Payward Reports $60M Q3 EBITDA Amid Shift to Non-Trading Revenue Streams

Payward Inc., the company behind the Kraken crypto exchange, has reported an adjusted EBITDA of $60 million for the third quarter of 2026, reflecting a significant 163% increase from the $23 million recorded in the previous quarter. However, this figure represents a 67% decline compared to the same quarter last year, indicating a challenging year-over-year performance.

The results were shared in a shareholder letter dated November 13, 2026, providing insights into one of the largest privately held exchanges in the cryptocurrency sector. The total platform margin for Payward reached $487 million, a 12% increase from Q2 but a 12% decrease year over year. Trading activity also showed a similar trend, with platform volume at $353 billion, down 30% from the previous year.

Despite the downturn in trading volume, Payward reported a 37% year-over-year increase in funded accounts, now totaling 7.1 million. This suggests that while trading activity may be down, user engagement remains strong.

Diversification Beyond Trading

In response to the declining trading revenues, Payward is expanding its business model beyond traditional crypto trading. The company is venturing into products such as tokenized equities and on-chain perpetual contracts, although these offerings are pending regulatory approval in the U.S. Additionally, Payward has plans to acquire Saldo Bank, an EU-licensed lender, to enhance its service offerings in Europe.

Payward is also exploring prediction markets and has indicated intentions to issue its own token, although no specific timeline has been provided for these developments.

Cost Management and IPO Prospects

On the cost management front, Payward has reduced its workforce by approximately 150 employees earlier in 2026, attributing these cuts to efficiencies gained from AI implementations. Discussions regarding a potential IPO have been ongoing, with speculation that the listing may now be pushed to 2027.

The Q3 report highlights Payward's strategy to adapt to a slower trading environment while diversifying its revenue streams. The growth in funded accounts, despite a drop in trading volume, indicates that users are remaining engaged with the platform. The upcoming quarters will be critical in determining whether this recovery trend continues and if regulatory approvals for new products are granted.