Key Highlights

  • Second quarter crypto services revenue was $170.1 million, down 70%, with an operating loss of $19.6 million.
  • Net income attributable to Bakkt was $80.8 million, including a $98.5 million non-cash gain on Transchem warrants.
  • Class A shares outstanding rose to about 45.1 million from 25.5 million at year-end, while cash reached $50.0 million.
  • Bakkt continues to expect about $2.5 billion of 2026 transacting volume; Matt White became chief financial officer August 17.

Bakkt (NYSE:BKKT) shares were trading near their 52-week low at USD 5.47 on October 19, 2026, a decline of 2.15%. The crypto services company's second quarter showed a net profit of $80.8 million above an operating loss of $19.6 million, a gap its release traces mainly to a non-cash gain on warrants it holds in India's Transchem. Cash, share count, litigation and a change of finance chief round out the latest official picture.

Second quarter: revenue down 70%, an operating loss and a warrant gain

Crypto services revenue for the quarter ended June 30, 2026 was $170.1 million, down 70.0% from $568.1 million a year earlier. Crypto costs and execution, clearing and brokerage fees were $169.3 million, against $565.2 million, while all other operating expenses rose 7.9% to $20.5 million. The operating loss from continuing operations widened to $19.6 million from $16.1 million.

Net income attributable to Bakkt was $80.8 million, or $1.94 per diluted share, against a net loss of $14.7 million, or $2.16 per share, in the prior-year quarter. The release attributes the profit mainly to a $98.5 million non-cash gain from the change in fair value of the Transchem warrants, plus a $1.4 million non-cash gain on a legacy warrant liability. Adjusted EBITDA, a non-GAAP measure, was a loss of $11.8 million, compared with a loss of $9.8 million. Total transacting volume, an operating metric that includes payments volume from May 1, was $168.8 million for the quarter and $410.0 million for six months.

Cash, dilution, acquisitions and legal matters

Cash and cash equivalents were $50.0 million at June 30, up from $27.0 million at year-end, and the company reported no long-term debt. Operating activities used $26.9 million in the first half, against $67.2 million of financing inflows that included a $48.1 million registered direct offering and $21.5 million of at-the-market sales. Class A shares outstanding rose to 45,059,802 from 25,523,039, partly through 11.3 million shares issued for the DTR acquisition that closed April 30. The accumulated deficit was $836.0 million, and management states there is no substantial doubt about its ability to continue as a going concern.

In June, 47.5 million Transchem warrants were allotted. Bakkt paid about $9.4 million, or 25% of the price, and would pay about $28.3 million more only if it exercises them within roughly 18 months. The company puts its Strategic Asset Value, which adds the Transchem warrants to its Bitcoin Japan stake, at about $118.5 million, and says that figure is not a market or liquidation value.

Two legal matters remain open. In Delaware, Bakkt is suing the buyer of its former loyalty business over the closing of that sale. The court granted Bakkt's motion for judgment on the pleadings on April 10, and the buyer, which counterclaimed for $19 million, filed a notice of appeal on August 6. In New York, a putative securities class action filed in April 2025 over the non-renewal of agreements with Webull and Bank of America has a motion to dismiss pending, and the company intends to defend vigorously.

Outlook: 2026 volume, fourth-quarter launches and a new finance chief

Bakkt said it continues to expect about $2.5 billion of total transacting volume in 2026, and management currently expects about 25,000 monthly active users in December 2026. Initial co-branded card programs and Neobank-as-a-Service offerings are targeted for the fourth quarter, subject to product, partner, bank, network and regulatory requirements, while embedded finance is already available to partners. The company describes three engines: Bakkt Markets, Bakkt Agent and Bakkt Global.

Karen Alexander stepped down as chief financial officer effective August 14, and the company said the separation did not result from any disagreement with management or its auditor. Matt White, formerly chief financial officer of CoreCard, began as chief financial officer on August 17.