BitGo — Q2 2026 Earnings Summary

Financial Performance

• Total revenue reached $4.33 billion in Q2 2026, a 79.6% increase year-over-year and a 14.7% increase sequentially.
• Net loss was $19.0 million for Q2 2026, compared to net income of $38.3 million in Q2 2025 and a net loss of $60.7 million in Q1 2026.
• Adjusted EBITDA loss was $4.2 million in Q2 2026, compared to an Adjusted EBITDA gain of $3.0 million in Q2 2025 and a loss of $1.7 million in Q1 2026.
• Direct costs were $4.29 billion in Q2 2026, up 80.8% year-over-year.
• Basic and diluted EPS were $(0.16) for Q2 2026, compared to $0.33 and $0.28 respectively in Q2 2025.
• The year-over-year net loss change was primarily driven by an $18.8 million unrealized loss on digital assets in Q2 2026, versus a $55.8 million unrealized gain in the prior-year period.
• Cash and cash equivalents stood at $159.0 million as of June 30, 2026.
• The company holds 2,523 company-owned Bitcoin with a fair value of approximately $147.7 million.
• The company maintains no corporate-level debt.
• Deferred revenue was $4.5 million as of June 30, 2026, down from $4.7 million at December 31, 2025.

Guidance and Future Outlook

• Management expects to generate approximately $15 million in annualized cash savings through sharpened investment priorities and an optimized operating model.
• The company aims to translate continued business growth into stronger earnings and more durable financial performance in the second half of the year.
• Management believes demand for secure, regulated infrastructure will expand significantly as digital assets, stablecoins, and tokenized financial markets adoption accelerates.
• The company views itself as being in the early stages of institutional adoption and expects to capture a growing share of the long-term growth opportunity.

Business Segments and Product Lines

• Digital Asset Sales revenue was $4.20 billion (up 14.7% sequentially and 84.3% year-over-year) with a margin of 17 basis points, down from 32 basis points in Q1 2026.
• Staking revenue was $64.7 million (up 30.9% sequentially but down 28.8% year-over-year) with a take rate of 6.0%, down from 16.1% in Q1 2026.
• Subscriptions and Services revenue was $27.5 million (up 7.7% sequentially and 8.5% year-over-year).
• Stablecoin-as-a-Service revenue was $38.8 million (up 1.7% sequentially and 148.0% year-over-year) with a take rate of 8.0%.
• Clients on the platform increased 26.2% year-over-year to 5,833.
• Normalized Assets on Platform increased 31.4% year-over-year to $65.2 billion.
• Normalized Assets Staked increased 36.1% year-over-year to $11.9 billion.
• The company launched quantum-risk management capabilities for Bitcoin wallets.
• The company expanded the use of AI across engineering and operations to accelerate software development and automate manual processes.

Market and Competitive Landscape

• BitGo supported the DTCC's demonstration of tokenized securities by providing regulated custody infrastructure following the quarter-end.
• The company highlighted work supporting initiatives such as the Canton Network and Figure as evidence of leading institutions selecting BitGo's regulated infrastructure.
• Management states that institutions are increasingly selecting BitGo as digital assets move into production.

Risks and Challenges

• Digital Asset Sales margins were impacted by lower spreads on certain spot trading transactions and a lower mix of derivatives activity.
• Staking margins were pressured by client mix and lower take rates.
• The company faces volatility in unrealized gains/losses on digital assets, which significantly impacted net income in the current period compared to the prior year.
• The press release notes risks related to the evolving regulatory landscape, macroeconomic uncertainty, and the competitive nature of the digital asset economy.

Management Commentary and Tone

• CEO Mike Belshe stated the company continued strengthening its institutional platform, deepening client relationships, and streamlining its cost structure.
• CFO Ed Reginelli noted the company has financial flexibility to invest behind high-priority opportunities while maintaining discipline around costs and capital allocation.
• Management expressed confidence that BitGo is uniquely positioned to provide critical infrastructure as the industry advances.

Other Key Points

• The company authorized a share repurchase program of up to $50 million.
• CFO Ed Reginelli announced he will transition from his role during the coming quarter but will remain to support an orderly transition.
• The company reported a restructuring charge of $1.3 million in Q2 2026.
• The company serves thousands of institutions and millions of investors worldwide.
• BitGo Bank & Trust, National Association, is the first federally chartered digital asset trust bank owned by a publicly traded company.