The BitGo Q2 revenue surge of nearly 80% year-over-year to $4.3 billion was not enough to prevent a net loss of $19.0 million, as an $18.8 million unrealised loss on digital assets and thin spot-transaction margins overwhelmed top-line growth.
The loss compares with net income of $38.3 million in Q2 2025, per the company’s SEC filing, a swing of more than $57 million year-over-year. Quarter-over-quarter, the picture is less grim: the Q1 net loss stood at $60.7 million, so Q2 represented a meaningful narrowing, even if the direction is still wrong.
CEO Mike Belshe acknowledged on the earnings call that results fell short of expectations. ‘While we delivered revenue growth, profitability was impacted by lower margins and an unfavorable revenue mix,’ he said, attributing the compression to ‘lower spreads on certain spot transactions’ and a smaller contribution from derivatives.
Margin Mechanics Behind the Miss
The Adjusted EBITDA picture makes the margin problem concrete. BitGo reported an Adjusted EBITDA loss of $4.2 million in Q2 2026, reversing a $3.0 million Adjusted EBITDA gain in Q2 2025 and worsening from a $1.7 million Adjusted EBITDA loss in Q1 2026, according to the Q2 SEC filing. The filing attributes the pressure to Digital Asset Sales and Staking segments.
Direct costs came in at $4.29 billion against $4.3 billion in revenue, leaving almost no room for operating leverage. The $18.8 million unrealised asset loss compounded the squeeze, reversing a $55.8 million unrealised gain recorded in the same quarter a year earlier. A $5.6 million gain on disposal of digital assets provided partial offset, alongside $1.3 million in restructuring charges flowing through the income statement.
BitGo cut roughly 15% of its workforce in June. The company expects operating expenses to fall in Q3 as a result, with annualised cash savings targeted at approximately $15 million.
What the BitGo Q2 Revenue Surge Doesn’t Cover
The company’s balance sheet, at least, is clean. As of 30 June 2026, BitGo held $159.0 million in cash, 2,523 company-owned Bitcoin valued at approximately $147.7 million, and carried no corporate-level debt, per the SEC filing. That gives it runway to absorb continued losses without immediate refinancing pressure.
Platform metrics are growing faster than the financials suggest. Client count reached 5,833 in Q2, up 26.2% year-over-year. Normalised Assets on Platform hit $65.2 billion, up 31.4% year-over-year, while Normalised Assets Staked climbed to $11.9 billion, up 36.1% year-over-year. The staking growth in particular is worth watching: if staking yield contribution scales, it could improve the revenue mix that Belshe flagged as a drag.
BitGo also launched quantum-risk management capabilities for Bitcoin wallets during the quarter and expanded AI tooling across engineering and operations, per the SEC filing. Neither is a near-term revenue driver, but both are positioning plays for institutional custody mandates that increasingly come with security and efficiency requirements attached.
The board authorised a $50 million share repurchase programme, representing approximately 8% of Class A shares outstanding at announcement prices, per the June 2026 repurchase filing. The authorisation has no fixed expiration and does not obligate the company to buy back any specific amount, so it functions more as a price-floor signal than a committed capital return.
There is one disclosure the market will need to price separately. Chief Financial Officer Ed Reginelli will resign effective 15 September 2026, remaining in an advisory capacity through the transition. BitGo listed on the NYSE under the ticker BTGO only in January 2026, selling 11,026,365 shares at $18.00 per share in its IPO, per the 10-K filing. With the stock trading near $4.90 after hours following Wednesday’s close at $4.99, according to Simply Wall St, BTGO is down roughly 73% from its IPO price. A CFO departure mid-turnaround, at that price level, adds uncertainty the repurchase authorisation alone is unlikely to resolve.
The Q3 expense trajectory is the near-term binary: if the workforce reduction translates to the projected savings and derivatives volumes recover, the Adjusted EBITDA line turns positive before year-end. If spot spreads stay compressed and staking growth fails to offset, the loss widens again heading into a quarter where the CFO seat will be empty.
