Bakkt Holdings Reports $1.075 Billion Revenue in Q1 2025, Achieves Net Income Turnaround

Bakkt Holdings, Inc. reported a significant increase in revenue for the first quarter of 2025, with total revenues reaching $1.075 billion, up from $855 million in the same period last year. This growth was primarily driven by a 26.7% increase in crypto services revenue, which amounted to $1.066 billion compared to $841 million in Q1 2024. The company also achieved a net income of $16.2 million, a notable turnaround from a net loss of $21.3 million in the prior year, resulting in earnings per share of $1.18, compared to a loss of $1.86 per share in Q1 2024.

Despite the positive revenue growth, Bakkt's operating expenses also rose significantly, totaling $1.093 billion, up from $886 million in the previous year. The increase in expenses was largely attributed to higher crypto costs, which surged to $1.055 billion, reflecting the increased trading volume. Other notable expenses included a rise in professional services costs and a decrease in compensation and benefits expenses, which fell by 27.4% due to restructuring efforts aimed at aligning the workforce with operational priorities.

Strategically, Bakkt has made several key developments, including the announcement of a Cooperation Agreement with Distributed Technologies Research Global Ltd. This agreement aims to integrate exclusive payment processing technology into Bakkt's platform, enhancing its capabilities in global payments. Additionally, the company is in the process of selling Bakkt Trust to Intercontinental Exchange, Inc. for $1.5 million, which is expected to close in the second quarter of 2025. Bakkt is also exploring strategic alternatives for its loyalty business, which may include a potential sale or wind-down.

Operationally, Bakkt reported 6.8 million crypto-enabled accounts as of March 31, 2025, a slight increase from 6.7 million at the end of 2024. However, the number of unique monthly transacting accounts remained stable at 800,000. The company also noted a decrease in assets under custody, which fell to $1.873 billion from $2.302 billion, reflecting changes in customer activity and market conditions. The company has implemented cost reduction measures, including personnel reductions and a hiring freeze, in response to the anticipated loss of revenue from its largest client, Webull, which has decided not to renew its agreement.

Looking ahead, Bakkt's management expressed caution regarding future revenue growth, particularly in light of the non-renewal of key client contracts and the ongoing volatility in the crypto market. The company is focused on optimizing its operations and capital allocation to ensure sustainability and profitability. Management believes that the current cash reserves and access to a $40 million revolving credit facility will be sufficient to fund operations for the next 12 months, although they acknowledge the need for further revenue growth to support long-term viability.