The U.S. crypto exchange saw net revenue fall 31% to $1.4 billion in the first quarter, missing analyst expectations. Transaction revenue, which forms the core of Coinbase's business model, dropped 40% to $756 million from the same period last year.
Coinbase stock fell more than 5% in after-hours trading following the earnings report, as investors digested both the wider-than-expected loss and the significant workforce reduction from earlier in the week. COIN was recently trading for about $182.
As the largest publicly traded cryptocurrency exchange in the United States, Coinbase serves as a bellwether for the broader crypto industry's health. The company's consecutive quarterly losses reflect ongoing challenges facing digital asset markets amid regulatory uncertainty and persistently low trading volumes.
Coinbase’s earnings announcement and slide deck focused on what it sees as positives for the business, including new features and offerings unique to the company.
Coinbase CEO Brian Armstrong framed the results as a matter of successfully doing what it could, despite challenging macro conditions.
“We’re also leading on the next frontier with over 90% of on-chain agentic stablecoin transaction volume happening on Base,” he added. “We believe there will soon be billions of agents transacting and they need rails that can keep up, and Coinbase is at the center of the agent economy.”
Coinbase said its crypto market trading volume share hit a new peak of 8.6%, and that its derivatives trading volume has grown by 169% over the last 12 months.
“The market environment this quarter was softer, but the underlying fundamentals of our business remain strong," said Coinbase CFO Alesia Haas, in a statement. "We’ve now delivered 13 consecutive quarters of positive adjusted EBITDA spanning both bull and bear markets, alongside 12 consecutive quarters of native unit inflows.”
“And we're growing new revenue streams,” she added, “with 12 product lines each generating over $100 million annualized, and prediction markets on their way to becoming the 13th.”
