Bullish (BLSH), the crypto platform and parent company of CoinDesk, reported first-quarter adjusted revenue below analyst expectations as weak digital asset trading activity earlier in the year weighed on profits.
The company reported adjusted revenue of $92.8 million, compared to FactSet analyst estimates of $94.9 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $35.1 million, up from $13.2 million a year earlier, but missing expectations by $38 million. Bullish reported a net loss of $604.9 million, or $3.85 per diluted share, compared with a loss of $348.6 million, or $3.04 per share, a year earlier.
BLSH shares were down 7.9% in premarket trading at $38.51.
Crypto markets struggled for much of the quarter as bitcoin and other digital assets have pulled back from highs reached late last year. The drop in prices weighed on trading activity across the sector, a key source of revenue for exchanges.
Coinbase (COIN) reported weaker-than-expected first-quarter results last week after falling crypto prices reduced trading volumes. The company reported a loss of $1.49 per share, compared to analysts’ expectations for a profit of $0.27, while revenue and trading revenue both missed forecasts.
Robinhood (HOOD) also missed first-quarter earnings and revenue estimates after crypto-related revenue fell 47% year-over-year to $134 million.
Bullish stocks rose last week after the company agreed to acquire transfer agent and shareholder services firm Equiiniti in a $4.2 billion deal to expand its business into tokenized securities. The acquisition would give Bullish a regulated transfer agent business alongside its tokenization, trading and market infrastructure operations.
Company executives will hold a conference call with investors at 8:30 a.m. ET.
