Coinbase Slides 7% After Missing Wall Street’s Q2 Targets

Coinbase Misses Q2 Revenue Target, Stock Drops 7% Post-Market

Shares of Coinbase (COIN) slid 7% in after-hours trading Thursday after the crypto exchange delivered second-quarter results that fell short of analyst forecasts, despite a favorable market environment.

The company reported total revenue of $1.5 billion — slightly below the $1.59 billion projected by analysts, even though it marked a modest year-over-year increase from $1.45 billion. Adjusted EBITDA came in at $512 million, down from $596 million in the same period last year.

While crypto prices surged during the quarter — with both bitcoin (BTC) and ether (ETH) notching new yearly highs — Coinbase said trading activity weakened, leading to a sequential decline in transaction revenue. At $764 million, transaction revenue fell 39% from Q1 levels.

The muted results contrast with those of Robinhood (HOOD), which reported strong Q2 earnings just a day earlier. Robinhood saw $28.3 billion in crypto trading volume and handily beat expectations, helping drive its 160% year-to-date stock rally.

Coinbase emphasized its progress in diversifying beyond retail trading, highlighting growth in institutional services, including spot bitcoin ETF custody, expanded staking products, and ongoing development of its Base layer-2 network. However, these emerging segments remain secondary to trading in terms of overall revenue.

“In Q2, we advanced our mission to bring more of the financial system onchain,” the company said in its earnings release, pointing to new derivatives offerings, increased global access, and a broader list of supported tokens.

Still, the results reaffirm the company’s sensitivity to market cycles, as trading volume — rather than price alone — remains the key earnings driver.