Coinbase Q1 Earnings Miss Expectations, Revenue Drops 19%

Coinbase, a prominent U.S. cryptocurrency exchange, released its first-quarter financial report on Thursday, revealing that its revenue and profit for the period fell short of market expectations. The decline was attributed to a decrease in trading activity from the previous quarter's peak, which followed the "election rally."

For the first quarter ending on March 31st, the company reported an adjusted net profit of $527 million. Earnings per share were $0.24, significantly lower than the market's consensus of $1.93. The total revenue of $20 billion was slightly below the expected $21.2 billion and declined from $23 billion in the fourth quarter of 2024. Due to a 10% decrease in trading volume, first-quarter trading revenue dropped by 19% to $12 billion.

At the end of this quarter, Coinbase held $9.9 billion in USD reserves, an increase of approximately $600 million compared to the previous quarter. Coinbase's stablecoin revenue was $197 million, lower than the $226 million in the previous quarter.

Analysts had forecasted higher earnings and revenue for the quarter, but the actual results fell short of these expectations. The decrease in trading volume and the subsequent drop in revenue highlight the volatility and unpredictability of the cryptocurrency market. Despite the challenges, Coinbase's USD reserves increased, indicating a strong financial position.

The company's stock price fell 2.5% to $201 in after-hours trading. The stock is down about 19% year-to-date in 2025 and has decreased by approximately 2% over the past year. This decline reflects investor concerns about the company's financial performance and the overall market conditions.