Bakkt Q2 revenue falls 70% on digital asset trading slowdown

OverviewUS digital asset platform's Q2 revenue fell 70% yr/yr due to client transitions and industry softnessCompany posted net income, aided by $98.5 mln non-cash gain from Transchem warrant revaluationQ2 adjusted EBITDA loss widened yr/yr, reflecting lower crypto services revenue and higher operating costsOutlookBakkt expects full-year 2026 TTV of about $2.5 bln, assuming client integrations progress as plannedCompany targets Q4 2026 for initial co-branded card programs and Neobank-as-a-Service offeringsBakkt expects MAUs to reach about 25,000 in December 2026 as partner products launchResult DriversCLIENT TRANSITIONS AND INDUSTRY SOFTNESS - Co said revenue decline was due to previously disclosed client transitions and industry-wide softness in digital asset trading volumesINTEGRATION COSTS - Higher operating expenses reflected two months of acquired DTR operating costs and professional-services expenses supporting the DTR integration and India strategyLOWER CRYPTO SERVICES REVENUE - Wider adjusted EBITDA loss was mainly due to a decrease in crypto services revenue net of related costs, higher salaries and contract labor, and a loss from an equity method investmentCompany press release:Key DetailsMetricBeat/MissActualConsensus EstimateQ2 RevenueMiss$170.10 mln$373.27 mln (2 Analysts)Q2 Net Income$80.80 mlnQ2 Adjusted EBITDAMiss-$11.80 mln$7.52 mln (1 Analyst)Q2 Operating Expenses$189.80 mlnAnalyst CoverageThe current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"Wall Street's median 12-month price target for Bakkt Inc is $20.00, about 165.6% above its August 7 closing price of $7.53Reuters Recommended ReadsAug 10 - Riot Platforms Q2 revenue beats on data center contractsAug 8 - US Senate advances landmark crypto bill before heading on August recessAug 10 - Exodus Movement Q2 revenue up 2% on acquisitions boostFor questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .