Kraken Q2 Revenue Up 18% YoY But EBITDA Falls 7% Amid Rising Costs

Kraken’s financial performance in Q2 2025 showed mixed results, with a notable rise in year-over-year revenue but a decline in adjusted EBITDA. The firm reported $412 million in revenue, an 18% increase compared to the same period in 2024, but this figure marked a 13% decrease from Q1 2025 [1]. The drop in quarterly revenue reflects a seasonal slowdown in trading activity, a pattern Kraken noted is common across the industry in the second quarter [2]. Total exchange volume increased by 19% year-over-year to $186.8 billion, though it declined quarter-over-quarter amid market uncertainty linked to US tariffs and macroeconomic pressures [1].

While revenue growth was driven by strong retail and institutional demand, adjusted EBITDA fell by 7% year-over-year, dropping to $79.7 million from $85.5 million [1]. The decline highlights the growing challenge for crypto exchanges to maintain profitability amid rising operational costs and competitive pressures. Kraken’s funded accounts and platform assets, however, continued to grow, with 4.4 million funded accounts and $43.2 billion in assets as of Q2 2025, both showing double-digit year-over-year increases [1]. The firm also expanded its market share in stablecoin trading, with its share of stable-fiat spot volume rising from 43% to 68% during the quarter [2].

Kraken announced several product expansions to support both retail and institutional users, including the launch of the region’s largest MiFID-regulated crypto futures suite in Europe and a regulated derivatives offering in the US allowing access to CME-listed crypto futures [1]. For institutional clients, the company introduced Kraken Prime, a brokerage service that combines trade execution, custody, and liquidity [1]. Additionally, Kraken expanded its custody business by adding support for Solana (SOL), XRP, and reward-bearing USDG, targeting high-net-worth individuals and institutional clients seeking secure asset storage and staking solutions [2].

On the legal front, the US Department of Justice concluded its investigation into Kraken co-founder Jesse Powell, who had been under scrutiny for allegations unrelated to crypto, including a governance dispute involving a nonprofit organization he founded [2]. The FBI had raided Powell’s home in 2023, but no charges were filed, and devices seized have since been returned. Powell remains on Kraken’s board after stepping down as CEO and plans to pursue civil action against the organization’s board [2]. The resolution of this matter comes as Kraken prepares for a potential IPO in 2026 [2].

The diverging performance between Kraken’s revenue and adjusted EBITDA underscores the broader challenges facing the crypto industry. While the firm continues to attract more users and expand its offerings, the pressure on margins remains a key concern for investors. As the market evolves, Kraken’s ability to balance growth with profitability will be crucial in determining its long-term success.

[1] https://coinmarketcap.com/community/articles/688fa4c1b3afd664ab382ee6/

[2] https://cryptopotato.com/kraken-revenue-soars-year-over-year-but-ebitda-takes-a-hit/