Coinbase Reports 20% Revenue Drop in Q4 2025

Coinbase posts Q4 2025 revenue decline and net loss as crypto prices fall, while analysts adjust targets and markets react cautiously today.

Coinbase Global Inc. reported weaker fourth-quarter 2025 financial results amid declining cryptocurrency prices. The company has had a 20% drop in revenue year over year. As a result, Coinbase released $1.8 billion in revenue for the quarter. In addition, the firm swung to a loss of $667 million net. Previously, Coinbase had accounted for a $1.3 billion profit.

Crypto Market Weakness Pressures Coinbase Performance

According to Bloomberg, revenue fell much more than analysts had anticipated in the period. Decline in token prices led to a decrease in trading activity in major digital assets worldwide. Therefore, Coinbase suffered both a decrease in transaction volume and a decrease in platform engagement. Additionally, the company booked its unrealized losses on its crypto holdings and investments.

Bloomberg further wrote that Coinbase’s earnings reversal caught a number of market observers off guard. The reported $667 million net loss was in stark contrast to the figure for profit last year. However, the stock barely rose in after-hours trading sessions.

Related Reading: Coinbase Launches AI Wallets for Crypto Trading

Meanwhile, Coinbase’s COIN stock has been under a lot of pressure to the downside in recent months. Shares are down almost 37% year to date as crypto volatility continues. Furthermore, the stock has dropped about 65% from the early October trading levels. At last trading day, the price of COIN was in the area of minus 8%. The closing price stood near $141.09.

FactSet estimates showed lower Oppenheimer expectations before the official announcement. Analysts had projected earnings per share of $1 for the quarter. This forecast was a significant decrease from $4.66 a year before. In addition, analysts predicted a decline in revenue by 20% down to $1.8 billion.

Coinbase Diversifies Beyond Spot Crypto Trading

Only recently, JPMorgan Chase analyst Kenneth Worthington lowered the Coinbase price target. The target has been reduced from $399 to $290 due to changing market conditions. However, Worthington further reiterated an “Overweight” rating on Coinbase shares. The adjustment reflected valuation changes, not fundamental business deterioration.

The earnings report came in a trading session that was operationally challenging for Coinbase. The platform had a trading disruption for over 1 hour. As a result, users had temporary problems carrying out transactions across supported digital assets. Such incidents often raise short-term concerns about the system’s reliability and resilience.

Coinbase was launched in 2012 and was founded by Brian Armstrong and Fred Ehrsam. The company got public through a direct listing in 2021. In May last year, Coinbase became part of the S&P 500 index. This inclusion was a milestone for the representation of cryptocurrencies in the mainstream equity benchmarks.

Moreover, Coinbase had strategically expanded beyond spot crypto trading activities of spot crypto last year. The company has acquired Deribit, one of the leading crypto derivatives trading exchanges. This acquisition fit into Coinbase’s broader “Everything Exchange” vision. The strategy’s goal is to provide stocks, cryptocurrencies, tokenized assets, and prediction markets.

Market participants will now evaluate Coinbase’s outlook in changing digital asset conditions. Investors will pay close attention to trading volumes, custodial services, and subscription revenues. Despite recent pressures, Coinbase is a key infrastructure provider in global cryptocurrency markets.