Coinbase on Thursday reported a second consecutive quarterly loss of $394 million for Q1 2026, sending shares down more than 5% in after-hours trading. The U.S. crypto exchange's net revenue dropped 31% to $1.4 billion, missing analyst expectations as transaction revenue fell 40% to $756 million.
Earlier this week, Coinbase announced it would cut 14% of its workforce, citing market conditions and AI optimization. CEO Brian Armstrong framed the results as execution in a difficult environment, pointing to growth in derivatives trading and stablecoin on its Base network.
The company highlighted its prediction markets product, which has generated over $100 million in annualized revenue within its first two months. Coinbase also noted it holds 90% of on-chain agentic stablecoin transaction volume on Base.
CFO Alesia Haas emphasized 13 consecutive quarters of positive adjusted EBITDA and 12 product lines each generating over $100 million annualized.