Coinbase missed earnings expectations for the third consecutive quarter, posting a loss of $359.5 million in the second quarter — far worse than the $0.17 per share loss analysts had forecast. Revenue came in at $1.22 billion, below the $1.29 billion estimate and down from $1.5 billion a year earlier. The miss was driven by a 24% drop in trading volume from the first quarter, which the company blamed on low price volatility across crypto markets.
Revenue dips as trading volume slides
Trading volume fell sharply as crypto prices traded in a narrow range for much of the quarter. That hit Coinbase's core transaction revenue hard. The company's total revenue was $1.22 billion, missing the $1.29 billion consensus. A year earlier, revenue was $1.5 billion. The decline underscores how dependent Coinbase remains on trading activity, even as it pushes into new businesses.
Analysts cut targets but stay bullish
Several firms lowered their price targets on COIN after the report. Benchmark cut to $230 from $270, Needham to $177, Rosenblatt to $200, Baird to $130, and Mizuho to $155 with a neutral rating. Barclays went the lowest at $95 with an underweight/sell rating. Citi slashed its target by 41% before earnings but kept a buy rating. Still, most analysts rate the stock a Buy. The average target sits at $229.74, implying significant upside from Friday's close near $151.24, down 2.41% on the day.
Bright spots: record market share and membership growth
Not everything was grim. Coinbase handled a record 10.3% of all crypto trading volume during the quarter. Paid memberships for Coinbase One hit an all-time high, and prediction market revenue doubled in three months. The company is leaning into its 'everything exchange' strategy, now offering perpetual futures and stocks. Job cuts made in May started to reduce spending, helping offset some of the revenue decline. But new USD Coin features were delayed, and banks flagged pressure on USDC economics, adding uncertainty to a key revenue stream.
Coinbase's next earnings report will show whether cost cuts and new products can reverse the trend — or if the trading slump has further to run.
