Coinbase shares tumble as second-quarter revenue disappoints
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Subscription revenue failed to offset weaker trading revenue.
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cryptocurrency
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July 31, 2025
09:18 PM
CNBC
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In this articleCOIN your favorite stocksCREATE FREE ACCOUNTwatch now5:1805:18We're seeing growth in stablecoins despite choppy market, says Coinbase CFO Alesia HaasClosing Bell: OvertimeCoinbase s fell Thursday as second-quarter revenue came in shy of analysts' estimates
Gains in the cryptocurrency exchange's subscription revenue failed to offset weaker trading volumes during the quarter.In the quarter June 30, Coinbase net income rose to $1.43 billion, or $5.14 per , from $36.13 million, or 14 cents per , a year ago
Earnings in the period benefited from a gain $1.5 billion, including an unrealized one related its Circle investment, and $362 million from its crypto investment portfolio.On an adjusted basis, Coinbase earned $1.96 per , topping estimates of $1.26 reported by LSEG.Revenue rose slightly to $1.5 billion from $1.45 billion in the same quarter last year, coming in just under analysts' expectations of $1.6 billion
Revenue tied to transactions came in at $764 million, missing StreetAccount estimates of $787 million.s fell 6% in ext trading.Analysts were anticipating a weaker second quarter in the wake of the market's exuberance in the first quarter, when traders positioned themselves for the upside of the Trump administration's mises to create more favorable regulatory conditions for the crypto industry.As Washington's focus shifted to tariffs in the second quarter, speculative trading by retail investors slowed across centralized crypto exchanges, while crypto ETF inflows and buying by crypto treasury companies supported prices.Retail engagement and stablecoinsCoinbase reported that retail trading volume, which is typically more fitable than institutional volume, grew 16% year-over-year to $43 billion, but missed the $48.05 billion expected by analysts surveyed by StreetAccount
Subscriptions and services offerings – which include stablecoins, staking, interest income and custody – grew 9% from the same period a year ago to $655.8 million, short of analysts' jection of $705.9 million.Revenue from stablecoins, which became a dominant theme and major driver of crypto market action in the second quarter, came in at $332.5 million, in line with estimates of $333.2 million, per StreetAccount
That was a 38% increase from the same period a year ago and a 12% increase from the first quarter.Coinbase has benefited from a surge in interest in stablecoins after the wildly successful June IPO of Circle, the issuer of the USDC stablecoin
Coinbase has a significant revenue sharing agreement with Circle, wherein it keeps 100% of the revenue generated on all USDC held on Coinbase platforms, plus 50% of all other USDC revenue generated on other platforms.While trading for retail and institutional investors is Coinbase's core , the company is in the midst of a big push to amplify consumer engagement through new ducts and services, taking advantage of new -crypto policies out of Washington.On Thursday the company said it will soon expand beyond crypto to offer tokenized real-world assets, derivatives, prediction , and early-stage token sales within the Coinbase app
The rollout will focus on U.S. users initially.Coinbase s remain higher by more than 50% year-to-date, outperforming the benchmark S&P 500, which the stock joined in May.Don't miss these cryptocurrency insights from CNBC : Jefferies sees Mike Novogratz's Galaxy Digital rallying another 20%Bitcoin could pull back with equities in the coming weeks, warns Piper SandlerEther is starting to outperform bitcoin – and further gains could be ahead for the crypto, charts show
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