Bitgo Holdings (BTGO) Q1 2026 earnings summary

Executive summary

• Achieved strong underlying business performance in Q1 2026 with 112.7% YoY revenue growth to $3.8 billion, despite digital asset market softness and sequential revenue decline, driven by digital asset sales, stablecoin services, and derivatives launch.

• Client base expanded 42% YoY to 5,569, with normalized assets on platform up 29.4% YoY and 10% sequentially, though reported assets fell to $63.0 billion due to lower digital asset prices.

• Expanded institutional partnerships with 21Shares, OKX, Stable Sea, SoFi, and The Better Money Company, and launched new products including derivatives trading and BitGo Mint for stablecoins.

• Net loss widened to $60.7 million, primarily due to non-cash mark-to-market impacts, IPO-related stock-based compensation, and higher operating expenses.

• Completed IPO in January 2026, raising $174.3 million in net proceeds and converting all preferred shares to common stock.

Financial highlights

• Q1 total revenue was $3.8 billion, up 113% YoY but down 39% sequentially; digital asset sales revenue was $3.7 billion, up 128% YoY, with margin improving to 32 bps from 20 bps YoY.

• Adjusted EBITDA loss was $1.7 million, down from $3.9 million profit YoY and $12.1 million profit sequentially, impacted by weaker market conditions and $3 million in one-time IPO/legal costs.

• GAAP net loss was $60.7 million, driven by negative mark-to-market adjustments and elevated IPO-related stock-based compensation.

• Staking revenue was $49.4 million, down 66% YoY, but take rate increased to 16.1%; stablecoin-as-a-service revenue was $38.2 million, up 44% sequentially, with take rate rising to 7.4%.

• Cash and cash equivalents at quarter end were $186.6 million; Bitcoin held in treasury was $167.1 million.

Outlook and guidance

• Q2 digital asset sales and staking revenue expected to remain consistent with Q1, with stable margins; subscriptions and services revenue projected to grow sequentially, supported by client growth and non-recurring projects.

• Stablecoin-as-a-Service revenue expected to grow modestly, driven by client adoption and new partnerships.

• Total expenses (excluding direct costs) expected to decrease in Q2 as IPO-related charges normalize; management expects stock-based compensation expense to normalize after Q1 2026.

• Liquidity is considered sufficient for at least the next twelve months, with future capital needs dependent on market conditions and growth initiatives.

• Ongoing investments in compliance, technology, and international expansion are planned.