Coinbase Q1 Earnings Miss Expectations, Stock Drops 3%

Coinbase, one of the world’s largest crypto exchanges, released its Q1 2025 Earnings Report, which fell short of bullish expectations in several key areas. Despite a positive day beforehand, the company’s stock valuation also fell over 3% in after-hours trading.

Coinbase’s Q1 revenue was almost $200 million short of the expected $2.2 billion, and its transaction revenue was $70 million under the anticipated amount. Earnings per Share were a meagre $0.24 instead of $2.09, and subscription and services revenue also underperformed by $4.5 million.

Despite the bearish report, Coinbase highlighted a few positives. Trading volume did overperform expectations, albeit slightly; the exchange reported $393 billion instead of the anticipated $392.7 billion. Additionally, the firm’s long-running stake in Circle is paying off, with gross USDC balances in Coinbase products increasing to $12.3 billion. This represents an impressive 49% gain quarter-over-quarter.

Coinbase also pointed to a few growth trends to be optimistic about. For example, the SEC dropped its case against the firm, and it acquired the world’s largest crypto derivatives exchange.

Looking ahead, Coinbase maintains its optimism, focusing on expanding real-world crypto utility, strengthening and extending its trading platform, and scaling the infrastructure that will power the financial system of the future. With growing regulatory clarity, the company is accelerating its vision towards economic freedom.

Ultimately, it’s difficult to predict where the firm is heading from here. Although this Earnings Report underperformed expectations, Coinbase still has a lot of resources at its disposal. Furthermore, Q1 showed positive developments for the exchange in terms of market expansion. Coinbase achieved regulatory licenses in both Argentina and India, further expanding its user base across the globe.