Coinbase Q2 loss wider than forecast despite record market share

Coinbase reported second-quarter results for the period ended June 30, recording a GAAP net loss of $359 million, wider than the roughly $122 million loss analysts had forecast. Net revenue was about $1.2 billion, down 19% year over year and roughly in line with expectations, though some revenue categories missed estimates.

Transaction revenue totaled $599 million, below analysts’ $636 million estimate. Subscription and services revenue came in at $555 million, under the $590 million consensus. Adjusted EBITDA also missed market projections.

The company attributed the revenue shortfalls to weaker consumer and institutional trading. Total crypto spot trading volume fell about 25% quarter over quarter. Lower market volatility and softer crypto prices reduced trading activity and fee income.

Despite lower industry-wide trading, Coinbase’s share of global crypto trading rose to 10.3% in Q2 from 9.1% in the first quarter, the highest on record for the exchange.

Coinbase has expanded its product set beyond spot trading into derivatives, stablecoins, tokenized finance, prediction markets and payments. Executives noted that ongoing investments in those areas contributed to the wider GAAP loss and are intended to reduce dependence on spot transaction fees.

Shares closed up 2.2% in regular trading and fell more than 5% in after-hours trading following the earnings release.