Bakkt Q3 Earnings Report: Revenue Growth Overshadowed by Wider Losses and Stock Decline

Bakkt Holdings reported a 13% stock plunge despite posting $402 million in Q3 revenue, as a warrant charge exacerbated net losses. The crypto platform's GAAP EPS of -$1.15 missed analyst expectations by a wide margin, compared to -$0.45 in the prior-year period. Operating expenses ballooned to $427.5 million, up 25% year-over-year.

Beneath the surface, adjusted EBITDA showed promise at $28.7 million—a $49 million improvement from 2022. The company completed its pivot to crypto services by divesting its loyalty business and simplifying its share structure, a MOVE aimed at attracting institutional investors. Bakkt now operates under three core divisions: institutional trading, liquidity solutions, and regulated custody operations.

The restructuring comes as the firm bets on institutional crypto adoption, with plans to expand into stablecoin payments and programmable finance. Market reaction suggests investors remain skeptical about the timeline for profitability, despite the strategic repositioning.