The crypto exchange reported a $400M first-quarter loss, missing revenue estimates as trading volumes declined.
Coinbase shares declined in regular and after-hours trading after reporting a $400M net loss for the first quarter, missing revenue expectations. The company’s stock has fallen over 14.5% year-to-date, reflecting broader struggles in the crypto market.
Prior to the earnings release, Coinbase announced layoffs affecting 14% of its workforce, or roughly 700 employees, as part of cost-cutting measures. The exchange is expanding into new business lines, including prediction markets, to offset declining spot crypto trading volumes.
CEO Brian Armstrong remained optimistic on the earnings call, stating the company is positioned to benefit from the shift toward on-chain asset trading. He noted diversification efforts could stabilize revenue streams over time.