Bullish Stock Falls 8% After Mixed Q3 Results and Lowered Price Target

TLDR

• Bullish stock dropped 8% following the release of its third-quarter earnings report.
• The company reported a net income of $18.5 million, reversing a $67.3 million loss from last year.
• Bullish’s adjusted revenue for the third quarter reached $76.5 million, with adjusted EBITDA of $28.6 million.
• Cantor Fitzgerald analysts maintained an “overweight” rating but lowered the stock price target to $56 from $59.
• Non-trading revenue remained flat, with limited growth from its CoinDesk subsidiary and options trading.

Bullish stock (BLSH) saw an 8% decline on Wednesday after the release of its third-quarter earnings. Despite recording record revenue driven by new offerings like spot markets in the U.S. and options trading, investors reacted cautiously. Analysts were divided on the company’s outlook following the results.

Strong Revenue, But Mixed Analyst Sentiment

Bullish reported a net income of $18.5 million for Q3, a sharp contrast to a $67.3 million loss in the same period last year. The company also posted adjusted revenue of $76.5 million, alongside adjusted EBITDA of $28.6 million. Earnings per share were in line with estimates at 10 cents.

Cantor Fitzgerald analysts maintained an “overweight” rating on Bullish stock. They highlighted the firm’s strong positioning in the crypto ETF markets and its potential to attract institutional investors. However, they lowered the price target for Bullish stock to $56, down from $59, citing reduced multiples across the sector.

BLSH Faces Scrutiny Over Flat Non-Trading Revenue

While Bullish’s trading business showed growth, its non-trading revenue remained essentially flat. The company’s conference revenue from its CoinDesk subsidiary did not increase significantly. VanEck’s Matt Sigel pointed out that Bullish’s options trading, though strong, did not deliver a substantial revenue boost.

Sigel also noted that the company’s perpetual futures spreads turned negative in October. “Perps product lost money in a volatile month,” Sigel said. Despite this, analysts believe that Bullish has the infrastructure to become more profitable over time.

Bullish Sees Growth in Assets and New Partnerships

In a positive development, Bullish surpassed $1 billion in options trading during the quarter. The firm also saw assets under management tied to its indices grow to $49 billion, up from $41 billion in the prior quarter. Bullish continues to strengthen its partnerships, securing a deal with Deutsche Bank and winning five out of six new U.S. exchange-traded product launches.

Analysts believe these developments could help Bullish position itself for future growth. The firm is also set to launch two new exchange-traded products tied to the CoinDesk20 index. Bullish stock’s exposure to these initiatives could enhance its long-term growth trajectories.

Cathie Wood’s Ark Invest disclosed it had purchased $10.2 million in Bullish stock across three ETFs. This move signals institutional confidence in the company’s future prospects. Bullish stock remains a key asset for Ark’s digital asset-focused funds.

Despite these positive moves, analysts remain divided on Bullish’s short-term outlook. The company’s focus on growing its subscription and services revenue is expected to bring in $53 million in Q4. However, with some mixed signals from the market, investors continue to watch closely.

At the time of publication, Bullish stock was trading at $35.61, a 5.6% decrease from the prior day. The dip came despite the firm’s strong financial results and growth in key business areas.

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