Bullish (BLSH), the crypto platform and parent company of CoinDesk, reported first-quarter adjusted revenue below analyst expectations as weaker digital asset trading activity earlier in the year weighed on profits.
The company posted 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 to $35.1 million, up from $13.2 million a year earlier, but missed expectations of $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 fell 7.9% in premarket trading to $38.51.
Crypto markets struggled for much of the quarter as bitcoin and other digital assets retreated from the highs reached late last year. The lower prices hit trading activity across the industry, a key source of revenue for exchanges.
Coinbase (COIN) last week reported weaker-than-expected first-quarter results after lower cryptocurrency prices reduced trading volumes. The company posted a loss of $1.49 per share, compared with analyst expectations for a profit of $0.27, while revenue and trading income missed estimates.
Robinhood (HOOD) also missed first-quarter earnings and revenue estimates after cryptocurrency-related revenue fell 47% year over year to $134 million.
The bullish stock rose last week after the company agreed to acquire shareholder services and transfer agent firm Equiniti in a $4.2 billion deal aimed at expanding its push 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 an investor call at 8:30 a.m. ET.
