Kraken parent company Payward reported second-quarter adjusted revenue of $508 million, a 17% year-over-year increase, even as adjusted pretax profit fell 71% to $23 million from $79.7 million a year earlier, according to financial disclosures and Bloomberg reporting.
Total platform transaction volume dropped 13% year over year to $310 billion, with activity shifting toward equities and tokenized equities. Payward said it gained spot market share for a third consecutive quarter. Asset-based and other revenue rose to 60% of total revenue, up from 55% a year earlier. Funded accounts climbed 42% to a record 6.6 million, helped by momentum in the European Economic Area following MiCA authorization. Assets on platform stood at $40 billion.
Co-CEO Arjun Sethi said: "Three forces are rearranging global markets: convergence across asset classes, the onshoring of activity into regulated venues, and the automation of market participation." He tied the results to Payward's decision to build a single platform rather than separate products.
Payward continued its acquisition push. It closed the purchase of derivatives venue Bitnomial on May 1, completed its acquisition of stablecoin payments platform Reap on July 1, and on July 27 agreed to acquire Magic Labs' wallet infrastructure business to add embedded wallets to its B2B services.
The earnings arrive amid an uncertain path to public markets. Payward confidentially filed a draft S-1 with the SEC on Nov. 19, 2025, publicly confirmed IPO plans in April after pausing in March, and has not set a new timeline. Bloomberg reported the IPO may be delayed to late this year or early next year. The company was valued at $20 billion in a November funding round. Payward also eliminated about 150 jobs, citing efficiency gains from artificial intelligence.
For context, Payward reported $507 million in adjusted revenue in the first quarter and $2.2 billion for full-year 2025.
