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Coinbase, the leading U.S. cryptocurrency exchange, reported mixed first-quarter results that disappointed Wall Street, sending its shares down in after-hours trading. While some parts of the business showed promise, the company missed its overall revenue target.
Earnings came in at $65.6 million, or 24 cents per share, down significantly from $1.18 billion, or $4.40 per share, a year earlier. After adjusting for crypto-related investments, the company posted a profit of $527 million, or $1.94 per share.
Revenue rose 24% year-over-year to $2.03 billion but still fell short of the $2.12 billion analysts had forecast. Coinbase earned $1.26 billion from transactions and $698.1 million from its growing subscription and services segment.
Trading volumes declined across the board. Consumer trading activity dropped 17% to $78.1 billion, while institutional trading dipped 9% to $315 billion. These declines follow a surge in activity late last year tied to political developments in the U.S.
While Q1 featured positive signs—like Bitcoin hitting an all-time high—investors became more risk-averse in April. Concerns about Donald Trump’s tariff plans created turbulence in financial markets, hitting crypto particularly hard.
Nevertheless, Coinbase generated $240 million in transaction revenue in April alone. The company expects second-quarter subscription and services revenue to fall between $600 million and $680 million. It also warned that falling asset prices could reduce blockchain reward income.
Coinbase is also making strategic moves to expand globally. It announced a $2.9 billion deal to acquire Deribit, a Dubai-based derivatives exchange. Although this marks a bold step into international markets, the news failed to lift investor sentiment, and the stock remains down nearly 17% year-to-date.
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