Kraken Delays IPO to 2027 as Profit Drops 71%

Kraken's parent company, Payward, has reportedly delayed its planned U.S. IPO until at least the second quarter of 2027.

The decision comes as the crypto exchange faces weaker trading activity and a sharp decline in profitability, despite continued revenue growth.

What Happened?

Payward originally filed confidentially for an IPO in November 2025.

The company paused the process in March 2026 because of difficult market conditions. The latest delay pushes the potential listing to Q2 2027 at the earliest.

Key Details

  • IPO target: Q2 2027 or later
  • Q2 revenue: $508 million
  • Revenue growth: +17% year-over-year
  • Adjusted EBITDA: $23 million
  • EBITDA decline: 71%
  • Funded accounts: 6.6 million
  • Trading volume: $310 billion
  • Previous valuation: Around $20 billion

Why This Matters

Kraken is showing a mixed picture.

Its customer base continues to expand, but lower trading activity is putting pressure on profitability.

Funded accounts increased 42% year-over-year to 6.6 million, while transaction volume fell 13% to $310 billion.

Profit Falls Despite Higher Revenue

The biggest concern is Payward's earnings.

Metric Q2 2025 Q2 2026
Revenue — $508M
Adjusted EBITDA ~$79.7M $23M
Funded accounts — 6.6M
Trading volume — $310B

Adjusted EBITDA dropped approximately 71% year-over-year, showing how lower trading activity and continued investment are affecting margins.

Kraken Is Still Expanding

Despite weaker profitability, Payward has continued investing in its broader financial platform.

The company has expanded beyond traditional crypto trading through acquisitions and products covering areas such as derivatives, stablecoin payments and tokenized assets.

The strategy is aimed at creating a broader financial platform rather than relying entirely on crypto trading fees.

Crypto IPO Market Cools

Kraken is not the only crypto company delaying a public listing.

Market conditions and disappointing performances from some recently listed digital-asset companies have made investors more cautious about new crypto IPOs.

That environment makes timing especially important for Payward.

Market Reaction

The IPO delay comes as crypto trading volumes remain sensitive to Bitcoin's price and broader risk appetite.

For an exchange such as Kraken, lower market activity can directly affect transaction-related revenue.

The company therefore needs both higher trading volumes and stronger margins to present a more attractive IPO story.

Bullish Scenario

Kraken could strengthen its IPO case if:

  • Crypto trading volumes recover
  • Profit margins improve
  • New businesses generate recurring revenue
  • Customer accounts continue growing
  • The broader crypto IPO market improves

Bearish Scenario

The main risk is that weaker crypto activity continues.

If trading volumes remain low while Payward continues spending heavily on expansion, profitability could remain under pressure and further delay the IPO.

Key Events to Watch

  • Q4 2026: Payward's financial performance
  • Early 2027: Potential IPO preparations
  • Q2 2027: Earliest reported IPO window
  • Bitcoin and overall crypto trading volumes
  • Performance of other publicly traded crypto companies

What Investors Should Watch

The most important numbers are:

  1. Trading volume
  2. Adjusted EBITDA
  3. Revenue diversification
  4. Funded accounts
  5. Acquisition spending
  6. IPO market conditions

FAQ

When could Kraken go public?

Payward's IPO is now expected no earlier than Q2 2027, according to reports.

Why was the IPO delayed?

The company previously cited difficult market conditions. The latest delay comes amid weaker crypto prices, trading volumes and investor appetite for crypto listings.

How much revenue did Kraken generate in Q2 2026?

Payward reported approximately $508 million in adjusted revenue, up 17% year-over-year.

Why did profit fall?

Adjusted EBITDA fell 71% to $23 million, with lower trading activity and continued investment contributing to pressure on profitability.

Final Take

Kraken's IPO delay highlights the challenge facing major crypto businesses in the current market.

Revenue is growing and customer numbers are rising, but profitability has fallen sharply.

For Payward, the path toward a successful 2027 IPO will likely depend on whether it can turn its growing user base and diversified business into stronger, more consistent profits.