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Coinbase drops about 5% after Q2 revenue misses estimates

Coinbase reported $1.22 billion in overall revenue, with transaction revenue at $599 million and subscription and services revenue at $555 million.

Reported · Written up by our desk · Results

Coinbase shares fell about 5% in after-hours trading Thursday after the company reported second-quarter results that came in below expectations, reflecting weaker crypto trading activity after the sector’s Q2 selloff, according to CoinDesk.

Coinbase said it generated $1.22 billion in overall revenue versus a $1.29 billion consensus estimate. Transaction revenue was $599 million versus $628 million expected, while subscription and services revenue totaled $555 million versus $599 million expected.

The results also followed a difficult quarter for major digital assets, with Bitcoin down roughly 14% in Q2 and ether down about 25%, which reduced both trading volumes and volatility across spot markets, CoinDesk reported.

Investors will now look to Coinbase’s earnings call for guidance on efforts to diversify beyond trading revenue, including subscription products and initiatives such as stablecoins, Base, and prediction markets, as Wall Street firms lowered estimates ahead of earnings. CoinDesk also noted Coinbase’s management pointed to recurring businesses and wider efforts as spot trading volumes declined more than 20% and total crypto market capitalization fell by double digits during the quarter.

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