Payward reports revenue growth but sharp profit decline in Q2

Payward, the parent company of the cryptocurrency exchange Kraken, reported a significant divergence between revenue and profit in its Q2 results. While adjusted revenue grew 17% year-over-year to $508 million, adjusted EBITDA plummeted to $23 million, down from approximately $80 million in the same period last year.

Despite a 42% increase in funded accounts, which reached a record 6.6 million, total platform transaction volume fell to $310 billion. This indicates that while user acquisition is strong, trading activity—the primary driver of fee income—is not scaling alongside the user base.

The company is seeing a shift in its revenue mix, with asset-based and other recurring services now accounting for 60% of total revenue, up from 55% a year ago. This reflects a broader industry trend where exchanges are moving toward custody, staking, and yield services to reduce reliance on volatile spot trading fees.