Payward Q2 revenue hits $508M as EBITDA falls

Payward, the parent company of Kraken, reported $508 million in adjusted revenue for the second quarter of 2026, up 17% year over year, while adjusted EBITDA dropped sharply to $23 million.

• Payward reported $508 million in Q2 adjusted revenue, rising 17% from the prior year period.
• Adjusted EBITDA fell to $23 million from $80 million reported for the second quarter previously.
• Total platform transaction volume declined 18% year over year to $310 billion during the quarter.
• Asset-based and other revenue represented 60% of total revenue, up from 55% one year earlier.
• Payward reported 6.6 million funded accounts, although its published metric definition changed from last year.

The company disclosed the results on Aug. 14 as weaker spot trading weighed on activity despite growth across other financial products.

The profitability decline was substantial. Kraken reported $80 million of adjusted EBITDA on $432 million of adjusted revenue in Q2 2025. Payward did not disclose net income in its latest release. Its earlier financial disclosures describe adjusted revenue and adjusted EBITDA as management measures that exclude certain expenses.

Total platform transaction volume reached $310 billion, down 18% from the previous year. Payward attributed the decline partly to weaker crypto spot volumes, while saying traditional futures, equities and tokenized equities grew during the quarter. Futures daily average revenue trades increased 8%.

Revenue also became less dependent on transaction fees. Asset-based and other revenue accounted for 60% of total revenue, compared with 55% a year earlier. Payward said that shift reflects income generated from assets and services surrounding its trading operations rather than a retreat from trading itself.

Assets on the platform stood at $40 billion at quarter-end. Payward also reported $65 billion of what it calls "Real Assets on Platform," calculated by holding prices at Q2 2025 levels to remove market-price effects. That adjusted measure increased 48% year over year, according to the company.

Payward reported 6.6 million funded accounts, up 42% year over year and the highest level in its history. However, comparisons with Kraken's previously published 4.4 million funded accounts for Q2 2025 require caution.

The newer Payward definition counts distinct funded accounts across its platforms and products and counts sub-accounts separately. Kraken's 2025 disclosure instead described funded accounts as funded customers with balances above zero. The reporting perimeter has also expanded as Payward integrated businesses such as NinjaTrader and Bitnomial.

Payward closed its acquisition of Bitnomial on May 1, adding a CFTC-regulated designated contract market, clearing organization and futures commission merchant. Payward said the infrastructure supported regulated U.S. perpetual futures and spot margin products during Q2. Separately, a July CFTC letter shows Kraken is reconsidering the future of Kraken Derivatives Exchange, the former Small Exchange it acquired in 2025, including potential partnerships or a sale following the Bitnomial transaction.

Payward expects its second-half strategy to focus on broader trading products, banking, tokenization, payments and services sold to third-party platforms. It completed its Reap acquisition on July 1 and has agreed to acquire Magic Labs' wallet infrastructure business, although that transaction has not yet closed.

The next financial report will show whether Payward can maintain revenue growth while restoring profitability. For now, Q2 presents a mixed picture: revenue and funded accounts increased, but transaction volume fell and adjusted EBITDA declined from $80 million to $23 million.