Coinbase encountered a challenging fourth quarter in 2025, missing Wall Street forecasts with a notable net loss of $667 million, marking its first loss since Q3 of 2023. This setback occurred as the crypto market experienced a significant downturn.
In its latest earnings report, Coinbase revealed that its earnings per share amounted to 66 cents, falling short of the expected 92 cents by 26 cents. The company's net revenue also declined by 21.5% year-on-year, reaching $1.78 billion, which was below the anticipated $1.85 billion. Transaction-related revenue took a substantial hit, dropping nearly 37% year-on-year to $982.7 million. However, subscription and services revenue provided some relief, increasing by more than 13% to $727.4 million compared to the previous year.
The decline in the crypto market significantly impacted Coinbase's financial performance. Bitcoin (BTC) saw a sharp decrease of nearly 30%, falling from a peak of $126,080 in early October to under $88,500 by the end of December. So far in 2025, Bitcoin has decreased by 25.6%, currently valued at $65,760, after recovering from a dip below $60,000 earlier in the month.
Despite the earnings miss, Coinbase's stock (COIN) rose by 2.9% in after-hours trading, settling at $145.18, following a 7.9% drop during regular trading hours to close at $141.1.
Looking forward to the first quarter, Coinbase has already generated $420 million in transaction revenue as of February 10. However, the company anticipates a decline in subscription and services revenue, projecting it to fall within the range of $550 million to $630 million from the previous $727.4 million.
Reflecting on 2025, Coinbase described the year as strong in both operational and financial terms, with annual revenues increasing by 9.4% from 2024 to reach $6.88 billion. The company highlighted that over 12% of the world's crypto assets were held on its platform, and it aims to expand its product offerings to enable customers to maximize the use of their assets.
Coinbase's CFO, Aleshia Haas, assured investors that the company plans to maintain steady expenditures in technology, sales, and marketing throughout the year. "We will remain agile and assess the opportunities ahead compared to our expenses," she stated during an earnings call.