Coinbase swings to $667 million loss as crypto slump drags Q4 revenue

Coinbase swung to a loss in the fourth quarter of 2025 as softer crypto markets weighed on trading activity, briefly sending shares to a two-year low in post-market trading following the company’s earnings release.

The U.S.-based crypto exchange reported total fourth-quarter revenue of $1.8 billion, down 5% from the prior quarter, while transaction revenue fell 6% quarter-on-quarter to $983 million. Subscription and services revenue also slipped 3% to $727 million.

Coinbase posted a net loss of $667 million for the quarter, compared with a profit in the prior quarter, largely due to investment-related losses tied to its crypto asset portfolio and strategic investments. The weaker quarter follows a stronger third quarter, when revenue surged as trading activity rebounded and ethereum volumes gained share on the platform.

The latest results come as crypto markets sold off into year-end, with softer prices and trading activity pushing total crypto market capitalization down about $1.1 trillion, or roughly 25%. Pressure has continued into the new year, with the market shedding another $700 billion since then, according to CoinGecko data.

Coinbase Institutional recently argued that this drawdown has helped reset crypto markets, leaving positioning healthier and downside risks less fragile heading into 2026.

Consumer transaction revenue declined 13% quarter-on-quarter, driven in part by a shift toward lower-fee advanced trading and greater usage by Coinbase One subscribers. Institutional spot trading volumes also fell, though institutional transaction revenue rose thanks to strength in derivatives trading, including newly acquired Deribit operations.

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Outside trading, stablecoin-related revenue remained a bright spot. Stablecoin revenue rose 3% quarter-on-quarter to $364 million as average USDC balances held in Coinbase products hit new highs, even as lower interest rates partially offset growth.

Coinbase ended the year with $11.3 billion in cash and cash equivalents and continued to repurchase shares, buying back roughly $1.7 billion in stock through early February.

Shares under pressure

Shares of Coinbase (COIN) fell roughly 4% after hours to around $135, their lowest level in about two years, immediately after the company published its fourth-quarter and full-year results, according to The Block price data. The stock then reversed course, rising as much as 4% to around $147 in volatile after-hours trading as investors digested the results.

Coinbase’s stock has also faced pressure in recent weeks following disclosures that CEO Brian Armstrong sold more than $500 million worth of shares over the past nine months, alongside broader weakness across crypto-linked equities.

The company, however, continues pushing product expansion, including stock and ETF trading inside its app, U.S. prediction markets, new stablecoin and payments infrastructure, and derivatives growth as part of its push to build what it calls the "Everything Exchange."

Looking ahead, Coinbase said it has already generated about $420 million in transaction revenue through the first half of the current quarter but cautioned investors against extrapolating those figures given ongoing market volatility.