Coinbase shares fell nearly 5% in after-hours trading Thursday after the cryptocurrency exchange I mentioned Loss in the first quarter and weak revenues as trading activity slows in the market.
The company reported $1.4 billion in total revenue, $756 million in transaction revenue, and a net loss of $394 million in the first quarter of 2026.
The results represent a sharp reversal from the same period last year, when Coinbase reported profits of $65.6 million. Revenues fell from $2.03 billion a year ago, while analysts expected about $1.49 billion.
Coinbase said total cryptocurrency market and spot volumes fell more than 20% quarter-on-quarter, while low volatility suppressed trading activity, especially in longer-dated assets. Transaction revenue fell 23% quarter-on-quarter, outpacing the decline in volume in the broader market, the company said.
Subscriptions and services revenues amounted to $584 million, representing 44% of net revenues. Total stablecoin revenue reached $305 million, driven by USDC market cap growth and a record average USDC in Coinbase products of $19 billion.
The company also noted growth in new business lines. Annual retail derivatives revenues topped $200 million, while prediction markets reached more than $100 million in annual revenues in March, their first full two months.
Coinbase reported adjusted EBITDA of $303 million, marking the 13th consecutive quarter of adjusted EBITDA. The company also ended the quarter with $10.2 billion in cash and cash equivalents and said it had $12 billion in available resources, including $1.8 billion in cryptocurrencies and marketable investments.
For the second quarter, Coinbase said transaction revenue was about $215 million year-to-date through May 5, and subscription and directed services revenue was between $565 million and $645 million. The company also expects one-time restructuring expenses of $50 million to $60 million in the second quarter, as it pushes toward AI-driven efficiencies.
