Coinbase Falls After Profit Drop and Q2 Revenue Miss

Revenue came in below expectations, even as Coinbase gained market share in crypto trading and brought in more income from subscriptions, derivatives, and prediction markets.

Key Takeaways

• Coinbase posted a net loss of $359.5 million in Q2 on revenue of $1.22 billion, below Wall Street expectations.
• COIN fell 5.44% after hours to $154.68 after trading higher during regular hours.
• Coinbase saw higher revenue outside spot trading, while adjusted EBITDA stayed positive at $207.8 million and its share of crypto trading rose.

Coinbase moved back into the red in the second quarter, even as it captured a record share of crypto trading. The exchange reported a net loss of $359.5 million on revenue of $1.22 billion (€1.1 billion), which came in below Wall Street forecasts. The stock reacted quickly, with COIN dropping 5.44% in after-hours trading to $154.68 (€135).

Revenue Still Misses Expectations

The revenue shortfall overshadowed Coinbase's stronger market position. Shares were still up 2.18% during regular trading at $163.58 (€143), but those gains disappeared after the earnings release. Investors appeared to focus more on the weaker top line than on Coinbase's record share of crypto trading during the quarter.

This was the company's third consecutive quarter in the red, although the losses have narrowed each time. Coinbase reported a $666.7 million (€581 million) loss in the fourth quarter of 2025 and a $394.1 million (€343 million) loss in the first quarter. Diluted loss per share was $1.36 (€1.19), while transaction revenue came in at $599.2 million (€522 million).

More Revenue Outside Spot Trading

Coinbase's revenue mix continues to shift away from pure Bitcoin spot trading. Subscription and services revenue reached $555.1 million (€484 million), or 48% of net revenue, up from 29% in the fourth quarter of 2024. The company also said 88% of net revenue now comes from sources other than Bitcoin spot trading.

That shift lines up with a crypto market that mostly settled into a range during the second quarter of 2026. Bitcoin traded with low volatility, Ethereum spot ETFs saw net inflows, and Bitcoin funds saw outflows. In other words, investor demand was spread across the market instead of staying concentrated in the biggest coin.

Costs and Growth Stay in Focus

Adjusted EBITDA remained positive at $207.8 million (€181 million), extending Coinbase's streak to 14 straight profitable quarters on that measure. Still, the figure was down from $303.3 million (€264 million) three months earlier. The company also recorded $52.4 million (€45.7 million) in restructuring costs after cutting 700 jobs earlier this year. Citi had already lowered its price target by 41% just days before the earnings report.

On the growth side, derivatives and prediction markets were the standout areas. Coinbase's share of crypto trading climbed to 10.3% from 9.1% in the first quarter, while its derivatives market share hit another record. Prediction markets grew the fastest, with contracts and revenue both more than doubling on a quarter-over-quarter basis at 106%, pushing the business past $100 million (€87.1 million) in annualized revenue.

At the same time, Coinbase trimmed its adjusted spending outlook for 2026. The company now expects GAAP technology, administrative and marketing costs of $4.34 billion (€3.8 billion) to $4.6 billion (€4 billion). CFO Alesia Haas said the fundamentals remain solid, but the market's reaction suggests investors are still mostly focused on revenue growth and profitability in a crypto market that remains uneven.