Coinbase reported second-quarter revenue of $1.22 billion, down 14% from the prior quarter and short of the $1.29 billion Wall Street expected, alongside a net loss of $359 million. Shares fell roughly 5% in after-hours trading following the report, as declining trading activity offset growth in the exchange's subscription, stablecoin, and lending businesses.
Transaction revenue came in at $599 million, below the $628 million analysts had projected, as crypto spot trading volume fell more than 20% from the previous quarter. Subscription and services revenue held up better at $555 million, now making up 48% of net revenue, though it still landed below the $565 million to $645 million range Coinbase had guided toward. Stablecoin revenue contributed $292 million to the quarter.
Market Share Grows Even as Volume Falls
Despite the drop in overall trading activity, Coinbase said it captured a record 10.3% share of crypto spot trading volume, marking its third consecutive quarter of market-share gains. Notably, trading outside Bitcoin accounted for 88% of net revenue from spot activity, a sign that the exchange's business has become less dependent on Bitcoin-specific price action than in past cycles.
The company's stablecoin and lending operations also expanded. Average USDC holdings on the platform reached a record $20 billion, more than 30% of all USDC in circulation, while average borrow and lend balances climbed to $1.49 billion, up roughly $1 billion year-over-year. Prediction markets emerged as a standout growth line, with revenue up 106% quarter-over-quarter and now exceeding a $100 million annualized run rate.
Balance Sheet and Buybacks
Coinbase ended the quarter with $8.6 billion in cash and equivalents. The company repurchased 814,000 Class A shares during the quarter, bringing year-to-date buybacks to $1.2 billion, even as it posted a net loss for the period.
CEO Brian Armstrong framed the results as evidence of a broader diversification strategy, saying “Coinbase is no longer a bet just on the price of Bitcoin” and that “all of financial services are getting updated by crypto technology.” The quarter's numbers illustrate the tension in that pitch: trading revenue, still Coinbase's largest single line, remains highly sensitive to swings in market activity, even as newer businesses like stablecoins, lending, and prediction markets grow fast enough to cushion the impact.
