Earnings call transcript: K33 Q3 2025 sees 270% revenue growth, stock dips

K33 AB reported significant revenue growth in its Q3 2025 earnings call, with a year-over-year increase of 270%. Despite this strong performance, the company's stock price fell by 5.63% to close at 0.0335, reflecting investor concerns over future challenges and guidance. With a market capitalization of $43.31 million, K33 continues to position itself as a key partner for traditional financial institutions entering the cryptocurrency space. InvestingPro data shows the stock has demonstrated high volatility, with a beta of 2.94, making it nearly three times more volatile than the broader market.

Key Takeaways

• Revenue increased by 270% year-over-year, with a 130% growth from Q2 to Q3.
• Stock price decreased by 5.63% post-earnings announcement.
• K33 is developing new digital asset products, expected to launch in 2026.
• The company filed a MiCA application, anticipating approval early next year.
• K33 aims to accumulate 1,000 Bitcoin on its balance sheet.

Company Performance

K33 AB demonstrated robust growth in Q3 2025, with its revenue climbing by 270% compared to the same period last year. The company achieved an EBITDA of approximately SEK 2 million, marking a positive financial result after adjusting for unrealized Bitcoin holding losses. This growth trajectory positions K33 as a growing player in the cryptocurrency market, despite its small size.

Financial Highlights

• Revenue: Increased by 270% year-over-year and 130% from Q2 to Q3.
• EBITDA: Approximately SEK 2 million.
• 12-month rolling market volume: SEK 2.3 billion, up from SEK 700 million last year.

Outlook & Guidance

K33 anticipates a potential setback in Q4 due to reduced services for treasury companies. However, the company maintains a long-term expectation of high growth and plans to expand through strategic partnerships. K33 projects revenue of $175.54 million for FY2025 and $272.09 million for FY2026. The company is also preparing to launch new digital asset products in 2026, pending MiCA application approval.

Executive Commentary

CEO Torbjørn Bull Jenssen emphasized the company's strategic positioning, stating, "Bitcoin will be a key part of the global financial infrastructure in the future." He also highlighted K33's ambition, noting, "We are a tiny player, and the sky is the limit for how far we can take this." Jenssen expressed confidence in K33's role as a preferred partner for financial institutions entering the crypto space.

Risks and Challenges

• Regulatory Delays: The Norwegian FSA has requested a six-month extension for processing K33's MiCA application, which could delay product launches.
• Market Volatility: The cryptocurrency market's inherent volatility poses risks to K33's financial stability and investor sentiment.
• Competition: As a small player, K33 faces competition from larger, more established firms in the digital asset space.
• Dependence on Bitcoin: Holding Bitcoin on the balance sheet exposes K33 to potential losses if Bitcoin prices decline.

K33's Q3 2025 earnings call highlighted significant revenue growth and strategic initiatives to expand its presence in the cryptocurrency market. However, investor concerns about future challenges and guidance revisions led to a decline in the company's stock price.

Full transcript - K33 AB (K33) Q3 2025:

Torbjørn Bull Jenssen, CEO, K33: Good morning, and welcome to this Q3 presentation for K33. My name is Torbjørn Bull Jenssen, and I'm the CEO of K33. At K33, we help private individuals, family offices, corporate clients, and financial institutions buy, sell, and store cryptocurrency without worry. Speaking of worry, right now there are a lot of investors who are worried. Bitcoin has fallen sharply recently, and their market sentiment is deteriorating. If you look at the year overall, Bitcoin has actually been flat. Many ask themselves, was this it? Was Bitcoin kind of a momentum trade, and now the momentum is gone? At K33, we view it very differently. Because while Bitcoin has been falling recently, we continue to see important news from big financial institutions, from sovereign wealth funds. We see an adoption of Bitcoin as a financial instrument continuing at full pace.

It is this underlying adoption which will be the driver for the development of both Bitcoin prices and the whole sector in the years to come. It has never looked better. This is exactly why at K33 we continue to buy and hold Bitcoin. We now hold 141 Bitcoin on our balance sheet, and we are slowly working our way towards our goal of 1,000 Bitcoin. There are two reasons why we are buying and holding Bitcoin. One is that we are strong believers that Bitcoin will be a key part of the global financial infrastructure in the future. We think that Bitcoin will have the best return going forward. As importantly, as a broker, Bitcoin is for us a key enabler.

We can put our balance sheet to work using Bitcoin as collateral in our matched principal trading and kind of accelerate our product development and strengthen our operations by having a strong balance sheet. When you look at K33, the operation is the main value. It's really exciting to share that in Q3 we reached a new milestone. For the first time, we saw a quarterly market volume of more than SEK 1 billion. Looking at the 12-month rolling, we're actually now at SEK 2.3 billion, up from SEK 700 million last year. The market is really liking what we're offering, and we see strong growth. Still, the potential is way larger. We're a tiny player, and the sky is the limit for how far we can take this in the coming quarters.

For Q4 specifically, we anticipate a setback as the tailwinds from treasury companies using our services during the summer have faded. Over the longer term, we really expect to be able to continue and keep the pace of high growth going forward. With this high growth, we've now approached profitability from the operational side. We grew 270% year over year looking at revenue, with 130% growth relative to Q2. This resulted in an EBITDA of around SEK 2 million and a positive result, adjusting for unrealized losses related to our Bitcoin holding. Moving ahead, we are now working with our MiCA application. We have filed it with the Norwegian FSA, and we earlier shared that we expected this to be approved before year-end. However, the Norwegian FSA has asked for a six-month extension of their processing period.

Although we anticipate that we will get our approval before the end of that extended period, right now it looks like it will take slightly longer than first anticipated. We are very much on track. The process with Finanstilsynet is going smoothly. If everything goes as planned, we should get our license early next year. The key reason why this is so important to K33 is that we are positioning ourselves as a company that can truly help traditional financial institutions when they are now about to move into this space. We are strong believers that every financial institution will have a Bitcoin or crypto asset service in the coming years. We are certain that most of them will need a partner. K33 shall be that preferred partner.

This is why I'm extremely excited to share that now in Q4, sorry, during Q3, we've actually launched a partnership with our first traditional asset manager. Together with Pensum Asset Management, we are now developing investment products for their clients to get a managed exposure to Bitcoin and digital assets, a product we expect to launch following our MiCA application approval sometime in 2026. This is extremely exciting because this will enable us to tap into faster growth and growing kind of through partnerships, accelerating our distribution rather than winning every single end client ourselves. To summarize, looking ahead, we are very much on track. We have a strong balance sheet of 141 Bitcoin, and we'll continue to stack prudently towards our goal of 1,000 Bitcoin.

We will continue with our iterative product development and roll out new features that will enhance the user experience, enhance the capabilities for our clients. We will increasingly expand and grow through partnerships with Pensum Asset Management as the first key example of such a partnership. I expect that we will continue to win volume from both private and corporate clients, as we've done in the past, in the coming quarters as well. Thank you so much, and have a great day.

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