Coinbase Q1 loss $394M, revenue misses; shares fall

Coinbase reported a net loss of $394.1 million for the first quarter and revenue of $1.41 billion, missing analyst estimates. Earnings per share were a $1.49 loss versus analysts’ forecast of a $0.36 per-share profit. Shares fell about 4.7% in after-hours trading to under $184 and have declined more than 14.5% year to date.

The Q1 loss is the company’s second straight quarterly deficit; Coinbase posted a $667 million loss in the fourth quarter of 2025 after a $65.6 million profit a year earlier. Transaction revenue, which comes from trading fees, dropped roughly 40% year over year. Subscription and services revenue declined about 13.5%.

CFO Alesia Haas on the earnings call described market conditions as “genuinely tough,” noting that total crypto market capitalization and trading volume each fell by more than 20% quarter over quarter.

On Monday Coinbase announced it will cut about 700 roles, or roughly 14% of its workforce, as part of cost reductions. Management highlighted efforts to grow non-transactional revenue and roll out new products, including prediction markets and initiatives tied to tokenized assets.

CEO Brian Armstrong on the call stated, “The world economy is moving on-chain, and Coinbase was built to capitalize on this transition,” and outlined the company’s aim to broaden beyond spot crypto trading.

Other brokerages have reported weaker crypto-related revenue and lower trading volumes in recent months.