Coinbase reported quarterly revenue of $1.22 billion, a decline from $1.5 billion recorded in the same quarter last year.
Coinbase (COIN) shares dropped about 5% in after-hours trading Thursday after the cryptocurrency exchange posted second-quarter earnings that showed continued pressure on digital asset trading activity. Lower crypto prices affected one of the company’s primary revenue drivers.
The company’s total revenue fell short of Wall Street’s $1.29 billion estimate, coming in at $1.22 billion. Transaction-based revenue reached $599 million, missing analysts’ forecast of $628 million.
Subscription and services revenue totaled $555 million, below expectations of $599 million, as investors looked for evidence that Coinbase’s recurring revenue streams were helping offset weaker trading demand.
During Q2, Coinbase increased its Bitcoin holdings by 819 BTC, bringing its total treasury reserves to 17,211 BTC, up 5% compared with the previous quarter.
The results followed a difficult quarter for the cryptocurrency market. Bitcoin dropped around 14% during the period, while ether declined roughly 25%, causing spot trading activity and market volatility to weaken. Analysts had already anticipated slower industry performance after trading momentum faded in April and May, although conditions showed a slight recovery in June. Robinhood reported a similar trend, with crypto trading revenue falling 38% year over year to $100 million from $160 million.
Coinbase CEO Brian Armstrong highlighted the company’s expanding business segments beyond spot trading in a post on X, pointing to growth in stablecoins, Base, and prediction markets. He also said Coinbase achieved a record 10.3% share of global crypto trading volume during the quarter.
CFO Alesia Haas gave a more cautious assessment, noting that challenging market conditions led to a decline of more than 20% in industry spot trading volumes and a double-digit drop in total crypto market capitalization. These factors contributed to a 14% quarter-over-quarter decline in Coinbase’s overall revenue.
Ahead of the earnings release, several Wall Street analysts lowered their projections and reduced EBITDA estimates as weaker crypto prices affected institutional trading, blockchain rewards, and retail activity.
Market participants remained focused on Coinbase’s efforts to diversify revenue and reduce its dependence on transaction fees.
The company’s subscription and services segment — which includes USDC-related income, staking, custody services, Coinbase One memberships, and institutional products — has become a key metric for measuring whether Coinbase can build more consistent revenue streams across crypto market cycles.
Analysts also looked for updates on Coinbase’s newer growth areas, including derivatives, prediction markets, and Base, its Ethereum layer-2 network.
