Coinbase posts $359.5m loss as crypto slump hits trading revenue
A wider-than-expected second-quarter loss at Coinbase underscores the exchange's exposure to volatile crypto trading volumes, even as it successfully diversifies its revenue base.
Coinbase lost $359.5 million in the second quarter, marking its third consecutive period of falling short of analyst expectations as a prolonged slump in digital asset markets weighed on trading income. The $1.36 per share loss compared poorly to Wall Street forecasts for a 17-cent deficit, pushing shares down more than 7% in after-hours trading on Thursday. Revenue contracted to $1.2 billion from $1.5 billion a year earlier, missing the $1.3 billion target.
Chief Financial Officer Alesia Haas attributed the weakness to a difficult operating environment. She noted that industrywide spot trading volumes dropped more than 20% and total crypto market capitalization shrank by double digits. Those headwinds drove a 14% sequential decline in the exchange's total revenue, with both transaction and subscription income falling below analyst projections and year-ago levels.
The results highlight the tension between Coinbase's reliance on volatile trading fees and its ongoing push to build recurring income streams. Transaction revenue accounted for $599 million, while stablecoin revenue slipped to $292 million. However, subscription and services revenue generated $555 million, now representing 48% of total net revenue—up sharply from 29% in the fourth quarter of 2024.
Beneath the headline loss, several operational metrics improved. The exchange captured a record 10.3% of global crypto trading volume, its third straight quarter of share gains. Furthermore, average USDC held in Coinbase products hit an all-time high of $20 billion, and prediction markets revenue surged 106% quarter-over-quarter to surpass $100 million on an annualized basis.
"Coinbase is no longer a bet just on the price of Bitcoin," Chief Executive Officer Brian Armstrong said in a statement, arguing the firm is positioned to update all financial services using crypto. The company also maintained bottom-line discipline, posting its 14th consecutive quarter of positive adjusted EBITDA at $207.8 million. Coinbase narrowed its full-year 2026 adjusted expense guidance, signaling continued cost control despite the revenue pressures.
