Coinbase reported a net loss of $359.5 million for the second quarter of 2025, missing the $1.29 billion consensus revenue estimate with $1.22 billion in revenue. Shares fell 5.44% in after-hours trading to $154.68, erasing a 2.18% regular-session gain. It was the exchange's third consecutive quarterly loss, though the deficit narrowed from $666.7 million in Q4 2024 and $394.1 million in Q1 2025.
A third straight loss, but a smaller one
The diluted loss per share came in at $1.36. Transaction revenue — the money Coinbase makes from trading fees — was $599.2 million. Adjusted EBITDA remained positive at $207.8 million, marking the 14th consecutive quarter above zero, though down from $303.3 million in Q1. The company also took $52.4 million in restructuring costs after cutting 700 jobs earlier in 2025.
Citi cut its price target on Coinbase by 41% before the earnings report, signaling Wall Street's caution.
Market share gains in a shrinking market
Despite the top-line miss, Coinbase's spot crypto trading market share rose to 10.3% from 9.1% in Q1 — a third consecutive record. Derivatives market share also hit an all-time high for the third straight quarter, even as the broader crypto derivatives market contracted by double digits during the same period.
Prediction markets revenue and contracts more than doubled quarter-over-quarter, crossing $100 million in annualized revenue. That growth came as Bitcoin spot trading volumes fell toward multi-year lows in July. Robinhood's crypto revenue dropped 38% year-over-year, underscoring the industry-wide slump.
Subscription revenue becomes the backbone
Subscription and services revenue reached $555.1 million, representing 48% of net revenue — up from 29% in Q4 2024. The shift is deliberate. CEO Brian Armstrong stated: 'Coinbase is no longer a bet just on the price of Bitcoin.'
Average USDC held in Coinbase products hit a record $20 billion, more than 30% of all circulating USDC. Stablecoin transaction volume on Coinbase's layer-2 network Base rose sevenfold year-over-year. In total, 88% of net revenue came from sources other than Bitcoin spot trading.
Tighter guidance for 2026
Coinbase reduced and narrowed its 2026 adjusted expense guidance, implying GAAP costs of $4.34 billion to $4.6 billion. CFO Alesia Haas said: 'Despite market headwinds, our fundamentals remain strong.' The company is betting that its diversified revenue streams and growing market share will carry it through the downturn — but the path to consistent profitability remains unclear.
