Coinbase's Q2 revenue came in at $1.22 billion, falling short of the $1.29 billion analysts were anticipating and down from nearly $1.5 billion a year ago. Following the earnings report, the stock initially dropped 7% in after-hours trading but later climbed back, reaching a 3.6% gain at $163.
Trading revenue declined 21% to $599 million, missing estimates of $635 million, while subscription and services revenue also lagged forecasts, totaling $555 million against expectations near $594 million. The company posted a net loss of $360 million but maintained its streak of positive adjusted EBITDA for the 14th consecutive quarter at $208 million.
Despite the revenue miss, Coinbase saw a surge in its prediction markets, with contracts and revenue more than doubling since the prior quarter and surpassing $100 million in annualized revenue. Daily traders tripled, and daily revenue quadrupled thanks to new binary products introduced late in the quarter.
The platform hit a record 10.3% share of global crypto trading volume, marking its third straight quarter of growth amid an overall softer market. CEO Brian Armstrong emphasized that Coinbase’s expanding footprint beyond Bitcoin trading strengthens its position across crypto’s evolving ecosystem.
