Coinbase shares fell roughly 5% in after-hours trading Thursday after the exchange reported Q2 2026 revenue of $1.22 billion, short of the $1.29 billion Wall Street expected — the company's third consecutive quarterly loss. Executives pointed to growing derivatives revenue, stablecoin growth and a 10.3% share of global crypto trading volume as signs the business is leaning less on trading fees.
Coinbase shares fell roughly 5% in after-hours trading Thursday after the exchange's second-quarter results missed Wall Street's estimates. Revenue came in at $1.22 billion, versus consensus expectations of $1.29 billion. Transaction revenue was $599 million, compared with expectations of $628 million.
Subscription and services revenue, which includes USDC interest income, staking, custody and institutional services, totaled $555 million against estimates of $599 million. The miss came after Bitcoin fell roughly 14% during the quarter while ether lost about 25%, reducing trading volumes and volatility across spot markets.
Reuters reported that transaction revenue fell 21% from $764 million a year earlier. For the quarter, the company posted a net loss of $359.5 million, or $1.36 per share, compared with a profit of $1.43 billion, or $5.14 per share, a year earlier.
CFO points to a broad slowdown
CFO Alesia Haas said industry-wide spot trading volumes fell more than 20% during the quarter as the total crypto market capitalization declined by double digits. She said those conditions contributed to a 14% quarter-over-quarter decline in Coinbase's total revenue.
Diversifying beyond trading fees
In a post on X, CEO Brian Armstrong pointed to the company's expanding businesses beyond spot trading, including stablecoins, Base and prediction markets. Coinbase's share of global crypto trading volume climbed from 9.1% in Q1 to a record 10.3% in Q2, its third consecutive quarter of market share gains.
Event contracts revenue grew 106% quarter-over-quarter and surpassed a $100 million annualized revenue rate. Average USDC held across Coinbase products reached a record $20 billion, more than 30% of the stablecoin's circulating supply at quarter's end. Revenue excluding Bitcoin spot trading represented 88% of net revenue during the quarter.
Coinbase also reported its 14th consecutive quarter of positive adjusted EBITDA.
Sources: CoinDesk, Crypto Briefing, Economy News (Investing.com)
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