Coinbase's COIN stock fell 15.34% on Thursday, marking the biggest drop in more than two years after the company reported Q3 earnings that fell short of expectations.
As the largest publicly listed crypto exchange in the US, Coinbase saw its stock price drop to $179.25 at the close of trading, reducing its YTD gain to just 3%. This was the biggest single-day decline for the stock since July 2022, when it plunged 21%, according to data from Market Watch. The Nasdaq Composite index ended the session down 2.76%, while the S&P 500 lost 1.86%.
The decline in Coinbase's stock price came immediately after the company reported Q3 financial results that missed analyst forecasts. Coinbase's net revenue for the quarter was $75 million, significantly lower than the $112.2 million expected according to a Bloomberg survey.
While Coinbase's net revenue, net income, and adjusted EBITDA grew year-over-year when Bitcoin prices were low, some key income metrics declined from the prior quarter. Specifically, net revenue in Q3 was $1.13 billion, down from $1.38 billion in the previous quarter.
Alongside its earnings results, Coinbase announced a $1 billion stock buyback program, reflecting the company's confidence in its business. Coinbase's board said the buybacks will be subject to market conditions.
In a letter to shareholders, Coinbase expressed optimism about the future, regardless of the outcome of the upcoming US presidential election. "Both presidential candidates as well as many politicians from different parties are increasingly crypto-friendly, a major shift from previous years," the company shared.
Additionally, Coinbase announced on Wednesday that it will contribute an additional $25 million to the Fairshake political action committee to support crypto-friendly candidates ahead of the 2026 midterm elections.
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