Payward Revenue Jumps 17% as Profit Sinks After $2.65B Acquisition Spree

Payward, the parent company of crypto exchange Kraken, reported a sharp profit decline despite posting strong revenue growth in the second quarter of 2026, raising questions about the cost of its aggressive acquisition strategy.

Payward’s revenue climbed 17% year over year to $508 million, contrasting sharply with Coinbase. The US-listed crypto exchange generated $1.22 billion in quarterly revenue, down 18% from the previous year, while recording a $359 million net loss, largely linked to declines in the value of its crypto holdings.

The divergence suggests the broader crypto market slowdown alone cannot explain Payward’s weaker profitability. As trading fees declined across the industry, Payward benefited from newer business lines, many added through acquisitions.

Over roughly 18 months, the company announced at least $2.65 billion in disclosed deals. Payward paid $1.5 billion for futures broker NinjaTrader in March 2025, followed by agreements in 2026 to acquire derivatives platform Bitnomial for up to $550 million and stablecoin payments company Reap for up to $600 million. It also acquired Backed, token management platform Magna and Magic Labs’ wallet business for undisclosed amounts.

The expansion reflects a deliberate strategy. Co-CEO Arjun Sethi previously said Payward was continuing to invest while competitors pulled back, arguing those investments could strengthen its long-term competitive position.

However, Payward’s private-company status limits visibility into whether that strategy is working. Its financial disclosures rely heavily on adjusted figures and do not provide detailed information on integration expenses, cash burn or how much revenue came organically versus acquired businesses.

Those omissions matter as Payward moves toward a potential US IPO. The company confidentially filed for a listing in November 2025 and later raised $800 million at a $20 billion valuation, with investors including Jane Street and DRW Venture Capital. It paused the listing process in March and cut 150 jobs in May while continuing its acquisition campaign.

Until Payward releases an S-1 with fuller financial disclosures, its 17% revenue growth and steep profit decline leave investors with an unresolved question: how much of Kraken’s expansion is sustainable growth, and how much was purchased?