Crypto exchange Coinbase reported mixed second-quarter results on Thursday, missing Wall Street expectations on profitability as weaker trading activity weighed on results despite the company capturing a record share of the crypto market.
In the second quarter, Coinbase generated roughly $1.2 billion in net revenue, broadly in line with expectations but down 19% from a year earlier. The company reported a GAAP net loss of $359 million, significantly wider than analysts’ expectations for a roughly $122 million loss. Transaction revenue, subscription and services revenue, and adjusted EBITDA also fell short of consensus estimates.
Despite the losses, the exchange posted an all-time-high 10.3% share of global crypto trading volume, up from 9.1% in the first quarter, even as industry-wide trading activity weakened.
Transaction revenue totaled $599 million, below analyst expectations of $636 million, while subscription and services revenue came in at $555 million, missing the $590 million consensus estimate.
Coinbase attributed the decline in transaction revenue to weaker consumer and institutional trading activity amid a 25% quarter-over-quarter drop in total crypto spot trading volume, lower market volatility and weaker crypto prices.
The results come as Coinbase continues to position itself as an “Everything Exchange,” broadening its business beyond spot cryptocurrency trading into derivatives, prediction markets, tokenized assets and payments.
Coinbase shares were down more than 5% in after-hours trading after closing 2.2% higher during regular trading.
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