Coinbase shares declined about 5% in after hours trading Thursday after the crypto exchange reported a first quarter loss and weaker revenue as trading activity slowed across the market.
The company posted $1.4 billion in total revenue, $756 million in transaction revenue, and a $394 million net loss for Q1 2026.
The results marked a sharp reversal from the same period last year, when Coinbase reported a profit of $65.6 million. Revenue fell from $2.03 billion a year earlier, while analysts had expected about $1.49 billion.
Coinbase said total crypto market volumes and spot volumes both fell more than 20% quarter over quarter, while low volatility suppressed trading activity, particularly in longer tail assets. The company said transaction revenue fell 23% quarter over quarter, outperforming broader market volume declines.
Subscription and services revenue reached $584 million, accounting for 44% of net revenue. Stablecoin revenue totaled $305 million, driven by USDC market cap growth and record average USDC held in Coinbase products of $19 billion.
The company also pointed to growth in newer business lines. Retail derivatives annualized revenue topped $200 million, while prediction markets reached more than $100 million in annualized revenue in March, its first two full months live.
Coinbase reported $303 million in adjusted EBITDA, marking its 13th consecutive quarter of positive adjusted EBITDA. The company also ended the quarter with $10.2 billion in cash and cash equivalents and said it had $12 billion in available resources, including $1.8 billion in crypto and marketable investments.
For Q2, Coinbase said transaction revenue was about $215 million quarter to date through May 5 and guided subscription and services revenue between $565 million and $645 million. The company also expects a one time restructuring expense of $50 million to $60 million in Q2 as it pushes further into AI driven efficiency.