Coinbase Posts $667M Loss as Crypto Slumps

Key Insights

• Coinbase posted a $667 million net loss in Q4.
• Transaction revenue fell sharply as crypto markets slid.
• Shares swung after hours despite earnings miss.

Coinbase reported a $667 million net loss in the fourth quarter of 2025, snapping its eight-quarter profit streak. The U.S.-based crypto exchange released the results on Thursday, citing weaker trading conditions and investment-related losses. The update marked the company’s first quarterly loss since the third quarter of 2023 as crypto prices retreated into year-end.

This coinbase news arrived during a broader digital asset downturn. Bitcoin had dropped nearly 30% from an early October peak of $126,080 to under $88,500 by Dec. 31. The broader market capitalization shrank by roughly $1.1 trillion over the same period, while another $700 billion exited in early 2026, based on CoinGecko data. That drawdown pressured trading activity and compressed transaction-driven revenue across major exchanges.

Shares Whipsaw After Earnings Release

Coinbase reported total revenue of $1.78 billion for the quarter, missing analyst expectations of $1.85 billion. Earnings per share came in at 66 cents, falling short of the 92-cent estimate. Net revenue declined 21.5% year-on-year, reflecting slower spot volumes and softer prices.

Transaction-related revenue dropped nearly 37% year-on-year to $982.7 million. Consumer transaction revenue fell 13% quarter over quarter as users shifted toward lower-fee advanced trading and Coinbase One subscriptions. Institutional spot volumes also declined, though derivatives trading strength offset the decline in institutional transaction revenue.

The stock fell 7.9% during regular trading to close at $141.1, then swung in after-hours. It briefly touched around $135, a two-year low, then reversed to trade near $147. That volatility occurred as investors digested weaker margins alongside steady cash reserves.

Performance data as of Feb. 12, 2026, showed the stock still outpaced benchmarks. Year-to-date returns stood at 37.61%, while the S&P 500 posted 0.19%. Over three years, total returns reached 147.14%, compared with 67.04% for the index. Those figures indicated that longer-term holders retained substantial gains despite recent pressure.

Trading Volumes Mirror Market Reset

The Block reported that total fourth-quarter revenue fell 5% from the prior quarter, while transaction revenue slipped 6% sequentially. Subscription and services revenue declined 3% quarter-on-quarter to $727 million. Stablecoin revenue rose 3% sequentially to $364 million as average USD Coin balances reached new highs, even as lower interest rates trimmed yields.

Coinbase attributed part of the net loss to investment-related losses tied to its crypto asset portfolio and strategic stakes. The weaker quarter followed a stronger third quarter when trading volumes rebounded and Ethereum volumes gained share on the platform. That earlier rebound did not extend into year-end as volatility and risk reduction dominated flows.

Bitcoin had fallen 25.6% year-to-date to $65,760 after sliding under $60,000 earlier in the month. The price contraction dampened retail participation and reduced notional volumes, directly weighing on fee generation. That reaction mirrored prior cycles in which falling prices compressed exchange revenue even as user engagement remained stable.

Balance Sheet Strength And Expansion Plans

Despite the quarterly loss, Coinbase ended the year with $11.3 billion in cash and cash equivalents. The company repurchased roughly $1.7 billion in stock through early February, signaling confidence in long-term positioning. Chief Financial Officer Aleshia Haas told investors the firm would keep technology, sales, and marketing expenses relatively flat compared to the fourth quarter.

Management also projected first-quarter transaction revenue of about $420 million through Feb. 10 but warned against extrapolating early-quarter figures due to volatility. Subscription and services revenue was expected to decline to a $550 million to $630 million range. For full-year 2025, revenue rose 9.4% from 2024 to $6.88 billion, reflecting operational growth despite quarterly fluctuations.

Executives continued product expansion efforts. The exchange integrated stock and exchange-traded fund trading into its application and expanded derivatives capabilities after acquiring Deribit operations. It also pushed new stablecoin and payments infrastructure as part of its strategy to build what it called an “Everything Exchange.”

Looking ahead, traders will monitor whether transaction revenue stabilizes as markets digest recent losses. Bitcoin price action around the mid-$60,000 range may influence near-term volume trends. If volatility persists into the next earnings cycle, margins could remain under pressure, keeping Coinbase news tied closely to broader crypto sentiment.