Coinbase reported $1.22 billion in revenue for the second quarter ending June 30, coming up short of analyst expectations by around $80 million. The company’s loss per share hit $1.36, a sharp miss compared to the modest 17-cent loss predicted by Wall Street. This disappointing earnings report caused the stock to tumble over 7% in after-hours trading.
Despite efforts to grow its subscription and service revenue, Coinbase’s total revenue dipped from $1.5 billion a year ago, while net losses soared to $359.5 million compared to a $1.43 billion profit during the same period last year. The plunge reflects ongoing weakness in crypto trading, with the firm earning $599 million from transaction fees and $555 million from subscriptions and services, both below projections and last year’s numbers.
Bitcoin remained range-bound during the quarter, contributing to reduced trading volumes, and spot bitcoin ETFs saw sustained outflows. Coinbase’s focus on expanding its subscription-based products couldn’t offset the slump in transaction revenue, underscoring the challenges crypto platforms face amid a tepid market.
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