reported operating income of $1.4 million, with an 8% operating margin in Q3 2025, reflecting a strong profitability and validation of operating leverage built quarter after quarter. - The improvement was supported by disciplined cost management and a stronger, more durable revenue mix anchored in premium client engagement and high-quality business activity.

• Assets on Platform Growth:
• Assets on the platform grew by 20% quarter on quarter to $1.84 billion in Q3 2025.

• This growth was primarily driven by robust inflows and deepening client relationships, indicating client engagement across multiple product lines despite market volatility.

• Share Repurchase Program:

• The board authorized a $15 million share repurchase program of outstanding ADS over the next 12 months, starting from December 1, 2025.

• The authorization signals confidence in the durability and scalability of the core digital wealth management business, as well as the ability to generate sustainable cash flows.

• AI Integration and Platform Evolution:

• Significant strides were made in embedding AI across operations, with the launch of the Work With Mia portal and AI integration in internal and external processes.
• This initiative aims to enhance operational efficiency, consistency, and client experience, positioning Amber as a true technology-driven leader at the intersection of AI and crypto finance.
  
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management highlighted operating income of $1.4M and an 8% operating margin, assets on platform up 20% QoQ to $1.84B, total revenue of $16.3M vs $0.6M year-ago, a board-authorized $15M buyback, and FY2025 revenue guidance of $50M–$52.5M, indicating confidence and momentum.

Q&A:

• Question from Brian Dodson (Clear Street): As you’re thinking about utilizing that, would you take a more opportunistic or programmatic approach to retiring common shares?
  Response: Repurchases will be flexible and opportunistic (open-market, privately negotiated, block trades or combinations), with timing/amounts driven by share price, volume, market conditions and periodic board review.

• Question from Brian Dodson (Clear Street): Do you think you could just touch on some of the key drivers of better-than-expected volumes in 3Q? I know it’s early in 4Q, but what are you seeing so far? Do you expect that strength to continue?
  Response: Q3 volume surge was driven by ETH price moves prompting miner profit-taking, small-cap token rebalancing and IEO-related activity; management expects continued activity if market volatility persists.

• Question from Ed Engel (Compass Point): As you start to see more mainstream financial institutions attend conferences, how are your conversations with this group, and how close are you to potentially forming partnerships with traditional institutions?
  Response: Traditional institutions show rising interest in stablecoins and RWA tokenization; Amber is in preliminary engagements positioning itself as a potential one-stop RWA/stablecoin service provider and distribution partner.

• Question from Ed Engel (Compass Point): Since the flash crash or liquidations in early October, does this create any opportunity for Amber to increase market share in any areas?
  Response: Such liquidation events hurt players with weaker risk controls and create market-share opportunities for firms with stronger risk management; Amber has benefited and sees incremental opportunity to capture share.

• Question from Kelvin (system) via Ed Engel (Compass Point): Since the merger, Amber stock price has softened; how do you position your valuation versus peers, what key metrics should investors focus on, and what's your outlook on the crypto market's influence on revenue and profitability?
  Response: Amber positions itself as a distinct, profitable Asia-focused digital wealth manager serving institutions and family offices (hard to compare to exchanges/miners); management advises focusing on revenue growth, profitability and client quality, highlighted a $15M buyback to return value, and reiterated long-term confidence in crypto despite near-term volatility.

Contradiction Point 1

Market Share and Competitive Landscape

It involves differing perspectives on the competitive landscape and market share opportunities, which are critical for understanding the company's strategic positioning and growth potential.

Does the recent flash crash present an opportunity for Amber to increase market share? - Ed Engel (Compass Point)

2025Q3: The flash crash has led to risk management issues for smaller players, which presents an opportunity for market share shift towards more stable platforms like Amber. We are actively capitalizing on these incremental opportunities. - Steve Jiang(CPO)

What is the competitive landscape in your key markets, including Dubai, Hong Kong, and Singapore? - Kevin (Alliance Global)

2024Q4: Amber operates a unique business model with no direct competitors, especially in Asia. Their listing status sets them apart with better governance and transparency. - Wayne Huo(CEO), Terence Li(CFO)

Contradiction Point 2

Regional Revenue Sources and Global Expansion

It involves differing statements about the company's revenue sources and regional expansion, impacting investor understanding of the company's revenue diversification and growth strategy.

How close are we to partnering with mainstream financial institutions? - Ed Engel (Compass Point)

2025Q3: We are actively engaging with them to provide solutions. Stablecoin partnerships are anticipated for the future. - Michael Wu(Chairman of the Board and CEO)

How does obtaining the Dubai license impact your operations given that most revenue comes from Dubai, and will it make customer acquisition easier? - Kevin (Alliance Global)

2024Q4: Amber operates globally and is not yet present in the Middle East. With a Dubai license, they plan to tap into local clients, expanding their client base and market reach. - Wayne Huo(CEO)

Contradiction Point 3

Market Volatility and Trading Volumes

It involves differing perspectives on the impact of market volatility on trading volumes, which directly affects the company's revenue and profitability.

What were the key drivers of strong Q3 volumes, and will this strength continue into future periods? - Brian Dodson (Clear Street)

2025Q3: Trading volumes correlate with market performance. Crypto price movements in Q1 2024 and Q1 2025 differ significantly. Despite this, we see sustained institutional demand for our execution services due to flexibility and efficiency. - Wayne Huo(CEO)

What caused the year-over-year decline in trading volume? - Brian Kinstlinger (Alliance Global Partners)

2025Q1: The volume increase in Q3 was driven by the rise in ETH price, ETH miners taking profits, hedge funds rebalancing portfolios, and high-profile IEO projects. If market volatility continues, we anticipate active trading behaviors leading to higher volumes. - Yi Bao(CPO)

Contradiction Point 4

Crypto Ecosystem Reserve Investment Strategy

It highlights differing strategies in the deployment of the crypto ecosystem reserve, which could impact long-term growth and revenue generation.

For the share repurchase authorization, would you adopt an opportunistic or programmatic approach to share repurchases? - Brian Dodson (Clear Street)

2025Q3: We've just begun deploying capital into the fund. The initial funding comes from our balance sheet. Our investments include a strategic involvement in NASDAQ-listed DeFi Development Corp, a Solana treasury company. We are focusing on high-conviction tokens like Bitcoin, Ethereum, Solana, and Binance Coin. - Steve Zhang(CPO)

What is the $100 million crypto ecosystem reserve? How much have you invested so far, and how do you approach diversification across different cryptocurrencies? Do you have plans to invest in public digital currency treasury companies? - Brian Kinstlinger (Alliance Global Partners)

2025Q1: Our strategic crypto reserve enables us to offer more crypto native products. These require token commitment and alignment with client interests. We're deploying capital gradually, observing market reactions, and focusing on long-term growth. - Wayne Huo(CEO)

Contradiction Point 5

M&A Strategy and Expansion

It highlights changes in the company's M&A strategy and expansion plans, which can impact the company's growth trajectory and investor expectations.

How close are we to partnering with mainstream financial institutions? - Ed Engel (Compass Point)

2025Q3: Traditional institutions are interested in stablecoins and RWA initiatives. We are actively engaging with them to provide solutions. Stablecoin partnerships are anticipated for the future. - Michael Wu(CEO)

What is your outlook for 2021, particularly Q1 2021 and full-year 2021, for Online Marketing and Enterprise Solutions? Can you discuss your M&A strategy related to the CMRS acquisition? - Thomas Chong (Jefferies)

2020Q3: The M&A strategy focuses on Enterprise Solutions and SaaS providers, with a focus on customer behavior data analysis, AI technology, and services related to KOL and livestream. The acquisition of CMRS is expected to provide supplementary services and expand the overseas market. - Jian Tang(CEO)