Coinbase Global Inc (NASDAQ:COIN) shares fell around 9% in early trading on Friday following the company’s second quarter results, which missed Wall Street expectations as weaker cryptocurrency market conditions weighed on revenue and profitability.
Coinbase reported Q2 revenue of $1.22 billion, below analyst estimates of $1.3 billion, while the company posted a GAAP loss of $1.36 per share, compared with consensus expectations for a loss of about $0.42 per share.
Despite the earnings miss, Coinbase highlighted continued market share gains and diversification across its business. The company reported crypto trading volume market share of 10.3% in the quarter, up from 9.1% in Q1 2026 and marking its third consecutive quarter of gains. Coinbase also said its derivatives trading market share reached a record high for the third straight quarter.
The company noted growth in newer revenue streams, with prediction markets contracts and revenue increasing 106% quarter-over-quarter and surpassing $100 million in annualized revenue. Average USDC held across Coinbase products reached a record $20 billion during the quarter.
Coinbase said subscription and services revenue totaled $555 million in Q2, representing 48% of net revenue, compared with 29% less than two years ago. The company added that 88% of net revenue was generated outside of Bitcoin spot trading fees, reflecting a broader mix of products and services.
The company also reported its 14th consecutive quarter of positive adjusted EBITDA and narrowed its fiscal 2026 adjusted expense range, citing continued cost discipline and efficiency gains from artificial intelligence adoption.
“In Q2 we hit our 3rd consecutive all-time high in crypto trading volume market share, proving our Everything Exchange can deliver in all market conditions,” Coinbase CEO Brian Armstrong said in a statement.
“Coinbase is no longer a bet just on the price of Bitcoin. All of financial services are getting updated by crypto, whether that's trading or payments or lending, and Coinbase is the best-positioned company in the world to power this.”