RESOLVING THE LEDGER
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The company had revenue of $1.22 billion, versus consensus expectations of $1.29 billion. Transaction revenue came in at $599 million, compared with expectations of $628 million.
Subscription and services revenue totaled $555 million, versus estimates of $599 million, as investors looked for signs that recurring businesses continued to offset weakness in trading activity.
Coinbase added 819 BTC to its balance sheet during the second quarter, bringing its total holdings up to 17,211 BTC, an increase of 5% quarter-over-quarter.
The results came after a difficult quarter for crypto markets. Bitcoin BTC $ 64,794.03 fell roughly 14% during Q2 while ether lost about 25%, reducing both trading volumes and volatility across spot markets. Analysts had expected a slowdown throughout the industry after activity weakened in April and May, although trading improved modestly in June. Robinhood (HOOD), on Wednesday, reported that its revenue from crypto trading fell 38% year over year to $100 million from $160 million.
In a post on X, CEO Brian Armstrong pointed to the company's expanding businesses beyond spot trading, including stablecoins, Base and prediction markets, noting that Coinbase reached a record 10.3% share of global crypto trading volume during the quarter.
CFO Alesia Haas struck a more measured tone, saying crypto market conditions were challenging as industry spot trading volumes fell more than 20% and the total crypto market capitalization declined by double digits. She said those conditions contributed to a 14% quarter-over-quarter decline in Coinbase's total revenue.
Several Wall Street firms lowered estimates ahead of earnings and trimmed EBITDA forecasts as lower crypto prices weighed on institutional trading, blockchain rewards and retail activity.
Investors remained focused on Coinbase's efforts to reduce its dependence on transaction fees.
Subscription and services revenue, which includes USDC interest income, staking, custody, Coinbase One memberships and institutional services, has become a key measure of whether the company can generate more stable revenue through crypto market cycles.
Analysts also watched for updates on newer businesses, including derivatives, prediction markets and Base, Coinbase's Ethereum layer-2 network.
The company will host a call with investors at 5pm E.T.
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