Coinbase Reports Lower Q4 Revenue, Missing Analyst Expectations

TLDR

• Coinbase missed its Q4 revenue expectations with total earnings of $1.78 billion, below the forecasted $1.83 billion.
• The company posted adjusted earnings per share of $0.66, which was lower than the consensus estimate of $0.86.
• Transaction revenue for Coinbase dropped to $983 million, missing the expected $1.02 billion and showing a decrease from the previous quarter.
• Coinbase saw a decline in retail trading volume by 13% compared to the previous quarter, contributing to the lower revenue.
• Despite the revenue shortfall, Coinbase’s institutional transaction revenue grew, driven by its derivatives platform, Deribit.

Coinbase missed its Q4 earnings expectations on Thursday, with weaker trading activity and lower crypto asset prices impacting its performance. The U.S.-based crypto exchange posted a total revenue of $1.78 billion, below the estimated $1.83 billion. The adjusted earnings per share (EPS) of $0.66 also came in lower than the consensus estimate of $0.86. Despite the shortfall in revenue, Coinbase’s shares rose modestly in after-hours trading.

Coinbase Posts Lower-than-Expected Revenue

Coinbase reported a total revenue of $1.78 billion for the fourth quarter of 2025, missing the analyst forecast of $1.83 billion. This represents a decline in revenue from the previous quarter, which stood at $1.85 billion. Transaction revenue, a key metric for the exchange, amounted to $983 million, falling short of the expected $1.02 billion. This decline is largely attributed to a drop in retail trading, which fell 13% from the prior quarter.

The company also faced a drop in institutional spot volumes during the quarter. However, it did see some growth in institutional transaction revenue, partly due to its recently acquired derivatives platform, Deribit. Despite this, overall trading activity remained under pressure, reflecting a quieter period for the crypto market. Coinbase’s subscription revenue also decreased slightly from $746.7 million in Q3 to $727.4 million, though it was higher than the $641.1 million reported a year ago.

Coinbase’s Future Outlook and Guidance

Looking ahead to the first quarter of 2026, Coinbase is guiding for full-quarter subscription revenue between $550 million and $630 million. For the period through February 10, the company reported transaction revenue of approximately $420 million. While these numbers reflect a challenging quarter, Coinbase remains optimistic about the long-term outlook of the crypto industry.

“We continue to be optimistic about the long-term trajectory of the crypto industry,” said Coinbase in its earnings report. The company emphasized the cyclical nature of the market, noting that while asset prices can be volatile, the underlying technological progress and adoption of crypto products continue.

Despite the lower-than-expected revenue for Q4, Coinbase’s shares gained 15% in early trading the following Friday. This increase was fueled by investor confidence in the company’s positioning and its strong policy engagement, particularly in its response to the Federal Reserve’s proposed payment account.

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