Coinbase Dips into Losses as Q4 Results Miss and 2026 Outlook Weighs on Sentiment

The leading U.S. cryptocurrency exchange reported a quarterly loss for the first time after eight consecutive profitable quarters. Coinbase posted a net loss of $667 million for the fourth quarter of 2025, while revenue came in at $1.78 billion?about 22% below the prior-year quarter. Analysts had expected roughly $1.83 billion in Q4 2025 revenue. The miss comes amid a broad downturn in the crypto market as prices declined toward year-end.

The company?s adjusted EBITDA stood at $566 million, also short of the roughly $680 million that market researchers had anticipated. The quarterly loss was amplified by impairments on Coinbase?s own crypto portfolio, which shed value during the market correction.

Transaction revenue was hit hardest, dropping to $983 million from more than $1.5 billion in the prior-year period. The result underscores Coinbase?s continued vulnerability to swings in crypto liquidity, even as management pursues diversification.

Shares had already fallen about 40% since the start of the year as investors digested the quarterly numbers and the softer near-term guidance.

In Q4 2025, Coinbase?s revenue declined year over year even as the firm faced a tougher trading environment. The quarter?s net loss reflected a combination of weaker trading activity and portfolio impairments, with analysts noting the softer price backdrop as a primary factor.

A year with bright spots despite the quarter

For all of 2025, Coinbase reported a total trading volume of $5.2 trillion, up 156% from the prior year. The company?s share of the global spot market doubled, reaching 6.4%. Revenues from subscriptions and services totaled $2.8 billion, and Coinbase One?the paid subscription program?reached roughly one million subscribers.

Should investors sell immediately? Or is it worth buying Coinbase?

Weak near-term outlook weighs on investors

Guidance for the first quarter of 2026 was pointedly soft. Coinbase expects revenue from subscriptions and services between $550 million and $630 million, well below the consensus figure of about $747 million. Transaction revenues stood at about $420 million through February 10, suggesting the muted trading environment persisted into early 2026.

Capital actions and insider activity

In parallel with the earnings release, Coinbase disclosed that Chief Executive Officer Brian Armstrong sold sizable blocks of stock between April 2025 and January 2026. The company also approved a new share repurchase program valued at $2 billion.

Liquidity remains solid, with $11.3 billion in cash and cash equivalents at year-end 2025. Coinbase continues to push product development and has moved to integrate Deribit, a derivatives exchange it acquired in 2025, into its ecosystem.

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