The second quarter of 2025 has proven challenging for the cryptocurrency exchange Coinbase, which failed to meet earnings expectations despite some achievements.
Coinbase's Q2 Financial Performance
In the second quarter, Coinbase reported a revenue of $1.5 billion, missing analyst expectations of $1.56 billion to $1.59 billion. Net income was $1.4 billion, while adjusted net income, excluding investment gains, was only $33 million. Non-GAAP earnings presentations were particularly weak, with profit at only $0.12 per share, far below the projected $1.49 per share. A sharp drop in transaction revenue, driven by falling spot crypto trading volumes, significantly affected results.
Future Prospects and Expectations
Despite a 26% decline in overall revenue from the previous quarter, subscription and services sales decreased only by 6% to $656 million, supported by rising stablecoin balances, primarily in USDC. Stablecoin-related revenue rose by 12% to $332 million. Looking ahead, Coinbase expects subscription and service revenue to range between $665 million and $745 million in the fiscal third quarter.
Significant Achievements in a Slowdown Period
Despite the downturn in the cryptocurrency market during the second quarter, the company highlighted key achievements in July that were termed "monumental milestones" for both the exchange and the broader industry. Among these milestones was US President Donald Trump's signing of the GENIUS Act, establishing a federal framework for stablecoin adoption, and the passage of the CLARITY Act aimed at defining the crypto market structure. Coinbase also noted progress on its product roadmap, including the expansion of its stablecoin rewards program and launching the Base App, which attracted over 700,000 users to its open beta waitlist.
Coinbase's quarterly report underscores the present challenges and achievements that may provide a foundation for future growth despite the volatility in the cryptocurrency market.
