Coinbase shares fell 4% in after-hours trading Thursday after the crypto exchange reported weaker-than-expected first-quarter results. The company posted a loss of $1.49 per share, missing analyst expectations for a 27-cent profit. Revenue reached $1.41 billion, below the $1.52 billion estimate.
Transaction revenue totaled $755.8 million, shy of the $805.2 million forecast. Subscription and services revenue, a key metric as Coinbase diversifies from trading fees, came in at $583.5 million versus expectations of $619.3 million.
Crypto markets weakened sharply, with bitcoin and other digital assets falling. Lower prices and reduced volatility typically lead to weaker spot trading volumes. Despite a roughly 12% bitcoin rebound in March, the early-quarter selloff weighed on results.
Coinbase has been expanding beyond core trading into stablecoins, staking, derivatives, and blockchain infrastructure. The company said its global crypto trading volume market share hit a record 8.6%, driven partly by derivatives growth. Trailing 12-month derivatives volume surged 169% year over year, and retail derivatives revenue exceeded an annualized $200 million for the first time.
Coinbase noted growth in prediction markets, which surpassed $100 million in annualized revenue within two months of its U.S. launch, and stablecoin activity. Its Base blockchain processed 62% of global onchain stablecoin transaction volume in the quarter.
Earlier this week, Coinbase announced it would cut about 700 jobs, roughly 14% of its workforce, as part of an AI-driven restructuring, citing the broader crypto downturn.
Investors are increasingly focused on whether Coinbase's subscription and infrastructure businesses can offset the cyclical swings of crypto trading revenue during weaker markets.