Coinbase misses Q1 earnings and revenue estimates as trading activity dips 10%

U.S. crypto exchange Coinbase reported first-quarter earnings Thursday afternoon, missing top and bottom-line expectations as trading patterns cooled from the post-election bump of the prior quarter.

The company reported $527 million in adjusted net income for the quarter ending March 31. Earnings per share of $0.24 missed the consensus estimate of $1.93. Total revenue of $2 billion came in slightly below the $2.12 billion estimates and down from $2.3 billion in Q4 2024. First-quarter transaction revenue dipped 19% to $1.2 billion as trading volume dipped 10%.

Coinbase ended the quarter with $9.9 billion in USD resources, a rise of about $600 million quarter over quarter.

Earlier today, Coinbase agreed to acquire crypto derivatives exchange Deribit in a $2.9 billion deal. Industry analysts cheered the news, as it will give the U.S.-based exchange immediate global reach for derivatives trading and institutional-grade infrastructure as demand for digital asset products accelerates. Derivates trading makes up a far greater percentage of total crypto volumes than spot markets, which Coinbase dominates in the U.S.

"This quarter, we made meaningful progress against our 2025 priorities of driving revenue, driving utility, and building the foundations to power the next decade of growth," the company wrote in its shareholder letter. "We continued to gain market share in both global spot and derivatives. USDC — the #2 dollar-backed stablecoin in the world — saw continued momentum, with its market cap reaching new all-time highs of over $60 billion, and further supported by growing balances among both our retail and institutional users."

Coinbase reported $197 million in stablecoin revenue, a decrease from the prior quarter's $226 million.

"Looking ahead, we’re focused on expanding real-world crypto utility, strengthening and extending our trading platform, and scaling the infrastructure that will power the financial system of the future," the letter continued. "With growing regulatory clarity, we're accelerating our vision towards economic freedom."

In April, Coinbase said it generated approximately $240 million of total transaction revenue and expects second-quarter subscription and services revenue to be within a range of $600-$680 million. The exchange anticipates quarter-over-quarter growth in stablecoin revenue "to be more than offset" by a decline in blockchain rewards revenue due to lower asset prices.

Coinbase’s stock was trading down 2.5% to $201 per share in the after-hours session. The stock is down about 19% in 2025 and about 2% over the past year, according to The Block's COIN data.