Coinbase posted a $359.5 million internet loss on second quarter income of $1.22 billion, beneath Wall Avenue’s $1.29 billion consensus. COIN shares fell 5.44% after hours to $154.68.
The selloff erased a 2.18% common session achieve that had left the inventory at $163.58. Traders seemed previous a report buying and selling market share and glued on the shrinking prime line.
Coinbase Income Miss Extends a Dropping Streak
This was the third straight quarter within the crimson. Losses have narrowed every time.
Coinbase misplaced $666.7 million within the fourth quarter of 2025 and $394.1 million within the first. Diluted loss per share got here in at $1.36, whereas transaction income reached $599.2 million.
Adjusted EBITDA stayed constructive at $207.8 million, a 14th consecutive quarter above zero. That determine fell from $303.3 million three months earlier.
Restructuring prices added $52.4 million. The road had learn zero for 10 straight quarters earlier than Coinbase started chopping 700 jobs earlier this yr. Citi had already reduce its worth goal by 41% days earlier than the report.
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File Market Share Lands in a Shrinking Market
Crypto buying and selling quantity market share climbed to 10.3% from 9.1% within the first quarter, a 3rd consecutive report. Derivatives share additionally hit an all-time excessive for the third quarter working.
In the meantime, the broader crypto derivatives market contracted by double digits over the identical stretch.
Prediction markets did the heaviest lifting. Contracts and income each greater than doubled, rising 106% quarter over quarter. The enterprise crossed $100 million in annualized income.
These beneficial properties landed towards a weak backdrop. Bitcoin spot buying and selling volumes fell towards multi-year lows in July. Rival Robinhood noticed crypto income drop 38% yr over yr.
Stablecoins Now Carry Extra of the Load
Subscription and companies income reached $555.1 million, or 48% of internet income. That share stood at 29% within the fourth quarter of 2024.
Coinbase mentioned 88% of internet income got here from sources apart from Bitcoin spot buying and selling. Common USDC held in Coinbase merchandise hit a report $20 billion. That’s greater than 30% of the dollar-pegged stablecoin in circulation at quarter finish.
Stablecoin transaction quantity on Base, the corporate’s personal layer-2 community, rose sevenfold yr over yr.
“Coinbase is now not a guess simply on the worth of Bitcoin. All of monetary companies are getting up to date by crypto, whether or not that’s buying and selling or funds or lending, and Coinbase is the best-positioned firm on the earth to energy this,” Brian Armstrong, Coinbase co-founder and chief govt, within the earnings launch.
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What Comes Subsequent
Coinbase decreased and narrowed its 2026 adjusted expense steering. The corporate now implies GAAP expertise, administrative and advertising and marketing prices of $4.34 billion to $4.6 billion this yr.
“Regardless of market headwinds, our fundamentals stay sturdy as we consolidate buying and selling share and proceed to construct via the cycle,” Alesia Haas, Coinbase chief monetary officer, in the identical launch.
One query now hangs over the second half. Can a much bigger slice of a smaller market carry income as soon as buying and selling volumes recuperate?
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