Coinbase Falls 7% After Q2 Miss Despite Crypto Market Rally
Coinbase (COIN) shares slid 7% in after-hours trading on Thursday after the crypto exchange reported second-quarter earnings that came in below expectations, underscoring its vulnerability to shifts in trading activity despite a broader crypto rally.
Revenue totaled $1.5 billion for the quarter, just above the $1.45 billion reported a year earlier but short of the $1.59 billion analysts had projected, according to FactSet. Adjusted EBITDA dropped to $512 million from $596 million in the same period last year.
Although both bitcoin (BTC) and ether (ETH) notched new yearly highs in Q2, Coinbase said transaction volumes declined sequentially, dragging down revenue from trading — its core business. Transaction revenue came in at $764 million, down 39% from Q1.
The results contrast with competitor Robinhood (HOOD), which reported stronger-than-expected earnings on Wednesday, bolstered by $28.3 billion in crypto trading volume. Robinhood stock has climbed 160% year-to-date, highlighting diverging market sentiment.
Coinbase continues to invest in diversification, positioning itself as both a retail trading venue and institutional infrastructure provider. The company expanded custody services for spot bitcoin ETFs, introduced more staking products, and advanced development of its Base Layer 2 network. Still, these initiatives have yet to rival the scale of trading revenue.
“In Q2, Coinbase made progress in building an onchain financial future, with new derivatives, expanded listings, and greater global access,” the company said in its earnings release.
