TLDR
- Coinbase reported a Q4 loss of $2.49 per share on revenue of $1.78 billion, missing Wall Street estimates of $1 per share profit on $1.81 billion revenue
- Revenue dropped 21.6% from the prior year as Bitcoin fell 25% year-to-date and 48% from its October all-time high of $126,272
- Transaction revenue declined 6% to $983 million while subscriptions and services revenue fell 3% to $727 million from Q3
- The company projects Q1 subscription and services revenue of $550 million to $630 million with technology expenses of $925 million to $975 million
- Coinbase stock rose 0.9% in after-hours trading despite closing down 7.9% at a two-year low during the regular session
Coinbase posted a surprise loss for the fourth quarter as the crypto market continued its sharp retreat from last year’s highs. The results missed analyst expectations on both earnings and revenue.
The crypto exchange reported a net loss of $666.7 million, or $2.49 per share, compared to a profit of $4.68 per share in the same quarter last year. Wall Street analysts had expected a profit of $1 per share.
Revenue came in at $1.78 billion, down 21.6% from the prior year and below the $1.81 billion consensus estimate. The quarterly revenue also marked a drop of nearly 22% from the third quarter.
The weak results reflect the broader downturn in cryptocurrency markets. Bitcoin has tumbled 25% so far this year after falling 23% in the fourth quarter. The world’s largest cryptocurrency now trades 48% below its all-time intraday high of $126,272 reached in October.
Despite the disappointing numbers, Coinbase stock gained 0.9% in after-hours trading. The stock had closed the regular session down 7.9% at its lowest price since February 2024.
Revenue Breakdown Shows Declines Across Categories
Transaction revenue fell 6% from the third quarter to $983 million. Subscriptions and services revenue dropped 3% to $727 million over the same period.
CFO Alesia Haas acknowledged the volatile start to 2026 during the earnings call. However, she pointed to signs of resilience, noting that active traders are “buying the dip” in the current market environment.
For the full year 2025, Coinbase generated $6.9 billion in revenue and $1.3 billion in net income. CEO Brian Armstrong called it a strong year for the company, highlighting that Coinbase One subscriptions reached one million users.
Trading volume doubled compared to 2024, and the company increased its market share. Armstrong said the company is in “pole position to capitalize on whatever 2026 has in store.”
Company Projects Q1 Guidance and Touts Platform Growth
Looking ahead, Coinbase expects first-quarter subscription and services revenue between $550 million and $630 million. Technology and administrative expenses are projected at $925 million to $975 million, roughly flat from Q4.
The company reported that through February 10, it had generated approximately $420 million in transaction revenue for the first quarter. Management tried to reassure investors about the crypto market volatility.
“Crypto is cyclical, and experience tells us it’s never as good or as bad as it seems,” the company told shareholders in a letter. Armstrong emphasized that crypto adoption continues to expand and regulations have become clearer.
Coinbase highlighted that assets on its platform have tripled over the past three years. As of 2025, more than 12% of the world’s cryptocurrency resided on its platform.
The company is diversifying beyond crypto trading. Armstrong said Coinbase now allows trading of stocks, commodities, and prediction markets. The move into prediction markets follows similar announcements from Robinhood and DraftKings.
The earnings release came on the same day the platform experienced a technical outage. Some customers were briefly unable to buy, sell, or transfer assets on the exchange.
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