BitGo (BTGO) Misses Revenue Estimate by 32% Despite Profit Jump

TLDR

BitGo closed Monday at $5.10, up 4.94%, then slipped 1.14% after hours to $5.04.
Q3 net income rose 94% to $44.1 million, driven by a $71.5 million unrealized crypto gain.
Revenue fell 51% to $2.85 billion, missing the $4.2 billion consensus by 32%.
The company posted an operating loss of $19.2 million and an adjusted EBITDA loss of $4.3 million.
BitGo bought back $24.7 million of stock and holds 2,399 Bitcoin worth $200.4 million.

BitGo Holdings (BTGO) closed Monday at $5.10, up 4.94%, before the company released its third-quarter report. The stock slipped 1.14% in after-hours trading to $5.04 once the numbers came out.

BitGo Holdings, Inc., BTGO

The crypto custodian reported net income of $44.1 million, up 94% from a year ago. Diluted earnings came in at $0.36 per share, versus $0.15 last year.
That profit came from a paper gain, not from cash in the till. BitGo booked a $71.5 million unrealized gain on its digital asset treasury.

$BTGO reported Q3 2026 results this afternoon.
Clients on platform increased 33% year over year, reflecting continued growth in institutional adoption.
We expanded our global footprint and completed the acquisition of NYDIG’s institutional trading business.
We’re grateful for… https://t.co/aaEkIVzA3V
— BitGo (@BitGo) November 9, 2026

Day-to-day operations told a different story. The company posted an operating loss of about $19.2 million and an adjusted EBITDA loss of $4.3 million.
Revenue fell 51% to $2.85 billion, from $5.81 billion a year earlier. That missed the $4.2 billion Zacks consensus by 32%.
Why Revenue Dropped
Digital asset sales brought in $2.72 billion, down 52% from a year ago. BitGo blamed weaker crypto trading and a bigger mix of low-margin stablecoin activity.
After costs, those sales left just $4.2 million, a margin of 15 basis points. That compares with 17 in the second quarter and 20 a year ago.
Revenue after direct costs fell 32% to $37.3 million. Operating expenses, excluding direct costs, dropped 5.5% from the prior quarter to $56.6 million.
The cost cuts followed a June layoff of about 15% of staff. BitGo said it wanted to refocus on trading, stablecoins and artificial intelligence.
Clients, Stablecoins and Buybacks
BitGo ended the quarter with 6,640 clients, up 33% from 4,988 a year earlier. The platform served about 1.3 million users.
Platform assets fell to $59.9 billion from $104 billion as crypto prices dropped. Adjusted for current prices, platform assets rose 32% and staked assets rose 41%.
Stablecoin-as-a-Service revenue rose 52.5% to $37.4 million, though it slipped 3.8% from the prior quarter. Staking revenue was $68.2 million, down 24% on the year.
BitGo bought back $24.7 million of its stock under a $50 million plan. About $25.3 million is still available.
The company closed its purchase of NYDIG’s institutional trading business during the quarter. It also expanded its OKX settlement setup abroad, and CEO Mike Belshe said BitGo “expanded our global footprint.”
On Sept. 30, BitGo held $143.2 million in cash and 2,399 Bitcoin worth $200.4 million. Riot Platforms finished moving its Bitcoin custody from NYDIG to BitGo on Oct. 29.
The stock has traded between $4.36 and $24.50 over the past 52 weeks and is down about 60% this year. After hours Monday, it sat at $5.04.
The post BitGo (BTGO) Misses Revenue Estimate by 32% Despite Profit Jump appeared first on Blockonomi.