Coinbase (COIN) Stock Drops 5% After Surprise Q1 Loss and Revenue Miss

TLDR

• Coinbase fell over 5% after-hours after missing Q1 revenue and earnings estimates
• Net loss of $394.1 million, or $1.49 per share loss vs. $0.27 profit expected
• Revenue came in at $1.41 billion, below the $1.52 billion Wall Street forecast
• Transaction revenue dropped 40% year-over-year as crypto markets slumped
• Coinbase cut 700 jobs (14% of workforce) and is pushing into derivatives, prediction markets and stablecoins

Coinbase (COIN) stock dropped more than 5% in after-hours trading Thursday after the company posted a surprise first-quarter loss and missed Wall Street estimates on both revenue and earnings.

Coinbase Global, Inc., COIN

The stock fell to under $184 after hours. COIN has already lost more than 14.5% this year heading into the report.

Coinbase reported a net loss of $394.1 million for Q1, or $1.49 per share. Analysts had expected a profit of $0.27 per share. That’s a sharp reversal from the $65.6 million profit posted in the same quarter a year ago.

Revenue came in at $1.41 billion, short of the $1.52 billion analysts had penciled in.

This marks Coinbase’s second consecutive quarterly loss, following a $667 million loss in Q4 2025.

Transaction revenue totaled $755.8 million, down 40% year-over-year and below the $805.2 million estimate. Subscription and services revenue — the segment investors watch most closely — came in at $583.5 million, missing the $619.3 million forecast and falling 13.5% from a year earlier.

Crypto Downturn Hits Core Business

Lower crypto prices reduced trading activity across the board. Bitcoin fell during the quarter, though it did recover roughly 12% in March. Weaker prices and lower volatility typically translate to fewer trades — and less revenue for exchanges like Coinbase.

Rival Robinhood Markets also missed Q1 estimates last month, with its crypto revenue and trading volumes nearly halving from a year earlier.

Earlier this week, Coinbase said it would cut around 700 jobs — about 14% of its workforce — as part of an AI-driven restructuring. The broader crypto downturn was also cited as a factor.

Diversification Push Picks Up

Despite the weak quarter, Coinbase is making moves outside its core trading business.

Global crypto trading volume market share rose to a record 8.6%, driven partly by derivatives growth. Trailing 12-month derivatives volume jumped 169% year-over-year, and retail derivatives revenue crossed an annualized run rate of $200 million for the first time.

Its prediction markets business hit $100 million in annualized revenue within just two months of its U.S. launch. Coinbase’s Base blockchain also processed 62% of global onchain stablecoin transaction volume during the quarter.

Bernstein maintained a bullish rating on Coinbase in March, saying the pullback in crypto stocks offered an attractive entry point for investors looking at tokenization, stablecoins and prediction markets.

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