Bakkt Q1 2025 Earnings Report
Key Takeaways
Bakkt reported a significant improvement in net income for Q1 2025, reaching $16.2 million compared to a loss in the prior year. Total revenues increased year-over-year, primarily driven by crypto services, although sequential revenue and transacting accounts declined.
Net income was $16.2 million, a substantial improvement from a loss of $21.3 million in Q1 2024.
Total revenues increased by 25.8% year-over-year to $1,074.9 million, mainly due to growth in crypto services.
Operating loss improved by 41.8% year-over-year to $18.5 million.
Entered into a cooperation agreement with DTR for access to AI and stablecoin payment infrastructure, with a commercial agreement expected by Q3 2025.
Bakkt
Bakkt
Bakkt Revenue by Segment
Forward Guidance
Bakkt has suspended providing quarterly guidance due to a thorough and strategic review of priorities and organizational structure, including planned strategic divestitures and the collaboration with DTR.
Positive Outlook
- Planned strategic collaboration with DTR expected to position Bakkt in the stablecoin payments ecosystem.
- Expected commercial agreement with DTR to bring new products like a merchant checkout widget and AI-powered plug-in.
- Strengthened leadership team with key hires to accelerate product roadmap and international expansion.
- Identifying opportunities to drive sharper resource allocation and unlock cost efficiencies.
- Seeing growing interest from global exchanges, decentralized wallet providers, and financial institutions for compliant access to next-generation payment solutions.
Challenges Ahead
- No guarantee that the commercial agreement or planned integration with DTR will be executed on favorable terms, if at all, or on the expected timeline.
- Suspension of quarterly guidance creates uncertainty regarding near-term financial performance.
- Reduced broader market activity negatively impacted transacting accounts and sequential revenue.
- Net loyalty revenues decreased year-over-year and sequentially.
- Impact of strategic divestitures on future performance is not yet fully clear.