Bakkt Holdings Reports 77% Revenue Decline and $11.7 Million Net Loss in Q1 2026

Bakkt Holdings, Inc. reported a significant decline in its financial performance for the first quarter of 2026, with total revenue of $243.6 million, a decrease of 77.1% compared to $1.07 billion in the same period last year. The company's crypto services revenue, which constitutes the bulk of its income, fell sharply from $1.07 billion to $243.6 million, primarily due to reduced trading volumes following the loss of key clients, including Webull and Public. Operating expenses also decreased to $260.5 million from $1.08 billion, reflecting a similar decline in crypto trading costs.

The company’s net loss attributable to Bakkt, Inc. for the quarter was $11.7 million, compared to a net income of $19.4 million in the prior year. This resulted in a loss per share of $0.41, a stark contrast to earnings of $1.18 per share in the first quarter of 2025. The decrease in profitability was attributed to the substantial drop in revenue, which outpaced the reduction in operating expenses.

In terms of strategic developments, Bakkt completed the acquisition of Distributed Technologies Research Global Ltd. (DTR) on April 30, 2026, which is expected to enhance its digital asset infrastructure capabilities. The acquisition involved issuing approximately 11.3 million shares of Class A Common Stock to DTR's shareholders. Additionally, Bakkt raised $67.1 million in net proceeds through a registered direct offering and at-the-market sales, bolstering its liquidity to support ongoing operations and strategic initiatives.

Operationally, Bakkt reported a decrease in assets under custody, which fell to $744.6 million from $911.5 million as of December 31, 2025. The company also noted a significant reduction in its customer base, which has impacted trading volumes and overall engagement metrics. As of March 31, 2026, Bakkt had approximately 30.7 million shares of Class A Common Stock outstanding, an increase from 25.5 million shares at the end of 2025, reflecting the issuance of new shares related to its capital-raising efforts.

Looking ahead, Bakkt's management expressed cautious optimism about future growth, emphasizing the importance of expanding its client base and enhancing product offerings. The company aims to leverage its recent acquisitions and capital raises to navigate the evolving digital asset landscape, although it acknowledges the challenges posed by market conditions and regulatory developments. The outlook remains uncertain, with management focusing on optimizing operations and exploring new revenue streams to achieve sustainable profitability.