Coinbase Swings to $667M Q4 Loss as Crypto Portfolio Markdowns Bite
Coinbase reported a $667 million internet loss for the fourth quarter of 2025, its first quarter within the purple since 2023.
The loss, which was largely pushed by non-cash write-downs on the corporate’s crypto holdings and strategic investments, landed far beneath analyst expectations and reversed a $1.3 billion revenue from the identical interval final 12 months.
Record Growth Metrics Masked by Portfolio Pain
Coinbase’s shareholder letter, printed after market shut, painted two divergent photos of its 2025 efficiency. On the operational facet, the corporate logged all-time highs in whole buying and selling quantity ($5.2 trillion, up 156% year-over-year), crypto buying and selling market share (6.4%, double the 12 months earlier than), and subscription income.
In the letter, the crypto agency said that paid Coinbase One subscribers have practically hit 1 million and that it now has 12 merchandise producing over $100 million in annualized income.
However, fourth-quarter financials advised a unique story, with whole income falling 21.6% year-over-year to $1.78 billion and lacking consensus estimates of about $1.83 billion. Additionally, transaction income, the corporate’s core payment enterprise, dropped 36% from Q4 2024 to $983 million. Adjusted earnings per share of $0.66 additionally got here in beneath analyst forecasts, which ranged from $0.86 to $0.96, in accordance to market commentator MartyParty.
Per Coinbase’s report, the first perpetrator behind the GAAP loss was a $718 million unrealized markdown on the trade’s crypto funding portfolio, as Bitcoin (BTC) and different tokens declined in Q4.
The firm additionally recorded a $395 million loss on strategic investments, together with its stake in Circle, the issuer of USDC, which dropped roughly 40% quarter-over-quarter. Ultimately, Coinbase ended the 12 months with $11.3 billion in money and money equivalents.
Market Share Gains Face New Competitive Pressure
Recent information suggests Coinbase is going through rising competitors, with analytics agency Artemis reporting that decentralized derivatives platform Hyperliquid processed $2.6 trillion in buying and selling quantity, practically double Coinbase’s $1.4 trillion in the identical interval. Artemis additionally reported a pointy divergence in market efficiency this 12 months, with Hyperliquid’s token up 31.7% whereas Coinbase shares had been down 27% over the identical stretch.
The firm’s blended quarter follows a busy 2025, the place it joined the S&P 500, secured approval to function throughout the European Union beneath MiCA guidelines, and accomplished main acquisitions, together with Deribit. It additionally benefited from a authorized win when the U.S. Securities and Exchange Commission (SEC) dropped a lawsuit in opposition to the agency.
Not all commentary has been optimistic, although, as proven by safety researcher Taylor Monahan’s argument that consumer safety on Coinbase continues to be lagging, citing greater than $350 million in preventable losses throughout 2025.
Nonetheless, the trade has maintained that its technique focuses on diversification past spot buying and selling. It stated it’s constructing an “Everything Exchange” that features derivatives, equities, and prediction markets, and it just lately partnered with Kalshi to assist event-based contracts. Whether that broader mannequin offsets swings in crypto costs will turn into clearer within the coming quarters.
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