Summary of BLSH Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Adjusted Revenue: $92.6 million, flat sequentially but up 62% year-over-year.

Subscription Services and Other Revenue: Record high of $62.7 million.

Adjusted Transaction Revenue: $29.9 million.

Adjusted Operating Expenses: $63.1 million, reflecting peak expenses for 2026, driven by Consensus event costs and one-time compensation expenses of $2.5 million.

Adjusted EBITDA: $29.5 million, approximately 32% margin.

Adjusted Net Income: $14.3 million after finance expenses of $14.5 million.

Net Liquid Assets: $2.1 billion at quarter-end.

2Strategic Updates and Business Highlights

Tokenization of Securities: Bullish launched trading of tokenized shares on its platform, marking a significant milestone in its strategy to modernize market structure.

Acquisition of Equiniti Group: On track to close in January 2027, with all antitrust clearances secured. Equiniti is a major player in transfer agent services, managing nearly 3,000 corporate issuers.

Institutional Partnerships: Bullish secured a partnership with a major global wealth manager for exclusive crypto trading in Asia and expanded relationships with firms like SoFi and BitGo.

Media and Events: The Consensus conference attracted over 16,000 attendees, enhancing brand visibility and generating new business opportunities.

CoinDesk Growth: Media arm saw a 38% year-over-year increase in page views and an 83% increase in unique visitors.

3Forward Guidance and Outlook

2026 Full-Year Guidance:

SS&O revenue expected between $225 million to $245 million, with a split of 45% in Q3 and 55% in Q4.

Adjusted operating expenses projected between $225 million to $230 million.

Finance expenses expected to remain between $52 million to $60 million.

Long-Term Growth: Anticipated growth in trading volumes from tokenized equities starting in 2027, with optimism about the broader market for tokenized securities.

4Bad News, Challenges, or Points of Concern

Market Environment: The broader crypto market is experiencing lower trading volumes and price volatility, which could impact transaction revenues.

Regulatory Uncertainty: The CLARITY Act did not advance, which may hinder institutional interest in pure crypto assets. However, the SEC's potential innovation exemption for tokenized securities could provide clarity.

Expense Management: Increased operating expenses in Q2 were higher than expected, raising concerns about cost control going forward, although management indicated that these would normalize in the second half of the year.

5Notable Q&A Insights

Tokenization Ecosystem: CEO Tom Farley expressed confidence that both synthetic and issuer-sponsored tokenization models will coexist, with issuer-sponsored models offering more benefits to companies.

Trading Volumes: Management does not expect a significant uplift in transaction revenues from tokenized equities in 2026 but sees potential growth in 2027.

Regulatory Pathways: A new pathway for accessing U.S. derivatives markets may open earlier than anticipated, which could enhance Bullish's competitive positioning.

Dematerialization in the U.K.: Management believes that the transition away from paper shares will benefit Equiniti, despite concerns about potential revenue loss from traditional share services. This summary encapsulates the key points from the earnings call, providing a clear overview of BLSH's financial performance, strategic direction, and outlook while addressing potential challenges and insights from the Q&A session.