Payward, the parent company of crypto exchange Kraken, said adjusted pretax profit fell 71% to $23 million in the second quarter, even as revenue rose 17% to $508 million. The private company's numbers, disclosed in a filing, stand in sharp contrast to Coinbase, which missed analyst estimates and reported a net loss of $359 million.
The numbers behind the contrast
Payward's revenue growth of 17% is the entire case for its acquisition strategy, but the company doesn't break out how much of that came from deals versus organic growth. That makes the figure untestable from the outside. Coinbase, by comparison, reported Q2 revenue of $1.22 billion, down 18% from a year earlier and short of the $1.29 billion analysts expected. Its net loss was driven mostly by the falling value of the crypto it holds.
Payward is private and only disclosed two adjusted figures, which are not audited. Coinbase files with the SEC, so its numbers get far more scrutiny.
A $2.65 billion shopping spree
Payward has spent roughly $2.65 billion on acquisitions in the last 18 months. That includes NinjaTrader for $1.5 billion, Bitnomial for up to $550 million, and Reap for up to $600 million, plus three undisclosed deals. Co-CEO Arjun Sethi said the company leaned in while others pulled back, betting the investments will define its competitive position.
The timing isn't great. Payward filed confidentially for a US listing in November 2025, raised $800 million at a $20 billion valuation from investors including Jane Street and DRW Venture Capital, then paused the listing in March. In May, it cut 150 jobs.
The risk in the numbers
Payward's revenue growth is the only public evidence that the acquisition spree is working. But without a split between organic and acquired revenue, there's no way to tell if the company is actually growing its core business or just buying growth. The profit drop adds another layer of concern — adjusted pretax profit of $23 million is a thin margin on $508 million in revenue.
Coinbase's transaction revenue came in at $599 million versus the $635 million estimate, and subscription revenue was $555 million versus $594 million. Both missed, which suggests the broader crypto trading environment is still weak.
Payward hasn't said when it might resume its listing plans. The company's pause in March and the job cuts in May point to a more cautious stance, even as Sethi talks about leaning in. For now, the market will have to wait for more audited numbers — or a new filing — to judge whether the acquisition bet is paying off.
