Coinbase Revenue Drops to $1.78B as Q4 Earnings Miss Expectations
Coinbase delivered a weaker-than-expected fourth quarter, with revenue sliding to $1.78 billion and earnings missing Wall Street forecasts, even as its core business remained profitable.
- Revenue fell to $1.78B in Q4, missing expectations.
- Net loss of $666.7M was driven mainly by non-cash charges, while adjusted profit stayed positive.
- EPS came in at $0.66, below forecasts.
- Full-year trading volume jumped to $5.2T, and the company repurchased $1.7B in stock.
The crypto exchange published its Q4 and full-year 2025 results on February 12, 2026, revealing a headline net loss largely driven by accounting charges rather than operating weakness. Investors focused on the earnings miss and softer transaction revenue, sending renewed attention to the company’s dependence on trading activity.
Fourth-Quarter Breakdown
Total revenue came in at $1.78 billion, down 5% from the previous quarter and 22% compared to the same period a year earlier. Transaction revenue fell 6% sequentially to $983 million, with retail trading contributing $734 million and institutional activity adding $185 million.
The company reported a net loss of $666.7 million. However, this figure was primarily the result of non-cash items, including a $718 million impairment on its crypto holdings and a $395 million loss tied to strategic investments, such as its stake in Circle.
When excluding these one-time charges, adjusted net income reached $178 million. Adjusted earnings per share came in at $0.66, below analyst estimates that ranged between $0.96 and $1.05.
Meanwhile, subscription and services revenue totaled $727 million, with stablecoin-related revenue accounting for $364 million – underscoring the growing role of recurring income streams in Coinbase’s business model.
Full-Year Growth Despite Q4 Pressure
Despite the softer fourth quarter, Coinbase posted strong full-year metrics for 2025.
Total trading volume surged to $5.2 trillion, marking a 156% increase year-over-year. The company’s crypto trading market share climbed to 6.4%, roughly double the level seen in the previous year.
Paid subscribers to Coinbase One approached 1 million, while product diversification accelerated. Management said 12 different products now generate more than $100 million in annualized revenue, highlighting progress in reducing reliance on spot trading alone.
Q1 2026 Outlook and Capital Moves
For the current quarter, Coinbase reported generating approximately $420 million in transaction revenue between January 1 and February 10, 2026.
Subscription and services revenue for Q1 is projected to range between $550 million and $630 million.
The company has also been active on the capital allocation front. From Q4 2025 through February 10, 2026, Coinbase repurchased $1.7 billion worth of its Class A common stock, signaling management’s confidence despite short-term earnings volatility.
Shares of Coinbase Global Inc (COIN) were trading around $141.09 following the report, as investors weigh near-term pressure on trading revenue against longer-term growth in recurring services and market share gains.
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