The crypto exchange’s net loss widened sharply year-over-year despite gaining market share amid lower volatility and spot trading activity.
Coinbase reported a GAAP net loss of $359 million for the second quarter, missing analyst expectations of a $122 million loss. Net revenue reached $1.2 billion, down 19% from the prior year, as softer trading conditions weighed on results despite a record 10.3% share of global crypto trading volume.
Transaction revenue fell to $599 million, below the $636 million consensus, while subscription and services revenue totaled $555 million, short of the $590 million estimate. The company cited a 25% quarter-over-quarter drop in spot trading volume, lower market volatility, and weaker crypto prices as key drivers of the decline.
Coinbase highlighted growth in derivatives, stablecoins, and tokenized finance but noted that reduced institutional and consumer trading activity offset these gains. The results reflect broader industry challenges as trading volumes remain subdued.