Coinbase reports a $394.1 million net loss after trading activity weakened

Coinbase Global (COIN) missed Wall Street’s first-quarter numbers after crypto prices cooled and customers traded less on spot markets.

Coinbase reported a $394.1 million net loss for the quarter ended March 31, compared with $65.6 million in profit a year earlier. The loss came to $1.49 per share, while analysts tracked by LSEG expected a $0.27 profit.

Revenue was $1.41 billion, below the $1.52 billion estimate. That is the part that matters first. The exchange made less money than expected, lost money on the bottom line, and got hit by a weaker trading market.

Coinbase brought in $1.413 billion in total revenue, down 21% from Q4 and 31% from Q1 2025. Net revenue was $1.339 billion, also down 20% from the previous quarter and 31% from last year. Other revenue fell to $73.6 million, down 29% quarter over quarter.

Total crypto market volumes dropped 28%, while spot volumes fell 37%. Coinbase said transaction revenue fell 23%, so yeah, Coinbase did better than the wider spot market, but that is still a hard fall.

Coinbase loses trading revenue as retail customers pull back from spot markets

Consumer transaction revenue fell to $567 million, down 23% from Q4. The reason was simple. Regular users traded less. Consumer spot trading volume fell 35%, and that cut into one of Coinbase’s biggest money engines. The company said newer products and a better revenue mix helped soften the damage, but they did not erase it.

The institutional side also weakened. Institutional transaction revenue came in at $136 million, down 27% quarter over quarter. That lined up with the wider fall in market activity. Other transaction revenue was $53 million, down 17%, as instant transfers slowed and Base revenue came in lower.

The expense line was mixed. Transaction expense fell to $195.9 million, down 10% from Q4 and 35% from last year. Sales and marketing dropped to $266.7 million, down 15% from the previous quarter, though still 8% higher than a year earlier.

General and administrative costs fell to $376.1 million, down 17% from Q4 and 5% from Q1 2025, as legal, customer experience, policy, and deal-related bills came down.

Still, technology and development climbed to $525.6 million, up 6% from Q4 and 48% year over year. Coinbase tied that increase mostly to one-time acquisition costs from Q4 2025. Total operating expenses were $1.434 billion, down 5% from the previous quarter but up 8% from last year. Operating result landed at a $21.4 million loss, compared with $273.8 million in operating income in Q4 and $705.8 million in Q1 2025.

Coinbase leans on USDC, subscriptions, and newer products while crypto losses drag earnings down

Subscription and services made up 44% of net revenue, giving Coinbase a larger business outside basic trading fees. Stablecoin revenue reached $305 million, helped by higher USDC usage and record average USDC balances inside Coinbase products.

Average USDC held in Coinbase products hit $19 billion, including $3 billion in corporate balances. Off-platform USDC averaged $56 billion, bringing total average USDC market capitalization to $75 billion.

Revenue tied to stablecoins and corporate balances totaled $324 million. Coinbase products brought in $161 million, corporate balances added $18 million, and off-platform USDC generated $163 million. That total was below Q4’s $364 million, but above Q1 2025’s $298 million.

Blockchain rewards produced $101 million, helped by more native units staked, while lower asset prices held back the final number. Interest and finance fee income was $68 million, helped by record average daily loan balances. Coinbase One subscriptions kept growing during the weaker market.

The newer product list also got bigger. Retail derivatives are now annualizing at more than $200 million, and Coinbase expects that line to become its next $250 million-tier product. Prediction markets are growing fast and are on pace to become Coinbase’s 13th product, above $100 million in annualized revenue.

Below operating income, interest expense was $22.6 million, flat from Q4 and up 10% from last year. Losses on crypto assets held for investment were $482.4 million, while crypto assets held for operations showed $35.2 million in losses. Other income was $61.6 million, and the income tax benefit was $70.6 million.

Adjusted EBITDA was $303.3 million, down from $565.9 million in Q4 and $929.9 million a year earlier. Coinbase has now posted 13 straight quarters of positive adjusted EBITDA.

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