Coinbase Misses on Q2 Earnings as Crypto Trading Activity Slows
Coinbase reported second-quarter revenue of $1.22 billion, down 14% from the prior quarter and below estimates, with a net loss of $359 million. Shares fell about 5% after hours. Trading activity weakened as crypto prices fell and volatility hit multi-year lows, pushing spot trading volume down more than 20% quarter over quarter. Transaction revenue was $599 million, and subscription/services revenue was $555 million, hurt by later-than-expected USDC deal closures and lower staking revenue. Stablecoin revenue reached $292 million, with average USDC held across Coinbase products hitting a record $20 billion. Coinbase said market share rose to a record 10.3%, its third straight quarterly gain. Prediction markets and borrowing balances were notable bright spots. The company ended with $8.6 billion in cash and cash equivalents, repurchased 814,000 shares in the quarter, and expects third-quarter subscription/services revenue of $500 million to $580 million.
