BitGo Q3 Revenue Falls 51% to $2.85B as Treasury Gain Lifts Net Income

BitGo reported Q3 revenue of $2.85 billion for the quarter ended Sept. 30, down 51% year over year and 32% below the $4.2 billion consensus estimate from Zacks Investment Research. Net income nearly doubled to $44.1 million, according to the Monday, Nov. 9 earnings release, because a $71.5 million unrealized gain on digital assets offset a $19.2 million operating loss.

The gap between the two headline numbers defines the quarter. Operating results deteriorated — the company recorded a $19.2 million operating loss versus $3.9 million of operating income a year earlier — while a valuation gain on its crypto balance sheet carried the bottom line. The gain is unrealized, meaning BitGo did not sell the holdings; it reflects the rising value of assets the company already owned.

Why did revenue fall 51%?

Digital-asset sales slowed in the quarter. BitGo books the full proceeds of those sales as revenue and records related costs separately, which makes the headline figure highly sensitive to trading volume. The Block linked the decline to a softer crypto trading environment and a higher mix of lower-margin stablecoin transactions.

Revenue after direct costs, a tighter gauge of what BitGo keeps, fell 32% to $37.3 million. The after-cost figure declined by less than headline revenue, but the direction confirms pressure on transaction economics as well as on volume. The company also missed Wall Street earnings estimates, according to Cointelegraph.

How does Q3 compare with earlier quarters?

The trajectory has been steep. Q1 2026 revenue reached $3.8 billion, up from $1.8 billion a year earlier but 38.7% below the $6.16 billion recorded in Q4 2025, partly because client trading shifted from spot to derivatives. Full-year 2025 revenue was $16.15 billion, up 424% year over year, alongside a $14.8 million net loss.

Q1 2026 brought a $60.7 million net loss, widened from $25.7 million a year earlier, weighed down by a $53.7 million non-cash loss tied to the Bitcoin treasury and IPO-related stock compensation. Treasury valuations have now swung both ways within a single fiscal year: a $53.7 million non-cash loss in Q1, a $71.5 million unrealized gain in Q3.

At Sept. 30, BitGo held $143 million in cash and cash equivalents plus 2,399 BTC valued at $200 million. That position ties reported earnings directly to crypto prices, in both directions.

What is the company's public-market and regulatory position?

BitGo listed on the New York Stock Exchange in January, pricing shares at $18 — above the proposed $15–$17 range — and raising $212.8 million at a roughly $2 billion valuation. The stock peaked at $24.50 on its first trading day before closing at $18.49, then fell as low as $16.53 on day two.

Regulatory milestones followed. The Office of the Comptroller of the Currency approved BitGo in December 2025, making it the first publicly traded, federally chartered digital-asset infrastructure provider. The company also broadened its German licence and obtained custody broker-dealer status in Dubai during 2025. Post-IPO commercial partnerships include Clear Street, Canary Capital, Moomoo and WLLI's WLFI.

The company cut roughly 15% of staff in June as it refocused on trading, stablecoins and artificial intelligence.

What did the staking launch add?

In the week before earnings, BitGo added Stacks Bitcoin staking to its qualified-custody offering. Eligible institutions must pair BTC with STX worth 5% of their Bitcoin position, with commitments locked into roughly six-month bonds funded by Stacks miners. The announcement carried no revenue contribution and no earnings forecast.

The launch matters because staking revenue has already diverged from other lines: Q1 staking revenue fell 66.2% to $49.4 million amid lower token prices, while Stablecoin-as-a-Service revenue rose 43.6% to $38.2 million in the same quarter.

How did shares react?

Shares rose 4.9% on Monday to close at $5.10, according to Yahoo Finance, partly reversing a 60% decline since early in the year. The gain came despite the double miss on revenue and earnings. Nine analysts covering the stock after the January listing had an average "Strong Buy" rating and a consensus 12-month price target of $15.61, though that predates the Q3 close.

BitGo gave no new operating outlook with its Q3 release and no date for the next report. The next filing will show whether digital-asset sales recover, whether the mix keeps tilting toward lower-margin stablecoin activity, and whether Q3's divergence between operating loss and net income was a one-quarter contrast or a recurring feature of its treasury-heavy reporting.