Bakkt revenue rises to $402M in Q3, but stock drops 13% as warrant charge drives deeper net loss

Bakkt reported Q3 revenue of $402.2 million, rising from $316.3 million in the same quarter last year, while also recording a net loss of about $21.6 million due to a $37.2 million non-cash charge tied to changes in the value of warrant liabilities linked to a direct offering.

The number missed expectations and the stock dropped 13% in Monday morning trading, according to the company’s Q3 filing. Q3 GAAP EPS came in at -$1.15, compared to -$0.45 last year and far below the $0.50 average analyst expectation.

Total operating expenses climbed to $427.5 million, up from $341.5 million in the same period a year ago.

Bakkt’s adjusted EBITDA, however, showed progress, reaching $28.7 million compared to -$20.4 million last year. Adjusted net income from continuing operations ended the quarter at $15.7 million.

Bakkt said it has completed most of its shift into a business centered on crypto services. This included selling its loyalty business on October 1 and removing the old Up-C share structure that had been in place since its 2021 de-SPAC process.

The company said the structure had created complexity and friction for institutional investors over time. Bakkt said it now operates under one unified share system with a single cap table, planning to finish the full transformation by Q4, focusing on institutional trading, liquidity, regulated custody operations, programmable finance, stablecoin payments, and global expansion.

Bakkt restructures into three main business lines in efforts to revive business

Bakkt reorganized operations under the three core units below:-

• Bakkt Markets (which handles institutional trading, liquidity, and custody services)
• Bakkt Agent (which focuses on programmable finance tools and stablecoin transactions using AI-driven systems), and;
• Bakkt Global (which manages geographic expansion into new regions and regulatory environments).

The company said each unit is structured to run on its own revenue track, while also supporting activity across the network.

Bakkt also added Richard Galvin to the board. Richard is the executive chairman and CIO of DACM and has a background in global equity, derivatives, and technology investment banking, as well as experience investing in both venture and liquid crypto markets.

Bakkt President and CEO Akshay Naheta said the company took steps in Q3 to simplify operations and strengthen its financial position.

“Our team executed decisively this quarter – collapsing the legacy Up-C structure, unifying the share class, eliminating all debt, and strengthening liquidity through disciplined capital raises,” Akshay said, adding that the changes created “a cleaner balance sheet, improved governance, and stronger institutional eligibility.”

He said the collapse of the Up-C structure was a key milestone because it removed a dual-class system that had limited liquidity and reduced institutional investor access. The company said it raised about $100 million between Q2 and Q3 and paid off all outstanding debt.

It holds more than $120 million in tax loss carryforwards that it expects could offset future taxable income as the business grows. Akshay said he personally purchased about $1.5 million worth of Bakkt shares in August in open market transactions. Shareholders also authorized him to purchase up to $13.4 million more stock through an option plan.

To end the earnings call event, Akshay said, “Bakkt is not a crypto treasury vehicle chasing exposure through dilution.”

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