Bakkt Holdings, Inc. Q3 FY2025 earnings call

• Completed transformation by exiting noncore operations, simplifying capital structure by collapsing the Up-C structure, and reconstituting the board with independent directors. - Strengthened balance sheet with $64 million in cash, cash equivalents, and restricted cash and no long-term debt. - Focused on 3 growth engines: Bakkt Markets (institutional-grade digital asset infrastructure), Bakkt Agent (programmable finance platform for stablecoins and cross-border payments), and Bakkt Global (international expansion via minority investments). - Outlined plans for platform upgrades, cost optimization, and strategic partnerships across markets and stablecoin infrastructure.

Total GAAP revenue for the quarter was $402 million, up 27% year-over-year, driven by higher crypto trading activities. Adjusted EBITDA reached $28.7 million compared with a loss of $20.4 million in Q3 2024. Bakkt Markets provides institutional-grade infrastructure for digital assets, connecting clients to liquidity, market-making, and regulated custody. Bakkt Agent is a programmable finance platform combining stablecoins, AI agents, and cross-border payments. Bakkt Global focuses on international expansion via minority investments, starting with Japan, with the potential for recurring custody and management fees and indirect shareholder participation in Bitcoin upside. Bakkt Markets contributes through B2B and B2B2C revenue from market-making, OTC spreads, trading volume, and lending fees. Bakkt Agent earns revenue from stablecoin on-ramp, off-ramp, transaction volume, spreads, and FX conversion. Bakkt Global adds licensing, management fees, NAV accretion, and investment gains from international partners.

• Aim to complete transformation by end-2025. - Release 2026 KPIs, with key metrics including trading volume/spreads for Bakkt Markets, stablecoin transaction volume for Bakkt Agent, and NAV accretion/licensing revenue for Bakkt Global. - Focus on executing growth engines: driving customer growth in Markets, advancing distribution partnerships in Agent, and expanding into additional jurisdictions beyond Japan in Global.

• Regulatory uncertainties surrounding digital assets and stablecoins. - Market volatility in the digital asset space. - Competition in the fintech and digital asset infrastructure space. - Execution risks in partnership and expansion initiatives, including challenges in securing distribution partnerships and expanding into new jurisdictions.

Q: Comparison of Bakkt to Zero Hash?

A: Akshay stated both are focused on being the regulated infrastructure layer for the ecosystem, with Bakkt being public, disciplined, and not chasing top-line volume growth.

Q: Key KPIs for 2026?

A: Akshay mentioned KPIs would be driven by trading volume/spreads for Markets, stablecoin transaction volume for Agent, and NAV accretion/licensing revenue for Global.

Q: Role of partnerships?

A: Bakkt is focused on distribution partnerships for growth, not M&A, expecting to announce significant partnerships soon.

Q: Macro/policy tailwinds/headwinds for 2026?

A: Akshay highlighted the CLARITY Act for regulatory clarity as a tailwind, and large financial institutions entering the stablecoin space as a positive factor.

Q: Competing with Visa, Mastercard on stablecoins?

A: Akshay said Bakkt provides regulated infrastructure, not head-on competition, focusing on the 'picks and shovels' layer.

Q: How new leadership improves shareholder value?

A: Akshay mentioned completed transformation, plan to share clear KPIs and partnerships, and focus on building long-term substance for shareholder value.