Coinbase posts $394.1M Q1 loss as spot trading slides

Coinbase Global reported a $394.1 million net loss for the quarter ended March 31 and total revenue of $1.413 billion. The company posted a loss of $1.49 per share, compared with an LSEG-tracked analyst expectation of a $0.27 profit per share.

Net revenue was $1.339 billion, down about 20% from the prior quarter and 31% from the same quarter a year earlier. Total crypto market volumes fell 28% while spot trading volume on the platform declined 37% for the quarter.

Transaction revenue fell 23% versus the prior quarter. Consumer transaction revenue was $567 million, a 23% decline, as consumer spot trading volume dropped 35%. Institutional transaction revenue was $136 million, down 27% from the prior quarter. Other transaction revenue totaled $53 million, down 17%, reflecting slower instant transfers and lower revenue from the Base network.

On the expense side, transaction expense fell to $195.9 million, down 10% from the prior quarter and 35% year over year. Sales and marketing expense was $266.7 million, down 15% quarter over quarter but 8% higher than a year earlier. General and administrative costs were $376.1 million, down 17% from Q4 and 5% from a year earlier. Technology and development expense rose to $525.6 million, up 6% from Q4 and 48% year over year; the company attributed part of that increase to one-time acquisition-related costs recorded in Q4 2025. Total operating expenses were $1.434 billion.

Operating income swung to a $21.4 million loss, compared with $273.8 million in operating income in the prior quarter and $705.8 million in the year-ago quarter. Below operating income, the company recorded $482.4 million in losses on crypto assets held for investment and $35.2 million in losses on crypto assets held for operations. Interest expense was $22.6 million. Other income totaled $61.6 million, and the tax line showed a $70.6 million benefit.

Coinbase continued to expand revenue outside spot trading. Subscription and services accounted for 44% of net revenue. Stablecoin-related revenue reached $305 million, supported by higher USDC usage and record average USDC balances inside Coinbase products. Average USDC held in Coinbase products was $19 billion, including $3 billion in corporate balances; off-platform USDC averaged $56 billion, putting total average USDC market capitalization at about $75 billion. Revenue tied to stablecoins and corporate balances totaled $324 million, split among Coinbase products, corporate balances and off-platform USDC.

Other product lines contributed revenue: blockchain rewards generated $101 million and interest and finance fee income was $68 million. Retail derivatives are annualizing at more than $200 million, and prediction markets are on pace to reach annualized revenue above $100 million. Adjusted EBITDA was $303.3 million, down from $565.9 million in the prior quarter and $929.9 million a year earlier; adjusted EBITDA remained positive for the 13th consecutive quarter.

The company attributed the revenue and volume declines to softer crypto prices and lower trading activity from both retail and institutional customers in the March quarter.