Coinbase Global Inc. reported a significant first-quarter net loss of $394.1 million, missing Wall Street revenue expectations and causing its stock to slide. The crypto exchange’s revenue fell to $1.41 billion as transaction revenue slumped 40% amid a broader market downturn. CEO Brian Armstrong expressed long-term optimism about the company’s diversification, while the firm has initiated layoffs and pursued new business lines like prediction markets.
Coinbase shares declined after the exchange reported a steep first-quarter loss. The company posted a net loss of $394.1 million, its second consecutive quarterly loss following a $667 million loss in Q4 2025.
This contrasted with a $65.6 million profit from the same period a year earlier. Quarterly revenue was $1.41 billion, missing analyst estimates of $1.5 billion.
Transaction revenue dropped 40% year-over-year while subscription and services revenue fell 13.5%. The loss per share was $1.49, far worse than the expected 36-cent loss.
Chief Financial Officer Alesia Haas attributed the challenges to difficult macro conditions. “Total crypto market cap and total crypto trading volume were both down more than 20% quarter-over-quarter,” Haas stated on an earnings call.
The earnings report prompted a 4.7% after-hours stock drop to under $184. Coinbase’s stock has fallen more than 14.5% year-to-date.
In response, the company has undertaken cost-cutting, including laying off 14% of its workforce. It is also pursuing new business lines such as prediction markets.
CEO Brian Armstrong struck an optimistic tone about the company’s long-term direction. “The world economy is moving on-chain, and Coinbase was built to capitalize on this transition,” Armstrong told investors.
He added that Coinbase is transitioning from a spot-focused platform to one supporting any asset class. “As we diversify, these things will get balanced out, where we’ll just be in a more upward channel over time,” Armstrong said.
The struggles extended to rival Robinhood Markets, which also missed Q1 estimates last month. Its crypto revenue and trading volumes nearly halved from a year earlier.
Analysts at Bernstein maintained a bullish rating on both companies in March. They argued the firms offer exposure to a broader shift toward tokenized finance.
