Q3 2025 Bakkt Holdings Inc Earnings Call
Greetings and welcome to the back third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. As a reminder, this conference call is being recorded.
If you would like to ask a question at any time during this presentation, simply press star 1, 1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue simply press star 1 1 again, as a reminder, today's program is being recorded. I will now turn the call over to Cody Fletcher. Investor relations advisor at back, please go ahead.
Hello everyone, and thank you for joining backs, third quarter 2025 earnings call.
before we get started, I'd like to remind you everyone that during today's call, we may make certain forward-looking statements
Include but are not limited to our expectations regarding backs, transformation into a pure play digital asset infrastructure company.
The performance and future development of our markets, agent, and global.
Our International expansion strategy.
Including anticipated actions related to our Japan investment and Future jurisdictions.
Our plans for platform upgrades cost optimization hiring and brand initiatives.
Expectations regarding the stable coin, Bitcoin, and tokenization markets.
2026 kpis and our planned investor day.
These statements are based on Management's, current expectations, and our subject to risks and uncertainties, which may cause actual results to differ materially from those expressed or implied in such forward-looking statements.
For additional information. Regarding forward-looking statements and risk factors. Please refer to our filings with the Securities and Exchange Commission.
further in addition to discussing results that are calculated in accordance with generally accepted accounting principles, we will also make reference to certain non-gaap Financial measures
For more detailed information. On our non-gaap financial disclosures, please refer to our full earnings release which can be found on our investor relations website.
Thank you. And I will now turn the call over to axe.
Thank you, everyone. Um, thank you for joining the call today. Our focus is around one clear mission: to power the next generation of global finance. Clarity of purpose matters. It allows us to align our people, sharpen our strategy, and channel our resources with conviction toward the future. We see emerging across the world individuals and institutions re-evaluating what money really is, how it moves, and how markets operate.
We believe this shift will define the next era of global finance, and we see it unfolding across three major fronts.
First bitcoin's continued rise. As a globally, recognized digital store of value, the New Foundation for trust and savings second, the rapid transformation of banking and payments accelerated by Ai and stable coins which are reshaping, how value flows through the economy and third, the tokenization of real world assets, redefining how everything from bonds to Commodities to property, is traded and settled in the future.
Back stands at the center of this Evolution building the compliance secure and scalable infrastructure that enables these systems to connect and grow. Our vision is simple yet. Bold to be the trusted bridge between the physical and digital world of Finance enabling seamless value transfer Society accelerates into an AI driven economy.
If we take a step back,
It's clear. The evolution of global Finance is already underway and the scale of opportunity is extraordinary.
Out of an estimated 700 trillion dollars in global assets. Only of small fractions.
Currently live on blockchain Rails. That's rapidly changing as digital infrastructure becomes increasingly integrated into traditional systems.
Bitcoin continues to gain acceptance as a credible. Treasury asset among
corporates, sovereigns and institutions.
Stablecoins now settle over $30 trillion annually, surpassing Visa.
And new policy Frameworks such as the US. Genius act are establishing clear regulatory card rails. That legitimize this Market at the same time. Tokenization is moving from Pilots to production
Fee financial institutions are beginning to issue and settle assets on programmable rails with BCG, for casting nearly 19 trillion dollars in tokenized value by 2033. The takeaway, the total addressable market for digital asset. Infrastructures enormous and we are in still in the very early innings.
Back is positioning itself at the center of this transformation. With the regulated rails custody and settlement layer that will power this ecosystem. We aligning our Capital talent and road map
To deliver tangible outcomes shaped by these powerful Global trends.
This quarter represents an important milestone in Bakkt's journey. We delivered strong results with $29 million in adjusted EBITDA, which demonstrates the scalability and efficiency of our evolving business model. On the balance sheet, we closed the quarter with approximately $64 million in cash and restricted cash, and no debt, reflecting disciplined execution and a significantly strengthened financial foundation. While I'm pleased with these results, I want to be absolutely clear: this is just the beginning. The heavy lifting of our transformation is largely behind us, and I expect to complete the process by the end of Q4 as the elements of our restructuring, product launches, distribution partnerships, and cost initiatives all start coming together.
Uniquely positioned to power the structural reach of global finance.
When I stepped in as CEO.
Following the cooperation agreement, with DTR back was spread too thin, a collection of disconnected initiatives burdened by non-core assets, and inefficient cost structure and a lack of strategic Focus that had built up over years of missteps. We acted with immense urgency over the past, 2 and a half quarters. We've executed a disciplined and deliberate transformation 1 that touched every part of the business.
We exited non-core operations, reconstituted. The board streamlined, our organization, and refocused entirely around 1. Miss Mission building a leading regulated digital asset infrastructure platform.
We rebuilt from the ground up, simplifying our technology stack, reducing external dependencies, and attracting top-tier talent to lead our three core verticals.
Back markets back to agent and back Global, which I'll discuss shortly.
We also strengthen governance and Leadership Philip Lord. Our president of international is driving our expansion across Japan, Korea and India
Connecting us to some of the world's most dynamic capital markets, Ankit Kimka, our Chief Product Officer and former Head of Growth at Revolut, is accelerating innovation and integration across our products, primarily on the stable coin front.
At the board level. We previously welcome, Mike Alfred and Lyn Alden and today I'm very pleased to welcome, Richard galin.
Three deeply independent thinkers and accomplished entrepreneurs. These are not professional, quote-unquote, directors.
Collecting fees each conducted their own de diligence challenged, our assumptions and joined the board after gaining conviction in our vision, our road map and the Integrity of our transformation. Their engagement brings institutional discipline, and intellectual rigor to backs governance not box sticking. We eliminated structural overhangs significantly reduced costs and strengthen our balance sheet today. Every dollar
we spend is driving monetization through trading spreads custody fees, table coins, flows and recurring revenues. This has not just been a clean up exercise, but instead of full-scale reboot of the company that is now ready for the exciting disruption, currently, under way for the next few Decades of finance and we did it at what many would consider lightening speed.
As we approach the end of Q4 our transformation enters its Final Phase from here, the focus shifts from transformation to acceleration. Integrating our platforms expanding our regulated custody and advancing strategic Partnerships across markets and stable coin infrastructure.
A key Milestone. This quarter was a simplification of our capital structure in Q3 we announced.
And on November 3rd flows, the collapse of our upsie structure eliminating the Dual class share system that dates back to our dspac in 2021.
That structure served its purpose early on, but over time it's become a total drag. It added complexity reduce liquidity and created friction for institutional investors with the upsie collapse complete back. Now operates as 1 company, 1 cap table, 1 mission,
Shareholders, management, and employees are now aligned under a single corporate entity, a major step forward in transparency, governance, and shareholder alignment. We also stand in our balance sheet between Q2 and Q3. We raised roughly $100 million in new capital and eliminated all outstanding debt, giving back a cleaner, stronger financial foundation. We carry more than $120 million of tax loss carryforwards, a valuable asset that will offset future taxable income as profitability scales.
To underscore my own conviction.
I personally invested about 1 and a half million dollars in back shares in August through, open open market purchases. And, as of October, 31st, have authorized me to purchase up to 13.4 million more stock through an option plan. I view this not as a signal, but as a statement of belief, I'm fully aligned
with our shareholders for the long term and let me make 1 Point, very clear back is not in the business of Perpetual Equity issuance, we are not quote unquote, a digital asset treasury vehicle, chasing exposure through dilution
We've turned the corner of financially, debt-free disciplined and focused any future Capital, raising will be done, strategically selectively, and with a deep respect for shareholder value. This new structure and capital position gives us the flexibility to pursue opportunities, but always with a discipline and Alignment that shareholders expect and that I personally demand
Agent and Global back markets is the foundation. It provides institutional grade infrastructure for digital assets. Connecting clients to liquidity Market making and regulated custody through our Nationwide money translation licenses and New York, bit license. This is how institutions trade on that compliant efficient and secure back to agent is how money moves. It's our programmable Finance platform, combining stable coins, AI agents and cross border payments into 1 seamless system making sense, spending saving and transacting as easy as messaging.
This positions back to the heart of the stablecoin adoption wave and Global remittance demand. Backed Global takes our technology into new jurisdictions. Through a minority investment model designed to generate investment gains. And our long-term recurring Revenue, we started in Japan. By early progress is validating the model and we'll share more updates as it scales in the quarters ahead.
together these businesses form, a unified regulated, digital asset company, connecting how markets trade, how money moves and how value is stored
Let's start with back markets, our Core Business, the engine of our infrastructure and the foundation of how modern digital markets will eventually trade in my opinion.
This division is primarily us-based and built around a simple, but powerful flywheel Market infrastructure. Balance sheet strength, and Regulatory licensing. Each reinforcing the other as volumes grow and liquidity deepens. Our regulated core is anchored by MTL licenses across.
The US and a New York bit license. It's designed for institutional grade performance offering deep liquidity, stable coin on and off ramps OTC trading and secure custody through the new partnership of backed ice storage, uh, with Intercontinental Exchange scheduled to launch in q1 2026,
We are also expanding through backed FX and evolution of our Brokerage in a box business. It provides a single point of access for B2B to C clients to Route trade settle and custody assets, serving exchanges, fintechs and Brokers that want to operate compliantly in the US without building the regulatory stack themselves together. These elements make back markets, the engine room of our platform compliant, connected and built to scale.
Next back to agent is how money moves seamlessly intelligently and globally.
Stable coins, have become 1 of the most disruptive forces in modern Finance, they're reshaping. How money is stored sent and earned at a fraction of the cost of Legacy rails.
Back to Agent is our response—a programmable finance platform operating behind the scenes as the AI-driven architecture powering the next wave of digital banking. Under the hood, Back to Agent is an AI-first modular stack built from the ground up. Multiple AI agents coordinate workflows across payments, compliance, and treasury, integrating with partner banks, card networks, and payment providers worldwide. The result is a white-label customizable foundation that allows any partner to launch a new bank and create experiences quickly and compliantly.
Rather than building a direct to Consumer business. Our model is distribution Partnerships driven and asset light Partners, embed back the agent into their products leveraging, our licensing coverage, global Partnerships and modern apis. Without the heavy integration costs,
through our conversational.
Interface Zyra, we are starting with cross border remittances, a nearly 850 billion Market where consumers still pay up to 7% fees back, agent enables faster cheaper and more intuitive transfers built for scale.
At its core, Bakkt's agent is the programmable financial stack, unifying global money movement, rewards, and AI-driven finance into one seamless platform. We expect to announce significant distribution partnerships in the near term as we move to a scale rollout in the quarters ahead.
Back Global is where our infrastructure model meets International scale.
Enabling entry into high-value markets. While compounding, long-term shareholder value at its core back. Global may give our shareholders
Look through exposure to Bitcoin through publicly listed entities in select jurisdictions. If those entities decide to pursue a strategy to hold Bitcoin on their balance sheet.
Bitcoin, Japan, cooperation to outline its strategy.
This model deliberately extends, our markets and agent infrastructure globally enabling us to own minority stakes and high potential jurisdictions. Expand our footprint, compound fee income and generate recurring Revenue all while maintaining discipline on Capital intensity.
As we look ahead for 2026 kpis, I want to provide a clear view of how back makes money going. Forward ahead of the investor Day schedule, for some time in q1 2026. Our model is Diversified recurring and designed to compound as we scale dramatically over the coming, quarters across markets, agent and Global each vertical, contributes revenue streams, each reinforcing the other Mark that markets, generates B2B, and B2B to see Revenue through Market making OTC spreads trading volume and lending fees. The core liquidity engine of the platform back. Agent earns stablecoin on-ramp, off-ramp revenue from transaction, volume spreads and FX conversion powered by our AI first architecture, and and embedded through distribution Partnerships
Back Global as licensing management fees, nav accretion and investment gains from our minority Holdings. In international partners.
Together, these form a resilient, multi-layered revenue engine where markets provide liquidity, Agent Drive, stablecoin, and payment flows, and global expansion is reached into new jurisdictions that can amplify both.
As we look across our milestones for the fourth quarter, our goals are clear back aims to complete its transformation. While strengthening the core engine that will position us to drive growth in 2026. Everything we've done the operational reset technology upgrades and cost optimization moves in 1 direction towards a Lena faster and more disciplined platform built for scale and sustained profitability for which we've already seen the green shoots in this quarter's results. At the same time, we're expanding our reach, across all 3 growth engines in markets, we're driving customer growth, completing key, technology upgrades that will enhance liquidity and trading performance for backed agents. We are opening new distribution, corridors and advancing Partnerships. That will expand our stablecoin and cross border flows. And through back Global, we are extending our up infrastructure into additional, jurisdictions Beyond Japan, continuing to do. So in a capital, I discipline manner. We are also staying focused on the
On the foundations. Continuing to fine-tune our cost base bringing an exceptional talent and rolling out the refresh brand and website much needed that will reflect who we are today.
As we release our 2026 kpis and prepare for our to be announced invested in q1 shareholders will have a clear line of sight into how all these pieces come together into 1 cohorts strategy. And if we keep with the baseball analogy, I've been using on X recently. It feels like we are at the top of the line. The transformation innings are nearly behind us. Now it's about execution closing out, the quarter cleanly, staying focused, and finishing strong.
By December 31st, I'm feeling quite confident sitting here. That we'll be able to look back and call this turnaround complete at that time.
With that, I'd like to hand over the call to Karen Alexander, our CFO, for a deeper dive into the financials. Karen.
Thank you, ashrae.
Get into the number.
To acknowledge that this quarter is still reflects some residual impacts from our loyalty business which remains part of our results through year end 2025. This means you'll continue to see some accounting noise as we report both continuing and discontinued operations. While this may make the Gap figures appear uneven, the underlying economics of our core, digital asset business are much clearer. When you look at our adjusted metrics
As a reminder, beginning in Q1 2026, once loyalty is fully behind us, our financial reporting will be clean and directly aligned with the Diversified Revenue model, actually aligned earlier.
For the quarter.
Total GAAP revenue was $402 million, representing a 27% year-over-year increase, primarily driven by higher crypto trading activity.
Crypto costs and execution, clearing and brokerage fees increased proportionately consistent with volume growth.
Operating expenses, excluding those costs were roughly flat at, 26.7, million, reflecting lower, compensation in sgna following restructuring initiatives.
What have declined by over 18% year-over-year. Demonstrating continued cost, discipline.
As a result, adjusted EVA reached $28.7 million compared with a loss of $20.4 million in Q3 2024, an adjusted net income from continuing operations.
Operations was 15.7 Million.
These measures better represent the earnings power of our digital asset infrastructure platform. They exclude discontinued operations and 1-time non-cash items such as fair value changes and warrants allowing investors to see the true progress of our Core Business.
We expect the remaining transition noise to taper through year. End by q1 2026, that's financials will be. Will fully reflect the leaner more focused company. We've rebuilt with clear visibility into sustainable growth and profitability.
Turning to the balance sheet. We ended the quarter with 64 million dollars in cash, cash, equivalents and restricted cash. And importantly, no. Long-term debt.
As we complete our transformation, this balance sheet, reflects a disciplined Financial Foundation, strong liquidity, no structural overhangs and sufficient flexibility to support, both near-term, commitments and future growth.
We expect to use a portion of this cash in the fourth quarter, to close the Loyalty Devastator and fund working capital. As we complete the transition, to a pure play digital asset platform in our financial statements. This quarter, you'll also notice the inclusion of current and non-current assets home for sale, which represent the Loyalty business and Associated balances.
Upon closing, these will roll off the balance sheet, leaving behind a streamline, digital asset infrastructure company that clearly reflects the economics of our continuing operations.
Our Focus remains on maintaining a resilient and efficient balance sheet ensuring that we have the liquidity and flexibility to execute on our road map, pursue strategic opportunities responsibly and continue delivering long-term value for shareholders.
With that, I'll hand it back to ashrae for closing remarks.
Thank you, Karen to reiterate this quarter marks. Another important step forward in backs transformation,
As you move through the fourth quarter, you'll begin to see The Changing of the Guard, a new back taking shape. What's emerging reflects the culmination of a year of tough decisions, disciplined execution, and the establishment of a foundation built for scale and long-term profitability. The heavy lifting is largely behind us, and the momentum heading into 2026 is not just exciting—it's real; the structure is now in place. The strategy is clear on the alignment across our People Partners and shareholders.
Has never been stronger.
Over the coming weeks, we'll work to finalize the remaining elements of this transformation. By the time we speak again, I'm confident Bakkt will have completed its restructuring phase and will be operating with a clear line of sight to sustained profitable growth in 2026 and beyond.
To our partners, our customers, and especially our shareholders, thank you for our for your continued. Trust, patience and belief in what we are building.
That concludes our third quarter 2025 earnings call. I'll hand it back to the operator.
Certainly. And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star 1, 1 1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue simply press star, 1 1 1 again.
And our first question comes from the line of Chris brentler from rosenblat, Securities your question, please.
Hey thanks. Good morning. And congrats on the progress here. Um,
I just like to think about the
The business as it stands today. Um, and and maybe make sure if you could actually if you could sort of
give us a little more insight on to the in the core offerings on the
Which were The Brokerage side and um, you know, how about my compared to what was Zero? Hash is offering. I think that's been a pretty major transaction in the space, um, and it feels like they're kind of similar to what back is doing. But I, I feel like that I'm not quite sure that where all the dots connect and and how this sort of fits, um, from a competitive standpoint. So maybe you could help me with that sort of area, of questioning and sort of. How does, how does that compare to zero? Hash
Sure. Um, look, uh
I think.
Comparisons on that front. And um, and as you can see, uh, I think there is a lot of talk around stable coins and the new payment rails uh, these days. And so, uh, from my perspective, you know, when I look at
Everything that's happening in the space from the recent m&a activity. Whether it's zero hash and and others. Um uh in as well as private Market valuations in the space, you can really draw your own conclusions. Uh, in terms of
What their value is relative to backs Etc. But I think that look we bring we bring uh a pretty similar product Suite. Just on uh the the back markets business relative to zero hash uh except that we are uh doing this in a public setting where we plan on doing it without any heavy burn and uh not chasing you know Topline volume and revenue growth which is not profitable and doing it in a disciplined manner. So that's uh that's my perspective on this from what I know.
Okay.
Great um, pretty exciting. Um towards the back of the slides on your Milestones. Um number 9 is is released kpis for 2026, you know. I'm not looking for a for a sneak preview of what your targets are but what are the, the key kpis? Um, if you can talk about them at this point, just have, you know, what what what should we be following here and to monitor the progress on the new back?
So look, uh that's the reason why I laid out the slide earlier because I knew that that would be this question around uh key kpis for 2026 and the slide earlier uh gives you exactly how we look it up business in terms of how the revenues uh are generated and how that all flows down to the bottom line. And so I would just say that in terms of
Kpis. I think it would be driven from each of these 6 uh, different boxes that I've highlighted and
The key variables for each of these, uh, boxes to actually, uh, make money and for it to actually flow down into revenues and then finally into, uh, profits. So I think when you look at back markets as an example, it'll be around trading volume and the spreads that we are generating and spreads and fees that we're generating, which then slows down to revenue, so that's very straight forward on the back agent side.
I think you'd look at something around uh stablecoin transaction volume and the combined Blended spread and FX conversion rates that we're making on that front.
And when it comes to back Global, I think you're looking at 2 aspects of it. 1 is the nav accretion of our investments that we, we, we are making because that's a all of the Investments that we're making are, uh, booked based on an equity method of accounting. So, for example, I 11 million investment or so in Japan, uh, is today worth uh, significantly higher than that. But we haven't put it through the pnl statement. And so that's something that sits on our balance sheet marked at, you know, fair at sorry, at our cost value. But however, you know, depending on, as I mentioned, in my prepared remarks, depending on, uh, whether these companies that we invest in decide to go and pursue a Bitcoin treasury strategy or want to leverage some of our technology and license that then there will be additional licensing and recurring Revenue uh in terms of uh revenues that we'll end up generating. And I think we'll give you more color on all of these fronts. Uh as we go ahead and release.
The kpi for 2026.
Awesome. Great. Thanks so much.
Sure.
Thank you. And our next question comes from the line of Mark Palmer from Benchmark. Your question, please.
Yes, thank you. Uh good morning. Um I know you touched on this uh during your prepared remarks but just wanted to dig into it a little bit more. Um can you talk about the role of uh Partnerships uh joint ventures on the 1 hand and uh m&a on the other uh as uh potential accelerants of each of the company's strategies.
So, we are very focused on organic growth, Mark, for the moment. And so, um.
I can't really speak too much about M&A, uh, because we really haven't, uh, uh thought about that. But, uh, in terms of distribution partnerships, as I said, we've been hard at work, uh,
To work on these distribution partnerships in my prepared remarks, I alluded to the fact that we expect to have something uh.
That we can publicly share, uh, with everyone over the next over the coming quarter or 2. And uh, and I think that is actually 1 of the gating factors to actually releasing the kpis because, uh, until we we get this in hand, uh, or a very close to doing it. We don't want to go out and release the kpi. So, uh, you know, our model is to grow through Partnerships because that's the best way to grow. We don't want to be consumer-facing directly. I think that costs a lot of money to, uh, go out and expand and, and, and spend the money on customer acquisition costs. And so we will definitely continue pursuing. Uh, distribution Le partnership model uh to to get the volumes in onto the platform and uh and we look forward to updating uh everyone as and when we're ready to announce these Partnerships publicly
Street your question, please?
Hey morning, it's just nothing. Brian. Um obviously a ton of exciting work done over the past quarter seem to find that the structure of the business and and Paving a a clear path for next year. Um, you know, I guess when we think about 26, what are some of the considerations on on? Both the, the macro and the policy side you would call out that would be both.
Potential, um, Tailwinds, and headwinds, to to grow. As we as we think about, um,
You know, the that would look for for 26. Thanks.
I mean, the most exciting thing is The Clarity Act. Uh, that's hopefully going to get back uh soon. Uh certainly hopefully next year. Um I think that's a very exciting uh development for us and just getting the regulatory clarity as it relates to real world asset. Tokenization is a big opportunity for for
For us in general. Uh, other than that, I think uh not much else on the policy front in the US. I think uh, the Administration has already paved the way and uh, you know, from day 1. They've they've declared the intention to make sure that America becomes the crypto capital of the world and increasingly. It's already if it hasn't already become that it's definitely well along its way to become that.
Um, I think the other thing that's very exciting is, uh, looking at all of these, uh, very large, uh, financial institutions getting uh, their, uh, sleeves rolled up to participate in the stable coin space because we are the picks and shovels. Uh, and, uh, we are stablecoin agnostic. And I just see a very, very, uh, bright future in terms of volume growth, uh, cross currency, you know, stable coin, FX related growth, uh, and so on. And so we we've built a business which is uh, ready to take advantage of all of those opportunities that lie ahead of us. And like I said, we're very early, uh, in in, in in this story. Uh, very very early innings for what's to transpire here, over the next several decades. So,
That's my view.
Got it that's helpful and just 1 more from me. Um, you know, you talked a bit about your your International expansion models of beginning with Japan, I guess, you know, could you touch on some some geographies that you're focused on next, you know, and what's the strategy for for skill and Beyond the, the US and Europe and
I think the model is the same. I've explained it in my prepared remarks, but I think, look, uh, uh,
You're, you're going to hear from uh, the company in Japan tomorrow. Uh, there's the egm, um, tomorrow and I think
uh,
It'll become clearer as to what that company's strategy is going forward. Um, the other jurisdictions that I alluded to in my prepared, remarks are South Korea, and India and again uh you know the idea will be to see what we can leverage on the markets and agent infrastructure side to uh to to grow in these high potential jurisdictions and expanding our footprint.
So that uh, you know, we are, we are, uh, we are very focused on our core Market, which is the us. But then these companies are leveraging either our products services or technology to then
Grow. But then also give back, uh, some licensing and
Other Revenue, uh, back to back.
Got it. That's super helpful. Congrats to my great quarter. Thanks. Thank you.
Thank you. If there are no further questions from analysts, I'll turn the call back to Cody Fletcher for some questions from the retail community.
Hey, thank you, operator. Um, we have our first question, uh, from X User at Das 333. Uh, his question was, uh, Visa Mastercard Del, they're all now talking about stable coins. Um, so how can backed kind of compete with these companies?
Actually, you want to take this 1?
And so there's a lot being said about stable coins and new payment rails these days. And it's a good thing because it validates the overall direction that we are heading in.
But there are still some very big gaps in, how those systems work particularly around compliance, uh, custody, uh, the payment rails and then the integration of it all into the trash by rails. Uh, and
For back the cooperation agreement with DTR uh brings those capabilities directly inside backs.
and,
That really gives us a very solid footing as this Market continues to evolve and grow materially over years to come in my opinion.
So, the fintech space is huge. Uh, that's why I...
You know, I left uh, a very lucrative career to uh, to to be involved in this space because I believe that it's never going to be a winner. Take all space. It's that big uh, different players can coexist, uh, some consumer-facing others like like us providing the regulated backbone underneath, and if you look at generally speaking, what's happening in terms of the recent m&a activity by some of the very companies that
You were mentioned in the questions. Uh,
And the private Market valuations in the space, you can draw your own conclusions. Many of these companies are being bought
uh,
By the very large names that were mentioned while they might not be showing any Topline growth.
And are doing it with a lot of, uh, heavy burn. And without profitability, at least that's what the bankers are telling us. So we're taking a much more disciplined approach. We're building a system of compliance business that can scale responsibly and as the transformation wraps up here at your end. I think that, uh, discipline combined, with where the broader Market is headed with speak for itself at as to what backed is building at at this end.
Hope that answers the question.
That's great. Thanks, Sasha. Um, kind of last question here is, uh, from...
or another X User, uh,
At Amir X Trades, Um Amir said, "You know, being invested in your company for 4 plus years, like so many other shareholders, backed time and time again, loses all of its gains due to poor decisions and lack of updates. What will this new leadership team do differently to improve shareholder value over time?"
so yeah, are and a few other uh, uh
Users and x uh, have messaged me from time to time directly or tweeted at me and I completely understand their frustration. Um, I mean, this is exactly why this new leadership team came in, to fix the structure, uh, clean up the balance sheet and refocus back on its core mission.
Um,
I definitely cannot control a managed the company based on short-term stock price moves, uh as Mr. Buffett famously says in the short term, the markets are voting machine. But in the long term, it's a weighing machine. And our job really is to build the kind of substance that the market will weigh over time. Uh, I believe we've made a lot of strong progress uh on the transformation and uh we expect to have it largely completed by year end.
Either before your end or at our Investor Day in Q1 2026, we'll share clear KPIs. We hope to announce the distribution partnerships.
Uh that are uh currently you know, being worked out and uh, we'll outline the next phase of our of our road map accordingly. And I hope that uh are you will see that progress and you'll continue supporting us as a long-term shareholder. Uh
Back to you, Cody.
Hey, thanks for checking. That's um, that's all the questions we have from retail. So, uh, that's a new operator to close us out.
Certainly, thank you, ladies and gentlemen for your participation. In today's conference, this does conclude the program. You may now disconnect good day.