Coinbase Global, Inc.
COIN · Nasdaq
Next quarter
Reports Oct 29, 2026.
Consensus is -$0.18 EPS for Sep 2026 across 10 estimates, ranging -$0.58 to $0.90.
COIN Jun 2026
- 378.57%
- -10.59%
- $0.14
- -$0.39
- —
- $1.22B
Reported results
- $1.22B
- -$113.49M
- -9.30%
- -$359.47M
- -$1.36
Highlights
- Earnings miss: Reported EPS was -$0.39 versus $0.14 consensus, a -378.57% surprise; GAAP diluted EPS in the filing was -$1.36.
- Revenue contracted: Q2 total revenue was $1.22B, down 14% Q/Q and 19% Y/Y, as total crypto trading volume fell 15% Q/Q and spot volume declined 25%.
- Trading revenue weakened: Transaction revenue fell 21% Q/Q to $599M, including consumer revenue of $452M, down 20%, while institutional revenue was $100M, down 26%.
- Diversification continued: Subscription and services revenue was $555M, down 5% Q/Q but equal to 48% of net revenue; average USDC held in Coinbase products reached a record $20B.
- Share gains offset weaker markets: Coinbase crypto trading volume market share reached an all-time high of 10.3%, up from 9.1% in Q1, with gains in both spot and derivatives.
- New products scaled: Prediction-markets revenue and contracts more than doubled Q/Q, reaching more than $100M of annualized revenue; crypto derivatives volume was $4.2T on a trailing-12-month basis, roughly flat Q/Q despite a 12% market decline.
- Profitability remained market-sensitive: GAAP net loss was $359M versus net income of $1.43B a year earlier and a $394M loss in Q1; Adjusted EBITDA was $208M, down from $303M in Q1 and $512M a year ago.
- Cost actions took hold: Adjusted expenses declined 9% Q/Q to $1.03B, while headcount fell 14% during the quarter to 4,321 following the May restructuring.
- Liquidity and capital returns: Coinbase ended June with $8.6B of cash and cash equivalents, repaid $1.3B of convertible notes and repurchased $1.2B of stock in the first half, with $2.0B remaining under its authorization.
Analysis
Coinbase’s Q2 FY2026 was a sharp crypto-market slowdown partly cushioned by diversification and share gains. Total revenue of $1.22B fell 14% from $1.41B in Q1 and 19% from $1.50B a year ago, while reported EPS of -$0.39 missed the $0.14 consensus estimate; the filing reported GAAP diluted EPS of -$1.36. GAAP net loss improved modestly from $394M in Q1 but compared with net income of $1.43B in Q2 FY2025. Adjusted EBITDA declined to $208M from $303M sequentially and $512M a year earlier.
The primary pressure was trading activity: transaction revenue fell 21% Q/Q to $599M as spot-market volume dropped 25%, although Coinbase outperformed the market and lifted crypto trading share to a record 10.3%. Subscription and services revenue fell only 5% Q/Q to $555M and represented 48% of net revenue, supported by record average USDC balances of $20B, but lower rates and weaker crypto prices reduced stablecoin and blockchain-rewards revenue. Management also emphasized product expansion: prediction-markets revenue more than doubled Q/Q, and trailing-twelve-month derivatives volume reached $4.2T. Expense reductions, including a 14% workforce cut, lowered adjusted expenses to $1.03B and preserved positive Adjusted EBITDA despite the softer market.
Market slowdown and earnings
The quarter was defined by weaker crypto activity and low volatility. Total market crypto trading volume declined 15% Q/Q, while spot volume fell 25%; total crypto market capitalization declined 11% and volatility dropped 14%. Coinbase’s total revenue declined to $1.22B from $1.41B in Q1 and $1.50B a year earlier. Transaction revenue fell 21% Q/Q to $599M, with consumer revenue down 20% to $452M and institutional revenue down 26% to $100M. GAAP operating loss was $113.5M, compared with a $21.4M loss in Q1 and a $24.7M loss a year earlier.
- Net income: Coinbase reported a $359.5M GAAP net loss, versus a $394.1M loss in Q1 and $1.43B of net income in Q2 FY2025.
- Investment volatility: The quarter included $209.5M of losses on crypto assets held for investment and $58.2M of investment losses, making GAAP earnings substantially weaker than operating performance.
Subscription and stablecoins
Subscription and services revenue provided the main buffer against the trading downturn. Revenue was $555M, down 5% Q/Q and 12% Y/Y, but its contribution increased to 48% of net revenue from 45% a year earlier. Stablecoin revenue was $292M, with record average USDC held in Coinbase products offsetting the effect of lower interest rates. Blockchain rewards revenue fell to $83M as crypto prices and reward rates declined, particularly for Solana and Ethereum.
- USDC balances: Average USDC held in Coinbase products reached an all-time high of $20B, up from $19B in Q1 and $14B a year ago; more than 30% of circulating USDC was held in Coinbase products at quarter-end.
- Interest-rate pressure: Corporate interest and other income declined 35% Y/Y to $66M as average interest rates earned fell 73 basis points.
- Onchain lending: Average borrow/lend balances rose to $1.49B from $1.33B in Q1 and $610M a year earlier, supporting finance-fee income of $66M.
Market share and new products
Coinbase gained share despite the down market, reaching an all-time-high 10.3% of global crypto trading volume versus 9.1% in Q1. Management attributed the gain to crypto-fiat spot trading and continued adoption of perpetuals. Derivatives volume was resilient, while prediction markets added a rapidly growing source of activity and revenue.
- Derivatives: Trailing-twelve-month crypto derivatives trading volume exceeded $4.2T and was roughly flat Q/Q even as the overall derivatives market declined 12%; Coinbase reported a third consecutive quarter of derivatives share gains.
- Prediction markets: Revenue and contracts more than doubled Q/Q, and the business reached more than $100M of annualized revenue. A new crypto binaries product produced 3x the traders and 4x the revenue by quarter-end versus its May daily average.
- Base and onchain activity: Base stablecoin transaction volume declined 7x Y/Y, while average borrow/lend balances and broader DeFi integrations continued to expand.
Expense discipline and liquidity
Coinbase paired product investment with a lower cost base after its May restructuring. Adjusted expenses fell 9% Q/Q to $1.03B, led by 10% reductions in technology and development expense to $473M and sales and marketing expense to $240M. The company recorded $52.4M of restructuring costs and ended the quarter with 4,321 employees, down from 4,988 at the end of Q1.
- Forward outlook: Q3 transaction revenue was tracking at approximately $130M through July 26, with guidance of $500M-$580M; subscription and services revenue was expected at $565M-$645M and adjusted expenses at $980M-$1.08B.
- Full-year costs: Coinbase reduced its 2026 adjusted-expense outlook to $4.20B-$4.45B, $100M below the prior midpoint, and said the range was about $600M below the 2025 annualized exit rate.
- Capital position: Cash and cash equivalents were $8.6B, with approximately $10B of available resources including crypto and marketable investments. First-half financing uses included $1.3B to repay convertible notes and $1.2B for share repurchases; $2.0B remained authorized.
