Bakkt Holdings, Inc. Class A (BKKT) AI Stock Analysis

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Bakkt Holdings, Inc. Class A

(NYSE:BKKT)

39Underperform

Bakkt Holdings, Inc. faces substantial challenges in profitability and cash flow, as reflected in its financial performance score. The stock's bearish trend, unattractive valuation, and potential revenue loss from a major client's contract non-renewal are significant concerns. However, the strategic transformation and partnership with DTR offer some positive prospects for future growth.

Bakkt Holdings, Inc. Class A (BKKT) vs. S&P 500 (SPY)

Market Cap

$120.41M

Dividend YieldN/A

Average Volume (3M)475.68K

Price to Earnings (P/E)―

Beta (1Y)2.41

Revenue Growth347.52%

EPS Growth62.22%

CountryUS

Employees559

SectorTechnology

Sector Strength44

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-7.93

Shares Outstanding6,661,815

10 Day Avg. Volume217,879

30 Day Avg. Volume475,681

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.09

Price to Cash Flow (P/CF)-1.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Bakkt Holdings, Inc. Class A Business Overview & Revenue Model

Company DescriptionBakkt Holdings, Inc. operates a digital asset platform. The company's platform enables consumers to buy, sell, convert, and spend digital assets. Its customers include merchants, retailers, and financial institutions. Bakkt Holdings, Inc. has a strategic alliance with the Global Payments to collaborate on use cases starting with enabling cryptocurrency redemption in customer loyalty programs offered by bankcard clients, as well as expanding its banking-as-a-service offerings to include consumer access to cryptocurrency. The company was formerly known as VPC Impact Acquisition Holdings and changed its name to Bakkt Holdings, Inc. The company was founded in 2018 and is headquartered in Alpharetta, Georgia. Bakkt Holdings, Inc. is a subsidiary of Intercontinental Exchange Holdings, Inc.

How the Company Makes MoneyBakkt Holdings, Inc. generates revenue through multiple channels. The primary revenue stream is transaction fees from its digital asset platform, where users can buy, sell, and convert cryptocurrencies and other digital assets. The company also earns through its loyalty and rewards program, where businesses can offer their customers the ability to convert loyalty points into other digital assets. Additionally, Bakkt has partnerships with financial institutions and businesses, providing them with the infrastructure to integrate digital assets into their offerings. These partnerships further enhance the company's revenue through service fees and shared transaction costs.

Bakkt Holdings, Inc. Class A Financial Statement Overview

Summary

Bakkt Holdings, Inc. exhibits strong revenue growth from $780.1 million in 2023 to $3.49 billion in 2024. However, profitability and cash flow generation remain significant challenges, with negative net profit margin, negative EBIT and EBITDA, and a negative free cash flow. The low leverage is a positive, but the low equity ratio and negative returns on equity highlight areas of concern.

Income Statement

Neutral

Bakkt Holdings, Inc. has shown significant revenue growth from $780.1 million in 2023 to $3.49 billion in 2024, indicating a strong upward trajectory. However, profitability remains a concern, as evidenced by a negative net profit margin of -2.95% and negative EBIT and EBITDA margins. This suggests challenges in managing operational costs despite revenue growth.

Balance Sheet

Negative

The balance sheet shows a low debt-to-equity ratio, indicating conservative leverage, which is a positive aspect. However, the equity ratio stands at 12.58%, reflecting a relatively low proportion of equity to assets. Return on equity is negative, at -304.18%, suggesting that the company is not currently generating profits for its shareholders.

Cash Flow

Negative

Bakkt's cash flow statement reveals negative free cash flow, with a free cash flow to net income ratio of 0.21, indicating insufficient cash generation relative to net losses. The operating cash flow to net income ratio is -0.21, showing challenges in converting revenue into cash flow.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.49B	780.14M	54.57M	37.27M	28.50M
	Gross Profit
3.37B	61.63M	-113.04M	-137.83M	-30.14M
	EBIT
-92.92M	-227.89M	1.65B	-164.10M	-79.12M
	EBITDA
-83.36M	-116.09M	-153.67M	-134.75M	-42.30M
	Net Income Common Stockholders
-46.66M	-74.85M	-578.11M	-242.66M	-79.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
127.61M	70.28M	239.39M	391.40M	77.18M
	Total Assets
269.38M	966.87M	455.50M	2.41B	468.38M
	Total Debt
23.54M	27.16M	26.42M	11.26M	2.30M
	Net Debt
-15.51M	-25.72M	-71.92M	-380.14M	-73.06M
	Total Liabilities
206.52M	831.15M	119.43M	108.40M	58.59M
	Stockholders Equity
33.89M	48.28M	96.26M	479.80M	409.78M
Cash Flow		Free Cash Flow
-21.20M	-70.13M	-148.14M	-149.99M	-51.51M
	Operating Cash Flow
-21.20M	-60.70M	-117.60M	-134.30M	-30.94M
	Investing Cash Flow
14.13M	65.97M	-171.96M	16.92M	-7.93M
	Financing Cash Flow
43.82M	-2.63M	-2.58M	256.83M	37.49M

Bakkt Holdings, Inc. Class A Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price8.70

Price Trends

50DMA

11.50

Negative

100DMA

18.46

Negative

200DMA

16.19

Negative

Market Momentum

MACD

-1.07

Negative

RSI

43.63

Neutral

STOCH

68.12

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKKT, the sentiment is Neutral. The current price of 8.7 is below the 20-day moving average (MA) of 9.23, below the 50-day MA of 11.50, and below the 200-day MA of 16.19, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BKKT.

Bakkt Holdings, Inc. Class A Risk Analysis

Bakkt Holdings, Inc. Class A disclosed 77 risk factors in its most recent earnings report. Bakkt Holdings, Inc. Class A reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Bakkt Holdings, Inc. Class A Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	74 Outperform	$2.31B	19.77	17.45%	―	17.64%	30.75%
AVPT	68 Neutral	$2.93B	―	-12.13%	―	21.58%	-32.72%
STNE	63 Neutral	$3.36B	8.73	-9.48%	―	-8.52%	-180.71%
JG	58 Neutral	$39.20M	―	-9.96%	―	7.31%	88.98%
Sector *	58 Neutral	$9.82B	10.00	-6.63%	3.09%	7.49%	-11.58%
BAND	56 Neutral	$351.21M	―	-2.14%	―	24.52%	61.08%
BKKT	39 Underperform	$120.41M	―	-113.56%	―	347.52%	62.22%

* Technology Sector Average

Performance Comparison

BKKT

Bakkt Holdings, Inc. Class A

8.70

-1.55

-15.12%

BAND

Bandwidth

11.45

-6.08

-34.68%

Aurora Mobile

7.80

4.79

159.14%

STNE

Stoneco

12.06

-3.21

-21.02%

AVPT

AvePoint

14.03

6.29

81.27%

PAYO

Payoneer

6.15

1.21

24.49%

Bakkt Holdings, Inc. Class A Earnings Call Summary

Earnings Call Date: Mar 19, 2025 | % Change Since: -6.55% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

The earnings call highlights Bakkt's strategic transformation into a crypto-focused company with significant growth in trading volumes and revenue, alongside cost reductions and an improved net loss. However, the non-renewal of a major contract with Webull and a decline in loyalty revenue present notable challenges.

Highlights

Strategic Transformation to Crypto Focus

Bakkt is transforming into a pure play crypto infrastructure company, with a new co-CEO from DTR, aiming to enter the cross-border stablecoin payments industry.

Record-Breaking Crypto Trading Volumes

Fourth quarter total trading volumes reached $1.78 billion, a 465% sequential improvement and a 778% year-over-year increase.

Significant Revenue Growth

Total revenues net of crypto costs increased 6.6% year-over-year to $17.8 million for the quarter.

Reduction in Operating Expenses

Operating expenses excluding crypto costs decreased 69% year-over-year to $29.5 million.

Improvement in Net Loss

Quarterly net loss improved 48.7% year-over-year to $40.4 million.

Lowlights

Webull Contract Non-Renewal

Webull, which represented approximately 74% of Bakkt's crypto revenues for 2024, will not be renewing their contract effective June 2025.

Loyalty Revenue Decline

Net loyalty revenues decreased 8.3% sequentially and 26.5% year-over-year.

Anticipated Revenue Impact

The non-renewal of the Webull contract is expected to impact revenue in the short term.

Company Guidance

During Bakkt's fourth quarter 2024 earnings call, management provided guidance for the first quarter of 2025, anticipating total revenues between $1.03 billion and $1.28 billion, with gross crypto revenues ranging from $1.02 billion to $1.27 billion and net loyalty revenues between $8.5 million and $9.9 million. They expect crypto costs, execution, clearing, and brokerage fees to align with gross crypto revenue estimates. Bakkt projects an available cash and cash equivalents balance of $22 million to $26 million by the end of the quarter, factoring in a potential first-time draw of up to $5 million from the ICE line of credit to support working capital requirements. This guidance does not include any revenues or expenses from their new commercial partnership with Distributed Technologies Research (DTR).

Bakkt Holdings, Inc. Class A Corporate Events

M&A TransactionsBusiness Operations and Strategy

Bakkt Holdings Announces Strategic Partnership with DTR

Positive

Mar 20, 2025

On March 19, 2025, Bakkt Holdings, Inc. announced a Cooperation Agreement with Distributed Technologies Research Ltd. (DTR) and its sole stockholder, Akshay Naheta. This agreement grants Bakkt exclusive access to DTR’s payment processing technology, which will be integrated into Bakkt’s platform to enable global payment services. The agreement includes a Call Option for Bakkt to acquire DTR’s equity, and a Right of First Refusal if a third-party offers to purchase DTR. Additionally, if Bakkt processes over $2 billion in payments using DTR’s technology within 18 months, Naheta can require Bakkt to purchase DTR’s equity. This strategic move positions Bakkt to expand its payment processing capabilities and potentially increase its market share.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.