Coinbase Shares Drop After Q2 Revenue Falls Short of Expectations
Coinbase (COIN) shares declined by 6% in after-hours trading following disappointing second-quarter revenue results.
Key Financial Highlights
- Net income reported at $1.43 billion ($5.14 per share), up from $36.13 million (14 cents per share) year-over-year
- Growth driven by a $1.5 billion gain from investment in Circle and $362 million from crypto portfolio
- Adjusted earnings of $1.96 per share exceeded estimates of $1.26
- Total revenue slightly increased to $1.5 billion, below the expected $1.6 billion
- Transaction-related revenue was $764 million, missing estimates of $787 million
- Retail trading volume grew 16% year-over-year to $43 billion, below expectations of $48.05 billion
- Subscription and service offerings totaled $655.8 million, falling short of projections of $705.9 million
- Revenue from stablecoins reached $332.5 million, aligning closely with estimates, marking a 38% increase year-over-year
Market Context
Declining speculative trading coincided with shifting investor attention towards tariffs. Despite this, inflows into crypto ETFs and purchases by treasury companies helped stabilize market prices.
Future Plans
Coinbase plans to expand services beyond cryptocurrencies, including tokenized real-world assets, derivatives, prediction markets, and early-stage token sales for US users.
Year-to-date, Coinbase shares have gained over 50%, outpacing the S&P 500. The stock closed the trading day at $377.
