TLDR
- Coinbase shares fell after hours as Q2 revenue dropped to about $1.2 billion this quarter.
- Global trading share reached a record 10.3%, marking Coinbase’s third straight quarterly gain in volume.
- Average USDC held on Coinbase products hit a record $20 billion during the second quarter.
- Derivatives event contracts and related revenue grew 106% from the previous quarter, topping annualized $100M.
- Subscription and services revenue reached $555 million, representing 48% of Coinbase net revenue in Q2.
Coinbase shares fell about 5% in after-hours trading after the crypto exchange reported a second-quarter loss, even as market share and USDC activity reached new records.
Coinbase Revenue Falls as Quarterly Loss Returns
Coinbase reported second-quarter revenue of about $1.2 billion, down from $1.5 billion a year earlier. The decline came as broader crypto trading conditions weakened during the quarter.
The company posted a loss of $1.36 per share, compared with earnings of $5.14 per share in the same period last year. The weaker earnings result weighed on investor reaction after the report.
Coinbase still recorded stronger trading share across global crypto markets. The exchange said its share of worldwide crypto trading volume reached 10.3%, up from 9.1% in the first quarter.
That marked Coinbase’s third straight quarter of market share gains. The increase came even as total market volumes declined by double digits.
USDC Activity and Derivatives Revenue Grow
Stablecoins remained a key growth area for Coinbase. Average USDC held across Coinbase products reached a record $20 billion during the quarter.
That figure represented more than 30% of USDC’s circulating supply at quarter-end. Coinbase also said USDC and partner stablecoins accounted for 79% of more than $37 trillion in stablecoin transaction volume this year.
Base also recorded stronger stablecoin activity. Stablecoin volume on the network increased sevenfold from a year earlier, helped by rising use of onchain payments and transfers.
Derivatives activity remained close to the prior quarter’s record level. Coinbase said event contracts and related revenue grew 106% from the previous quarter.
The business also passed a $100 million annualized revenue rate. That growth helped Coinbase expand beyond spot trading during a weaker market period.
Subscription Revenue Reduces Bitcoin Dependence
Coinbase continued to reduce its reliance on Bitcoin spot trading fees. Revenue excluding Bitcoin spot trading represented 88% of net revenue in the second quarter.
Subscription and services revenue reached $555 million during the quarter. That compared with only $6 million in the second quarter of 2020.
The segment represented 48% of net revenue, up from 29% in the fourth quarter of 2024. The increase reflected growth in stablecoins, subscriptions, custody, payments, and other financial services.
Coinbase also reported its 14th consecutive quarter of positive adjusted EBITDA. The company lowered its projected adjusted expenses for the full year.
The exchange said artificial intelligence tools improved engineering output. Code changes processed per engineer rose 2.2 times from a year earlier, while integration test coverage increased 2.5 times over six months.
Coinbase ended the quarter with weaker headline earnings but stronger activity across several non-Bitcoin businesses. Investors now face a mixed picture of lower revenue, record trading share, rising USDC balances, and continued growth in subscriptions and derivatives.
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