Coinbase Stumbles with $359 Million Loss in Q2

Coinbase's stock took a hit after the company reported its Q2 2026 earnings, posting a net loss of $359 million. The loss was largely due to a non-cash markdown on crypto assets worth $209.5 million, which is required by accounting rules to be revalued quarterly.

Strip out this one-time expense, and the company's adjusted EBITDA was positive at $207.8 million for the 14th consecutive quarter. Free cash flow was also a respectable $197.3 million.

Coinbase's revenue of $1.22 billion missed analyst expectations by 11 percent, down 18.5 percent year over year and 14 percent sequentially. The company's share of global crypto trading volume hit an all-time high of 10.3 percent for the third consecutive quarter.

CEO Brian Armstrong emphasized that Coinbase is no longer just a bet on Bitcoin's price, pointing to the growth of subscription and services revenue, which now accounts for 48 percent of total revenue, up from 29 percent two years ago.