Kraken Parent Company Q3 Financial Report: Total Revenue Down 12% YoY to $487 million, Adjusted EBITDA Down 67% YoY to $60 million

November 13, according to Bloomberg, Kraken's parent company Payward reported third-quarter adjusted EBITDA of $60 million, down 67% year-over-year but up 163% from the second quarter. The platform's total revenue was $487 million, down 12% year-over-year and up 12% quarter-over-quarter; total platform trading volume fell 30% year-over-year to $353 billion.

Even as trading volume declined, Payward's number of funded accounts grew 37% year-over-year to 7.1 million, a metric referring to accounts with a balance greater than zero. Bitcoin rose about 40% from mid-August to early October before falling back again amid concerns over inflation and the impact of the U.S. midterm elections on the industry. Trading fees are a major revenue source for many crypto exchanges, and falling coin prices tend to dampen trading activity.

To broaden its revenue streams, Payward is expanding its stock tokenization business and plans to offer on-chain perpetual contracts to U.S. customers after obtaining regulatory approval. The company reached an agreement in October to acquire Saldo Bank; Kraken also plans to enter the UAE market after obtaining full approval from Dubai regulators. The shareholder letter also disclosed that Payward plans to enter the prediction market and issue its own token, but did not announce a timetable.

Payward laid off about 150 people earlier this year, citing the use of AI to improve efficiency. According to prior Bloomberg reporting, its IPO may not take place until 2027. Other exchanges' results have also diverged: Gemini's third-quarter revenue fell 19% year-over-year but its losses narrowed; Coinbase's revenue fell 35% year-over-year but it returned to profitability.