Coinbase Posts $667 million Q4 Loss, Missing EPS Forecasts
San Francisco – February 13, 2026 – Crypto‑exchange Coinbase Global Inc. announced a net loss of $667 million for the fourth quarter of 2025, ending an eight‑quarter streak of profitability. The loss translated to earnings of $0.66 per share, falling short of the consensus estimate of $0.92 by $0.26.
Revenue Decline Amid a Slumping Bitcoin Market
Total net revenue for the quarter dropped 21.5 % year‑over‑year to $1.78 billion, below analysts’ projection of roughly $1.85 billion. The contraction was driven primarily by a near‑37 % slump in transaction‑related revenue, which fell to $982.7 million. By contrast, the subscription‑and‑services segment grew more than 13 % to $727.4 million, partially offsetting the weakness in trading fees.
The dip in transaction revenue mirrors the broader downturn in the cryptocurrency market. Bitcoin, the benchmark asset for many exchanges, slid from a high of $126,080 in early October to under $88,500 at year‑end, a decline of almost 30 %. The cryptocurrency has since fallen an additional 25.6 % YTD, trading around $65,760 at the time of the report.
Stock Reaction and Outlook
Despite the earnings miss, Coinbase’s shares rallied 2.9 % in after‑hours trading, reaching $145.18, after earlier intra‑day losses that saw the stock close at $141.10. The modest rebound suggests investors are weighing the company’s longer‑term positioning alongside the immediate earnings disappointment.
Looking ahead, Coinbase projected that first‑quarter 2026 transaction revenue would be approximately $420 million as of February 10. However, the firm expects subscription and services revenue to decline from the $727 million recorded in Q4 to a range between $550 million and $630 million.
Management Commentary
Chief Financial Officer Aleshia Haas told analysts on the earnings call that the company intends to keep technology, sales, and marketing spending roughly flat versus the previous quarter. “We will remain agile throughout the year, balancing growth opportunities against our cost structure,” Haas said.
Coinbase also highlighted that 2025 was a “strong year” operationally and financially, with full‑year revenue rising 9.4 % to $6.88 billion compared with 2024. The firm noted that more than 12 % of all crypto assets globally were held on its platform, underscoring its market reach.
Key Takeaways
- Loss Ends Profitability Run: The $667 million loss marks the first quarterly deficit since Q3 2023, snapping an eight‑quarter profit streak.
- Revenue Mix Shifts: Transaction revenue fell sharply, while subscription‑and‑services income grew modestly, reflecting a shift toward recurring‑revenue products.
- Market Headwinds: A steep Bitcoin price decline heavily impacted trading volumes and fee income.
- Share Price Resilience: After an intraday dip, the stock recovered in after‑hours trading, indicating investor confidence in Coinbase’s strategic positioning.
- Cautious Outlook: Management expects lower subscription revenue in Q1 2026 and plans to keep operating expenses steady, aiming for a more disciplined cost base amid volatile market conditions.
Coinbase’s performance underscores the sensitivity of crypto‑focused exchanges to price cycles in digital assets, while its diversification into subscription services may provide a buffer against future market swings.
Source: https://cointelegraph.com/news/coinbase-667m-loss-q4-earnings-miss-crypto-market-crash?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
