Coinbase Q2 Earnings Miss Drags COIN Lower as Losses Hit 3rd Quarter
Coinbase posted a $359.5 million web loss on second quarter income of $1.22 billion, under Wall Street’s $1.29 billion consensus. COIN shares fell 5.44% after hours to $154.68.
The selloff erased a 2.18% common session achieve that had left the inventory at $163.58. Investors seemed previous a report buying and selling market share and stuck on the shrinking prime line.
Coinbase Revenue Miss Extends a Losing Streak
This was the third straight quarter within the purple. Losses have narrowed every time.
Coinbase misplaced $666.7 million within the fourth quarter of 2025 and $394.1 million within the first. Diluted loss per share got here in at $1.36, whereas transaction income reached $599.2 million.
Adjusted EBITDA stayed constructive at $207.8 million, a 14th consecutive quarter above zero. That determine fell from $303.3 million three months earlier.
Restructuring prices added $52.4 million. The line had learn zero for 10 straight quarters earlier than Coinbase started cutting 700 jobs earlier this yr. Citi had already cut its price target by 41% days earlier than the report.
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Record Market Share Lands in a Shrinking Market
Crypto buying and selling quantity market share climbed to 10.3% from 9.1% within the first quarter, a 3rd consecutive report. Derivatives share additionally hit an all-time high for the third quarter working.
Meanwhile, the broader crypto derivatives market contracted by double digits over the identical stretch.
Prediction markets did the heaviest lifting. Contracts and income each greater than doubled, rising 106% quarter over quarter. The enterprise crossed $100 million in annualized income.
Those good points landed towards a weak backdrop. Bitcoin spot trading volumes fell towards multi-year lows in July. Rival Robinhood noticed crypto revenue drop 38% yr over yr.
Stablecoins Now Carry More of the Load
Subscription and providers income reached $555.1 million, or 48% of web income. That share stood at 29% within the fourth quarter of 2024.
Coinbase stated 88% of web income got here from sources apart from Bitcoin spot buying and selling. Average USDC held in Coinbase merchandise hit a report $20 billion. That is greater than 30% of the dollar-pegged stablecoin in circulation at quarter finish.
Stablecoin transaction quantity on Base, the corporate’s personal layer-2 community, rose sevenfold yr over yr.
“Coinbase is now not a guess simply on the worth of Bitcoin. All of monetary providers are getting up to date by crypto, whether or not that’s buying and selling or funds or lending, and Coinbase is the best-positioned firm on the earth to energy this,” Brian Armstrong, Coinbase co-founder and chief government, within the earnings release.
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What Comes Next
Coinbase decreased and narrowed its 2026 adjusted expense steerage. The firm now implies GAAP expertise, administrative and advertising prices of $4.34 billion to $4.6 billion this yr.
“Despite market headwinds, our fundamentals stay robust as we consolidate buying and selling share and proceed to construct via the cycle,” Alesia Haas, Coinbase chief monetary officer, in the identical launch.
One query now hangs over the second half. Can an even bigger slice of a smaller market carry income as soon as buying and selling volumes get well?
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