Coinbase Shares Drop Over 11% After Missing Earnings, Revenue Falls Short of Estimates

Coinbase shares experienced a sharp decline following the release of its second-quarter earnings report, with the stock falling more than 8% in after-hours trading and nearly 11.5% in the following session [3]. The drop marked one of the largest single-day losses in recent months and sent the company’s market capitalization down by nearly $11 billion [1]. The stock continued its downward trend the next day, with a 11% drop on July 25, 2025, compounding earlier losses from July 22, when Coinbase first indicated it would miss earnings expectations [2].

The disappointing financial results included $1.5 billion in revenue, which fell below the consensus estimate of $1.56 billion to $1.59 billion [6]. Non-GAAP earnings were particularly weak at $0.12 per share, significantly below analysts’ forecast of $1.49 per share [1]. The underperformance was largely driven by a sharp decline in transaction volumes, which directly impacted revenue from spot crypto trading [2]. While net income was reported at $1.4 billion, this figure included investment gains, and adjusted net income was much lower at $33 million [3].

Despite the earnings miss, some segments showed relative resilience. Subscription and services revenue, a key growth area for Coinbase, fell just 6% to $656 million, with stablecoin-related revenue rising 12% to $332 million [1]. The company expects this segment to grow further in Q3, with revenue projected between $665 million and $745 million [6].

Coinbase also highlighted several strategic and regulatory developments. The company noted the signing of the GENIUS Act by U.S. President Donald Trump, which creates a federal framework for stablecoin adoption, and the House’s passage of the CLARITY Act, which aims to clarify the regulatory structure for crypto markets [1]. These legislative advancements were described as “monumental” for the crypto industry.

On the product side, Coinbase expanded its stablecoin rewards program and reported strong user interest in its new Base App, which attracted over 700,000 users to its open beta waitlist [3]. The company also previewed plans for an “everything exchange” platform, which will support tokenized real-world assets, prediction markets, and early token sales. According to Coinbase Vice President of Product Max Branzburg, the platform will launch in the U.S. first and expand internationally based on regulatory approvals [1].

The earnings report reflects broader challenges facing crypto exchanges amid low trading activity and reduced investor participation. The market reaction underscores that investors are no longer tolerating underperformance, making it crucial for Coinbase to demonstrate a clear path to restoring growth and profitability [2].

Source: [1] title1.............................(https://m.economictimes.com/markets/stocks/news/coinbase-shares-sink-after-trading-weakness-hits-quarterly-profit/articleshow/123042020.cms)

[2] title2.............................(https://www.investing.com/news/stock-market-news/coinbase-shares-fall-112-after-profit-drop-4164925)

[3] title3.............................(https://www.marketscreener.com/news/coinbase-shares-sink-after-trading-weakness-hits-quarterly-profit-ce7c5fd2d18bf627)

[4] title4.............................(https://yellow.com/news/coinbase-stock-drops-7-after-q2-earnings-miss-dollar159-billion-revenue-target)

[6] title6.............................(https://uk.finance.yahoo.com/news/earnings-live-apple-tops-estimates-amazon-stock-slips-reddit-surges-205102706.html)