Bakkt Holdings, Inc. (BKKT) Earnings

Management highlights

### Platform Structure and Strategic Flywheel - BAC is structured as one integrated platform powered by three complementary engines (Markets, Agent, Global) built on a shared foundation of regulatory compliance, KYC, and 24-7 programmable stablecoin settlement. - The flywheel effect creates compounding value: Markets provides regulated transaction rails, Agent brings intelligence and client distribution onto the rails, and Global expands access to new assets, markets, and relationships that connect to the core platform, driving more activity and increasing platform value over time. ### Execution Progress and Scorecard - Foundational platform build is largely complete; management's focus has shifted to commercial activation, client onboarding, and scaling transaction flows. - Six of eight execution scorecard categories are now rated 75 or higher, with notable improvements: Partners and Distribution increased 20 points to 50 (remains the top execution priority), Team and Talent increased 15 points to 75, and Operational Efficiency increased 10 points, as BAC builds a leaner, more scalable operating model than traditional financial institutions. - Current ratings: Regulatory 85, Infrastructure and Technology 80, Financial Strength 75, Global Network 75. ### BAC Markets Operational Updates - As of Q2 end, BAC Markets supports 1 core KYC framework, access across 63+ countries, 19 currencies, and 10 public blockchains, with four live production APIs. - Six commercial offerings are live and actively sold: trading infrastructure, stablecoin OTC, digital asset OTC, stablecoin on/off ramps, cross-border payments via the Zyra API, and the embedded Bakkt widget. WIRE and ACH integration for stablecoin settlement went live in Q2, closing the loop between traditional bank rails and blockchain settlement. ### BAC Agent Operational Updates - Agent is a B2B/B2B2C platform that lets businesses embed regulated financial products into their own customer experiences, with three product paths: Embedded Finance (commercially available now), co-branded card programs (target Q4 2026 launch), and Neobank as a Service (target Q4 2026 launch, subject to regulatory approvals). - The segment follows an embed-engage-expand model: clients start with core capabilities, then add deeper products over time on the same core integration, increasing fee revenue and transacting volume per client while improving retention. ### BAC Global Operational Updates - BAC Global holds strategic positions in Japan (access to private market and real-world assets for tokenization) and India (scaled local consumer investment distribution), creating a full end-to-end opportunity connecting asset supply in Japan to distribution demand in India via BAC's core platform. - Strategic asset value is now aligned directly with GAAP financial statement amounts, with no unreported internal valuation components.

Guidance

• Full-year 2026 total transacting volume (TTV) target is maintained at $2.5 billion, with management remaining confident in achieving the target despite lower Q2 trading volume, as payment contributions accelerate in the second half. • BAC Agent has an initial target of 25,000 monthly active users by the end of 2026, following commercial launches in the second half. • Management expects BAC to reach adjusted EBITDA breakeven at some point during Q4 2026, dependent on the timing and scale of ongoing client activations. • No formal 2027 financial guidance has been provided, but management expects TTV growth to accelerate in 2027 following 2026 year-end execution. • All new BAC Agent product launches (co-branded cards, Neobank as a Service) remain on track for Q4 2026, subject to applicable regulatory and partner approvals.

Segment performance

BAC operates three complementary business segments (engines): 1. **BAC Markets**: Q2 2026 total transacting volume (TTV) was approximately $169 million, bringing first half 2026 TTV to $410 million. Trading activity drove the majority of Q2 volume, while payments contributed to TTV for the first time after the May 1 integration. It contributes 100% of current realized transaction revenue from the platform. 2. **BAC Agent**: This B2B/B2B2C embedded finance segment is commercially available for partner integration, with no meaningful reported revenue or volume yet. It targets 25,000 monthly active users (MAUs) by the end of 2026 following commercial launches in the second half. No current revenue contribution. 3. **BAC Global**: The strategic investment segment held a total reported strategic asset value (SAV) of approximately $119 million as of June 30, 2026, consisting of a $10.6 million equity method carrying value for its Japan investment and $107.9 million fair value for Transchem warrants. It contributed fair value gains that drove GAAP net income in the quarter, accounting for the majority of reported $80.8 million Q2 net income.

Risks & headwinds

• Forward-looking statements (including TTV targets, breakeven timing, and product launch dates) are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including regulatory approval delays, slower-than-expected client integration and activation, and broader market conditions affecting trading and payment activity. • Achieving the full-year 2026 TTV target requires meaningful acceleration in commercial activity during the second half, which depends on successful execution of ongoing client onboarding and integration, with no guarantee these timelines will be met. • Cross-border payment and embedded finance product expansion depends on regulatory compliance and licensing requirements across multiple jurisdictions, which can delay launches or increase operational costs. • Adjusted EBITDA breakeven timing depends entirely on the scale and timing of client activations, which are not fully within management's control.

Analyst Q&A

• Q: How does BAC's business model evolve over the next 12 months, and where will capital be allocated? /

  A: Management maintains the full-year 2026 $2.5 billion TTV target and expects significant volume growth to accelerate into 2027, but declines to give formal 2027 financial guidance. Near-term capital and talent will focus on activating existing client relationships and scaling transacting volume, with no major new undisclosed capital allocations planned at this time.

• Q: How should investors think about blended take rates across BAC's six live offerings, and how do take rates differ by product? /

  A: Stablecoin trading volume for major G3 currencies (USD, EUR, GBP) carries very thin margins, with take rates ranging from a few basis points to the low teens. Cross-border payments, especially in emerging markets across BAC's 63+ country footprint, carry much higher margins of 50 basis points to 150 basis points. No blended take rate guidance is provided, but more data will become available starting next quarter as payment volume scales.

• Q: What progress has BAC made on integration following the DTR acquisition? /

  A: BAC closed the DTR acquisition at the end of April, and completed core integration in just two months. Key milestones include consolidated client onboarding across products, launch of wire and ACH funding, bringing the full payments infrastructure in-house, adding payments to TTV for the first time, and launching six connected live commercial offerings. The focus is now shifting to activating new clients and scaling volume.

• Q: When does BAC expect to reach operational breakeven? /

  A: Management expects adjusted EBITDA breakeven will be achieved at some point during the fourth quarter of 2026, based on the current execution plan and ongoing client activations. BAC's lean operating model is designed to deliver meaningful operating leverage as volume grows without requiring the large cost base of a traditional financial institution, though the final timing depends on the scale and pace of client activations.