Coinbase shares fell sharply in after-hours trading after the US crypto exchange reported a second-quarter loss of $1.36 per share and a 20% year-on-year drop in revenue, overshadowing record gains in its share of the global digital asset market.
The company generated around $1.2bn in revenue for the three months, down from $1.5bn in the same quarter a year earlier, when it posted earnings of $5.14 per share. The swing back into the red and weakening top-line performance weighed on sentiment despite signs of operational progress.
Coinbase’s stock had finished the regular session at $163.58, a rise of 2.18% on the day. However, the earnings release reversed those gains, with the shares dropping in extended trade.
Trading in the stock after the close was volatile. Charts showed an after-hours price near $152 at one stage, implying a fall of about 7% from the regular close, while earlier indications had pointed to a slide of closer to 5% as investors digested the figures.
Profit pressure despite operating improvements
The return to a quarterly loss and softer revenue overshadowed a series of positive operational metrics. Coinbase reported its 14th consecutive quarter of positive adjusted EBITDA and cut its outlook for full-year adjusted expenses.
Those improvements nevertheless sat uneasily alongside weaker headline financial results, highlighting the tension between the firm’s cost discipline and the broader downturn in crypto trading conditions.
Coinbase’s position in the global market continued to strengthen. Its share of worldwide crypto trading volume climbed to a record 10.3%, up from 9.1% in the first quarter, marking a third straight quarter of market share gains even as overall crypto market volumes fell by double digits.
Derivatives and event markets grow
Derivatives trading activity at Coinbase remained close to the record levels seen in the previous quarter. Revenue and contracts linked to event markets rose 106% quarter on quarter, pushing that part of the business above a $100m annualised revenue run rate.
At the same time, the firm continued to move away from its traditional dependence on Bitcoin spot trading fees. Revenue excluding Bitcoin spot activity made up 88% of net revenue in the quarter, reflecting a broader strategic shift towards subscriptions, stablecoins, payments and financial infrastructure services.
Subscription and services revenue reached $555m, compared with just $6m in the second quarter of 2020. That segment contributed 48% of net revenue, up from 29% in the fourth quarter of 2024, underlining how rapidly the mix of Coinbase’s income has changed.
Stablecoin dominance and Base growth
Stablecoins were another key growth driver. Average USDC balances held across Coinbase products hit a record $20bn during the quarter, representing more than 30% of the stablecoin’s circulating supply at the period’s end.
Coinbase said USDC and its partner stablecoins accounted for 79% of more than $37tn in stablecoin transaction volume recorded during the year. Stablecoin volume on Base, the company’s Layer 2 network, rose sevenfold compared with a year earlier.
Taken together, the figures illustrate how Coinbase is pushing beyond transaction fees tied directly to crypto price cycles and trading surges. The company is building up more recurring revenue streams, though the latest quarterly loss indicates that growth in newer lines has not yet fully offset the impact of weaker overall market conditions.
For US investors, the update offers a mixed picture. Coinbase remains a key listed proxy for the domestic crypto sector, and its performance continues to be closely tied to trading activity, digital asset prices and the regulatory backdrop.
AI efficiency gains and technical pressures
The company also highlighted productivity gains from using artificial intelligence in its engineering operations. It reported that code changes processed per engineer increased by 2.2 times year on year, while integration test coverage across core services rose 2.5 times over a six-month period.
On the technical side, the after-hours slide in COIN shares pushed the price below several closely watched chart levels. The regular-session close of $163.58 was just above the 20-day simple moving average at $162.97 but below the 50-day simple moving average at $165.29.
A move down towards $152 would bring the stock to immediate chart support. If that level fails to hold, traders see the late-June low near $140 as the next potential support area.
On the upside, analysts suggest the shares would need to reclaim the 50-day moving average before attempting to challenge the 100-day simple moving average around $178.43. The 200-day average at $213.49 remains a more distant long-term resistance marker.
Before the earnings reaction, the average directional index for COIN stood at 10.11, a reading that signals weak trend strength and is consistent with the stock’s recent sideways pattern around the $160 level. The post-results gap could offer a clearer directional signal if trading volumes stay elevated in the next regular session.
