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Bakkt Holdings, Inc. (BKKT)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $577.9M, up 13.3% YoY on stronger crypto activity, but down 46.2% QoQ as market activity cooled; net loss was $30.2M, while adjusted EBITDA loss improved 29.9% YoY to $12.6M. Total operating expenses fell QoQ in line with revenue; operating loss improved YoY to $18.5M .
  • Management executed structural moves: closed a $75M equity offering to fund a Bitcoin treasury strategy, signed a definitive agreement to divest Loyalty (discontinued ops in Q3), completed sale of Bakkt Trust to ICE, and announced a CEO transition to Akshay Naheta effective Aug 11, 2025 .
  • KPIs reflected mixed trends: notional traded volume $733.1M (+9.0% YoY, −39.6% QoQ), assets under custody $1,355.0M (+39.1% YoY, −27.7% QoQ on Trust sale), and transacting accounts ~689k (flat YoY, −11.4% QoQ) .
  • Quarterly guidance remains suspended; consensus estimates from S&P Global were unavailable, preventing beat/miss assessment. Catalysts include the Bitcoin treasury push in Japan (bitcoin.jp), stablecoin payment expansion via DTR, cost discipline, and balance sheet actions (debt elimination announced Sept 15) .

What Went Well and What Went Wrong

What Went Well

  • Raised $75M gross in a public offering to fund Bitcoin and digital assets per investment policy, strengthening liquidity for treasury strategy .
  • Adjusted EBITDA loss improved 29.9% YoY to $12.6M as SG&A and compensation declines took hold, reflecting 2024 restructuring benefits .
  • Strategic focus sharpened: divested Bakkt Trust to ICE, signed a definitive agreement to sell Loyalty (discontinued in Q3), and advanced DTR stablecoin partnership and tech upgrades, with CEO transition to drive execution .
    Quote: “Bakkt is a leaner, more agile organization… focused on the massive and accelerating digital asset trend” — Andy Main .
    Quote: “Three pillars… brokerage-in-a-box upgrades, stablecoin payments (Bakkt Agent), and expanding Bitcoin treasury (starting with Japan)” — Akshay Naheta .

What Went Wrong

  • Revenue fell 46.2% sequentially to $577.9M on reduced market activity; notional traded volume declined 39.6% QoQ; transacting accounts fell 11.4% QoQ, indicating near-term engagement softness .
  • Returned to a net loss of $30.2M QoQ, driven by the absence of Q1’s warrant liability fair value gain; operating loss remained $18.5M (flat QoQ), showing limited operating leverage at current activity levels .
  • Assets under custody decreased 27.7% QoQ due to the sale of Bakkt Trust; prior customer concentration risks remain contextually relevant (e.g., Webull non-renewal disclosed in March) .

Financial Results

Metric ($USD Millions unless noted)Q2 2024Q1 2025Q2 2025
Total Revenues$509.9 $1,074.9 $577.9
Total Operating Expenses$531.9 $1,093.4 $596.4
Operating Loss$(22.0) $(18.5) $(18.5)
Net Income / (Loss)$(35.5) $16.2 $(30.2)
Adjusted EBITDA (non-GAAP)$(17.9) $(14.5) $(12.6)
Diluted EPS ($)$(2.67) $1.13 $(2.16)

Segment revenue breakdown:

Segment Revenue ($USD Millions)Q2 2024Q1 2025Q2 2025
Crypto Services$497.1 $1,065.8 $568.1
Loyalty Services (net)$12.8 $9.2 $9.8
Total$509.9 $1,074.9 $577.9

KPIs:

KPIQ2 2024Q1 2025Q2 2025
Total Transacting Accounts (approx)N/A~777,349 ~689,000
Notional Traded Volume ($USD Millions)N/A$1,213.0 $733.1
Assets Under Custody ($USD Millions)N/A$1,872.6 $1,355.0

Notes:

  • Significant movements: revenue −46.2% QoQ; notional volume −39.6% QoQ; AUC −27.7% QoQ due to Trust sale; adjusted EBITDA improved YoY by 29.9% .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Guidance PolicyFrom Q1 2025 onwardCompany planned to provide quarterly outlook Suspended quarterly guidance until further notice Withdrawn
Total RevenuesQ1 2025 (reference)$1,030M–$1,280M N/A for Q2 2025Guidance not provided
Gross Crypto RevenuesQ1 2025 (reference)$1,023M–$1,271M N/A for Q2 2025Guidance not provided
Net Loyalty RevenuesQ1 2025 (reference)$8.5M–$9.9M N/A for Q2 2025Guidance not provided
Crypto Costs + ECBQ1 2025 (reference)$1,019M–$1,266M N/A for Q2 2025Guidance not provided
End-of-Quarter Cash & EquivalentsQ1 2025 (reference)$22M–$26M N/A for Q2 2025Guidance not provided

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Stablecoin payments & AI (DTR)Strategic partnership with DTR; planned commercial agreement; new products and APIs; initial quarterly outlook approach Executed commercial agreement with DTR to unlock stablecoin payment capabilities; launching Bakkt Agent Advancing from planning to execution
Bitcoin treasury strategyIntroduced updated investment policy in 2025; intention to hold digital assets $75M raise to buy Bitcoin and digital assets; ~30% stake in MHT to kick off Japan treasury strategy; bitcoin.jp domain Scaling and international expansion
Cost structure optimization2024 restructuring drove SG&A and compensation reductions; OpEx ex-crypto down sharply OpEx ex-crypto/ECB down 15.4% YoY to $31.2M; CEO announced comprehensive cost review next quarter Continued discipline
Business portfolio realignmentSigned Bakkt Trust divestiture; exploring Loyalty alternatives Trust sale completed; signed definitive agreement to sell Loyalty; report Loyalty as discontinued ops beginning Q3 Portfolio simplification
Client concentration & revenue durabilityWebull non‑renewal (74% of 2024 crypto revenue); Bank of America loyalty non‑renewal Activity softness QoQ across accounts and volumes; focus on diversifying clients and platform upgrades Transition risk; diversification priority
Leadership & governanceAnnounced Akshay Naheta as co‑CEO CEO transition: Naheta becomes sole CEO; Main becomes advisor Leadership consolidated
Regulatory contextSupportive stablecoin trajectory cited; ongoing licensure oversight Continued forward‑looking statements on crypto/stablecoin regulatory risks Regulatory vigilance

Management Commentary

  • “Over the past year… streamlining operations, reducing costs, exiting non‑core businesses, forging a transformative partnership with DTR… Today, Bakkt is a leaner, more agile organization… focused on the massive and accelerating digital asset trend” — Andy Main, former Co‑CEO .
  • “We are focused on three key strategic pillars: enhancing brokerage‑in‑a‑box, launching stablecoin payments (Bakkt Agent), and expanding our Bitcoin treasury initiative, starting with Japan” — Akshay Naheta, CEO .
  • “In the upcoming quarter, we will conduct a comprehensive review of our cost structure to ensure we are optimized, driving synergies… and accelerating our path to profitability” — Akshay Naheta .

Q&A Highlights

  • The earnings call was held at 5:00 PM ET on Aug 11, 2025, with webcast and dial‑in provided; however, the full transcript was inaccessible due to a document retrieval issue, so Q&A highlights and any guidance clarifications cannot be summarized .

Estimates Context

  • S&P Global consensus estimates for Q2 2025 were unavailable for BKKT; as a result, beat/miss versus Wall Street expectations cannot be determined. Values retrieved from S&P Global.
MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Millions)N/A$577.9
Diluted EPS ($)N/A$(2.16)

Key Takeaways for Investors

  • Revenue volatility remains high; QoQ declines and engagement softness reflect market activity sensitivity. Watch for the impact of portfolio simplification (Trust sold; Loyalty divesting) on reported AUC and segment mix .
  • Balance sheet flexibility improved: $75M capital raise to fund Bitcoin/digital assets; debt fully eliminated post‑quarter (Sept 15) — reduces overhang and supports treasury strategy execution .
  • Strategic pivot to crypto infrastructure and stablecoin payments is accelerating: DTR agreement executed; brokerage tech upgrades slated for 2H 2025; Bakkt Agent positioned for AI‑enabled payments .
  • International Bitcoin treasury strategy (Japan, bitcoin.jp via ~30% MHT stake) is a near‑term narrative driver; monitor shareholder approvals and execution risks .
  • Cost actions are working (OpEx ex‑crypto down YoY); a comprehensive cost review could further compress non‑crypto OpEx and improve adjusted EBITDA trajectory at normalized activity levels .
  • Client concentration transitions remain a medium‑term risk; continued diversification and platform enhancements should mitigate churn and support more durable volume over time .
  • With guidance suspended and consensus unavailable, trading setups hinge on operational milestones (DTR integration, loyalty sale close, MHT transaction approvals) and macro crypto activity; monitor disclosures and subsequent 10‑Q/8‑K updates .