Why Bullish earnings grabbed the market’s attention

Bullish (BLSH) reported second quarter 2026 results on August 13, with sales of $15.53 million and a net loss of $270.19 million from continuing operations, a sharp swing from profit a year earlier.

Against that backdrop, Bullish shares trade at $24.62, with a 30 day share price return of 9.86% that sits against a much weaker 90 day share price return and a 1 year total shareholder return that declined 58.63%. This suggests that recent momentum has not yet reversed the longer downturn in investor sentiment following the widened losses.

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Bullish now trades at a steep discount to analyst targets after a sharp swing into heavy losses and a weak 1 year return. Is that discount compensating you for the risks, or is it reflecting caution that still makes sense?

Preferred price to sales multiple of 12.4x for Bullish: Is it justified?

Bullish closed at $24.62, and the stock currently trades on a P/S ratio of 12.4x, which looks expensive compared with both peers and the wider US Capital Markets industry.

The P/S ratio compares the company’s market value to its revenue. For a business like Bullish that is currently loss making and forecast to remain unprofitable over the next 3 years, revenue based metrics often become the main shorthand investors use. A higher P/S can signal that the market is placing a premium on future revenue growth potential rather than current earnings.

In this case Bullish’s P/S of 12.4x is far above the US Capital Markets industry average of 3.5x and the peer average of 4.2x. It is also well ahead of the estimated fair P/S ratio of 4.1x that regression analysis suggests the market could move toward for a company with similar characteristics. That combination points to a valuation that is rich compared with both direct peers and the level implied by the SWS fair ratio framework.

Result: Price-to-sales of 12.4x (OVERVALUED)

However, Bullish still faces risks if heavy losses continue or if sentiment toward digital asset platforms weakens again, which could pressure both revenues and valuation.

Next Steps

With sentiment around Bullish still split between concern over losses and interest in future potential, it helps to move fast and review the full picture yourself. To see both sides of that debate in one place, take a closer look at the 1 key reward and 1 important warning sign.

Looking for more investment ideas beyond Bullish?

Do not stop with Bullish. The market keeps moving and new opportunities can appear quickly, so consider more options before you commit new capital.

• Target potential mispricings by scanning companies that score well on quality and valuation in the 50 high quality undervalued stocks.
• Prioritise resilience first by reviewing companies highlighted in the 79 resilient stocks with low risk scores.
• Identify lesser known opportunities with strong fundamentals through the screener containing 20 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.