Datavault AI Q3 2025: Contradictions Emerge on Revenue Guidance, Scilex Investment, Strategic Partnerships, and Real-World Asset Tokenization

Guidance:

• 2025 revenue guidance raised to over $30 million.
• 2026 revenue guidance increased to a minimum of $200 million.
• Expect to recognize an $8 million geothermal tokenization engagement in Q4 and thereafter receive a 5% revenue stream from geothermal.
• Company expects blended gross margins around 55%–60%, with certain acquired businesses at ~35%–45% and exchange/licensing revenues materially higher.
• $150 million Scilex financing expected to close ~Nov 24–25, boosting liquidity to roughly $125M–$130M after planned transactions and removing convertible debt.

Business Commentary:

* Revenue Growth and Strategic Investment: - Datavault AI reported an expected revenue guidance increase from $50 million to $200 million minimum for 2026, marking a significant boost in projection. - This growth is driven by the performance of Datavault, WiSA, ADIO technology, and strategic partnerships, including a $150 million equity investment from Scilex.

• Real-World Asset (RWA) Tokenization:
• Datavault AI focuses on tokenizing various real-world assets globally, with a current focus on assets like gold, diamonds, and tin in Africa.
• 

• The company aims to recognize revenue from geothermal tokenization in Q4, contributing to the increased revenue guidance.

• Acquisitions and Exchange Launch:

• The company recently acquired API Media and announced plans to consolidate and expand CSI, with aspirations to launch several specialized exchanges.

• These acquisitions and investments are expected to drive revenue through strategic licensing models and exchange fees.

• International Expansion and Partnerships:

• Datavault AI has expanded its global presence with offices in Zurich, London, Taiwan, Japan, Korea, Hong Kong, and a headquarters in Philadelphia.
• This expansion is supported by strategic partnerships, including with IBM and NYIAX, providing access to global markets and advanced technologies.

Sentiment Analysis:

Overall Tone: Positive

• Management repeatedly described results and outlook as "incredible" and said they will "aggressively advance our guidance," raising 2026 guidance from $50M to a $200M minimum; CFO characterized the $150M Scilex investment as effectively cash, materially strengthening the balance sheet.

Q&A:

• Question from Ken Londoner (Endicott Partners): That was a comprehensive update. Can you give us some detail on the scope of contracts you're talking about regarding the tokenization of real-world assets? You mentioned quite a few, but what are sort of the big focuses for you going forward?
  Response: Management: Focus on tokenizing the highest-value RWAs (gold, diamonds, copper and prioritized geothermal) and pursuing carefully structured international exchanges (e.g., Swiss exchange) to generate near-term revenue.

• Question from Jack Vander Aarde (Maxim Group LLC, Research Division): The guidance is jumped off the page to me. So revenue guidance raised in 2025 to over $30 million and $200 million plus revenue for 2026. So maybe help us understand what's sort of locked in that 2026 guidance versus how much is kind of are you working towards locking in? Just so we have a sense of maybe stress testing that a little bit.
  Response: Management: The $200M is an aspirational public target management believes achievable but depends on successful Q4 execution, proper revenue recognition/auditing, and scaling development resources (Georgia Dev Center and Philadelphia HQ).

• Question from Jack Vander Aarde (Maxim Group LLC, Research Division): On the gross margin line, so if we just look kind of going forward, these are, I imagine, high-margin licensing agreements right now on paper. And I've yet to see it play out within the tokenization on your guys' income statement. So that's going to be a forward-looking thing. Can you just help maybe, help us -- help investors understand what are we going to look like on the gross margin line as these revenues would seem to be pretty large, especially relative to historical levels?
  Response: Management (CFO): Expects a blended company gross margin around 55%–60% next year, with CSI/API/NYIAX-style revenues at ~35%–45% and licensing/exchange revenue materially higher (exchanges can approach very high margins).

• Question from Jack Vander Aarde (Maxim Group LLC, Research Division): How do we think about the balance sheet? We have a huge Bitcoin investment, it sounds like coming in from Scilex. There's been a lot more acquisitions that have closed subsequent to the quarter. So there's debt, there's fiat cash. Maybe if we could just boil it down, do we have a rough sense of what cash is and what the state of that investment is from Scilex?
  Response: Management (CFO): The $150M Scilex financing is committed but pending shareholder approval (Nov 24); once closed, company expects roughly $125M–$130M of liquid assets after acquisitions, convertible debt removed, leaving only acquisition-related debt.

• Question from Jack Vander Aarde (Maxim Group LLC, Research Division): With the Bitcoin investment, let's say the shareholder vote is approved, so all $150 worth of Bitcoin is now in your possession. Are you going to be -- does that mean your -- how much of that is going to be kept in the form of Bitcoin versus how much of that is out the door to fund some of this stuff?
  Response: Management (CFO): There are no treasury restrictions; the $150M is treated as cash-equivalent and can be deployed as working capital or investment as needed.

• Question from Peter Ruggieri (Private Investor): I'm ... I'm wondering what's the revenue contract backlog right now? (and related: how does Scilex/broader biotech strategy factor into your growth and exchange plans?)
  Response: Management: Backlog is described as significant—company is building governance, exchanges and digital-twin/biotech capabilities with Scilex and national lab partnerships, positioning biotech and other RWAs as major, near-term revenue drivers.

Contradiction Point 1

Revenue Guidance and Strategic Goals

It involves significant changes in revenue guidance and strategic goals, which are critical for investors' understanding of the company's growth trajectory.

What portion of the 2026 $200M+ revenue guidance is already secured versus still in progress? - Jack Vander Aarde (Maxim Group LLC, Research Division)

2025Q3: We aim high with our public guidance. Our competitors have higher numbers but are older and bloated. We're agile and have IBM's backing. Q4 will be steepest due to technological resources. Our new Philadelphia development center will support global demand for tokenomics. - Nathaniel Bradley(CEO)

What is the company's revenue outlook and growth strategy? - Nathaniel Bradley

2025Q2: Our revenue target for fiscal year 2026 is on track. We anticipate explosive revenue generation, driven by our ability to create revenue systemically. Our strategy involves automating processes and leveraging AI technology to maximize profitability for stakeholders. - Nathaniel Bradley(CEO)

Contradiction Point 2

Scilex Investment and Balance Sheet Impact

It involves the impact of the Scilex investment on the company's balance sheet and financial situation, which is crucial for investors' assessment of the company's financial health.

What's the current state of the balance sheet, considering the Bitcoin investment from Scilex and recent acquisitions post-quarter? Can you provide a rough estimate of cash on hand and the status of the Scilex investment? - Jack Vander Aarde (Maxim Group LLC, Research Division)

2025Q3: Scilex investment is $150 million, pending shareholder vote. Once approved, it becomes liquid assets. Convertible debt is off the balance sheet. Debt associated with acquisitions remains. Balance sheet will be strong after year-end reporting. - Brett Moyer(CFO)

What strategic partnerships and agreements has Datavault AI secured? - Nathaniel Bradley

2025Q2: We have secured strategic partnerships with IBM, which has made us a platinum partner. We have also secured a $12 million financing from Anson and an SEG opportunity fund. Additionally, we have agreed to acquire API Media and have successfully integrated the CSI team. - Nathaniel Bradley(CEO)

Contradiction Point 3

Revenue Growth and Guidance

It involves significant changes in revenue growth expectations, which are critical for investors to gauge the company's financial health and future prospects.

How much of the 2026 $200M+ revenue guidance is already secured versus still in progress, and how should we stress test these projections? - Jack Vander Aarde (Maxim Group LLC, Research Division)

2025Q3: Revenue guidance raised in 2025 to over $30 million and $200 million plus revenue for 2026. - Nathaniel Bradley(CEO)

Could you clarify your initial expectations for WiSA E in Q4 and your 2025 WiSA E expectation? - Jack Vander Aarde (Maxim Group)

2024Q3: For fiscal 2025, we expect WiSA E-related revenue to have a significant uptick in Q4 versus Q3. - Brett Moyer(CFO)

Contradiction Point 4

Transformation in Strategic Partnerships and Acquisitions

It involves changes in strategic partnerships and acquisitions, which are critical for investors' understanding of the company's growth strategy and financial health.

How much of the 2026 revenue guidance is already secured versus still in progress? - Jack Vander Aarde (Maxim Group LLC, Research Division)

2025Q3: On the acquisition and partnership front, API Media, a fast-growing gaming platform with over 30 million users, is now part of Datavault AI. Additionally, we have acquired the CSI team, which has expertise in blockchain and digital asset management. - Nathaniel Bradley(CEO)

What strategic partnerships and agreements has Datavault AI secured? - Nathaniel Bradley

2025Q2: We have secured strategic partnerships with IBM, which has made us a platinum partner. We have also secured a $12 million financing from Anson and an SEG opportunity fund. Additionally, we have agreed to acquire API Media and have successfully integrated the CSI team. - Nathaniel Bradley(CEO)

Contradiction Point 5

Real-World Asset Tokenization Focus

It involves shifts in the company's strategic focus on tokenizing real-world assets, which could impact revenue projections and investor expectations.

Could you clarify the scope of contracts related to real-world asset tokenization and outline your key focus areas moving forward? - Ken Londoner (Endicott Partners)

2025Q3: The strategy is driven by the quality of the assets being tokenized, including gold, diamonds, silver, and copper. We follow the money and valuable assets globally. The geothermal deal is prioritized, with recognition of revenue expected in Q4. - Nathaniel Bradley(CEO & Director)

Are the 3 additional WiSA E agreements similar in scale to the existing 5 agreements? - Jack Vander Aarde (Maxim Group)

2024Q1: The company is leveraging its blockchain technology to drive into new markets in the areas of real estate and other tangible assets, and we recently announced the creation of a new digital marketplace. - Brett Moyer(CEO and President)