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Bakkt Inc

BKKT

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Bakkt Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-11

Snapshot

  • Gross margin TTM of 2.4% vs industry median 51.5% - near-zero value capture on 3.9B revenue, business model fundamentally challenged.[Gross Margin TTM]
  • Goodwill of 64.7M is 57% of equity (114M) with tangible book just 44M - impairment risk material given -41M net loss TTM.[Goodwill]
  • FCF of -115M TTM burning through 58M cash; at current rate, runway under 6 months without capital raise.[Free Cash Flow TTM]

Watch Triggers

  • Gross Margin TTM: Rises above 10%Would signal pricing power or cost structure improvement - currently at 2.4% vs 51.5% industry median.
  • Cash and Equivalents: Falls below 30M or equity raise announcedAt -115M FCF burn, sub-30M cash triggers survival mode within 3 months.
  • Goodwill: Impairment charge announced64.7M goodwill vs 44M tangible book - impairment would devastate already thin equity base.

Bull Case

3-year revenue CAGR of 212% vs industry 6.6% median shows massive scale-up; if gross margin normalizes to even 10%, operating leverage could flip economics.

Total Revenue 3Y GrowthAsset Turnover TTM

Asset turnover of 5.4x vs industry 0.27x indicates capital-light model; low debt (0.11 D/E) preserves optionality for restructuring.

Asset Turnover TTMDebt to Equity

Bear Case

2.4% gross margin is structurally broken - cost of revenue (3.8B) nearly equals revenue (3.9B), leaving nothing for opex or profit.

Gross Margin TTMCost of Revenue TTM

ROE of -50% and ROIC of -41% TTM destroying shareholder value; 37M gain on security sales masks deeper operational losses.

ROE TTMROIC TTMGain on Sale of Security

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Cash runway exhaustion likely forces dilutive equity raise or strategic sale within 12 months.

3-12mhigh
  • 58M cash vs -115M annual FCF burn
  • Minimal debt capacity (12.5M total debt)
  • No path to profitability at 2.4% gross margin
FCF TTM: -115MCash: 58MOperating income: -70M TTM

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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