Coinbase Swings to $667M Loss as Trading Slows

Coinbase Global Inc. reported a $667 million net loss in Q4 2025, reversing a $1.3 billion profit from the same quarter a year earlier.

Revenue fell short of expectations as crypto prices declined and retail trading activity weakened.

The company generated $1.78 billion in total revenue, down 22% year-over-year and below analyst estimates near $1.85 billion. The headline loss was largely driven by $1.1 billion in non-cash markdowns tied to its crypto investment portfolio and strategic holdings during the broader market correction.

What Drove the Loss?

Transaction revenue dropped sharply to $983 million, a 37% decline from $1.56 billion in Q4 2024. Lower retail participation and reduced volatility contributed to softer trading volumes.

Spot trading volume fell 12% sequentially to $256 billion, reflecting reduced market activity following a major digital asset pullback. Bitcoin declined nearly 50% from its October 2025 high by early 2026, weighing on exchange activity.

Meanwhile, subscription and services revenue came in at $727 million, slightly below the previous quarter. Higher stablecoin revenue was offset by lower staking rewards.

Despite the headline loss, Coinbase reported adjusted net income of $178 million, excluding certain accounting impacts.

Full-Year Performance Remains Positive

For full-year 2025, Coinbase posted $7.2 billion in total revenue, up 9% year-over-year, and $1.26 billion in net income.

Management highlighted continued diversification efforts. The company pointed to growth in its Base layer-2 networkand nearly 1 million paid Coinbase One subscribers as signs that revenue is gradually becoming less dependent on trading activity alone.

Market Reaction and Context

The earnings report comes during a broader period of crypto market weakness. Digital assets faced additional pressure from macro uncertainty and new trade tariff announcements.

While Q4 reflected the impact of lower asset prices and reduced retail participation, Coinbase maintains that long-term growth will depend on expanding infrastructure services, subscription products, and on-chain ecosystem development rather than pure trading volume.

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