BitGo Posts $0.36 Per-Share Profit Despite 50.9% Third-Quarter Revenue Decline
Key Facts
BitGo reported results on November 9 for the third quarter ended September 30, posting diluted earnings per share of $0.36, compared with a loss of $0.16 in the second quarter and earnings of $0.15 a year earlier. Net income was $44.1 million, versus a loss of $19.0 million in the previous period and profit of $22.7 million in the third quarter of 2025. The company said in its filing that the quarterly and annual improvement came primarily from a $71.5 million unrealized gain on its digital asset treasury. Adjusted earnings before interest, taxes, depreciation and amortization, meanwhile, showed a loss of $4.3 million, putting the treasury valuation effect at the center of the accounting profit. BitGo provides digital asset infrastructure services, and its results came in a quarter marked by a sharp decline in total revenue.
Total revenue was $2.8519 billion, down 34.1% from the second quarter and 50.9% from the same period a year earlier. BitGo attributed the decline to lower digital asset sales activity amid weak cryptocurrency trading conditions. Revenue from that activity was $2.72 billion, while its direct costs were $2.7158 billion; the company estimated its margin at 15 basis points. Digital asset sales thus accounted for most reported revenue, but the difference between revenue and direct costs for the activity remained narrow. Revenue after direct costs was $37.3 million, down 12.1% quarter over quarter and 32.1% year over year, a measure that shows the activity’s contribution after accounting for its direct costs.
Other revenue sources had mixed performance during the quarter. Subscription and services revenue was $25.6 million, down 7.2% quarter over quarter and 24.5% year over year; the company said the quarterly decline was mainly related to the timing of non-recurring engineering revenue. Stablecoin service revenue was $37.4 million, down 3.8% from the second quarter but up 52.5% year over year; the company attributed the quarterly decline to lower average reserve balances. Custody revenue was $68.2 million, up 5.4% quarter over quarter and down 24.1% year over year. Custody fees were $64.2 million, with a take rate of 5.9%.
Weak revenue came alongside a continued adjusted operating loss, as BitGo posted adjusted EBITDA of negative $4.3 million, compared with a loss of $4.2 million in the previous quarter and profit of $13.5 million a year earlier. The company said the quarterly decline reflected lower revenue and margins, partly offset by lower operating expenses. Operating expenses, excluding direct costs, were $56.6 million, down 5.5% quarter over quarter. The company attributed the decrease to cost-cutting initiatives launched in the second quarter. Revenue after direct costs also remained below its year-earlier level, putting expense control alongside business volume among the factors in assessing operating performance.
The number of platform customers continued to rise, reaching 6,640 in the third quarter, up 13.8% from the second quarter and 33.1% from the same period a year earlier. The company cautioned that the quarterly increase in the reported count does not necessarily mean new customers were added through acquisitions or asset inflows. Meanwhile, reported assets on the platform fell to $59.9 billion from $65.2 billion in the second quarter. BitGo said lower median digital asset prices were the main reason for the decline, while assets on a constant-price basis rose 0.6% quarter over quarter. The figures thus show a divergence between the customer count, which continued to grow, and reported asset value, which was affected by price movements.
At digital asset prices as of September 30, assets on the platform totaled $83.0 billion, and staked assets totaled $16.3 billion. BitGo also said its corporate treasury held 2,399 company-owned bitcoin, with a fair value of $200.4 million, along with $143.2 million in cash and cash equivalents. As part of its capital allocation, the company repurchased $24.7 million of common stock during the quarter under an authorization of up to $50 million. These measures offer separate views of the volume of assets held in custody or staked, the company’s digital asset holdings and its repurchase program. The platform asset figures remain tied to period-end prices, according to the company.
On expansion, BitGo completed its acquisition of NYDIG’s institutional trading business, saying the deal expands its capabilities in derivatives, structured products and financing. Chief Executive Mike Belshe said the company is building financial infrastructure to bring traditional assets on-chain, starting with tokenized equities. He added that the company sees opportunities to expand access to U.S. equities through digital asset networks and stablecoins, and to use on-chain settlement, collateral and financing. The company generated revenue of $16.2 billion in 2025, up 424.3% from the prior year, while fourth-quarter revenue that year was $6.2 billion, up 439.9% year over year, with digital asset trading contributing to growth. Management was scheduled to hold a call to discuss third-quarter results at 5 p.m. Eastern on November 9, with a live webcast and recorded replay available.