TLDR
- Kraken’s Q3 revenue reached $648 million, up 114% year-over-year, as the crypto exchange prepares for a possible U.S. IPO in 2026
- Adjusted earnings before taxes climbed to $178.6 million, compared to negative figures in Q3 2024, marking a 124% quarter-over-quarter increase
- Total trading volume rose 23% to $561.9 billion in the third quarter
- The company recently completed a $500 million funding round that valued Kraken at $15 billion
- Kraken would join other crypto firms like Coinbase, Bullish, and Gemini in accessing public markets if the IPO moves forward
Kraken posted strong third-quarter earnings as the crypto exchange moves closer to a potential public listing. The company legally known as Payward Inc. reported revenue of $648 million for Q3 2025.
This figure represents a 114% increase compared to the same period in 2024. The revenue growth came as trading activity picked up across the platform.
Kraken defines its revenue as gross income under GAAP accounting standards minus trading costs. This definition differs from how some competitors calculate their revenue figures.
The exchange’s adjusted earnings before taxes and other items reached $178.6 million in Q3. This compares to a slightly negative figure during the same quarter last year.
The earnings metric increased 124% from the previous quarter. Trading volume across the platform rose 23% to $561.9 billion during the three-month period.
The financial results come as Kraken prepares for an initial public offering in the United States. The company recently raised $500 million in a funding round.
That fundraising valued the exchange at $15 billion. The IPO is planned for 2026, though timing will depend on market conditions and regulatory approval.
Growing List of Crypto IPOs
If Kraken proceeds with its listing, it will join several other crypto companies pursuing public markets. Coinbase, Kraken’s closest U.S. competitor, is already publicly traded.
Bullish, which owns CoinDesk, has also signaled plans to go public. Gemini, another crypto exchange, is exploring similar options.
The strong Q3 performance strengthens Kraken’s position as it moves toward the IPO. Higher trading volumes and improved cost control helped boost profitability during the quarter.
Competitor Earnings on Deck
Coinbase is scheduled to report its third-quarter earnings on October 30. Analysts expect the publicly-traded exchange to show adjusted revenue growth of nearly 50%.
Fee adjustments across different products contributed to Kraken’s revenue growth. The company has worked to diversify its product offerings beyond basic spot trading.
Market activity levels and custody flows remain variable factors that could affect future results. The exchange’s adjusted earnings figure excludes certain non-cash items and one-time expenses.
This measure helps investors see the company’s recurring profitability more clearly. However, the way Kraken calculates revenue affects how it compares to other exchanges.
The $178.6 million in adjusted earnings marks a turning point from last year’s negative figures. Revenue conversion improved through fee mix optimization and tighter cost management.
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