Coinbase reported second-quarter revenue of $1.22 billion, marking a decline from the $1.5 billion recorded during the same period last year.
Shares of Coinbase (COIN) dropped around 5% in after-hours trading Thursday after the company’s latest earnings report showed continued weakness in crypto trading activity. Falling digital asset prices weighed on one of its most important revenue streams.
The exchange’s quarterly revenue came in below the market forecast of $1.29 billion. Transaction revenue also missed expectations, reaching $599 million compared with analysts’ estimates of $628 million.
Revenue from subscriptions and services totaled $555 million, falling short of the expected $599 million. Investors were closely watching this segment to determine whether Coinbase’s recurring businesses could offset the slowdown in trading-related income.
Coinbase strengthened its Bitcoin treasury during the quarter by purchasing an additional 819 BTC. The company’s total Bitcoin holdings increased to 17,211 BTC, representing a 5% quarter-over-quarter rise.
The weaker results reflected broader challenges across the cryptocurrency market. Bitcoin fell about 14% in the second quarter, while ether declined roughly 25%, leading to lower trading volumes and reduced volatility in spot markets. Analysts had predicted a softer period for the industry after activity slowed in April and May, although trading conditions showed some improvement in June. Robinhood reported similar pressure, with crypto trading revenue declining 38% year over year to $100 million from $160 million.
Coinbase CEO Brian Armstrong pointed to the company’s growing businesses outside traditional spot trading, including stablecoins, Base, and prediction markets. In a post on X, he said Coinbase achieved a record 10.3% share of global crypto trading volume during the quarter.
CFO Alesia Haas highlighted the challenging market environment, saying industry spot trading volumes dropped more than 20% and overall crypto market capitalization declined by double digits. These conditions contributed to a 14% quarter-over-quarter decline in Coinbase’s total revenue.
Ahead of the earnings release, multiple Wall Street firms cut their forecasts and lowered EBITDA projections as weaker crypto prices affected institutional trading, blockchain rewards, and retail demand.
Investors continued to focus on Coinbase’s efforts to diversify its business model and reduce reliance on transaction fees.
The company’s subscription and services segment — which includes USDC interest revenue, staking, custody services, Coinbase One subscriptions, and institutional products — remains a key measure of whether Coinbase can establish more stable revenue streams during different crypto market cycles.
Analysts also looked for progress in newer areas of growth, including derivatives, prediction markets, and Base, Coinbase’s Ethereum layer-2 network.
