Kraken’s parent company, Payward, reported $507 million in adjusted revenue for the first quarter of 2026, marking a 3% increase compared to the same period in 2025. This growth occurred despite a 22% decline in Bitcoin’s price and a 38% drop in overall spot trading volumes across the industry. The exchange’s diversified business model, including a strong push into derivatives, helped offset the market slump.
Payward’s co-CEO, Arjun Sethi, emphasized the company’s proactive approach, stating that while others retreated, the firm continued to invest aggressively. The derivatives segment saw daily average revenue trades jump 51%, fueled by the recent acquisition of CFTC-licensed platform Bitnomial for $550 million, as well as growth in offerings like NinjaTrader and Breakout. Kraken’s spot market share also improved, rising from around 3.5% in mid-2025 to 5.2% in March 2026.
Total transaction volume on the platform reached $357 billion in Q1, while funded accounts grew 47% year-over-year to 6.1 million. Assets on the platform hit $40 billion. However, adjusted EBITDA fell to $18 million as Payward continued to spend on acquisitions, product development, and regulatory infrastructure. The company has been building a non-trading revenue stream, which accounted for 53% of total revenue in 2025, reducing reliance on volatile trading volumes.
On the IPO front, Payward confidentially filed a draft S-1 with the SEC in November 2025 but paused the process in March, with sources suggesting a public listing might be delayed until 2027. The exchange also laid off about 150 employees in May, citing AI-driven efficiencies, representing roughly 5% of its workforce.