Coinbase shares fall after $1.36-per-share Q2 loss

Coinbase shares fell in extended trading after the crypto exchange reported a second-quarter loss and lower revenue, overshadowing record market share and growth across stablecoins and derivatives.

Coinbase revenue falls as quarterly loss returns

Coinbase generated approximately $1.2 billion in second-quarter revenue, down 20% from $1.5 billion during the same period last year. The company posted a loss of $1.36 per share, compared with earnings of $5.14 per share a year earlier.

Shares initially closed regular trading at $163.58, up 2.18% for the session. However, the earnings report reversed that gain, sending the stock lower in after-hours trading.

The chart showed an extended-market price near $152, implying a decline of about 7% from the regular close. Earlier after-hours readings placed the drop closer to 5%, suggesting the stock remained volatile as investors assessed the report.

Lower revenue and the return to a quarterly loss weighed on sentiment despite several operating improvements. Coinbase also completed its 14th consecutive quarter of positive adjusted EBITDA and reduced its forecast for full-year adjusted expenses.

Coinbase reaches record 10.3% trading share

Weak financial results contrasted with Coinbase’s expanding presence in the global crypto market. Its share of worldwide crypto trading volume rose to a record 10.3% from 9.1% in the first quarter.

That marked the third consecutive quarter in which the US exchange increased its market share. The gain came even as overall crypto market volume declined by double digits.

Derivatives activity remained close to the record level reached during the previous quarter. Revenue and contracts tied to event markets increased 106% quarter over quarter, pushing the business above a $100 million annualized revenue rate.

Coinbase also continued reducing its reliance on Bitcoin spot trading fees. Revenue excluding Bitcoin spot activity accounted for 88% of net revenue, reflecting a broader shift toward subscriptions, stablecoins, payments and financial infrastructure.

Subscription and services revenue reached $555 million, compared with just $6 million in the second quarter of 2020. The segment generated 48% of net revenue, up from 29% in the fourth quarter of 2024.

USDC and Base activity support diversification

Stablecoins provided another area of growth. Average USDC balances held across Coinbase products reached a record $20 billion, representing more than 30% of the stablecoin’s circulating supply at quarter-end.

Coinbase reported that USDC and its partner stablecoins accounted for 79% of the more than $37 trillion in stablecoin transaction volume recorded during the year. Stablecoin volume on Base, the exchange’s Layer 2 network, increased sevenfold from a year earlier.

The figures show how Coinbase is expanding beyond transaction fees tied directly to crypto price cycles. This diversification could provide more recurring revenue, although the quarterly loss shows that growth in newer business lines has not fully offset weaker overall conditions.

For US investors, the results offer mixed signals. Coinbase remains a major publicly traded proxy for the domestic crypto industry, but its earnings continue to reflect trading activity, digital asset prices and regulatory conditions.

The company also reported gains from using artificial intelligence in its engineering work. Code changes processed per engineer increased 2.2 times year over year, while integration test coverage across core services rose 2.5 times over six months.

COIN price tests $152 support after earnings

COIN’s after-hours decline pushed the stock below several closely watched technical levels. The regular-session close of $163.58 sat just above the 20-day simple moving average at $162.97 but below the 50-day average at $165.29.

A move toward $152 would place the stock at immediate chart support. Failure to hold that level could expose the late-June low near $140.

On the upside, COIN must reclaim the 50-day average before testing the 100-day SMA near $178.43. The 200-day average at $213.49 remains a larger long-term resistance level.

The average directional index stood at 10.11 before the earnings reaction. A reading this low indicates weak trend strength, matching the stock’s recent sideways movement around the $160 region. The post-earnings gap may provide a stronger directional signal if trading volume remains elevated during the next regular session.