Kraken parent Payward’s adjusted EBITDA in the third quarter falls 67% year on year
According to Bloomberg, citing a Payward shareholder letter, Payward, the parent company of crypto trading platform Kraken, reported adjusted EBITDA of $60 million in the third quarter, down 67% year on year and up 163% from $23 million in the second quarter. The company’s total platform margin, which it uses as a substitute for adjusted revenue, was $487 million, down 12% year on year and up 12% quarter on quarter. Total platform trading volume was $353 billion, down 30% year on year.
In the same period, funded accounts, defined as accounts with balances above zero, rose 37% year on year to 7.1 million. Bitcoin prices once rose about 40% from mid-August to early October before pulling back. Trading fees remain a major source of revenue for many crypto trading platforms. To broaden revenue sources, Payward is expanding its stock tokenization business and plans to offer on-chain perpetual contracts to U.S. customers after receiving regulatory approval. The company reached an agreement in October to acquire Saldo Bank; Kraken plans to enter the UAE market after receiving full approval from Dubai regulators. The shareholder letter also disclosed that the company plans to enter the prediction markets and issue its own token, but did not provide a timetable.
Original source:
Title: Kraken Parent’s Third-Quarter Earnings Drop 67% From a Year Ago
Publisher: Bloomberg
Date of publication: 2026-11-13
URL: bloomberg.com/news/articles/2026-11-13/kraken-parent-s-third-quarter-earnings-drop-67-from-a-year-ago
Nature of source: Bloomberg report (citing a Payward shareholder letter)
Verification status: Core data visible from the page actually read in this request; consistent with multiple English-language media reports and Payward’s official channels
Supporting content: Adjusted EBITDA of $60 million, down 67% year on year and up 163% quarter on quarter; total platform margin of $487 million, down 12% year on year and up 12% quarter on quarter; trading volume of $353 billion, down 30% year on year; funded accounts of 7.1 million, up 37% year on year
ABAB AI Insight
Payward used “total platform margin” this quarter instead of the previous adjusted revenue metric; this metric deducts costs such as rewards paid to customers for staking. Against the backdrop of a 30% year-on-year decline in trading volume, this metric fell only 12% year on year, showing a higher share of non-trading revenue. Bloomberg and multiple media outlets noted that revenue tied to customer assets, products, data and services rose from 46% of total platform margin a year earlier to 52%. Funded accounts rose 37% year on year to 7.1 million, contrasting with the decline in trading volume.
The company is extending its business into stock tokenization, planned U.S. on-chain perpetual contracts, prediction markets, the issuance of its own token, as well as the acquisition of Saldo Bank and entry into the UAE market. These initiatives remain at the planning or agreement stage, some still subject to regulatory approval, and have not yet translated into realized revenue. Earlier this year, the company laid off about 150 people, citing AI-driven efficiency gains. Bloomberg previously reported that its IPO could be delayed until 2027.
Performance across other trading platforms was mixed in the same period: Gemini’s third-quarter revenue fell 19% year on year, but its losses narrowed; Coinbase’s revenue fell 35% year on year, but it returned to profitability. Trading fees are highly correlated with coin prices and trading activity; when prices pull back, trading volume and fee revenue usually come under pressure at the same time. Indicators to watch next include changes in the share of non-trading revenue, the actual launch progress of tokenized stocks and perpetual contracts, the timetable for prediction markets and its own token, and whether the IPO timetable is further adjusted.
ABAB News · Rules of Cognition
When trading volume declines year on year, total platform margin can fall by less than the drop in trading volume, reflecting a higher share of non-trading revenue.
Growth in funded accounts and a decline in trading volume can occur at the same time; account size does not equal current trading activity.
Plans to expand into tokenization, derivatives and banking businesses still require regulatory approval and have not changed the reported profit metric at present.