Coinbase Global Inc. reported a net loss of $359 million, or $1.36 per share, for the second quarter ended June 30, 2026, as softer crypto trading activity weighed on results. The company generated approximately $1.22 billion in net revenue, down about 19% from $1.5 billion in the year-earlier period and below analyst expectations near $1.29 billion to $1.3 billion.

Shares of the company fell between 5% and 7% in after-hours trading after closing the regular session higher at $163.58. The loss marked the third consecutive quarterly deficit, though the shortfall narrowed from previous periods.

Trading Weakness Drives Revenue Shortfall

Transaction revenue totaled $599 million, missing consensus forecasts that ranged from about $628 million to $636 million. Subscription and services revenue reached $555 million, also falling short of estimates near $590 million to $599 million. Adjusted EBITDA remained positive at $207.8 million, extending a streak of 14 consecutive quarters above zero, though the figure declined from the prior quarter.

Coinbase attributed the decline in transaction revenue to weaker consumer and institutional trading amid a roughly 25% quarter-over-quarter drop in total crypto spot trading volume. Lower market volatility and weaker crypto asset prices contributed to the slowdown. Bitcoin declined approximately 14% during the quarter while ether fell about 25%.

Record Market Share Amid Industry Contraction

Despite the overall drop in industry activity, Coinbase captured a record 10.3% share of global crypto trading volume, up from 9.1% in the first quarter. The gain marked the third consecutive quarter of expanding market share. Derivatives trading share also reached an all-time high for the third straight quarter even as the broader derivatives market contracted by double digits.

Prediction markets provided a bright spot. Contracts and revenue more than doubled, rising 106% quarter over quarter and pushing the business above a $100 million annualized revenue rate. Binaries products launched late in the quarter further boosted daily trader counts and revenue.

Diversification Efforts Continue

Subscription and services revenue accounted for 48% of net revenue, up from 29% in the fourth quarter of 2024. Coinbase reported that 88% of net revenue came from sources other than Bitcoin spot trading. Average USDC balances held across Coinbase products reached a record $20 billion, representing more than 30% of the stablecoin’s circulating supply at quarter-end.

Stablecoin transaction volume on Base, the company’s Layer 2 network, increased sevenfold from a year earlier. The company also reduced and narrowed its full-year adjusted expense guidance.

Restructuring costs of $52.4 million appeared in the quarter, linked to earlier workforce reductions. Coinbase added 819 bitcoin to its balance sheet, bringing total holdings to 17,211 BTC.

Broader Context and Forward View

The results arrived after several Wall Street firms had already trimmed estimates ahead of the report, citing subdued trading volumes. Analysts had pointed to soft retail and institutional activity in April and May, with only partial recovery in June. Rival platforms also reported declines in crypto-related revenue during the period.

Management continued to stress progress on the “Everything Exchange” strategy, which expands beyond traditional spot trading into derivatives, prediction markets, tokenized assets, payments and infrastructure services. The company noted productivity gains from artificial intelligence tools used in engineering work.