Coinbase reported $1.22 billion in revenue for the second quarter of 2026, missing Wall Street expectations of $1.29 billion as lower cryptocurrency trading activity weighed on results.
The company also posted a net loss of $359 million, while its shares fell approximately 5% in after-hours trading following the earnings release.
According to Coinbase, total crypto spot trading volume declined by more than 20% compared with the previous quarter as digital asset prices weakened and market volatility dropped to multi-year lows.
Transaction revenue reached $599 million, falling short of analysts' expectations of $628 million.
Stablecoins and Subscription Business Continue Growing
Despite weaker trading activity, Coinbase's recurring revenue businesses continued to perform well.
Subscription and services revenue totaled $555 million, accounting for 48% of the company's total net revenue. Although the figure came in below Coinbase's previous guidance, the company attributed the shortfall to delays in certain USDC-related commercial agreements and lower staking revenue caused by weaker crypto prices.
The company's stablecoin business remained a standout performer, generating $292 million in revenue during the quarter.
Coinbase also reported that the average amount of USDC held across its products reached a record $20 billion, representing more than 30% of all USDC currently in circulation.
The exchange noted that 88% of its net revenue now comes from businesses beyond Bitcoin spot trading, a significant increase from 45% in the second quarter of 2020, highlighting its ongoing diversification strategy.
Coinbase Gains Market Share
Even as overall trading activity slowed, Coinbase continued expanding its share of the crypto trading market.
The company said its global market share reached a record 10.3%, marking its third consecutive quarter of market share gains across both spot and derivatives trading.
Several newer business lines also delivered strong growth.
Prediction market contracts and related revenue increased by 106% compared with the previous quarter, surpassing a $100 million annualized quarterly revenue run rate.
Meanwhile, Borrow and Lend balances climbed to $1.49 billion, increasing by more than $1 billion year over year.
Coinbase also confirmed that the conditions required for the automatic renewal of its commercial agreement with Circle in August had been successfully met.
Company Expands Beyond Traditional Crypto Trading
The second quarter was marked by several strategic product launches aimed at broadening Coinbase's business.
During the period, the company became the first U.S. crypto exchange authorized to provide access to offshore perpetual futures through its Deribit subsidiary.
Coinbase also introduced Coinbase for Agents, a platform allowing AI agents to trade cryptocurrencies, make payments, and manage portfolios on behalf of users.
Later in the quarter, the company unveiled plans to launch tokenized stock trading, crypto and equity options, along with additional lending and rewards products.
Financially, Coinbase finished the quarter with $8.6 billion in cash and cash equivalents and $10 billion in total available resources. The company also continued returning capital to shareholders, repurchasing 814,000 Class A shares during the quarter and nearly 7 million shares worth $1.2 billion since the beginning of the year.
Looking ahead, Coinbase expects subscription and services revenue between $500 million and $580 million during the third quarter.
Despite the earnings miss, CEO Brian Armstrong remained optimistic about the company's long-term direction.
The results illustrate Coinbase's continued effort to transform from a trading-focused exchange into a broader digital financial services platform, with growing contributions from stablecoins, lending, subscriptions, and emerging AI-powered financial products.
