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Bakkt Holdings, Inc. Class A (BKKT)
:BKKT
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Bakkt Holdings, Inc. Class A
(NYSE:BKKT)
Rating:51Neutral
Price Target:
$15.00
▲( 27.01% Upside)
Bakkt Holdings, Inc. Class A (BKKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$164.29M
Dividend YieldN/A
Average Volume (3M)388.36K
Price to Earnings (P/E)―
Beta (1Y)2.54
Revenue Growth128.83%
EPS Growth73.67%
CountryUS
Employees559
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.13
Shares Outstanding6,734,323
10 Day Avg. Volume765,043
30 Day Avg. Volume388,364
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.93
Price to Sales (P/S)0.00
P/FCF Ratio-3.11
Enterprise Value/Market Cap0.31
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.15
Enterprise Value/Ebitda-0.14
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. demonstrates significant revenue growth but faces challenges with profitability and cash flow. The company's low leverage is a positive aspect, but its low equity ratio and negative returns on equity are concerning. Improvements in cost management and cash flow efficiency are necessary.Income Statement
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.45
Neutral
Balance Sheet
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.38
Negative
Cash Flow
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.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.49B | 780.14M | 54.57M | 37.27M | 28.50M | Gross Profit |
| 87.01M | 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 | |||
| 39.05M | 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 | |||
| -24.29M | -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
Negative
11.81
Price Trends
10.16
Positive
14.52
Negative
15.31
Negative
Market Momentum
0.59
Negative
48.03
Neutral
26.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKKT, the sentiment is Negative. The current price of 11.81 is above the 20-day moving average (MA) of 10.98, above the 50-day MA of 10.16, and below the 200-day MA of 15.31, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 26.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.46B | 22.78 | 15.97% | ― | 14.86% | -0.94% | |
65 Neutral | $415.79M | ― | -0.32% | ― | 18.51% | 97.57% | |
65 Neutral | $3.70B | ― | -8.39% | ― | 21.70% | -67.95% | |
61 Neutral | $3.67B | 8.73 | -8.85% | ― | -14.03% | -167.03% | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
59 Neutral | $65.97M | ― | -9.96% | ― | 7.31% | 88.98% | |
51 Neutral | $164.29M | ― | -60.94% | ― | 128.83% | 73.67% |
* Technology Sector Average
Performance Comparison
BKKT
Bakkt Holdings, Inc. Class A
10.66
-6.73
-38.70%
BAND
Bandwidth
13.80
-7.10
-33.97%
JG
Aurora Mobile
10.61
7.46
236.83%
STNE
Stoneco
13.28
-1.01
-7.07%
AVPT
AvePoint
18.23
9.07
99.02%
PAYO
Payoneer
6.81
0.78
12.94%
Bakkt Holdings, Inc. Class A Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 17.98%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant year-over-year growth in transaction volume and a notable improvement in net income. However, sequential revenue declines and strategic challenges, such as the divestiture of certain business units and a drop in loyalty revenue, presented concerns. The strategic partnership with DTR and new leadership hires were positive steps towards future growth and transformation into a crypto infrastructure company.Q1-2025 Updates
Positive Updates
Year-over-Year Volume Growth
Despite a 40% sequential decline, total transaction volume reached $1.06 billion for Q1, reflecting a 23% year-over-year increase, outpacing the broader market.
Net Income Improvement
Net income improved 176.5% year-over-year, moving from a loss to a profit of $16.2 million.
Strategic Transformation
Progress on transformation to a pure-play crypto infrastructure company, including the divestiture of Bakkt Trust Company and ongoing discussions to divest the loyalty business.
New Strategic Partnerships and Leadership
The cooperation agreement with DTR and new key hires including Philip Lord and Ankit Khemka to drive crypto payments and global expansion.
Future Integration with DTR
Expected integration of DTR's stablecoin and AI payment infrastructure with Bakkt’s platform by Q3 2025, aiming to transform global payments.
Negative Updates
Sequential Revenue Decline
Total revenues net of crypto costs decreased 25.9% year-over-year to $12.6 million, with a 40.2% sequential decline in total revenue.
Decrease in Operating Expenses
Total operating expenses decreased 36.3% year-over-year to $31.1 million, driven by reductions in insurance, marketing, and compensation expenses.
Loyalty Revenue Drop
Net loyalty revenues were down 30.3% year-over-year and 17.1% sequentially, partly due to the exit of a loyalty client in 2024.
Suspension of Quarterly Guidance
Suspending the practice of providing quarterly guidance during the integration and optimization review with DTR.
Company Guidance
During the Bakkt first quarter 2025 earnings call, several key metrics and strategic guidance points were discussed. The company reported a total transaction volume of $1.06 billion for the quarter, representing a 40% sequential decline but a 23% increase year-over-year. Total revenues net of crypto costs decreased by 25.9% year-over-year to $12.6 million, while operating expenses dropped 36.3% year-over-year to $31.1 million. Net income improved significantly, moving from a loss to a profit of $16.2 million, a 176.5% year-over-year increase. Adjusted EBITDA loss improved by 11% year-over-year to $14.5 million. Bakkt announced strategic initiatives, including transitioning to a pure-play crypto infrastructure company with the divestiture of the custody business to ICE expected by mid-May 2025. The company is also exploring strategic alternatives for its loyalty business while focusing on expanding into the stablecoin payments ecosystem through a collaboration with Distributed Technologies Research (DTR). However, the company has suspended quarterly guidance as it works on finalizing a commercial agreement with DTR and optimizing its operations.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.