Analysts at JPMorgan Chase have maintained a “neutral” rating for the cryptocurrency exchange Bullish following its quarterly report, which exceeded market expectations for revenue and EBITDA. However, the bank has adjusted its valuation model and lowered its price target for Bullish shares for December 2026 to $45 from the previous $46. The main reason is the exclusion of IPO revenue from stablecoins from the calculations.
This is reported by Finway
Bullish Financial Results Exceed Expectations
For the quarter, Bullish reported an adjusted earnings per share of $0.10, in line with Bloomberg’s consensus. The company’s revenue amounted to $77 million, surpassing market expectations and the forecasts of JPMorgan analysts themselves ($74 million). Adjusted EBITDA reached $29 million compared to the expected $26 million.
The main contribution to the financial results came from the Subscription Services & Other (SS&O) segment, which generated $50 million in revenue, while the previous year this figure was only $12 million, and JPMorgan had forecasted $47 million. Analysts noted that approximately $6.2 million of this amount comes from promotional payments with nearly 100% margin. Excluding these promotional payments, the quarter’s adjusted EBITDA would have been closer to $22.4 million.
As analysts pointed out, “we maintain a neutral rating but are lowering our price target as we take a closer look at interest income from stablecoins.”
Updated Forecasts and Outlook for Q4
JPMorgan has revised its adjusted earnings per share (EPS) forecasts for Bullish: for 2025, to $0.31 from $0.44, and for 2026, to $0.93 from $1.29. Separately, the bank notes that in Q4, Bullish is likely to receive about $12 million in promotional revenue from stablecoins, equivalent to $37 million on an annual basis in 2027, but this revenue is not included in the company’s core valuation.
Despite the adjustment in estimates, JPMorgan experts note positive market trends for Bullish through the end of the year. According to them, the last quarter “looks much more constructive” for the company than the previous one.
Key growth drivers identified by analysts include:
- the early launch of options trading;
- further integration of institutional investors in the U.S.;
- the acquisition of a BitLicense in New York in October.
Recall that Bullish’s IPO of $1.15 billion was conducted entirely in stablecoins, and in November 2023, the company completed the acquisition of the media platform CoinDesk.