Coinbase Shares Slide as Q2 Results Fall Short of Expectations
Coinbase (COIN) fell 7% in after-hours trading on Thursday after reporting second-quarter results that narrowly missed Wall Street estimates, despite a strong backdrop of rising crypto prices.
The company reported revenue of $1.5 billion, an increase from $1.45 billion in the same period last year but below the $1.59 billion analysts expected, according to FactSet. Adjusted EBITDA for the quarter was $512 million, down from $596 million a year earlier.
While both bitcoin (BTC) and ether (ETH) reached yearly highs in Q2, Coinbase saw a drop in trading activity. The exchange reported $764 million in transaction revenue — a 39% decline from the previous quarter — reflecting a slowdown in volumes even as prices surged.
The report followed strong Q2 earnings from rival Robinhood (HOOD), which saw $28.3 billion in crypto trading volume and surpassed analyst forecasts. HOOD shares are up 160% year-to-date, in stark contrast to Coinbase’s muted reaction.
Despite the revenue miss, Coinbase continues to expand its offerings beyond trading. The company highlighted progress in its institutional custody services, staking products, and Base Layer 2 network — part of its long-term strategy to build on-chain financial infrastructure.
“In Q2, Coinbase made meaningful progress toward bringing more of the financial system on-chain,” the company said, citing new derivatives, global expansion, and broader spot listings.
While diversification efforts are ongoing, trading remains the company’s primary revenue engine — and its performance remains closely tied to crypto market participation.
