Coinbase Q2 Earnings Miss Drags COIN Lower as Losses Hit 3rd Quarter

Coinbase posted a $359.5 million net loss on second quarter revenue of $1.22 billion, below Wall Street’s $1.29 billion consensus. COIN shares fell 5.44% after hours to $154.68.

The selloff erased a 2.18% regular session gain that had left the stock at $163.58. Investors looked past a record trading market share and fixed on the shrinking top line.

Coinbase (COIN) Stock Performance. Source: Yahoo Finance

Coinbase Revenue Miss Extends a Losing Streak

This was the third straight quarter in the red. Losses have narrowed each time.

Coinbase lost $666.7 million in the fourth quarter of 2025 and $394.1 million in the first. Diluted loss per share came in at $1.36, while transaction revenue reached $599.2 million.

Adjusted EBITDA stayed positive at $207.8 million, a 14th consecutive quarter above zero. That figure fell from $303.3 million three months earlier.

Restructuring costs added $52.4 million. The line had read zero for 10 straight quarters before Coinbase began cutting 700 jobs earlier this year. Citi had already cut its price target by 41% days before the report.

Record Market Share Lands in a Shrinking Market

Crypto trading volume market share climbed to 10.3% from 9.1% in the first quarter, a third consecutive record. Derivatives share also hit an all-time high for the third quarter running.

Meanwhile, the wider crypto derivatives market contracted by double digits over the same stretch.

Prediction markets did the heaviest lifting. Contracts and revenue both more than doubled, growing 106% quarter over quarter. The business crossed $100 million in annualized revenue.

Those gains landed against a weak backdrop. Bitcoin spot trading volumes fell toward multi-year lows in July. Rival Robinhood saw crypto revenue drop 38% year over year.

Stablecoins Now Carry More of the Load

Subscription and services revenue reached $555.1 million, or 48% of net revenue. That share stood at 29% in the fourth quarter of 2024.

Coinbase said 88% of net revenue came from sources other than Bitcoin spot trading. Average USDC held in Coinbase products hit a record $20 billion. That is more than 30% of the dollar-pegged stablecoin in circulation at quarter end.

Stablecoin transaction volume on Base, the company’s own layer-2 network, rose sevenfold year over year.

“Coinbase is no longer a bet just on the price of Bitcoin. All of financial services are getting updated by crypto, whether that’s trading or payments or lending, and Coinbase is the best-positioned company in the world to power this,” Brian Armstrong, Coinbase co-founder and chief executive, in the earnings release.

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What Comes Next

Coinbase reduced and narrowed its 2026 adjusted expense guidance. The company now implies GAAP technology, administrative and marketing costs of $4.34 billion to $4.6 billion this year.

“Despite market headwinds, our fundamentals remain strong as we consolidate trading share and continue to build through the cycle,” Alesia Haas, Coinbase chief financial officer, in the same release.

One question now hangs over the second half. Can a bigger slice of a smaller market lift revenue once trading volumes recover?

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