Bullish Q3 Profit Surpasses Expectations, Stock Drops 8%

As reported by Bijiwang, Bullish (BLSH) stock fell 8% on Wednesday after the company released its third-quarter earnings, showing a record revenue driven by the launch of spot and options trading in the U.S. The exchange reported a net profit of $18.5 million for the quarter, a significant improvement from a $67.3 million loss in the same period last year. Adjusted revenue reached $76.5 million, with adjusted EBITDA at $28.6 million. Earnings per share were $0.10, in line with expectations. Analysts had mixed reactions to the preliminary report. Cantor Fitzgerald maintained a 'Buy' rating for BLSH, citing progress in the crypto ETF market and potential benefits from increased institutional activity. However, the firm lowered its price target from $59 to $56 due to a general decline in peer valuation multiples. VanEck's Matt Sigel noted that non-trading income remained flat, including conference revenue from its subsidiary CoinDesk and volatile options trading gains. Sigel also pointed out that perpetual futures spreads turned negative in October, with losses in a volatile month. Despite this, Cantor analysts Brett Knoblauch and Gareth Gacetta highlighted Bullish's busy quarter, which could lay the groundwork for long-term profitability. The exchange partnered with Deutsche Bank and secured five out of six new U.S. ETF listings. Bullish's options business exceeded $1 billion in its first quarter, and AUM linked to Bullish indices rose to $490 billion from $410 billion in the previous quarter. Cantor expects the launch of two new ETPs tied to the CoinDesk20 index. On Monday, Cathie Wood's ARK Investment Management disclosed a net $10.2 million in new bullish stock purchases across three ETFs. Bullish expects its Q4 subscription, service, and other revenue to reach $53 million. At the time of writing, BLSH was trading at $35.61, down about 5.6%.