Kraken Revenue Up 18% YoY in Q2 Despite 13% Drop from US Tariffs

Kraken delivered a solid second-quarter performance in 2025, reporting revenue of $411.6 million — an 18% increase compared to the same quarter last year. While revenue was down 13% from Q1 due to typical seasonal trends and broader economic pressures, the year-over-year gains highlight the company’s steady upward trajectory.

Trading activity remained robust, with total exchange volume reaching $186.8 billion — a 19% rise from Q2 2024. The platform also saw significant user growth, with funded accounts climbing 37% to 4.4 million. The total value of assets held on the platform surged 47% to $43.2 billion.

Kraken credited the momentum to a wave of new product offerings. These include commission-free equity trading, the rollout of tokenized asset services, and the debut of its global money transfer application. The company also gained ground in stablecoin-fiat trading, increasing its market share in that segment from 43% to 68%, reflecting greater liquidity and institutional interest.

Kraken further expanded its reach by launching a full-featured prime brokerage and Crypto-as-a-Service (CaaS) offering. These services have already attracted high-profile partners, including neobanks like bunq and Alpaca.

European Expansion and Retail Innovation

The company made notable strides in Europe, launching what it claims is the largest MiFID-compliant crypto futures suite in the region. It also broadened its custodial services for institutional investors. On the consumer side, Kraken introduced a new premium subscription tier, “Kraken+,” which already has 100,000 members managing over $1 billion in digital assets.

These efforts reflect Kraken’s dual strategy of deepening its institutional capabilities while innovating on the retail front. The platform continues to evolve from a crypto-only exchange into a broader financial services provider.

Earnings Slide Amid Volatility and Tariff-Driven Market Shock

While Kraken’s user base and platform metrics showed impressive growth, its profitability took a hit during the quarter. Adjusted EBITDA dropped to $79.7 million, down 7% from Q2 2024 and a sharp 57% decline from Q1’s $187.4 million. The downturn was largely attributed to lower trading activity, typical for Q2, and macroeconomic disruptions — most notably the impact of new U.S. tariffs in April that rattled global crypto markets.

Trading volume fell 11% quarter-over-quarter, dragging revenue down by 13% compared to Q1. Kraken acknowledged this pattern aligns with broader seasonal softness often seen across the crypto sector.

Looking Ahead: New Markets and Product Lines

Despite near-term earnings pressure, Kraken remains focused on executing its long-term vision. The company is accelerating efforts to diversify its offerings, including launching tokenized securities and cross-border financial products. It has also made headway in securing regulatory licenses globally, with new approvals in Ireland and Canada.

Later in 2025, Kraken plans to unveil debit card services and enable international equities trading — signaling a move toward becoming a comprehensive digital financial platform.