Coinbase Global posted an unexpected loss in the first quarter, becoming the latest victim of a prolonged downturn in crypto trading.
Coinbase on Thursday reported a net loss of $1.49 a share, missing analysts’ estimates for a per-share gain of 6 cents. The company reported $1.4 billion in revenue, below the $1.49 billion expected by analysts tracked by FactSet.
In after-hours trading, the stock fell 5.8% to $181.74.
Coinbase had posted a 24-cent per share profit in the first quarter of 2025 on $2.03 billion in revenue, according to FactSet.
Coinbase this year has been caught up in a broad downturn in crypto. Despite rising around 20% in the last month, the price of Bitcoin is still more than 30% below its peak last October. As of Thursday’s close, Coinbase stock this year is down 15% to $192.96.
“We feel good that we executed and delivered on the things that are in our control,” said Coinbase Chief Business Officer Shan Aggarwal.
Among the positive developments for Coinbase in the quarter was the launch of its prediction markets platform, which Aggarwal said crossed $100 million in annualized revenue in its second full month in March, the fastest product launch ever for the company. Coinbase has also taken a market-leading position in crypto payments made by artificial intelligence “agents,” Aggarwal said, which could become a revenue driver as AI activity becomes a bigger part of the economy.
Brokerage firm Robinhood Markets reported first-quarter earnings last week, and those results ended up being a harbinger for Coinbase. Robinhood said its crypto trading revenue in the first quarter fell 47%.
Coinbase said its transaction revenue declined 23% quarter-over-quarter. The company’s subscription-and-services segment, which includes revenue from Coinbase’s stablecoin USDC, made up 44% of the company’s overall revenue.
In positive news for investors, Coinbase said its trading volume market share rose to 8.6% in the first quarter, 2.6 percentage points above that of the first quarter of 2025.
Coinbase is trying to cut costs amid the trading slowdown. On Tuesday, CEO Brian Armstrong announced the company would cut about 14% of its workforce, attributing at least some of the cuts to artificial intelligence.
The company is also trying to continue to grow the non-trading segments of its business such as the revenue from its stablecoin partnership, which in recent years has been responsible for an increasing share of its profits.
Twenty-three of the 38 analysts tracked by FactSet have the equivalent of a “Buy” rating on the stock, versus four who have a “Sell” rating, with an average target price of $239.27.