BitGo Q3 Revenue Falls 51% to $2.9B as Net Income Nearly Doubles

BitGo’s Q3 earnings showed revenue falling 51% year over year to $2.85 billion in the quarter ended Sept. 30, yet net income nearly doubled to $44.1 million. The company announced the results on Monday, Nov. 9. A $71.5 million unrealized gain on digital assets lifted the bottom line despite an operating loss.

BitGo’s Q3 revenue fell as digital-asset sales slowed

Digital-asset sales slowed in the quarter. BitGo generally books the full proceeds of those sales as revenue and records the related costs separately, so the top line took the hit. Revenue after direct costs fell 32% to $37.3 million. The Block linked the decline to a softer crypto trading environment and a higher mix of lower-margin stablecoin transactions.

That accounting makes headline revenue a noisy gauge. A swing in trading volume can move the top line sharply without changing much of what BitGo keeps after direct costs. In Q3 the after-cost figure fell too, though by less than headline revenue, so weaker sales came with pressure on transaction economics.

Zacks Investment Research had a consensus estimate of $4.2 billion, and the $2.85 billion result landed 32% below it. BitGo also missed Wall Street earnings estimates, according to Cointelegraph.

The filing puts the quarterly unrealized gain on digital assets at $71.5 million. That was enough to change the direction of the bottom line: the gain offset the operating loss and fed into net income of $44.1 million. Weaker operations, in other words, met a favorable move in the value of crypto held on BitGo’s balance sheet.

BitGo Holdings is a US-listed digital-asset infrastructure company. In June it cut about 15% of its staff as it refocused on trading, stablecoins and artificial intelligence.

The business spans institutional digital-asset services, trading and stablecoins. Earlier in the year, BitGo reported that Stablecoin-as-a-Service revenue rose 43.6% to $38.2 million in Q1, while staking revenue fell 66.2% to $49.4 million amid lower token prices. The product lines did not move together.

BitGo’s earlier results show how quickly revenue shifted

First-quarter 2026 revenue reached $3.8 billion, up from $1.8 billion a year earlier. It still came in 38.7% below the $6.2 billion recorded in the fourth quarter of 2025, partly amid a shift in client trading from spot to derivatives.

BitGo launched derivatives at the start of Q1, and the product generated roughly $3 billion in notional volume in that quarter. The change in trading mix helps explain how revenue could retreat from the preceding quarter while staying well above the year-erlier level. Q1 also brought growth in stablecoin services and a marked decline in staking revenue.

Full-year 2025 revenue was $16.15 billion, up 424% year over year, with fourth-quarter revenue at $6.16 billion. BitGo recorded a $14.8 million net loss for 2025, compared with $156.6 million in net income in 2024. Q3’s $2.85 billion sits below both the first-quarter and fourth-quarter figures.

Higher digital-asset trading activity, increased subscription and services revenue, and the launch of Stablecoin-as-a-Service drove the annual growth, while lower staking revenue offset part of it. Adjusted EBITDA for full-year 2025 was $32.4 million, and Q4 adjusted EBITDA was $12.1 million. Net income told a different story. BitGo recorded a Q4 2025 net loss of $50 million, compared with net income of $129.4 million in the same period a year earlier, as lower digital-asset prices weighed on its Bitcoin treasury.

The 2025 annual report was BitGo’s first earnings release as a public company after its January listing on the New York Stock Exchange. The client base more than doubled year over year to 5,322 from 2,615. The company gave no operating outlook for 2026 in that release, so investors had no company forecast to hold the later quarterly swings against.

Q1 2026 brought a wider net loss despite the revenue increase. BitGo reported a $60.7 million loss, compared with a $25.7 million loss in Q1 2025. A $53.7 million non-cash loss tied to the value of its Bitcoin treasury and IPO-related stock compensation weighed on the result. Adjusted EBITDA moved to a loss of $1.7 million from a gain of $3.9 million a year earlier, and the company also identified $3 million in one-time legal and professional costs related to its IPO.

At the platform level, Q1 client count rose 42% year over year to 5,569, and platform users reached 1.2 million, up 7.3%. BitGo ended that quarter with $186.6 million in cash and 2,449 Bitcoin valued at approximately $167.1 million.

The stock reacted differently then. Shares slipped 1.09% in overnight trading to $11.78 after the Q1 release, which showed a wider loss despite higher revenue. After Q3, shares rose even as revenue and earnings missed analyst estimates.

BitGo’s net income rose while operations lost money

BitGo recorded a $19.2 million operating loss in Q3, versus $3.9 million of operating income in the same quarter a year earlier. The $71.5 million unrealized gain on digital assets accounts for the gap between that loss and the $44.1 million net income. The gain is a valuation item, not operating revenue from customer transactions. The operating loss and falling revenue point to pressure on the underlying business.

Treasury valuations have swung both ways. Q1 carried a $53.7 million non-cash loss from the falling value of its Bitcoin treasury, and Q3 delivered a gain. Either can inflate or shrink reported net income without reflecting income earned from customers.

As of Sept. 30, BitGo held $143 million in cash and cash equivalents and 2,399 BTC in its corporate treasury, valued at $200 million. That BTC position ties the company’s reported results directly to crypto prices.

The Q3 gain was unrealized, so the rise in asset value was not a sale of those holdings. Anyone comparing quarterly net income with revenue and operating results has to account for that difference.

BitGo’s public-market and regulatory position

BitGo began trading on the New York Stock Exchange in January. Its shares were priced at $18 in the offering, above the proposed range of $15–$17, and the IPO raised $212.8 million, valuing the company at around $2 billion. The stock reached $24.50 on its first trading day before closing at $18.49. By the second day it had fallen as low as $16.53, below the IPO price.

The listing put BitGo among public companies whose results reflect both operating activity and movements in crypto holdings, and the two have already diverged. Full-year 2025 brought strong revenue growth alongside a net loss. Q3 2026 paired lower revenue and an operating loss with net income lifted by a treasury gain.

BitGo secured approval from the Office of the Comptroller of the Currency in December 2025, becoming the first publicly traded, federally chartered digital-asset infrastructure provider. It also broadened its licence in Germany and obtained custody broker-dealer status in Dubai during 2025. Commercial expansion followed, with partnerships announced after the IPO with Clear Street, Canary Capital, Moomoo and WLFI.

CEO Mike Belshe framed the regulatory milestone as central to BitGo’s institutional positioning. Public-market status and regulatory credentials support the pitch to institutional clients, but reported revenue still moves with digital-asset trading activity and product mix.

BitGo’s product expansion includes Bitcoin staking

In the week before the earnings announcement, BitGo added Stacks Bitcoin staking to its qualified-custody offering. The service targets eligible institutions, which must pair BTC with STX worth 5% of their Bitcoin position. The positions are committed to bonds lasting roughly six months and funded by Stacks miners.

The launch gives BitGo’s institutional custody business a staking option, in an area where revenue has moved differently from trading and stablecoin services. The company had already named staking as one of the lines hit by weaker token prices. The announcement came with no revenue contribution and no forecast for its effect on future earnings.

BitGo shares rose 4.9% on results day

BitGo shares rose 4.9% on Monday to close at $5.10, partly reversing a 60% decline since early in the year, according to Yahoo Finance.

The gain came despite the revenue and earnings misses, and after a steep slide from early-year levels. It was a one-day move. The Q1 trading response was negative and the Q3 session ended higher, so the share price has tracked neither revenue growth nor a single direction in reported profit.

Analyst coverage after the January listing had included an average “Strong Buy” rating from nine analysts and a consensus 12-month price target of $15.61. That predates the Q3 earnings-day close.

What to watch after BitGo’s Q3 earnings

The next results will show whether digital-asset sales recover, whether the transaction mix keeps tilting toward lower-margin stablecoin activity, and how crypto treasury valuations hit net income. Together they will say whether Q3’s gap between revenue and net income was a one-quarter contrast or a recurring feature.

Investors can also weigh trading activity against subscriptions, services and stablecoin products, which supported growth in 2025 and Q1 2026. In Q1, derivatives volume was substantial while the move away from spot trading affected sequential revenue. Q3 offers a different mix of softer sales and lower-margin stablecoin activity.

Treasury valuations are a separate variable. The Q1 Bitcoin-related loss and the Q3 unrealized gain ran in opposite directions, and BitGo disclosed its cash and BTC positions at each reporting date. A reversal in digital-asset values could move net income again without saying whether customer activity or after-cost revenue had improved.

Product execution matters too. BitGo has cited trading, stablecoins and artificial intelligence as focus areas, and the Stacks staking addition widens what eligible institutions can use. The company has not given a new operating outlook with its Q3 results, so the next quarter will offer the first direct evidence of whether those initiatives are producing revenue or better operating results.

The next release will let investors compare the new quarter’s revenue, after-cost revenue, operating performance and treasury valuation effects with Q3. No date for it has been given.

?FAQ

01Why did BitGo’s revenue fall?

Digital-asset sales slowed, and The Block cited a softer trading environment alongside a higher mix of lower-margin stablecoin transactions. BitGo’s revenue after direct costs declined 32% to $37.3 million.

02How did BitGo post net income while recording an operating loss?

Net income was $44.1 million alongside a $19.2 million operating loss. A $71.5 million unrealized gain on digital assets helped lift the net result.

03What did BitGo hold in its corporate treasury?

At Sept. 30, BitGo listed $143 million in cash and cash equivalents and 2,399 BTC valued at $200 million. Those digital assets expose reported earnings to valuation changes.

04How far below estimates was BitGo’s revenue?

Revenue of $2.85 billion was 32% below Zacks Investment Research’s $4.2 billion consensus estimate. BitGo also missed Wall Street earnings estimates.

05How did BitGo shares react to the results?

BitGo shares rose 4.9% on Monday to close at $5.10, according to Yahoo Finance. The stock had fallen 60% since early in the year.

06How does Q3 revenue compare with BitGo’s earlier quarters?

Q3 revenue of $2.85 billion is below the $3.8 billion reported for the first quarter of 2026 and the $6.16 billion for the fourth quarter of 2025. Full-year 2025 revenue was $16.15 billion, up 424% year over year.

07What areas did BitGo say it would refocus on?

BitGo identified trading, stablecoins and artificial intelligence as areas of focus. It cut about 15% of its staff in June as part of the refocus.

This article is for information only and is not financial advice.