Coinbase shares fell 7% after the crypto exchange posted a wider-than-expected Q2 loss. Revenue dropped to $1.2 billion. CEO Armstrong says market share hit a record.
Coinbase shares fell more than 7% in extended trading Thursday after the crypto exchange posted a wider-than-expected loss for the second quarter. The company reported a loss of $359.5 million, or $1.36 per share, for the three months ended June 30. Revenue dropped to $1.2 billion from $1.5 billion a year earlier.
Wall Street analysts surveyed by LSEG had expected a smaller loss. It was the third straight quarter Coinbase missed revenue and earnings forecasts.
Net income was distorted by accounting rules that require Coinbase to value its crypto holdings at end-of-quarter prices, causing reported earnings to swing even when no assets are sold, the company said.
Bitcoin was largely range-bound during the second quarter. Flows into spot bitcoin ETFs shifted to a sustained period of outflows. Elevated interest rates and broader market volatility weighed on risk appetite, the company said.
Transaction revenue came in at $599 million, down from the year-ago period. Subscription revenue was $555 million. Both categories missed analyst expectations and fell from the prior year, reflecting the broader weakness in the crypto sector.
CEO Brian Armstrong said Coinbase reached an all-time high for market share in crypto trading. "Coinbase is no longer a bet just on the price of Bitcoin," Armstrong said in the earnings release. "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."
Stablecoin revenue fell to $292 million, a drop of $17 million from the second quarter of 2025. Analysts at StreetAccount had forecast $327.2 million.
Coinbase has tried to convince investors it can broaden beyond its core trading operations. Subscriptions and services revenue, which includes stablecoins, custody fees, and blockchain rewards, now accounts for roughly half of total revenue, up from about a third a year earlier. The shift has not been fast enough to offset the decline in transaction fees as trading volumes remain depressed.
The company has rolled out new subscription products, including a staking service for Ethereum and a rewards program tied to its USDC stablecoin. Armstrong said the diversification push is gaining traction, though the revenue numbers show it has not yet made up for the slump in trading.
Coinbase is scheduled to hold a conference call with analysts Friday morning.
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