TheBlock
Payward, the parent of crypto exchange Kraken, recorded $507 million in first-quarter adjusted revenue — up 3% year-over-year — even as co-CEO Arjun Sethi called the period "one of the most challenging quarters the industry has faced since 2022." Adjusted EBITDA fell to $18 million from $168 million a year earlier, with revenue also down sequentially from $628 million in Q4 2025. Sethi framed the margin compression as "a deliberate choice to continue investing through the cycle" in acquisitions, product, and regulatory infrastructure as the firm prepares for a public listing that Bloomberg reports has slipped to 2027.
Why it matters
The numbers are a window into how a top-tier exchange is choosing to spend through a soft patch rather than retrench. Kraken's spot market share climbed from roughly 3.5% in mid-2025 to a March high of 5.2%, Assets on Platform grew 11% to $40 billion, and funded accounts rose 47% to 6.1 million — a sign that customer acquisition is decoupling from the Bitcoin drawdown. Sethi explicitly pointed to the mix shift away from pure spot trading toward tokenized equities, derivatives, and yield products as the durability story, with xStocks, the Bitnomial derivatives build-out, and pending Reap stablecoin acquisition anchoring the new revenue lines.
Market impact
The re-rating is the real signal: a Deutsche Börse-led $200 million round in April implied a $13.3 billion valuation, a meaningful step down from the $20 billion mark Kraken fetched in November. Combined with the 150-person layoff announced the same week as the earnings, the picture is one of a venue that is buying multi-asset breadth with compressed margins — and asking public-market investors to underwrite that bet once the IPO window reopens.
Frequently asked questions
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What was Kraken parent Payward's Q1 2026 adjusted revenue?
Payward reported $507 million in first-quarter adjusted revenue, up 3% year-over-year but down sequentially from $628 million in Q4 2025.
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Why did Payward's adjusted EBITDA fall so sharply in Q1?
Adjusted EBITDA dropped to $18 million from $168 million a year earlier. Co-CEO Arjun Sethi attributed the decline to deliberate continued investment in acquisitions, product development, and regulatory infrastructure.
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When is Kraken expected to go public?
Bloomberg reported Friday that Kraken's potential IPO has been pushed back to 2027, from earlier expectations. The company confidentially filed for a US listing in November after raising at a $20 billion valuation.
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What is Kraken's current valuation after the Deutsche Börse investment?
A $200 million investment from Deutsche Börse Group in April for a 1.5% fully diluted stake implied a $13.3 billion valuation, down from the $20 billion mark Kraken fetched in November 2025.
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How is Kraken diversifying beyond crypto spot trading?
Kraken is building out tokenized equities through its xStocks product, scaling derivatives via the Bitnomial acquisition, and is working to close a stablecoin payments and card acquisition of Reap. Spot market share rose from ~3.5% in mid-2025 to 5.2% by March 2026.
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