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Coinbase shares dropped in extended trading on Thursday after the crypto platform posted a wider-than-expected loss for the second quarter, underscoring the continued troubles resulting from a deepening crypto winter despite its efforts to diversify revenue.
Here’s how Coinbase performed in its quarter ended June 30, compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Loss per share: $1.36 loss vs. 17 cent loss expected
- Revenue: $1.2 billion vs. $1.3 billion expected
Coinbase’s Thursday report marked its third straight quarter missing Wall Street’s forecasts for revenue and earnings. The company reported a loss of $359.5 million, or $1.36 per share, for the quarter ended June 30, compared with a profit of $1.43 billion, or $5.14 per share, a year earlier.
Coinbase net income is often distorted by accounting rules that require it to value its large crypto holdings based on whatever the price is at the end of the quarter, causing reported earnings to swing widely even when no assets are sold.
Revenue fell to $1.2 billion from $1.5 billion a year ago.
Shares dropped more than 7% after the bell on Thursday.
The results come against a second-quarter market backdrop in which the price of bitcoin was largely range-bound. Although conditions improved over the weakness from the previous quarter, flows into bitcoin ETFs shifted to a sustained period of outflows. A challenging macro environment marked by elevated interest rates and broader market volatility also weighed on investors appetite for risk.
But revenue from subscriptions made up a larger piece of the overall business in the quarter, offering a bright spot for those searching for signs that the company’s diversification efforts are taking hold.
Subscriptions brought in $555 million, while transaction revenue came in at $599 million. To be sure, both categories missed Wall Street’s expectations and came in lower than a year prior, reflecting the continued troubles caused by the broader weakness in the crypto sector.
Coinbase has attempted to convince investors that it can broaden the business beyond its core crypto trading operations. Key to that push is the rollout of products under the subscription umbrella which can bring in revenue that’s insulated from swings in trading volumes.
Within the core business, CEO Brian Armstrong touted that Coinbase reached another all-time high for market share in crypto trading. He said that can serve as evidence that Coinbase can perform in any market condition.
“Coinbase is no longer a bet just on the price of bitcoin,” Armstrong said in the company’s 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.”
Coinbase’s stablecoin revenue unexpectedly fell to $292 million, a drop of $17 million from the second quarter of 2025. Analysts surveyed by StreetAccount were forecasting this arm’s revenue would come in at $327.2 million.
