Payward (Kraken) Gains Market Share as Slower Trading Impacts Earnings

Payward, the parent company of Kraken, increased its share of global crypto spot trading to 6.5% in September, up from 3.3% a year earlier, according to financial highlights released Friday. The gain is notable because it came while broader trading activity weakened, weighing on earnings.

In its third-quarter results, Payward reported $353 billion in total transactions, down 30% year over year. The divergence between rising spot market share and declining volumes suggests Payward won a larger slice of existing spot activity, rather than benefiting from an overall surge in market throughput.

Key takeaways

• Payward’s spot trading market share rose to 6.5% in September from 3.3% a year earlier, even as third-quarter transaction volume fell 30% to $353 billion.
• Adjusted EBITDA dropped sharply to $60 million, down from $178.6 million a year earlier, signaling continued profitability pressure despite steadier spot positioning.
• Total platform margin fell 12% to $487 million; Payward introduced a “total platform margin” metric this quarter to replace adjusted revenue, including a deduction for staking rewards paid to customers.
• The company’s strategy to broaden beyond an exchange is reflected in growing fee-generating activity tied to derivatives and service subscriptions.
• Payward’s earnings improved sequentially from the second quarter, with a significant portion of the margin increase coming from assets customers hold on its platforms, including staking-related services.

Spot share rises while quarterly activity falls

Payward’s reported market-share improvement focuses specifically on its portion of global spot trading on its platforms during September. By contrast, its quarterly transaction figure measures a broader set of activity—covering products including spot trading, margin, equities, payments, and certain derivatives.

That distinction helps explain why the spot market share climbed while total transaction volume declined. Payward’s September share increase indicates competitors ceded some spot trading volume or Payward captured additional order flow, but the third-quarter overall activity still trended lower.

Financially, the quarter reflected weaker profitability. Adjusted EBITDA fell to $60 million from $178.6 million a year earlier. Total platform margin also declined 12% to $487 million.

A new reporting measure: total platform margin

Alongside the results, Payward discussed “total platform margin” as a metric meant to replace adjusted revenue. The company said it also includes a deduction for staking rewards paid to customers, a detail that can materially affect how investors interpret revenue versus service economics.

In the same reporting package, Payward pointed to a reshaped mix of earnings sources. Total platform margin fell year over year, but the company highlighted areas that could be less tightly linked to day-to-day trading intensity.

Payward’s push beyond the exchange

Over the past two years, Payward has broadened beyond its core cryptocurrency exchange operations through acquisitions spanning derivatives, proprietary trading, tokenized assets, and payments. The aim, according to the company’s strategy as described in the results, is to reduce dependence on transaction fees, which naturally fluctuate when market activity slows.

The acquisitions referenced in the financial results include:

• NinjaTrader and Breakout, acquired in 2025.
• Bitnomial, a US-regulated derivatives platform, acquired in May 2026.
• Reap, acquired in July, expanding Payward into stablecoin-related payments and card issuing.

These additions contributed to a wider mix of trading and service revenue in the third quarter. Payward reported that the number of derivatives contracts on which it charges a per-contract fee rose 84% to 66 million. In addition, margin from subscriptions, trader evaluations, and other paid services increased 59% to $125 million.

Breakout’s role is particularly relevant to timing: it was included for the full quarter after joining in September 2025. Payward did not quantify how much each acquisition contributed to the quarter’s totals, but the reported fee and service metrics align with the broader diversification thesis—more income tied to subscriptions and contract-based fees rather than pure spot order flow.

Earlier coverage from Cointelegraph noted that Payward’s acquisition activity has focused on building additional revenue streams tied to derivatives and customer services beyond spot trading, including wallet-related capabilities and US derivatives expansion.

Sequential improvement, but profitability still pressured

Payward’s third-quarter results improved relative to the second quarter, though they remained below the prior year. The company said total transaction volume rose 22% and total platform margin increased 12% to $487 million from $436 million.

Notably, the improvement was not driven solely by trading volumes. Margin earned from assets customers hold on Payward’s platforms—including staking-related services—rose 26% to $128 million. Payward said this accounted for roughly half of the $51 million quarterly increase in total platform margin.

Adjusted EBITDA climbed to $60 million from $23 million in the second quarter, and margin relative to total platform margin improved to 12% from 5%. However, the year-over-year comparison remained difficult: adjusted EBITDA was down 66% versus the same period a year earlier.

Payward also described a shift in the composition of platform margin. Asset- and access-based services made up 52% of total platform margin, up from 46% a year earlier. The company framed this as part of a growing contribution from services that are less directly tied to active trading conditions—an important point for investors assessing resilience when markets cool.

That mix shift may also matter for Payward’s longer-term funding and listing plans. Payward confidentially filed for a US IPO in November 2025, then paused plans in March as market conditions weakened. By September, the earliest potential listing window under consideration was the second quarter of 2027.

Investors will likely watch whether Payward’s rising spot share can translate into stronger earnings without relying on market-wide volume rebounds, and whether the contribution from asset- and access-based services keeps offsetting pressure on adjusted EBITDA as the company continues integrating its acquisitions.