Kraken parent Payward posts $508 million in Q2 adjusted revenue as growth broadens beyond crypto trading

Kraken's parent company, Payward, reported a 17% year-over-year increase in revenue for the second quarter, reaching $508 million in adjusted revenue. This growth occurred despite a decline in crypto spot trading and overall transaction volume, which fell 13% year-over-year to $310 billion. The company's total transaction volume decreased due to the weaker crypto spot activity.

However, Payward's funded accounts increased by 42% to 6.6 million. The company's revenue mix shifted, with asset-based and other revenue constituting 60% of total revenue, up from 55% a year earlier. This growth in traditional futures, equities, and tokenized equities helped offset the weaker crypto spot activity. Payward's expansion beyond spot crypto trading into equities, tokenized stocks, pre-IPO exposure, and futures, along with its acquisition of financial infrastructure businesses, contributed to the company's positive adjusted EBITDA of $23 million.