Coinbase disclosed a net loss of $394 million in the first quarter of 2026, a sharp reversal from its profit of $65.6 million in the same period last year. The company’s results fell short of Wall Street expectations for both revenue and earnings per share, highlighting difficult market conditions for crypto exchanges.
The exchange reported total revenue of $1.41 billion, marking a 30.5% decline year-over-year and missing analysts’ estimates of around $1.51 billion. On a per-share basis, Coinbase posted a GAAP loss of $1.49, compared to expectations for a $0.29 profit. This shortfall prompted a nearly 4% drop in after-hours trading for its shares.
The largest factor dragging down the results was a $482 million unrealized loss on crypto assets held for investment, driven primarily by Bitcoin’s approximately 23% price decline during the quarter. When excluding this mark-to-market loss, the adjusted net loss narrowed to $46 million, still signaling a weakened operating environment compared to the previous year.
Transaction revenue, Coinbase’s main income source, fell 23% quarter-over-quarter to $755.8 million, below the forecast of $805.2 million. The drop correlated with a more than 20% decrease in total crypto market capitalization and spot trading volumes during Q1. Despite this, subscription and services revenue rose to $584 million, contributing 44% of net revenue, while stablecoin-related revenue reached a record $305 million, partly fueled by an average holding of $19 billion in USDC on Coinbase platforms.
Additionally, adjusted EBITDA remained positive at $303 million, marking Coinbase’s 13th consecutive profitable quarter on that metric. However, the operating margin plunged to -1.5% from 34.7% a year earlier, emphasizing the volatile profitability linked to crypto market fluctuations.
In response to these challenges, Coinbase recently announced a 14% workforce reduction affecting about 700 jobs, aiming to streamline operations with a focus on AI-driven efficiency. As of the quarter’s end, the company held over $10 billion in cash and equivalents, providing a financial cushion amid the revenue struggles but not resolving the underlying market sensitivity.