BitGo — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue was $2,851.9 million, a 50.9% decrease year-over-year (YoY) and a 34.1% decrease quarter-over-quarter (QoQ).
• Direct costs were $2,814.5 million, down 51.1% YoY and 34.3% QoQ.
• Net income was $44.1 million, a 94.4% increase YoY and a sequential improvement from a $19.0 million net loss in Q2 2026.
• The net income improvement was primarily driven by a $71.5 million unrealized gain on the Company's digital asset treasury.
• Adjusted EBITDA loss was $4.3 million, compared to an Adjusted EBITDA profit of $13.5 million in Q3 2025 and a loss of $4.2 million in Q2 2026.
• Diluted EPS was $0.36, compared to $0.15 in Q3 2025 and ($0.16) in Q2 2026.
• Operating expenses (excluding direct costs) were $56.6 million, a 5.5% decrease QoQ.
• Cash and cash equivalents were $143.2 million as of September 30, 2026.
• The corporate treasury held 2,399 company-owned Bitcoin with a fair value of $200.4 million.
• There was no corporate-level debt other than borrowings used to fund lending activities.
• Deferred revenue (current) was $3.2 million, down from $4.7 million at December 31, 2025.

Guidance and Future Outlook:

• Management is positioning BitGo to provide financial infrastructure for bringing traditional assets on-chain, beginning with tokenized equities.
• The company sees significant opportunities to broaden access to U.S. equities through existing digital asset and stablecoin networks.
• BitGo aims to expand the utility of traditional investment portfolios through on-chain settlement, collateral, and financing applications.
• Management believes the convergence of traditional finance and blockchain infrastructure significantly expands the addressable market.

Business Segments and Product Lines:

• Digital Asset Sales: Revenue was $2,720.0 million, down 35.2% QoQ and 52.0% YoY. Contribution margin was 15 basis points.
• Staking: Revenue was $68.2 million, up 5.4% QoQ but down 24.1% YoY. Normalized Assets Staked increased 0.5% QoQ and 41.1% YoY to $10.5 billion.
• Subscriptions and Services: Revenue was $25.6 million, down 7.2% QoQ and 24.5% YoY, driven by lower non-recurring engineering revenue.
• Stablecoin-as-a-Service: Revenue was $37.4 million, down 3.8% QoQ but up 52.5% YoY.
• Normalized Assets on Platform: Increased 31.9% YoY to $59.9 billion.
• Normalized Assets Staked: Increased 41.1% YoY to $10.5 billion.
• Client Growth: The number of clients reached 6,640, a 33.1% increase YoY and 13.8% increase QoQ.
• Users: The number of users reached 1.3 million, a 7.3% increase YoY and 3.1% increase QoQ.
• Acquisitions: Completed the acquisition of NYDIG's institutional trading business, expanding capabilities in derivatives, structured products, and financing.
• Product Expansions: Expanded institutional trading and settlement connectivity, extending OKX off-exchange settlement integration internationally and introducing BitGo Prime's Global Liquidity Layer.

Market and Competitive Landscape:

• The company operates in a continued soft crypto trading environment which impacted digital asset sales activity.
• BitGo's regulated security infrastructure and Go Network model are positioned as competitive advantages for institutional adoption.
• The Go Network allows institutions to maintain assets in a regulated national bank while accessing trading venues, reducing exposure to exchange counterparty risk.
• Management notes increased competition in the markets and the evolving regulatory landscape as key factors.

Risks and Challenges:

• Revenue and margins are sensitive to fluctuations in digital asset prices and market capitalization.
• The business faces risks related to the highly evolving and uncertain regulatory landscape in the U.S. and internationally.
• Potential risks include the inability to attract new clients, retain existing clients, or successfully introduce new products.
• The value of the digital assets held in the corporate treasury is subject to volatility.
• The company must remediate identified material weaknesses in internal control over financial reporting.

Management Commentary and Tone:

• CEO Mike Belshe stated the company continued to strengthen its position as a leading institutional digital asset infrastructure platform.
• Management highlighted the expansion of the global footprint and the completion of the NYDIG acquisition as key strategic moves.
• The tone emphasized the importance of security, asset protection, and regulated infrastructure in accelerating institutional adoption.
• Management expressed confidence in the convergence of traditional finance and blockchain infrastructure as a growth driver.

Other Key Points:

• The Company repurchased $24.7 million of common stock during the quarter under a $50 million share repurchase authorization.
• Goodwill on the balance sheet increased to $43.7 million as of September 30, 2026, from zero at December 31, 2025, likely related to the NYDIG acquisition.
• The company maintains BitGo Bank & Trust, National Association, the first federally chartered digital asset trust bank owned by a publicly traded company.
• The press release includes forward-looking statements regarding future financial performance, business strategy, and market growth.
• A conference call to discuss results was scheduled for November 9, 2026, at 5:00 p.m. Eastern Time.