Coinbase Misses Earnings as Crypto Market Weakness Weighs on Results
Coinbase Global (NASDAQ: COIN) reported quarterly earnings and revenue below expectations on Thursday, as declining sentiment in the cryptocurrency market pressured performance.
Despite the earnings miss, Class A shares rose 2.1% in after-hours trading.
Crypto Rally Fades After 2025 Surge
Cryptocurrencies experienced a strong rally in 2025, largely supported by U.S. President Donald Trump’s pro-crypto stance. However, market momentum shifted following a sharp “flash crash” in October. Since then, digital assets have remained under pressure.
Bitcoin has fallen approximately 47% from its October record high above $126,000, highlighting the ongoing volatility in the crypto sector.
In its quarterly shareholder letter, Coinbase emphasized the cyclical nature of the cryptocurrency industry:
“Crypto is cyclical, and experience tells us it’s never as good, or as bad as it seems.”
The company added that, despite short-term price swings, technological innovation and crypto adoption continue to advance. Coinbase also revealed it repurchased 8.2 million shares since November 2025, taking advantage of the market downturn.
Coinbase Stock Underperforms Broader Crypto Market
Coinbase stock has been among the hardest hit during the recent crypto slowdown. Shares have declined 49% since the previous earnings report. By comparison, the total crypto market capitalization dropped 32% over the same period.
Q4 2025 Financial Results
For the fourth quarter of 2025, Coinbase reported:
- Earnings per share (EPS): $0.66
- Revenue: $1.78 billion
Wall Street analysts had expected earnings of $1.05 per share on revenue of $1.85 billion.
Revenue Breakdown
- Transaction revenue: $982.7 million
- Subscription and services revenue: $727.4 million
Q1 2026 Guidance
Looking ahead, Coinbase expects first-quarter 2026 subscription and services revenue between $550 million and $630 million. As of February 10, the company has already generated approximately $420 million in transaction revenue.
Management remains confident about the long-term outlook for the cryptocurrency industry:
“Looking forward to 2026, we continue to be optimistic about the long-term trajectory of the crypto industry.”
Coinbase’s Three Strategic Priorities for 2026
The company outlined three major goals for the coming year:
- Expand the “Everything Exchange” platform, aiming to offer trading across crypto, derivatives, equities, and prediction markets.
- Scale stablecoins and payments infrastructure, supported by deeper product integrations.
- Bring more customers onchain, accelerating broader crypto adoption.
Coinbase also highlighted the importance of regulatory clarity, stating that clearer rules could help crypto reshape the financial services industry. The company noted that in 2025, more than 12% of all cryptocurrency globally was stored on its platform.
As the market stabilizes, Coinbase believes it is well positioned to benefit from the next phase of digital asset growth.
