Coinbase Shares Slide After Q2 Revenue Misses Analyst Targets

Coinbase (COIN) shares fell 7% in after-hours trading on Thursday after the crypto exchange posted second-quarter results that came in below Wall Street expectations.

The company reported total revenue of $1.5 billion, up slightly from $1.45 billion in the same period last year but short of the $1.59 billion forecasted by analysts, according to FactSet.

Adjusted EBITDA came in at $512 million, down from $596 million year-over-year, reflecting a moderation in profitability despite broader crypto market strength.

While bitcoin (BTC) and ether (ETH) both hit new yearly highs during the quarter, Coinbase’s transaction volume declined on a sequential basis. Transaction revenue dropped 39% from Q1, landing at $764 million—a signal that trading activity failed to keep pace with price momentum.

The results follow a stronger report from competitor Robinhood (HOOD), which saw $28.3 billion in crypto volume and handily beat analyst expectations. Robinhood’s stock has surged 160% year-to-date, buoyed by strong performance in both crypto and equities trading.

Coinbase, by contrast, continues to balance its retail trading business with a growing institutional footprint. The company highlighted recent growth in ETF custody services, an expanded staking suite, and ongoing development of its Base layer-2 network. Still, trading activity remains the primary revenue driver.

“In Q2, we advanced our mission of bringing the financial system onchain,” Coinbase said in its shareholder letter, citing global expansion, new spot listings, and growth in derivatives offerings as key strategic wins.