Coinbase shares fell about 5% in after-hours trading Thursday after the crypto exchange reported a $394 million net loss for Q1 2026, marking a sharp reversal from the $65.6 million profit a year earlier. Revenue dropped to $1.4 billion from $2.03 billion, though it slightly beat analyst expectations of $1.49 billion.
The company cited a more than 20% decline in total crypto market volumes and spot volumes quarter over quarter, with low volatility suppressing trading activity. Transaction revenue fell 23% quarter over quarter to $756 million. Subscription and services revenue reached $584 million, accounting for 44% of net revenue. Stablecoin revenue hit $305 million, driven by USDC market cap growth.
Newer business lines showed growth: retail derivatives annualized revenue topped $200 million, and prediction markets surpassed $100 million in annualized revenue in March. Adjusted EBITDA was $303 million, marking the 13th consecutive positive quarter. The company ended the quarter with $10.2 billion in cash and equivalents.
For Q2, Coinbase reported transaction revenue of about $215 million through May 5 and guided subscription and services revenue between $565 million and $645 million. A one-time restructuring expense of $50 million to $60 million is expected as the company pushes further into AI-driven efficiency.