TLDR
- Coinbase swung to a Q4 loss of $2.49 per share versus analyst expectations of $1 per share profit as crypto markets tumbled
- Revenue fell 21.6% year-over-year to $1.78 billion, missing the $1.81 billion consensus estimate
- Bitcoin dropped 25% this year and 48% from its October peak of $126,272, pressuring exchange volumes
- Stock closed down 7.9% at a two-year low but gained 0.9% in after-hours trading following earnings release
- Company forecasts Q1 subscription revenue of $550 million to $630 million with expenses flat from Q4
Coinbase delivered a surprise loss in the fourth quarter as the cryptocurrency market continued its sharp decline from 2025 highs. The exchange operator missed analyst estimates on both the top and bottom lines.
The company posted a net loss of $666.7 million, or $2.49 per share, compared to a profit of $4.68 per share in the year-ago quarter. Analysts had projected earnings of $1 per share.
Revenue totaled $1.78 billion, falling 21.6% from the prior year. The figure came in below Wall Street’s $1.81 billion estimate. Sequential revenue also dropped nearly 22% from the third quarter.
The weak performance reflects ongoing struggles in crypto markets. Bitcoin has plunged 25% year-to-date after declining 23% in Q4. The largest cryptocurrency now trades 48% below its October all-time high of $126,272.
Stock Rebounds Despite Two-Year Low Close
Coinbase stock fell 7.9% during regular trading to close at its lowest level since February 2024. However, shares reversed course in after-hours trading, climbing 0.9% following the earnings announcement.
Transaction revenue decreased 6% from Q3 to $983 million. Subscriptions and services revenue slipped 3% to $727 million over the same period.
CFO Alesia Haas acknowledged the turbulent market conditions during the earnings call. She noted that active traders are “buying the dip” despite heightened volatility to start 2026.
For full-year 2025, Coinbase recorded $6.9 billion in revenue and $1.3 billion in net income. CEO Brian Armstrong described 2025 as a strong year, pointing to one million Coinbase One subscribers and doubled trading volume compared to 2024.
Management Projects Optimism for 2026
The company expects first-quarter subscription and services revenue between $550 million and $630 million. Technology and administrative expenses are projected at $925 million to $975 million, remaining roughly flat from the fourth quarter.
Through February 10, Coinbase generated approximately $420 million in transaction revenue for Q1. Management attempted to calm investor concerns about the crypto downturn.
“Crypto is cyclical, and experience tells us it’s never as good or as bad as it seems,” the company stated in its shareholder letter.
Armstrong emphasized expanding crypto adoption and improved regulatory clarity. He highlighted the company’s diversification into stocks, commodities, and prediction markets beyond traditional crypto trading.
Coinbase reported that assets on its platform have tripled over three years. More than 12% of global cryptocurrency now resides on its exchange as of 2025.
The earnings release coincided with a technical outage on the platform. Some customers temporarily couldn’t buy, sell, or transfer assets on the exchange during the disruption.
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