Coinbase Misses Q1 Estimates as Crypto Slump Deepens Losses

• During an earnings call, Coinbase CFO Alesia Haas informed investors that macro circumstances were very challenging.
• Analysts had predicted $1.5 billion in revenue for Coinbase’s first quarter, but the company only made $1.41 billion.

The US cryptocurrency exchange Coinbase posted a significant first-quarter loss and revenue that fell short of Wall Street projections, sending its shares tumbling on Thursday. After posting a $667 million loss in Q4 2025, Coinbase had a net loss of $394.1 million in Q1, marking its second consecutive quarter of deficit. It turned a loss after having made $65.6 million a year earlier.

During an earnings call, Coinbase CFO Alesia Haas informed investors that macro circumstances were very challenging. Both the entire market capitalization of cryptocurrencies and the total volume of crypto trades fell by more than 20% from the previous quarter.

Exploring New Business Lines

Earnings from Coinbase follow those of other cryptocurrency firms, which had a rough start to 2026 as investors fled the market due to the market crash. Meanwhile, analysts had predicted $1.5 billion in revenue for Coinbase’s first quarter, but the company only made $1.41 billion. Subscription and service revenue, which represents its operations outside trading, declined 13.5 percent from the previous year, while transaction revenue plunged 40 percent.

After hours on Thursday, Coinbase fell 4.7% to below $184, after the company disclosed a loss of $1.49 per share, which was worse than analysts’ projections of 36 cents per share.

Following a more than 14.5 percent decline in stock price this year, Coinbase has been exploring new business lines including prediction markets and implementing cost-cutting initiatives, such as the 14% layoff of 700 workers that occurred on Monday.

Coinbase was created to profit on the global economy’s move to the blockchain, according to CEO Brian Armstrong, who had an upbeat tone on the conference call despite the company’s earnings. Moreover, he emphasized that Coinbase’s goal over the last year has been to expand its trading capabilities beyond only cryptocurrency spot trades to include all asset classes.

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