Bakkt (NYSE:BKKT) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Bakkt reported $0.31 earnings per share, beating the $0.21 consensus estimate by $0.10, but quarterly revenue of $149.2 million fell well short of analysts’ $434.5 million expectation.
• Third-quarter total transacting volume declined to $147.9 million from $168.8 million in Q2. Reaching its $3 billion full-year volume target would require about $2.44 billion in Q4, a steep ramp dependent on client activations and usage.
• Cost reductions helped narrow the adjusted EBITDA loss to $11.8 million from $14.8 million a year earlier; Bakkt ended the quarter with $37.3 million in cash and restricted cash and no long-term debt.

Bakkt (NYSE:BKKT - Get Free Report) posted its quarterly earnings data on Monday. The company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.10, FiscalAI reports. Bakkt had a negative net margin of 2.78% and a negative return on equity of 41.11%. The firm had revenue of $149.20 million for the quarter, compared to analysts' expectations of $434.50 million.

Here are the key takeaways from Bakkt's conference call:

• Third-quarter Total Transacting Volume fell to $147.9 million from $168.8 million in Q2. Management’s $3 billion full-year target implies about $2.44 billion in Q4, making timely client activations and sustained usage critical to a steep ramp.
• Bakkt also set a first-half 2027 TTV target of approximately $6 billion, based on its existing integration pipeline and expected growth in client activity. A monthly Bakkt Engine Report is due to begin in December, providing actual volume and its drivers.
• Revenue was $149.2 million, down from $402.2 million a year earlier. GAAP net income of $14.3 million included a $26.8 million non-cash gain on Transchem warrants, while the operating loss was $14.4 million.
• Cost discipline improved results: operating expenses excluding crypto costs and execution fees fell 40% year over year, and adjusted EBITDA loss narrowed to $11.8 million from $14.8 million. Bakkt ended the quarter with $37.3 million in cash and restricted cash and no long-term debt.
• Payment-rail monthly active users were 9,760 in September, the first reported month, against a December target of about 25,000. The company cited a network spanning more than 75 countries and growth opportunities in embedded finance, India, and Japan, though launches and adoption remain subject to partner, regulatory, and other requirements.

Bakkt Price Performance

NYSE BKKT traded up $0.39 during trading on Monday, hitting $4.69. 1,285,239 shares of the company's stock traded hands, compared to its average volume of 1,462,863. The stock has a fifty day moving average of $6.88 and a two-hundred day moving average of $8.60. Bakkt has a 12-month low of $3.86 and a 12-month high of $25.00. The firm has a market cap of $211.19 million, a P/E ratio of 10.41 and a beta of 4.70.

Insider Activity

In related news, Director Michael Alfred acquired 296,567 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were purchased at an average price of $7.12 per share, for a total transaction of $2,111,557.04. Following the completion of the acquisition, the director owned 1,201,567 shares in the company, valued at approximately $8,555,157.04. This represents a 32.77% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Company insiders own 10.05% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on BKKT shares. Weiss Ratings cut Bakkt from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, October 30th. Wall Street Zen raised Bakkt from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Finally, Benchmark cut their price objective on Bakkt from $19.00 to $12.00 and set a "buy" rating for the company in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $12.00.

Bakkt Company Profile

Bakkt Holdings, Inc is a digital-asset services company that provides cryptocurrency infrastructure for businesses and institutions. Its platform is designed to support crypto custody, trading and onramp services, enabling customers to buy, sell, hold and transfer digital assets through integrated technology.

The company serves financial institutions, fintech companies, brands and other businesses seeking to offer cryptocurrency-related products without building the underlying infrastructure themselves.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.