Bakkt, Inc. Q1 FY2025 earnings call

• Navigated slower crypto market with total transaction volume at $1.06 billion for Q1. - Sale of Bakkt Trust Company to Intercontinental Exchange expected to close on or about May 15th. - Exploring strategic alternatives for loyalty business. - Cooperation agreement with DTR signed, with commercial agreement expected by Q3 2025 and integration underway. - Hired Philip Lord as President of Bakkt International and Ankit Khemka as Chief Product Officer. - Focus on transformation to pure-play crypto infrastructure, deepening crypto trading strength and expanding into stablecoin payments ecosystem through DTR partnership.

For the first quarter, total transaction volume reached $1.06 billion, a 40% sequential decline from Q4 but a 23% year-over-year growth outpacing the broader market. Total revenues net of crypto costs, execution, clearing, and brokerage fees decreased 25.9% year-over-year to $12.6 million. Total operating expenses, excluding crypto costs and execution, clearing, and brokerage fees, decreased 36.3% year-over-year to $31.1 million. Net income improved 176.5% year-over-year to $16.2 million. Adjusted EBITDA loss non-GAAP improved 11% year-over-year to $14.5 million. Crypto services revenue net of crypto costs, execution, clearing, and brokerage fees was $3.5 million, a 5.4% year-over-year decrease and 47.8% sequential decrease. Net loyalty revenues were $9.2 million, down 30.3% year-over-year and 17.1% sequentially.

• Suspending quarterly guidance as they work to finalize the definitive commercial agreement with DTR and complete optimization review.

• Market conditions and volatility could impact performance. - Regulatory uncertainties may affect operations. - Integration challenges with Distributed Technologies Research (DTR) could slow progress.