TLDR
- Coinbase fell over 5% after-hours after missing Q1 revenue and earnings estimates
- Net loss of $394.1 million, or $1.49 per share loss vs. $0.27 profit expected
- Revenue came in at $1.41 billion, below the $1.52 billion Wall Street forecast
- Transaction revenue dropped 40% year-over-year as crypto markets slumped
- Coinbase cut 700 jobs (14% of workforce) and is pushing into derivatives, prediction markets and stablecoins
Coinbase (COIN) stock dropped more than 5% in after-hours trading Thursday after the company posted a surprise first-quarter loss and missed Wall Street estimates on both revenue and earnings.
The stock fell to under $184 after hours. COIN has already lost more than 14.5% this year heading into the report.
Coinbase reported a net loss of $394.1 million for Q1, or $1.49 per share. Analysts had expected a profit of $0.27 per share. That’s a sharp reversal from the $65.6 million profit posted in the same quarter a year ago.
$COIN Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.40B (Est. $1.56B) 🔴
🔹 EPS: $(1.49) (Est. $0.29) 🔴
🔹 Crypto Trading Volume Market Share: 8.6%, new all-time high
🔹 Derivatives Trading Volume TTM: +169% YoY
🔹 Prediction Markets ARR: Over $100M in less than two monthsOther… pic.twitter.com/VDVjY46aic
— Wall St Engine (@wallstengine) May 7, 2026
Revenue came in at $1.41 billion, short of the $1.52 billion analysts had penciled in.
This marks Coinbase’s second consecutive quarterly loss, following a $667 million loss in Q4 2025.
Transaction revenue totaled $755.8 million, down 40% year-over-year and below the $805.2 million estimate. Subscription and services revenue — the segment investors watch most closely — came in at $583.5 million, missing the $619.3 million forecast and falling 13.5% from a year earlier.
CFO Alesia Haas was direct on the earnings call: “Macro conditions were genuinely tough. Total crypto market cap and total crypto trading volume were both down more than 20% quarter-over-quarter.”
Crypto Downturn Hits Core Business
Lower crypto prices reduced trading activity across the board. Bitcoin fell during the quarter, though it did recover roughly 12% in March. Weaker prices and lower volatility typically translate to fewer trades — and less revenue for exchanges like Coinbase.
Rival Robinhood Markets also missed Q1 estimates last month, with its crypto revenue and trading volumes nearly halving from a year earlier.
Earlier this week, Coinbase said it would cut around 700 jobs — about 14% of its workforce — as part of an AI-driven restructuring. The broader crypto downturn was also cited as a factor.
Diversification Push Picks Up
Despite the weak quarter, Coinbase is making moves outside its core trading business.
Global crypto trading volume market share rose to a record 8.6%, driven partly by derivatives growth. Trailing 12-month derivatives volume jumped 169% year-over-year, and retail derivatives revenue crossed an annualized run rate of $200 million for the first time.
Its prediction markets business hit $100 million in annualized revenue within just two months of its U.S. launch. Coinbase’s Base blockchain also processed 62% of global onchain stablecoin transaction volume during the quarter.
CEO Brian Armstrong told investors that Coinbase has been working to shift “from a primarily spot-focused crypto platform into a place where you can now trade any asset class.”
Bernstein maintained a bullish rating on Coinbase in March, saying the pullback in crypto stocks offered an attractive entry point for investors looking at tokenization, stablecoins and prediction markets.
