The exchange posted a $359 million net loss as trading activity declined over 20% from the prior quarter amid falling asset prices.
Coinbase reported second-quarter revenue of $1.22 billion, missing estimates of $1.29 billion, as crypto trading volumes fell more than 20% from the previous quarter. The company posted a net loss of $359 million, compared to expectations of narrower losses or potential profitability.
Transaction revenue reached $599 million, below the anticipated $628 million, while subscription and services revenue totaled $555 million, or 48% of net revenue. The figure fell short of Coinbase’s forecast range of $565 million to $645 million due to delayed USDC commercial agreements and reduced staking revenue.
Shares dropped roughly 5% in after-hours trading following the earnings release. Coinbase noted its crypto trading market share hit a record 10.3% during the quarter, with average USDC holdings reaching $20 billion.