Coinbase delivered a $667 million net loss in Q4 2025, a stark reversal from prior profits, as the crypto slump dragged revenue down 5% quarter-on-quarter to $1.8 billion, according to The Block on February 12, 2026. Transaction revenue fell 6% to $983 million, reflecting weaker spot trading amid a $1.1 trillion market cap wipeout in late 2025, according to CoinGecko. Shares dipped 4% after-hours to $135, a two-year low, before recovering to $147, according to The Block price data. This downturn highlights Coinbase’s vulnerability to crypto cycles, despite diversification efforts.
Consumer transaction revenue dropped 13%, driven by lower-fee advanced trading and Coinbase One usage, while institutional spot volumes declined. However, stablecoin revenue rose 3% to $364 million, fueled by record USDC balances. Deribit acquisition boosted derivatives, cushioning institutional revenue. Subscription and services slipped 3% to $727 million, but $11.3 billion in cash and $1.7 billion in share repurchases underscore financial resilience. X posts from @coinbase highlight USDC’s role in payments infrastructure.
Coinbase expands into equities, prediction markets, and payments, aiming for an “Everything Exchange.” CEO Brian Armstrong’s $500M+ share sales added pressure. The SEC’s XRP ETF delays and Illinois’s strict rules reflect regulatory uncertainty. Q1 2026 transaction revenue already at $420M, but volatility warns against extrapolation. Core Foundation’s BTC/CORE staking with Hex Trust shows institutional yield demand.
Coinbase’s $667M loss underscores crypto’s cyclical nature, but stablecoin strength and institutional focus position it for recovery. With BTC at $113,234 and ETH at $4,070, a Jackson Hole dovish signal could spark rallies. Investors should monitor ETF flows on SoSoValue and FOMC updates. Coinbase’s diversification may stabilize revenue, but crypto slumps remain a risk in 2026.
