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Coinbase Reports $394 Million Q1 Loss as Trading Slump Hits Revenue

The miss underscores reliance on volatile spot trading despite a push into stablecoins, derivatives, on‑chain services.

Overview

  • Coinbase, which reported results Thursday after the bell, posted $1.41 billion in revenue and a $394.1 million GAAP loss as shares fell about 4% to 5% after hours.
  • Core transaction revenue fell to $755.8 million as spot trading cooled, with retail activity sliding and lower price swings leading users to trade less.
  • Mark‑to‑market losses of about $482 million on crypto held for investment deepened the GAAP loss, even as adjusted EBITDA stayed positive at roughly $303 million with more than $10 billion in cash.
  • Non‑spot lines grew as planned, including $305 million from USDC stablecoin revenue (a dollar‑pegged token), a 169% jump in derivatives volume, prediction markets topping a $100 million annualized pace, and market share rising to 8.6%.
  • After the release, Coinbase is cutting roughly 14% of its workforce, or about 700 jobs, and Wall Street trimmed forecasts, with Barclays lowering its target to $107 and Bank of America to $218.