v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The measure of segment assets is reported in the consolidated balance sheets as total assets. The CODM uses net income (loss) to allocate resources as part of the Company's annual and long-term planning processes, and to evaluate operating performance based on budget to actual results. Certain information provided to the CODM presents operating expenses on a different basis than that presented in the consolidated statements of operations.
During the three and six months ended June 30, 2025 and June 30, 2024, all material operations are within the United States. Our chief operating decision maker allocates resources and assesses performance based upon financial information at the consolidated level.
The following table represents significant segment expenses provided to the CODM for the three and six months ended June 30, 2025, and June 30, 2024 (in thousands):
Three Months Ended June 30, 2025Three Months Ended June 30, 2024Six Months Ended June 30, 2025Six Months Ended June 30, 2024
Total revenues$577,882 $509,898 $1,652,792 $1,364,480 
Segment expenses:
Personnel1
$13,971 $27,002 $28,429 $43,218 
Non-cash compensation1
6,338 2,407 9,681 10,420 
Professional fees4,069 3,579 9,261 7,214 
Technology2,826 3,602 6,355 9,349 
Occupancy2
751 897 1,643 1,846 
Marketing and promotions3
108 72 204 1,143 
Business insurance4
1,173 2,956 2,826 6,903 
Depreciation and amortization154 118 374 175 
Other operating costs5
1,768 (3,811)3,487 5,371 
Crypto costs561,074 491,701 1,615,709 1,323,673 
Execution, clearing and brokerage fees4,139 3,392 11,832 9,022 
Total operating expenses per Consolidated Statements of Operations$596,371 $531,915 $1,689,801 $1,418,334 
Operating loss$(18,489)$(22,017)$(37,009)$(53,854)
Other income, net6
11,663 13,495 (23,094)2,933 
Net income (loss)$(30,152)$(35,512)$(13,915)$(56,787)
1
Personnel includes payroll and benefits, excluding stock-based compensation, which is included in Non-cash compensation. Both are reported as part of Compensation and benefits on the consolidated statements of operations.
2Occupancy includes facility related expenses such as rent and is reported as Selling, general and administrative on the consolidated statements of operations.
3Marketing and promotions primarily consist of web-based promotional campaigns, promotional activities with clients, conferences and user events, and brand-building activities and are reported as Selling, general and administrative on the consolidated statements of operations.
4Business insurance primarily consists of business liability insurance premiums and is recorded as Selling, general and administrative on the consolidated statements of operations.
5Other operating costs consist primarily of Restructuring costs and Impairment of long-lived assets as presented on the statements of operations, as well as costs that are reported as Selling, general and administrative, Other operating expenses, and Compensation and benefits on the consolidated statements of operations.
6Other expense (income), net consists primarily of Interest income, net, (Loss) gain from change in fair value of warrant liability, and Other expense, net, and Income tax (expense) benefit as presented in the consolidated statements of operations.
On March 14, 2025, the Company's largest client, Webull Pay LLC (“Webull”), notified the Company that it will not renew its agreement with Bakkt when it ended on June 14, 2025, although the Company continues to service a limited number of states under an amended agreement with Webull. Webull represented approximately 74% of the Company’s Crypto services revenue for the year ended December 31, 2024.
Bakkt also received notice from Bank of America Corporation (“Bank of America”) on March 14, 2025 that Bank of America will not renew its commercial agreement with Bakkt. As a result, such agreement expired in accordance with its terms on April 22, 2025, subject to the Company’s obligation to provide transition services for up to a 12-month period. Bank of America represented approximately 16% of the Company's loyalty business’s net revenue for the year ended December 31, 2024.