Coinbase reported $1.22 billion in revenue for the second quarter, falling 14% from the first quarter and missing analyst expectations of about $1.29 billion. The company recorded a net loss of $359.5 million, marking its third straight quarterly loss.
Crypto spot trading volume on Coinbase dropped over 20% quarter over quarter as prices declined and market volatility hit multi-year lows. Transaction revenue came in at $599 million, short of the $628 million predicted, while subscription and services revenue totaled $555 million, accounting for 48% of net revenue. This figure fell below both Coinbase’s guidance range of $565 million to $645 million and analyst estimates near $599 million. Stablecoin revenue reached $292 million.
Despite these setbacks, Coinbase’s trading volume market share hit a record 10.3%, up from 9.1% in Q1, marking a third consecutive quarterly gain. This growth was seen across both spot and derivatives markets. Prediction markets contracts and revenue doubled sequentially, surpassing a $100 million annualized run rate. Meanwhile, the average amount of USDC held across Coinbase products reached a record $20 billion, representing over 30% of USDC in circulation at the end of the quarter. The company confirmed that conditions were met for its agreement with Circle to renew automatically in August. also average borrow and lend balances increased by more than $1 billion year over year, reaching $1.49 billion.
The quarter included $52.4 million in restructuring charges related to May’s job cuts, where Coinbase eliminated 700 positions and reorganized teams with a focus on AI. The company also narrowed its full-year adjusted expense forecast and projected third-quarter subscription and services revenue between $500 million and $580 million. Transaction revenue through July 26 was approximately $130 million.
Shares in Coinbase saw a modest decline following the earnings announcement.
This material is for informational purposes and does not constitute financial advice.
