Coinbase said its fourth-quarter revenue came in at $1.8 billion, down more than 20% from a year earlier, while the company recorded a net loss of $667 million. In the same quarter last year, Coinbase posted a $1.3 billion profit. The swing came as lower digital-asset prices cut into trading activity across the market.
Bloomberg reported that Coinbase shares edged slightly higher in after-hours trading after the results, though the stock is still down nearly 37% this year. The company’s numbers track a broader slowdown in crypto. Bitcoin has fallen about 50% from its October peak, and that retreat has pulled retail traders to the sidelines.
Market weakness is hitting multiple trading platforms
The pressure is not limited to Coinbase. Gemini Space Station recently said it plans to cut as much as 25% of its workforce and reduce its international operations. Kraken reported lower sequential revenue and also saw its chief financial officer leave. Robinhood Markets Inc. said its crypto trading revenue fell 38%.
Dan Dolev, an analyst at Mizuho Securities, described the setup as soft revenue with strong institutional activity and weak consumer demand. He also said the first-quarter run rate came in below consensus expectations and pointed to an EBITDA miss that needs closer review. That assessment matches the split visible in Coinbase’s latest report: institutional demand is holding up better, while retail trading remains subdued.
Derivatives and newer markets helped cushion the decline
Coinbase has spent the past few years trying to reduce its dependence on spot trading. The company acquired crypto options exchange Deribit and also launched stock trading and prediction markets, adding business lines outside its traditional base.
Chief Financial Officer Alesia Haas said Coinbase saw softer quarter-over-quarter market conditions, but still outperformed the market on total trading volume. She said derivatives accounted for much of that relative strength. In a weaker spot market, that matters. Derivatives can keep activity elevated even when token prices are under pressure.
Stablecoin income faces a policy risk
Coinbase has also leaned more heavily on stablecoin-related revenue. Its revenue-sharing arrangement tied to USD Coin, issued by Circle Internet Group Inc., has historically delivered steadier and higher-margin income than transaction fees.
That stream may face new limits. A draft stablecoin bill in Washington could restrict rewards linked to user balances, which would affect how those revenues are generated. The report said Chief Executive Officer Brian Armstrong has withdrawn support for the bill. Coinbase has also met White House officials twice to discuss possible compromises.