Coinbase posted a $359.5M net loss after Q2 revenue of $1.22B missed consensus. Shares dropped 6% after hours. The stalled CLARITY Act is a risk.
Coinbase posted a $359.5 million net loss in the second quarter. Revenue missed analyst estimates, sending shares down more than 6% in after-hours trading.
Revenue came in at $1.22 billion, below the $1.29 billion to $1.31 billion consensus range. The top line was down 14% from the first quarter and 19% from a year earlier. The per-share loss was roughly $1.36.
Adjusted EBITDA was $208 million, the company said. It called the result the 14th consecutive quarter of positive adjusted earnings. Coinbase also clocked $12 trillion in total crypto trading volume for the quarter, a figure CEO Brian Armstrong called a third consecutive all-time high in market share.
“Coinbase is no longer a bet just on the price of Bitcoin,” Armstrong said on the earnings call. “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.”
CFO Alesia Haas pointed to cost controls. “Our tightly managed expenses came in below the midpoint of guidance for every major expense line,” she said. “Despite market headwinds, our fundamentals remain strong as we consolidate trading share and continue to build through the cycle.”
The expense discipline came alongside a restructuring that eliminated about 700 positions in May. Coinbase recorded $52.4 million in severance and termination costs for the quarter.
Coinbase is working to reduce its reliance on trading revenue. The company is pitching itself as an "everything exchange" where users can trade crypto and tokenized assets on a single platform. Its prediction market is generating roughly $100 million in annualized revenue. The exchange is also pushing into tokenization of real-world assets, a market it pegs at $36 billion. Stablecoin market cap, which Coinbase cited at $300 billion, is projected to reach $3 trillion by 2030, the company said.
Armstrong said AI usage at the company is growing faster than spending, multiplying engineering output.
Coinbase is waiting on the CLARITY Act, the crypto market infrastructure bill that remains stalled in the Senate. The odds of its passage have recently sunk to 27%. The company has said it may move some initiatives outside the U.S. if the legislation does not pass.
Coinbase’s market share of crypto trading stands at 10.3%, according to its crypto market analysis. The company’s AlphaScore of 30 out of 100 carries a Weak label.
Shares traded at $153.17 after hours, down from the $163.58 close, landing on the COIN stock page.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.