Coinbase Books Wider Than Expected Losses Amid Weaker Crypto Trading
Coinbase posted wider-than-expected losses in Q2, as weaker crypto trading activity offset growth in its subscription and services business. The cryptocurrency exchange reported a net loss per share of $1.36, compared to analysts' expectations for a loss of $0.01 per share.
Revenue fell to $1.22 billion from the year-ago period, missing analysts' estimates of $1.35 billion. Despite this, Coinbase's subscription and services revenue accounted for 48% of net revenue, highlighting continued diversification beyond trading fees.
The company reported a decline in transaction revenue, which dropped 21% quarter-over-quarter to $599 million due to lower asset prices and subdued volatility. However, stablecoin revenue totaled $292 million, supported by record average USDC balances held on Coinbase products.