Bakkt, Inc. 10-Q Summary: Quarter Ended June 30, 2026
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Bakkt, Inc. operates as a regulated financial technology company providing infrastructure for digital asset trading, programmable finance, and cross-border payments. The reporting period includes the consolidation of Distributed Technologies Research Global Ltd. (DTR), acquired on April 30, 2026, and Gyzer Inc., acquired on May 7, 2026. The company has completed a strategic transformation to focus on a unified digital financial infrastructure platform, divesting its Loyalty Business in late 2025.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Crypto Services Revenue | $170.1 million | $413.7 million |
| Net Income (Attributable to Bakkt) | $80.8 million | $69.2 million |
| Operating Loss | $(19.6) million | $(36.5) million |
| Cash and Cash Equivalents | $50.0 million | $50.0 million (as of period end) |
| Total Assets | $403.6 million | $403.6 million (as of period end) |
| Accumulated Deficit | $(836.0) million | $(836.0) million (as of period end) |
Non-GAAP Measure: Adjusted EBITDA loss for the six months ended June 30, 2026, was $(25.4) million.
Material Changes vs. Prior Period
- Revenue Decline: Crypto services revenue decreased by 70.0% ($398.0 million) for the quarter and 74.7% ($1.22 billion) for the six months compared to the prior year periods. This was primarily driven by a significant reduction in trading volume following the loss of major clients (Webull and Public) and broader market volume reductions.
- Operating Expenses: Total operating expenses decreased by 67.5% for the quarter and 72.9% for the six months, largely due to lower crypto costs (cost of goods sold) correlating with reduced trading volume.
- Profitability Shift: Despite an operating loss, the company reported a Net Income of $80.8 million for the quarter and $69.2 million for the six months. This turnaround from prior year losses is primarily attributable to a non-cash unrealized gain of $98.5 million from the change in fair value of the Transchem Warrants acquired in June 2026.
- Acquisitions: Goodwill increased by $92.0 million due to the DTR acquisition. Intangible assets increased significantly due to the acquisitions of DTR and Gyzer.
Guidance, Outlook, and Risks
Management Commentary: Management believes cash and cash equivalents are sufficient to fund operations for the next 12 months. The company is integrating DTR's payment and stablecoin technology to enhance its "Bakkt Agent" and "Bakkt Markets" engines. Strategic investments in Bitcoin Japan Corporation and Transchem Limited are intended to expand global reach.
Risks and Contingencies:
- Going Concern: While management asserts no substantial doubt exists regarding the ability to continue as a going concern, the company has a history of consuming cash in excess of operating inflows and relies on equity offerings for liquidity.
- Legal Proceedings: Bakkt is engaged in litigation against Project Labrador Holdco, LLC ("Roman") regarding the sale of the Loyalty Business. Bakkt seeks approximately $10 million; Roman has filed counterclaims for $19 million. A motion for judgment on the pleadings was granted to Bakkt, but Roman has appealed.
- Regulatory Environment: The company faces evolving regulations regarding digital assets, stablecoins, and securities laws, which could impact operations and licensing.
- Transchem Warrant Commitment: Bakkt holds warrants to purchase equity in Transchem Limited. While 25% of the subscription price was paid, there is an unfunded commitment of approximately $28.3 million payable only upon exercise.
Investor Verification Checklist
- Revenue Quality: Verify the sustainability of revenue streams given the 70%+ decline in crypto trading volume and the departure of key clients (Webull, Public).
- Non-Cash Gains: Assess the impact of the $98.5 million unrealized gain on Transchem Warrants on reported net income; this is a non-cash item subject to market volatility.
- Liquidity Runway: Confirm the sufficiency of the $50 million cash balance against operating burn rates and the $28.3 million potential exercise commitment for Transchem warrants.
- Acquisition Integration: Monitor the realization of synergies from the DTR and Gyzer acquisitions and the associated amortization of new intangible assets.
- Legal Exposure: Track the status of the appeal in the litigation against Roman regarding the Loyalty Business sale.