Coinbase posted a net loss of $394 million for the first quarter of 2026, swinging from a $65.6 million profit in the same period last year. Total revenue came in at $1.41 billion, a 30.5% year-over-year decline and well below the $1.51 billion analysts had expected. Shares dropped about 4% in after-hours trading following the release.
The Q1 numbers
The loss was driven largely by $482 million in unrealized losses on crypto assets held for investment, tied to Bitcoin's roughly 23% decline during the quarter. Excluding that mark-to-market hit, the adjusted net loss was $46 million. On a GAAP basis, Coinbase lost $1.49 per share — analysts had expected a $0.29 profit.
Transaction revenue totaled $755.8 million, down 23% quarter-over-quarter and below the $805.2 million analysts had projected. The broader crypto market didn't help: total crypto market cap and spot trading volumes both fell more than 20% quarter-over-quarter. Operating margin collapsed to -1.5%, a sharp contrast to the 34.7% margin in Q1 2025.
700 jobs cut days before earnings
Just days before the earnings release, Coinbase announced it was cutting about 14% of its workforce — roughly 700 roles. The company framed the reduction as a restructuring around AI-driven operations. It's the latest in a series of layoffs at the exchange as it looks to trim costs amid a slower crypto market.
Adjusted EBITDA came in at $303 million, marking the 13th consecutive positive quarter on that metric. But with revenue shrinking and expenses still high, the job cuts signal management sees a need to tighten further.
The stablecoin bright spot
Not everything was red. Subscription and services revenue hit $584 million, making up 44% of net revenue. Stablecoin revenue alone reached $305 million, fueled by record average USDC holdings of $19 billion across Coinbase products. That recurring revenue stream has become a key buffer when trading volumes dry up.
Coinbase ended the quarter with over $10 billion in cash and equivalents — a hefty cushion, though one that's likely to face scrutiny if losses persist.
After-hours reaction
The 4% after-hours drop reflects the market's disappointment with the revenue miss and the loss per share. Investors are now waiting for Coinbase's next earnings call, where executives will face questions about the restructuring timeline, cost-cutting targets, and how they plan to revive transaction revenue in a choppy market.
